YCLOAK

Kenya has become the latest African country to ban the use of polythene plastic bags, imposing stiff fines and even jail time for anyone found using, importing or manufacturing the bags.

In one of the biggest garbage dumping sites in Nairobi, it was business as usual Monday. Loads of plastic bags full of garbage were brought in, a testament to their widespread use in the capital.

But no more, says the government.

A new law went into effect Monday making the manufacture, sale and use of polythene plastic bags illegal. Offenders can get slapped with penalties up to a four-year jail term and a $40,000 fine.

The National Environment Management Authority, with the help security agencies, has been going around Nairobi to urge retailers and manufacturers to heed the new ban.

Geoffrey Wahungu is the director general of NEMA. He is promoting the “take-bag scheme,” basically calling on consumers to bring their own cloth bags or baskets from home.

“I hope soon we’ll start seeing people who are carrying out these recycling materials, or alternative bags, which are eco-friendly. All this is creating much more employment than is being lost,” he said.

Economic impact

Two plastic bag importers unsuccessfully challenged the ban before the High Court Friday. Kenya produces plastic bags for local use and export in the region. The National Association of Manufacturers has argued that the ban will cost more than 60,000 jobs and hurt more than 170 companies.

NEMA gave six months’ notice of the new ban, but it still appears to have taken many in Kenya by surprise.

Some large retailers have already switched to paper, but small traders are feeling the pinch.

Simon Njenga runs a grocery kiosk. He says he lost customers Monday.

He says “the ban pains me a lot because a customer wants to purchase vegetables, but he doesn’t have a bag and I can’t give him one, so they leave my kiosk without buying. The government has to bring back the plastic bags. My livelihood depends on it.”

 

Tanzania, Uganda, Malawi and Cameroon have announced similar bans on plastic bags, although the bans aren’t widely enforced. Rwanda is the only African country so far to both declare a ban and push people to follow the law.

Kenyan Environment Minister Judy Wakhungu told Reuters news agency that manufacturers and importers will be the ones initially targeted for enforcement of the ban.

Experts argue that polythene bags are bad for the environment and public health. The thin plastic bags have been blamed for polluting cities and shorelines and killing animals who eat them.

NEMA says the single-use polythene bags “never fully biodegrade, remaining in the environment as small or even microscopic particles, essentially forever.”

 

 

 

 

 
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Fall armyworm has spread to Cameroon.  The pest has attacked crops in at least 24 African countries.  In Cameroon, the Ministry of Agriculture says it is particularly concerned about the impact of the fall armyworm infestation in the north and the east of the country. 

Minister-delegate Ananga Messina says fall armyworm has infested six of the central African state’s 10 regions.

She says the armyworms have been a serious threat to food security in Cameroon because cereals like maize, sorghum, rice and legume plants like cow-pea, peanuts and beans are increasingly being attacked every day.  She says the situation is particularly worrisome on Cameroon’s northern border with Nigeria where the population and 100,000 Nigerian refugees are already suffering from food scarcity due to the Boko Haram conflict.

The Ministry of Agriculture says nearly two million people are currently in need of food assistance in northern Cameroon.

Messina told VOA about half of Cameroon’s 23 million inhabitants and millions of livestock risk hunger in the months ahead.  She said the armyworms have extended to Cameroon’s eastern border, putting neighboring Central African Republic at risk, a country gripped by a severe humanitarian crisis after years of conflict.  

Cameroon has launched a task force to manage the infestation.

Some farmers have been using chemicals to kill the pests, but agriculture technician Anicet Mvondo says that is not the best approach.

“The problem is that the insecticide is not good for the health of the farmer,” said Mvondo. “It is not good for the environment.  It kills other organisms in the environment.  Using insecticides is not a good way.  We should try to look for other solutions because these insects on the field are also eaten by other organisms.”

The U.N. Food and Agriculture Organization reports fall armyworm was first detected in four countries in West Africa in early 2016.  It has since spread to at least 20 other countries. 

Experts say the fall armyworms can reproduce rapidly and can fly long distances in moth form, though it remains unknown how the pest spread to West Africa from South America.

The FAO is leading the regional response efforts in Africa, and it says it is drawing from lessons learned in the America’s on sustainable fall armyworm management.  FAO Subregional Coordinator for Southern Africa, David Phiri says methods like regular monitoring and hand-picking of worm larvae can be effective.

