US-Africa Trade Talks End With No Decision, Waning Enthusiasm

Talks between African and U.S. officials to review the African Growth and Opportunity Act (AGOA) free-trade deal ended Thursday with no decision and a feeling on all sides that it has achieved little since it was set up.

President Donald Trump’s top trade negotiator, Robert E. Lighthizer, and other U.S. officials have been in the tiny West African nation of Togo over the past two days to discuss the Clinton-era trade pact with sub-Saharan Africa.

Trump’s “America First” campaign has seen him withdraw from the Trans-Pacific Partnership, threaten to tear up the North American Free Trade Agreement and seek to renegotiate the U.S.-South Korea free-trade deal. But his administration has said little about Africa, and had not previously mentioned the 2000 AGOA trade agreement.

It is not clear whether the U.S. wants to change the deal before it expires in 2025 or extend it. No decision was made on either count.

AGOA allows tariff-free access for thousands of goods from 38 African nations to U.S. markets.

“The number of countries benefiting from AGOA is very limited, as is the number of sectors,” Peter Barlerin, deputy assistant secretary in the U.S. State Department’s Bureau of African Affairs, said at the forum Wednesday. “We will see if the situation improves in the coming years, but it is also up to the beneficiary countries to enhance their business climate.”

‘Constraints’ on some

Bernadette Legzim-Balouki, Togo’s trade minister, who presided over the meeting, was equally lukewarm on AGOA.

“Not all the countries eligible have benefited from the law,” she said. “We are trying to examine the constraints that prevent some African countries from profiting.”

Legzim-Balouki added that the United States and the nations eligible for AGOA had agreed on some loose aims, including: development of a better plan to take full advantage of the pact; bilateral talks between the U.S. and each eligible country; development of a mechanism to protect African producers from price volatility.

The U.S. trade deficit with the AGOA countries shrank to about $7.9 billion last year from a peak of $64 billion in 2008, as U.S. shale oil production increases have lessened the need for oil imports from major exporters Nigeria and Angola.

“AGOA is an excellent opportunity but we aren’t making the most of it, mainly due to a lack of knowledge about it,” Beninois agribusinessman Sylvain Adewoussi told Reuters.

Croatia Cuts Import Fees to Avoid Trade War with Balkan Neighbors

Croatia revoked on Thursday its decision to raise import fees on some farm products by 220 percent, avoiding a trade war with its Balkan neighbors who had threatened to hit back with counter-measures.

European Union-member Croatia last month raised its fees for phytosanitary controls — agricultural checks for pests and viruses on fruits and vegetables — at its borders to 2,000 kuna ($317.52) from 90 kuna, citing compliance with EU standards and protection of its consumers.

EU candidates Serbia, Macedonia and Montenegro, as well as fellow EU aspirant Bosnia, have called on Croatia to withdraw its decision, saying otherwise each of them would take counter-measures it considered adequate to protect its economic interests.

Serbia, which is the only country in the region that operates a trade surplus with its neighbor, has already stepped up phytosanitary controls on all organic produce from Croatia and said it would increase them further.

Croatia’s agriculture ministry said in a statement on Thursday that it cut the import fee for a shipment of one brand of fruits and vegetables to 90 kuna, and that the decision will become effective on Friday.

The ministry also agreed with neighboring countries that agricultural inspections on their borders will go back to normal routine as of Friday, while all other pending issues will be analyzed and discussed, it said in the statement.

Most countries in the region import more than they export to Croatia, except for Serbia. Serbia’s exports to Croatia in 2016 reached 116 million euros ($136.04 million) versus imports worth 79 million euros.

Neighboring countries welcomed Croatia’s move.

“Bringing the prices back at the previous level will contribute to the relaxation of relations among the countries of the region,” said Serbian Prime Minister Ana Brnabic.

($1 = 0.8527 euros)

($1 = 6.2989 kuna)

US Defense Secretary Mattis Begins Tech Outreach with Amazon Visit

U.S. Defense Secretary Jim Mattis kicked off his first official visit to the U.S. technology industry on Thursday with a tour of Amazon’s headquarters in Seattle, the first stop on a two-day outreach campaign intended to highlight the Pentagon’s commitment to tech innovation.