“Fall armyworm has a lot of natural enemies and we should enhance their use to control the fall armyworm … So the message is that fall armyworm has come here to stay and also that use of chemical pesticides should be reduced to a minimum,” said Phiri.

Staple crops like maize, sorghum, rice and sugarcane have been hit hard in Africa, though the fall armyworm can ravage more than 80 other plant species.  Losses for Africa are estimated at at least $13 billion.
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Massive flooding caused by Tropical Storm Harvey along Texas’ refinery-rich coast could have long-standing and far-reaching consequences for the state’s oil and gas industry and the larger U.S. economy. The storm’s remnants left much of Houston underwater on Sunday, and the National Weather Service says it’s not over yet: Some parts of Houston and its suburbs could end up with as much as 50 inches (1.3 meters) of rain.

 

With the heavy precipitation expected to last for days, it’s still unclear how bad the damage will be, but there is already evidence of widespread losses. Key oil and gas facilities along the Texas Gulf Coast have temporarily shut down, and flooding in the Houston and Beaumont areas could seriously pinch gasoline supplies. Companies operating in the Gulf of Mexico have evacuated drilling platforms and rigs, crimping the flow of oil and gas.

Experts believe gasoline prices could increase as much as 25 cents a gallon.

Harvey’s toll on air travel in the U.S. is set to extend into Monday, with the tracking service FlightAware.com reporting that more than 1,400 flights already have been canceled. That’s in addition to more than 2,000 canceled over the weekend.

Economy watchers were looking to oil futures markets Sunday night and stock trading in the U.S. Monday morning for further indications of fallout.

 

Here’s what was known as of Sunday night:

Refineries

Nearly a third of U.S. refining capacity sits in low-lying areas along the coast from Corpus Christi, Texas, to Lake Charles, Louisiana. Beyond the shutdown of refineries at risk of a direct strike from high winds, there’s the threat of flooding and potential power outages for gasoline supplies.

 

Refinery outages continued to spread Sunday, with about 2.2 million barrels per day of refining capacity down or being brought down, according to analysts at S&P Global.

 

Valero Energy Corp., whose two big Corpus Christi refineries escaped damage, said it was working with federal and Texas agencies and its business partners to determine what infrastructure was needed to resume refinery operations.

 

Even before Harvey hit, the prospect of supply disruptions sent gasoline futures to $1.74 a gallon, their highest level since April, before they retreated to around $1.67 by Friday afternoon. At the pump, experts see gasoline increasing 10 cents to 25 cents a gallon.

 

Given the strictures faced by the refineries, “This is the dominoes starting to fall,” Patrick DeHaan, senior petroleum analyst for Gas Buddy, said Sunday. “This is sort of slowly turning out to be the worst-case scenario.”

 

Oil and gas

Companies have evacuated workers from oil platforms in the Gulf of Mexico. The U.S. Bureau of Safety and Environmental Enforcement said Sunday that workers had been removed from 105 of the 737 manned platforms used to pump oil and gas from beneath the Gulf.

The agency estimated that platforms accounting for about 22 percent of oil production and 26 percent of natural gas output in the Gulf had been shut down.

“After the storm has passed, facilities will be inspected,” the agency said in a news release. “Once all standard checks have been completed, production from undamaged facilities will be brought back on line immediately. Facilities sustaining damage may take longer to bring back on line.”

Shipping

The shipping industry also is expected to be disrupted by the worst hurricane to hit the Texas coast in more than 50 years. Shipping terminals along the Texas coast shut down as the storm approached. Port operations in Corpus Christi and Galveston closed, and the port of Houston said container terminals and general cargo facilities closed around midday Friday. Rates increased for carrying freight between the Gulf and the U.S. East Coast.

Travel

More than 1,400 flight cancellations are reported for Monday, according to FlightAware.

Houston’s two airports were closed to all flights except those connected to relief efforts. Houston Bush Intercontinental Airport was not expected to reopen Monday until noon at the earliest. Houston International Airport was scheduled to remain closed until Wednesday morning.

Airlines were offering customers the chance to reschedule trips that would take them to Houston, San Antonio or Austin from Friday through the weekend.

Utilities

                   Researchers at Texas A&M University estimated that the storm would knock out power for at least 1.25 million people in Texas. They said the hardest-hit areas will include Corpus Christi, which is on the coast, and San Antonio, which is about 140 miles (225 kilometers) inland.