Mattis was scheduled to visit Mountain View, California, later in the day to tour the Pentagon’s Defense Innovation Experimental Unit, or DIUx, a Silicon Valley outpost set up in 2015 by his predecessor, Ash Carter.

He was also expected to visit Alphabet’s Google headquarters in Palo Alto on Friday.

“A pleasure to host #SecDef James Mattis at Amazon HQ in Seattle today,” Amazon Chief Executive Jeff Bezos wrote on Twitter.

The visit comes as the Trump administration has sparred with the technology industry on a host of issues, including immigration, privacy and net neutrality.

 

Egypt Inflation Surges to 33 Percent After Fuel Subsidy Cuts

Egypt’s official statistics agency says the country’s inflation rate has jumped to 33 percent in July – up from 29.8 percent in June.

The announcement comes as Egyptians struggle in the face of steep price hikes as part of the government’s economic reform plan.

 

The Central Agency for Public Mobilization and Statistics made the announcement Thursday.

 

Economists believe the hike is driven by an increase in fuel prices. They expect inflation to remain above 30 percent over the next two months, especially after an increase in electricity, transportation and drinking water prices.

 

Egypt raised fuel prices in June by 55 percent for the commonly used 80-octane gasoline and diesel. It also doubled the price of the butane gas canisters, used in the majority of Egyptian households for cooking.

China Sends ‘Hack Proof’ Code From Satellite to Earth

China has sent an unbreakable code from a satellite to the Earth, marking the first time space-to-ground quantum key distribution technology has been realized, state media said Thursday.

China launched the world’s first quantum satellite last August, to help establish “hack proof” communications, a development the Pentagon has called a “notable advance.”

The official Xinhua news agency said the latest experiment was published in the journal Nature Thursday, where reviewers called it a “milestone.”

Quantum key technology

The satellite sent quantum keys to ground stations in China between 645 km (400 miles) and 1,200 km (745 miles) away at a transmission rate up to 20 orders of magnitude more efficient than an optical fiber, Xinhua cited Pan Jianwei, lead scientist on the experiment from the state-run Chinese Academy of Sciences, as saying.

“That, for instance, can meet the demand of making an absolute safe phone call or transmitting a large amount of bank data,” Pan said.

Any attempt to eavesdrop on the quantum channel would introduce detectable disturbances to the system, Pan said.

“Once intercepted or measured, the quantum state of the key will change, and the information being intercepted will self-destruct,” Xinhua said.

The news agency said there were “enormous prospects” for applying this new generation of communications in defense and finance.

China lags in space

China still lags behind the United States and Russia in space technology, although President Xi Jinping has prioritized advancing its space program, citing national security and defense.

China insists its space program is for peaceful purposes, but the U.S. Defense Department has highlighted its increasing space capabilities, saying it was pursuing activities aimed at preventing adversaries from using space-based assets in a crisis.

China to US: Be Prudent on Aluminum Duties

China urged the U.S. government Thursday to act “prudently” to avoid damaging economic relations between the two countries, in a strongly worded response to Washington’s preliminary decision to place anti-dumping duties on Chinese aluminum foil.

In a statement posted on the Ministry of Commerce’s Wechat account, the government said the United States had ignored cooperation offered by Beijing and Chinese companies in making its ruling this week.

The statement, attributed to Wang Hejun, head of the Commerce Ministry’s trade remedy and investigation bureau, was more strongly worded than typical responses to trade disputes with the United States.

The statement said there were no grounds to accuse China’s aluminum producers of benefiting from subsidies.

 

In the Fight to End Modern Slavery, Machines May Hold Key

More than 20 million people are working as modern slaves, and a technology developer is hoping artificial intelligence can help clean up the world’s supply chains and root out worker abuse.

Developer Padmini Ranganathan said mobile phones, media reports and surveillance cameras can all be mined for real-time data, which can in turn be fed into machines to create artificial intelligence (AI) that helps companies see more clearly what is happening down the line.

“The time to do this now is better than ever before, with so many countries and companies focusing on modern slavery,” she said. “At the start of the decade, the driving force for compliance was fear of being penalized. Now companies are looking at social impact and saying they want to do this.”

​More scrutiny of modern-day slavery

Modern-day slavery has come under increasing scrutiny in recent years, putting regulatory and consumer pressure on companies to ensure their supply chains are free from forced labor, child workers and other forms of slavery.

Almost 21 million people are victims of forced labor, according to the International Labor Organization (ILO), with migrant workers and indigenous people particularly vulnerable.

But Ranganathan said there are new digital ways to stamp out exploitation, given humans have failed to end modern slavery.

“The technology can filter over 1 million articles a day using forced labor specific key words and highlight potential areas of risk in a supply chain,” she said.

Ranganathan works for information technology services company SAP Ariba, which helps companies better manage their procurement processes.

She said a new program could map weak links in corporate supply chains by culling data from a host of sources, from surveillance cameras to non-profits and other agencies.

“Artificial intelligence and machine learning can use these huge volumes of data and extract meaningful information,” she said.

Forced labor worth $150 billion

Forced labor in the private economy generates $150 billion in illegal profits per year, according to the ILO.

Ranganathan hopes her new program will curb that market and help create “supply chains with a conscience.”

For instance, she said it could help detect if child labor was used to pollinate cotton, which in turn was used to produce a branded shirt. Or it could help monitor labor conditions on cocoa plantations, giving companies “real-time exposure” so they can purge their supply chains of abuse right away.

“The convergence of technology will make things more transparent and real-time exposure can be created,” she said.

“In the AI world, techniques are being piloted where we could arm the lowest level supplier with a mobile app, ensure hotlines in factories, use of surveillance cameras and make this all a part of the contract.”

Ranganathan conceded that mapping the “last mile” of any supply chain was the hardest part, with many outsourcing work to homeworkers and small units, where data was harder to gather.

Mass Market Hopes for Battery-free Cell Phone Technology

Researchers in the United States have unveiled a prototype of a battery-free mobile phone, using

technology they hope will eventually come to be integrated into mass-market products.

The phone is the work of a group of researchers at the University of Washington in Seattle and works by harvesting tiny amounts of power from radio signals, known as radio frequency or ‘RF’ waves.

“Ambient RF waves are all around us so, as an example, your FM station broadcasts radio waves, your AM stations do that, your TV stations, your cellphone towers. They all are transmitting RF waves,” team member Vamsi Talla told Reuters.

The phone is a first prototype and its operation is basic — at first glance it looks little more than a circuit board with a few parts attached and the caller must wear headphones and press a button to switch between talking and listening.

But researchers said there are plans to develop further prototypes, featuring a low-power screen for texting and even a basic camera. They also plan a version of the battery-free phone that uses a tiny solar cell to provide power.

The researchers plan to release a product in eight to nine months time, thought they would not give further details. One team member however, was prepared to give a glimpse of how their work will impact the future of cellphone technology.

“In the future every smartphone will come with a battery-free mode where you can at least make a voice call when your battery’s dead,” said the researcher.

The initiative is not the only one seeking to improve the way that mobile technology is powered. Researchers at the Universities of Bristol and Surrey in Britain, are developing supercapacitors, which they believe will eventually allow devices to charge in a period of a few minutes.

Efforts to End Viral Hepatitis in Indigenous People Show Promise

Many indigenous populations suffer from high rates of viral hepatitis, and are 2 to 5 times as likely as the surrounding general population to contract it. But efforts to eliminate the diseases have begun to show promise, some researchers say.

Globally, 71 million people have hepatitis C and 257 million have hepatitis B. The viruses cause inflammation of the liver and can lead to cirrhosis and, especially with hepatitis C, liver cancer.

Most cases come from contact with infected blood, drug use, tattoos with unclean needles, or sexual transmission. Before the screening of blood in 1992, blood transfusions were a frequent source. The infection also can pass from a mother to her newborn child.

At the World Indigenous People’s Conference on Viral Hepatitis this week in Anchorage, Alaska, scientists reported on the problem and the efforts to solve it, including one of the first efforts to eliminate hepatitis C from a population.

​Reasons for high rates of infection

Homie Razavi and Devin Razavi-Shearer, epidemiologists from the Polaris Observatory, examined why infection rates were so high among indigenous communities. In Canada, hepatitis B rates were five times higher than the general population, and hepatitis C, three times higher. In Australia, indigenous people were four times as likely to contract hepatitis B and three times as likely to contract hepatitis C.