Insurance

A firm that does forecasts for insurance companies expects wind-damage claims in the low billions of dollars, and possibly reaching as high as $6 billion.

 

Risk Management Solutions Inc. said storm surges and inland flooding could be an even bigger source of losses. If the firm is correct, that would put homeowners and the government-backed National Flood Insurance Program at risk.

The flood program is run by the Federal Emergency Management Agency, which owes the Treasury about $23 billion in funds borrowed to cover the cost of past disasters, according to a recent report by the U.S. Government Accountability Office.

Homeowner policies offered by insurance companies typically don’t cover flood damage, yet a relatively small percentage of homeowners have flood insurance through the federal program.

Property data firm CoreLogic estimated that insured losses for home and commercial properties, as of Friday, would be $1 billion to $2 billion from wind and storm-surge damage.

 

 
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The head of the U.S. central bank says the financial system is safer now than it was before the recession, and urges Washington to make some adjustments in financial regulations, rather than trash them.

Federal Reserve Chair Janet Yellen says the recession of 2008 cost nine million American jobs and meant millions of people lost their homes. She says financial reform regulations were intended to make it less likely that big institutions would fail in the future and to provide an orderly way to resolve the debts of big financial companies that do fail without government bailouts.

She says financial firms, particularly very large ones that could hurt the entire economy if they fail, are now required to keep larger reserves. That way if one loan goes bad, the firm is less likely to have to hastily sell off other assets at bad prices to cover the losses. Low reserve levels prompted a downward spiral when many fragile firms ran into trouble all at once, all of them trying to sell assets and no one willing to buy them.

Yellen acknowledges that over-regulation could hamper the lending and risk-taking needed for economic growth, but she says some research shows the current level of regulation hurts lending, while other research shows it helps.

In a Friday speech to a gathering of top economic officials from around the world at a resort in Wyoming, she said Fed officials are looking at ways to simplify regulations for small banks that would not cause problems for the national economy if they failed.

Small banks complain the cost of complying with complex regulations makes it hard to make loans. Small banks are important because they are often the source of capital for small companies, and such small, growing firms are the source of most new jobs.

Yellen’s closely-watched speech at the annual gathering of economists at a resort in Jackson Hole, Wyoming, comes after criticism from Republicans and others that stricter regulation is hurting lending and economic growth.

President Donald Trump has called for repealing a key part of the regulations called “Dodd-Frank” named after the legislators who crafted the law.
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South Korea this week pushed back against the United States’ demand to renegotiate the free trade agreement (FTA) between the close allies. 

U.S. President Donald Trump has repeatedly criticized the five-year-old Korea-U.S. (KORUS) FTA as a horrible deal that created a $27 billion U.S. trade deficit with South Korea last year, and has said his administration would either renegotiate or terminate it.

Agree to disagree

At Washington’s urging, an initial special session was held on Tuesday by video conference between South Korean Trade Minister Kim Hyun-chong and his American counterpart, U.S. Trade Representative (USTR) Robert Lighthizer, to negotiate amendments to the trade pact.

Afterwards the South Korea trade minister said the two sides disagreed on the need to amend the trade deal.

“We have found that the two sides have different views on the effects of the U.S. and South Korea Free Trade Agreement, the reason behind the trade deficit, and necessity for an amendment to the U.S. and South Korea FTA,” said Trade Minister Kim Hyun-chong.

South Korean officials maintain the bilateral trade deficit is not the result of the FTA, but of the underperforming South Korean economy, where demand for imports have declined, contrasted with the more robust U.S. economy.

“For the last 10 years, South Korea’s market economy was not good, so the U.S. did not get opportunities to sell its products (to South Korea). If South Korea’s economy gets better and the U.S. economy gets worse, we may face the opposite situation,” said Chung Sye-kyun, the speaker of the South Korean National Assembly on Thursday at an event organized by the American Chamber of Commerce in Korea.

KORUS supporters in Seoul also argue the FTA benefits the U.S. economy and American workers. Last year, Korean companies like the electronics giant Samsung and the automaker Hyundai, employed 45,000 Americans and contributed $138 billion to the U.S. economy, according to the American Chamber of Commerce in Korea.