The researchers said the rates were likely because to “disproportionately high rates of poverty, injection drug use, and incarceration in indigenous populations. This, in combination with the lack of access to health care and prevention measures, greatly increases the risk and thus prevalence of hepatitis C.”

But great progress is being made. In the 1980s, vaccination programs began to cut infection rates of hepatitis B.

Dr. Brian McMahon, director of the Alaska Native Tribal Health Consortium, told the conference that new surveys have shown that the disease has been virtually eliminated in young indigenous people in Alaska.

Eliminating infection

Jorge Mera, director of infectious diseases for Cherokee Nation Health Services in Oklahoma, reported on an effort there to eliminate hepatitis C.

“Of the people we think have hepatitis C in the community, we’ve treated one-third of them,” he told VOA, “and that’s pretty good for a program that we started two years ago.”

That program is the first effort in the United States, and one of the first in the world, to attempt to wipe out the virus. Treatments for hepatitis C have improved dramatically over the past decade, making these efforts possible.

Mera said there are many programs around the world in the planning stages, and he pointed to a number of things those programs can learn from the Cherokee Nation’s effort.

“Most of the patients that we’re detecting positive are coming in through the urgent care and emergency department,” he said, “so if you have limited resources, these are areas that I would focus on.”

Health officials in the Cherokee Nation are screening everyone between the ages of 20 and 69. This effort includes screening people during dental appointments.

The Centers for Disease Control and Prevention has recommended screening older adults, but Mera said there were high rates of hepatitis infection in people in their 20s and 30s. He suggested that others setting up elimination programs first determine the prevalence of infection in their respective communities before deciding whom to screen.

He said history has led to high rates of hepatitis in indigenous populations. 

“When you have a population that has been oppressed or traumatized for centuries due to the nature of how the Western colonization process developed, those are factors that may lead substantial portions of that population to seek some relief in nonconventional ways like intravenous drug use,” Mera said.

Preventing transmission is crucial to eliminating hepatitis C, Mera said. One way to combat transmission, he said, is to legalize and expand needle exchanges and opiate-substitution programs.

With ‘Watch,’ Facebook Takes Big Step Toward TV

Facebook on Wednesday made its biggest move to date to compete in the television market by expanding its video offerings with programming ranging from professional women’s basketball to a safari show and a parenting program.

The redesigned product, called “Watch,” will be available initially to a limited group in the United States on Facebook’s mobile app, website and television apps, the company said.

The world’s largest social network added a video tab last year, and it has been dropping hints for months that it wanted to become a source of original and well-produced videos, rather than just shows made by users.

Reuters reported in May that Facebook had signed deals with millennial-focused news and entertainment creators Vox Media, BuzzFeed, ATTN, Group Nine Media and others to produce shows, both scripted and unscripted.

Daniel Danker, Facebook’s product director, said in a statement Wednesday: “We’ve learned that people like the serendipity of discovering videos in News Feed, but they also want a dedicated place they can go to watch videos.”

Facebook said the shows would include videos of the Women’s National Basketball Association, a parenting show from Time Inc and a safari show from National Geographic. Facebook is broadcasting some Major League Baseball games and that would continue, the company said.

Eventually, the platform would be open to any show creator as a place to distribute video, the company said.

The company, based in Menlo Park, California, faces a crowded market with not only traditional television networks but newer producers such as Netflix and Alphabet’s YouTube as well as Twitter and Snap.

Ancient Beast Named for Late Motörhead Bassist Lemmy

A ferocious seagoing crocodile that menaced coastal waters about 164 million years ago during the Jurassic Period has been given a name honoring the similarly ferocious heavy-metal rocker Lemmy, the late frontman for the British band Motörhead .

Scientists said on Wednesday they had named the 19-foot-long (5.8 meters) reptile Lemmysuchus, meaning “Lemmy’s crocodile.” Its fossils were unearthed near the eastern English city of Peterborough in 1909 and were recently re-examined and determined to be a distinct genus in need of a name.

Its enlongated, narrow snout resembled those of modern fish-eating crocs from India called gharials. It boasted large, blunt teeth, perfect for crushing turtle shells or other hard-bodied prey like hard-scaled fish, said University of Edinburgh paleontologist Michela Johnson, lead author of the study published in the Zoological Journal of the Linnean Society.

“It’s big, ugly and quite scary. We think that Lemmy would have liked it. For me, this is a career high, and I can now die happy,” added another of the researchers, Lorna Steel, who came up with the name.

Known for hard living and hard rocking, gravelly voiced Ian “Lemmy” Kilmister, died of cancer at age 70 in 2015 in Los Angeles. He formed his influential band Motörhead in 1975.

“I wanted to name something after Lemmy after he died,” said Steel, senior curator for fossils from the croc family, birds and flying reptiles at the Natural History Museum in London.

“At that time, late December 2015, I was working with colleagues from Edinburgh University on this particular fossil specimen,” she said. “I kept the thought to myself for a while but then floated the idea past the others. They all thought it was great, and it really is the most appropriate fossil to bear Lemmy’s name.”

Lemmysuchus was a member of a group called teleosaurs, seagoing crocodiles that thrived for tens of millions of years during the age of dinosaurs. The seas at the time were also populated by a number of types of marine reptiles, including long-necked plesiosaurs and dolphin-like ichthyosaurs.

Johnson studied the fossil specimen held at the Natural History Museum and determined that it had been incorrectly classified as another teleosaur called Steneosaurus.

Study Boosts Hope of ‘Liquid Biopsies’ for Cancer Screening

Scientists have the first major evidence that blood tests called liquid biopsies hold promise for screening people for cancer. Hong Kong doctors tried it for a type of head and neck cancer, and boosted early detection and one measure of survival.

The tests detect DNA that tumors shed into the blood. Some are used now to monitor cancer patients, and many companies are trying to develop versions of these for screening, as possible alternatives to mammograms, colonoscopies and other such tests. The new study shows this approach can work, at least for this one form of cancer and in a country where it’s common.

“This work is very exciting on the larger scale” because it gives a blueprint for how to make tests for other tumor types such as lung or breast, said Dr. Dennis Lo of Chinese University of Hong Kong. “We are brick by brick putting that technology into place.”

He led the study, published Wednesday by the New England Journal of Medicine. Lo is best known for discovering that fetal DNA can be found in a mom’s blood, which launched a new era of non-invasive testing for pregnant women.

The study involved nasopharyngeal cancer, which forms at the top of the throat behind the nose. It’s a good test case for DNA screening because it’s an aggressive cancer where early detection matters a lot, and screening could be tried in a population where the cancer is most common — middle-aged Chinese men.

Also, the Epstein-Barr virus is involved in most cases, so tests could hunt for viral DNA that tumors shed into the blood in large quantities, rather than rare bits of cancer cells themselves. 

About 20,000 men were screened, and viral DNA was found in 1,112, or 5.5 percent. Of those, 309 also had the DNA on confirmatory tests a month later. After endoscope and MRI exams, 34 turned out to have cancer.

More cases were found at the earliest stage — 71 percent versus 20 percent of a comparison group of men who had been treated for nasopharyngeal cancer over the previous five years. That’s important because early cases often are cured with radiation alone, but more advanced ones need chemotherapy and treatment is less successful.

Screening also seemed to improve how many survived without worsening disease — 97 percent at three years versus 70 percent of the comparison group.

Only one person who tested negative on screening developed nasopharyngeal cancer within a year. 

The researchers estimate 593 people would need to be screened at a total cost of $28,600 to identify one cancer case. It may be worth it in Hong Kong, but maybe not in places like the U.S. where the disease is rare, and more people would have to be screened at a greater cost to find each case, said Dr. Richard Ambinder of Johns Hopkins School of Medicine, who wrote a commentary in the journal.

Still, “this is showing that liquid biopsies have great promise,” he said. “This is an advance that will indeed save lives.”

The study was sponsored by an Asian foundation and the Hong Kong government. Lo and some other authors founded Cirina, a Hong Kong-based company focused on early cancer detection, and get royalties related to DNA blood tests. In May, Cirina merged with Grail Inc., a California company working on cancer screening blood tests with more than $1 billion from drug companies and big-name investors such as Jeff Bezos and Bill Gates.