‘Korea unique standards’

The USTR released a statement Wednesday saying it will continue bilateral talks to amend or modify the agreement and specifically identified the “burdensome regulations which often exclude U.S. firms or artificially set prices for American intellectual property” as a major issue of contention.

The auto industry accounts for nearly 80 percent of the bilateral trade deficit, as American car sales in South Korea have been slow, while Korean automobile sales in the United States have soared. The American business community has long blamed the deficit in part on non-tariff related “Korea unique standards,” often linked to environmental regulations or certification procedures that they say are imposed to protect the domestic market. Foreign companies are then forced to spend an inordinate amount of time and money to deal with these regulations that are often introduced without notice or clear explanations.

South Korean authorities have downplayed charges of unfair trade practices, saying most complaints have been resolved through negotiations without the need for amending the FTA.

The South Korean Trade Minister said while this week’s meeting did not reach any agreement on how to proceed, neither side talked about terminating the FTA. 

The Korea Times newspaper in Seoul on Friday published an editorial advising the South Korean government that “a good offense is the best defense” in any upcoming trade negotiations. It recommended Seoul press Washington to loosen its intellectual property rights protections and rules regarding disputes between investors and the state, and to threaten to reduce agriculture and energy imports if the situation becomes overly contentious.

The potential rift over trade comes at a time when Washington and Seoul have been emphasizing their close military alliance and joint support for increasing sanctions on North Korea to pressure the Kim Jong Un government to return to international denuclearization talks.

This week some 17,500 American and 50,000 South Koreans troops are participating in joint strategic military exercises that deal with how to respond to possible North Korean attack scenarios.

Youmi Kim in Seoul contributed to this report
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South Korea this week pushed back against the United States’ demand to renegotiate the free trade agreement (FTA) between the close allies. 

U.S. President Donald Trump has repeatedly criticized the five-year-old Korea-U.S. (KORUS) FTA as a horrible deal that created a $27 billion U.S. trade deficit with South Korea last year, and has said his administration would either renegotiate or terminate it.

Agree to disagree

At Washington’s urging, an initial special session was held on Tuesday by video conference between South Korean Trade Minister Kim Hyun-chong and his American counterpart, U.S. Trade Representative (USTR) Robert Lighthizer, to negotiate amendments to the trade pact.

Afterwards the South Korea trade minister said the two sides disagreed on the need to amend the trade deal.

“We have found that the two sides have different views on the effects of the U.S. and South Korea Free Trade Agreement, the reason behind the trade deficit, and necessity for an amendment to the U.S. and South Korea FTA,” said Trade Minister Kim Hyun-chong.

South Korean officials maintain the bilateral trade deficit is not the result of the FTA, but of the underperforming South Korean economy, where demand for imports have declined, contrasted with the more robust U.S. economy.

“For the last 10 years, South Korea’s market economy was not good, so the U.S. did not get opportunities to sell its products (to South Korea). If South Korea’s economy gets better and the U.S. economy gets worse, we may face the opposite situation,” said Chung Sye-kyun, the speaker of the South Korean National Assembly on Thursday at an event organized by the American Chamber of Commerce in Korea.

KORUS supporters in Seoul also argue the FTA benefits the U.S. economy and American workers. Last year, Korean companies like the electronics giant Samsung and the automaker Hyundai, employed 45,000 Americans and contributed $138 billion to the U.S. economy, according to the American Chamber of Commerce in Korea.

‘Korea unique standards’

The USTR released a statement Wednesday saying it will continue bilateral talks to amend or modify the agreement and specifically identified the “burdensome regulations which often exclude U.S. firms or artificially set prices for American intellectual property” as a major issue of contention.

The auto industry accounts for nearly 80 percent of the bilateral trade deficit, as American car sales in South Korea have been slow, while Korean automobile sales in the United States have soared. The American business community has long blamed the deficit in part on non-tariff related “Korea unique standards,” often linked to environmental regulations or certification procedures that they say are imposed to protect the domestic market. Foreign companies are then forced to spend an inordinate amount of time and money to deal with these regulations that are often introduced without notice or clear explanations.

South Korean authorities have downplayed charges of unfair trade practices, saying most complaints have been resolved through negotiations without the need for amending the FTA.

The South Korean Trade Minister said while this week’s meeting did not reach any agreement on how to proceed, neither side talked about terminating the FTA. 