Harsh Rhetoric Between North Korea and Trump Worries Investors

The exchange of threats and harsh rhetoric between North Korea and Donald Trump has rattled many investors. Stock prices fell in Asia, Europe and the United States, while demand rose for safe-haven investments like gold.

Key stock indexes in Hong Kong, Germany, and France were down by one percent or more. U.S. stocks were down as much as four-tenths of a percent in Wednesday’s mid-day trading. Before Tuesday’s angry exchange of words, U.S. stocks had been setting a series of record highs.

Demand for gold, a traditional way of protecting assets in troubled times, pushed up the price for the precious metal by about one percent in Wednesday’s trading. Oil prices also posted gains.

South Korea is home to more than 50 million people and major companies like Samsung and Hyundai. World Bank data show South Korea has a $1.4 trillion economy, which is nearly two percent of global economic activity.

Author of Google Diversity Memo Files Labor Complaint After Firing

A former Google software engineer, who wrote an internal memo criticizing the company’s diversity policies, has filed a labor complaint, saying he was wrongfully fired.

In a statement emailed to news agencies, James Damore said he filed the complaint with the National Labor Relations Board prior to his termination and that, “It’s illegal to retaliate against the NLRB charge.”

Damore said he was subjected to “coercive statements” while working at Google. According to the Associated Press, a Google spokesperson said the company could not have retaliated against Damore because it was not aware of the complaint until hearing about it in the news media after he was dismissed.

Damore caused an uproar after the website Gizmodo published a leaked copy of the memo he wrote, encouraging Google to “treat people as individuals, not as just another member of their group,” and questioning the effectiveness of diversity programs at the company.

Sundar Pichai, Google’s chief executive officer, criticized Damore’s memo in an email for “advancing harmful gender stereotypes in our workplace.”

In the 10-page internal memo, titled “Google’s Ideological Echo Chamber,” Damore asserted that fewer women are employed in the technology field because they “prefer jobs in social and artistic areas,” while men are more inclined to become computer programmers — a fact he said was due to “biological causes.”

Danielle Brown, Google’s new vice president for diversity, integrity and governance, said the memo “advanced incorrect assumptions about gender” and promotes a viewpoint not encouraged by the company.

“Part of building an open, inclusive environment means fostering a culture in which those with alternative views, including different political views, feel safe sharing their opinions,” she said. “But that discourse needs to work alongside the principles of equal employment found in our Code of Conduct, policies, and anti-discrimination laws.”

The controversy comes as Silicon Valley faces accusations of sexism and discrimination. Google is in the midst of a Department of Labor investigation over allegations women there are paid less than men.

Cholera Threatens to Sweep Across South Sudan During Rainy Season

The International Organization for Migration (IOM) is calling for rapid action to prevent a cholera epidemic in South Sudan from spiraling out of control as the rainy season in the country progresses.

More than 18,000 cases of cholera, including 328 deaths have been reported in South Sudan since June 2016. The International Organization for Migration warns the number of cases and deaths is likely to grow as the rainy season this year will leave as much as 60 percent of the country inaccessible by road.

IOM spokeswoman, Olivia Headon, tells VOA a combination of factors including the ongoing crisis, the rainy season and the movement of displaced people across the country is making it extremely difficult to contain this deadly disease.

“So, if you are maybe infected with cholera or someone in your family if you come in contact with this and then you move to a different part of the country, you are also bringing the infection with you,” she said. “We hope that it does not spiral out of control and IOM with other partners in the U.N. and NGO [non-governmental organization] implementers on the ground are working so it does not.”

IOM reports the scale of needs in this conflict-ridden country is unprecedented, with more than 7.5 million people dependent on humanitarian aid. The agency says disease outbreaks, such as cholera, are particularly dangerous for displaced and vulnerable populations. This includes children under five, thousands of whom are severely acutely malnourished and at risk of dying without therapeutic help.

Headon says IOM and partners are leading oral cholera vaccination campaigns across South Sudan. She says they are distributing cholera kits, including jerry cans, water treatment supplies and soap. She says aid workers also are repairing boreholes and conducting hygiene promotion in cholera-affected areas across the country.

 

US Push for Freer NAFTA e-commerce Meets Growing Resistance

A U.S. proposal for Mexico and Canada to vastly raise the value of online purchases that can be imported duty-free from stores like Amazon.com and eBay is emerging as a flashpoint in an upcoming renegotiation of the NAFTA trade deal.

Vulnerable industries like footwear, textiles and bricks and mortar retail in Mexico and Canada are pushing back hard against the proposal by the U.S. trade representative to raise Mexican and Canadian duty-free import limits for e-commerce to the U.S. level of $800, from current thresholds of $50 and C$20, respectively.

For the Mexicans, the main worry is that such a move could open a back door for cheap imports from Asia and beyond. For Canadian retailers, the fear is that e-commerce companies will undercut their prices.

The U.S. plan was unveiled in July as part of the Trump administration’s goals to renegotiate the 25-year-old treaty.

While Mexico and Canada are still formulating their responses, Mexico City is leaning strongly against the proposal in its current form, and Ottawa may not be far behind.

The proposed $800 level “opens a completely unnecessary door” to imports from outside the NAFTA trading bloc, Mexican Economy Minister Ildefonso Guajardo said on Thursday on the sidelines of a NAFTA-related event, calling it “a very sensitive topic.”

The growing controversy over how to account for a burgeoning regional e-commerce sector dominated by the United States highlights a rare area where the Trump administration is pushing to liberalize trade rules rather than tightening them.

Much of Trump’s criticism of NAFTA stems from his belief it has decimated U.S. manufacturing as companies shifted production to Mexican factories with cheaper labor, creating a U.S. trade deficit with Mexico worth more than $60 billion.

Top priority

But Mexican and Canadian business leaders fear the rule change could make their industries vulnerable, arguing that unless online retailers can show products are made in North America, they should not be exempted from duties levied on other imports.

“We can’t open the door to inputs from outside the region coming in tax-free when we’re talking about the need to reduce the deficit and create jobs,” said Moises Kalach, who fronts the international negotiating arm of Mexico’s CCE business lobby. “It goes completely against that.”

Guajardo said Mexico’s retail group the National Self-service and Department Store Association, which includes powerful members such as Wal-Mart de Mexico , had visited him last week to express concerns about the proposal.

He said the group’s representative brought to the meeting a $250 jacket bought on the internet as evidence that violations to the existing limit were already threatening members’ businesses.

“Suppose there was an $800 free limit. Can you imagine how many shirts Vietnam could send to Mexico in a packet below that price? They could easily flood us with packets of 100,” he said, while recognizing the need to smooth customs processes.

Complicating efforts to agree on a common set of rules is a tangle of diverging regulations on tax and how the restrictions on imports differ in the region depending on whether they enter by air, sea or land.

Amazon.com Inc. and eBay Inc. declined to comment for this story.

eBay has previously said it supports an increase to Canada’s low-value customs “de minimis” threshold for ecommerce to promote seamless access to the global marketplace.

Increasing the threshold “absolutely” is eBay’s top priority in the NAFTA renegotiation, a person familiar with the matter said.

Canadian opposition is being led by retailers, whose industry association said it was concerned about “the behavioral shift that would inevitably result if shoppers can buy a far wider range and higher value of goods tax-free and duty-free.”

The Retail Council of Canada said in a submission to the government that clothes, books, toys, sporting goods and consumer electronics would be among the items most affected, and expressed confidence Ottawa would fend off such requests.

Not from other nations

“eBay in particular has lead this charge to three different finance ministers in a row — Jim Flaherty, Joe Oliver, and Bill Morneau — and in each case they have failed,” said Karl Littler, a spokesman for the Retail Council of Canada.

“The U.S. raised this quite frequently in the TPP [Trans-Pacific-Partnership trade] round and they also failed to secure this concession,” he added.

There have been hints from Canada’s government about a compromise under which a higher limit would exempt products ordered from e-commerce from duties but not sales taxes.

“When it comes to waiving duties and taxes, we need to carefully consider the impact that would have on Canadians and on Canadian businesses,” said Chloe Luciani-Girouard, a spokeswoman for Morneau.

Mexican firms could accept a higher import limit for goods produced in the NAFTA region — but not from other nations, said Alejandro Gomez Tamez, executive president of the Chamber of Commerce for the footwear industry in the central Mexican state of Guanajuato, a hub of textile manufacturing.

“When a product comes in, even if it’s packaged and sent from the United States, if it’s from a third country, it should pay duties,” he said.

WHO in Myanmar Says Swine Flu Outbreak Not an ‘Unusual Event’

The World Health Organization in Myanmar says a recent outbreak of H1N1 in the country is not unusual for the time of the year, and while there may be more cases in the future the available data suggests it is not a cause for panic.

Myanmar’s state media reported on Wednesday that since July 21 there have been 166 confirmed cases and 17 deaths from the virus, known commonly as swine flu after a global pandemic in 2009 was found to have originated in infected pigs. The respiratory infection is now considered a normal human flu.

Seasonal event

Dr. Stephan Paul Jost, WHO’s country representative in Myanmar, said in an interview the consensus based on the evidence so far is that “this is a seasonal event, it’s a seasonal influenza, and there are likely to be also more cases because it is seasonal. And it is not in itself a cause for alarm.”

“Influenza of course can be a serious disease and people can also die from it,” he added. “It happens in every country in the world in the flu season and sometimes even outside it.”

The damp and slightly cooler conditions of Myanmar’s rainy season are also favorable for the influenza virus.

But Jost said the numbers are generally in line with what WHO is seeing in countries in the region.

“It is not in itself an unusual event. Of course we are keeping a close eye on it,” he said.

Monitoring

Dr. Than Htun Aung, the deputy director of the public health department with Myanmar’s Ministry of Health and Sports, said the government is in the process of stepping up monitoring and that it’s too early to say whether the virus has tapered off.

“Now we’re controlling. We are waiting [for] more information from the surveillance. We can’t say now,” he said. “I think we can control like other countries did. USA was the same, they had more patients than we had. Now we’re learning what they have done and planning procedures.”

WHO is providing technical support in terms of specific guidelines, consulting with regional experts, and facilitating samples to be sent to laboratories abroad.

It has also worked with Facebook representatives in the region and locally to look at various messaging and discussion about H1N1 on social media, which some believe contributed to an unnecessary panic over the outbreak, with large numbers of people in the commercial capital Yangon donning surgical masks as a main line of defense.

“We’re looking at the different terminology used in Facebook for influenza and for this particular outbreak to see whether we can work together to get more systematic and authoritative messages out that are quite simple but … recommended by WHO,” Jost said, adding it was an ongoing process. “We are still working together on this to actually find the best way forward.”

A representative for the social media platform in Singapore was not immediately available for comment as August 9 is a public holiday in the country.

Surgical masks

Jost described the use of surgical masks in Myanmar as perhaps a “bit overdone,” in particular N95 masks, which are not recommended for the public as they are difficult to wear and better for hospital environments and health workers.

However, light surgical masks that fit easily on the face can be useful in some situations, he said, especially if you know you have the flu. They may even cut down on transmission in crowded places like buses.

“Influenza is transmitted by a fine droplet. It’s not airborne, you don’t get it just by breathing air. It’s fine droplets, by sneezing and coughing, that are dispersed, that’s transmitted, and that’s usually then also by hand, either by shaking hands or it lands in your hand and you rub your eyes and it enters your system,” he said. “So even masks would not protect from that. You could have a mask and you are rubbing your eyes and you are still getting it.”

“But if you are sick [and wearing a mask] you are preventing then the dispersal of these fine droplets to others. That is definitely helping. That is good,” he added.

One of the other issues that arose in response to the outbreak was a lack of past data that could help authorities assess the scope of the problem.

Jost said WHO had suggested health officials could strengthen the surveillance of cases so “a picture would really emerge that is more consistent, more complete than what is currently available and would give us a better idea historically, what is the historical activity of the influenza viruses in the country.”

He said Myanmar had a lot of cases in 2010, the year after the worldwide outbreak, and also in 2014.

“But how complete this information is we are not as sure as perhaps we could be. And that’s true for many countries,” he said.

Jost also complimented Myanmar’s health officials and government partners on the outbreak response, saying it was “very encouraging.”

Aung Naing Soe contributed to this report.

 

 

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