The Korea Times newspaper in Seoul on Friday published an editorial advising the South Korean government that “a good offense is the best defense” in any upcoming trade negotiations. It recommended Seoul press Washington to loosen its intellectual property rights protections and rules regarding disputes between investors and the state, and to threaten to reduce agriculture and energy imports if the situation becomes overly contentious.

The potential rift over trade comes at a time when Washington and Seoul have been emphasizing their close military alliance and joint support for increasing sanctions on North Korea to pressure the Kim Jong Un government to return to international denuclearization talks.

This week some 17,500 American and 50,000 South Koreans troops are participating in joint strategic military exercises that deal with how to respond to possible North Korean attack scenarios.

Youmi Kim in Seoul contributed to this report
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When Ha Tran of Ho Chi Minh City shops for food, clothes or electronics, she avoids merchandise she can tell comes from Vietnam’s giant neighbor, China. It might not work, she said, and China is no friend of Vietnam anyway.

“China exports many low-quality products to Vietnam, but we know they don’t export products to other countries around the world (that are) that bad, so we try to avoid the products that are made in China,” said Ha, 24, a design company worker in the Vietnamese financial hub city. Vietnamese prefer to buy stuff from Japan or the West. “We’ve tried (Chinese goods) many times in the past but it turns out like they get broken very easily.”

Political ties between Vietnam and China are another “factor” discouraging purchases, she said.

 

Ha is hardly a shopping renegade. Consumers around Vietnam typically shun “Made-in-China” purchases to protest what they see as poor-quality goods from a country that already has a record of disputes with their country. The two sides dispute, for example, a tract of territory in the South China Sea east of Vietnam. Competing claims sparked naval battles 1974 and 1988. The two also fought a land border war in the 1970s.

Vietnamese feel China has an unfair upper hand in the maritime dispute by using its larger military to control the contested Paracel Islands.

Consumers make up a growing force in Vietnam, as the Boston Consulting Group forecasts more than a third of the country’s nearly 93 million people to be middle class or higher by 2020. Fast growth in export manufacturing has added to Vietnam’s wealth since 2012 by creating jobs.

“If they find a product that might be the same price, and they find out that one product is Chinese and another product is from Japan, Korea or anywhere else, you know which one they’re going to go for,” said Oscar Mussons, senior associate with the Dezan Shira & Associates business consultancy in Ho Chi Minh City. “Vietnamese people see them not as big brothers, but as rivals.

“This is also because of recent problems, like Chinese are hitting national icons like the islands in the South China Sea,” Mussons said. “For Vietnamese, this is something that cannot be accepted in any way, even through you don’t hear much about or the government doesn’t try to make much publicity about it.”

 

Vietnamese officials have tried to sideline political disputes with China since anti-Chinese riots of 2014 killed more than 20 people and threatened to scare off investors. China’s go-ahead to construct an oil rig in the disputed sea touched off the rioting.

But Vietnam still counts China as its biggest trade partner. Combined imports and exports came to $25.5 billion in the first four months of the year, according to Vietnamese media reports. Export manufacturers in Vietnam rely as well on China for raw materials.

On top of the political issues, Vietnamese consumers widely suspect China sends lower-quality merchandise to its shelves. Giant Chinese firms, often bigger than Vietnamese counterparts, can send over excess merchandise for sale at low prices because of their production run sizes.

“Generally amongst Vietnamese, China-made products are perceived to be of low quality. Some of this is fact, but some of this is also driven by social media posts and ensuing perceptions,” said Jason Moy, principal with the Boston Consulting Group in Singapore. Lower-income, less educated consumers are particularly prone to those perceptions, he added. “Hence, Chinese products are generally selected when they are the last or only option.”

Trade in shoes, toys and daily necessities along the land border particularly leaves cheap but possibly suspect Chinese goods in Vietnam, where lower-income people buy them for their low prices, said Le Hong Hiep, research fellow with ISEAS Yusof Ishak Institute in Singapore. Goods trucked across the border in some cases have “pushed Vietnamese merchandise out of their traditional markets,” Le said.

An organized boycott against Chinese goods after the riots of 2014 gained little traction because poorer people couldn’t afford merchandise from other places, he said.

Although Chinese smartphones are gaining a solid reputation, Ha said she once bought a made-in-China phone for her mother because it was all they could afford. It broke after “several months,” she said, so the family bought another phone.

Only Chinese thong flip-flops are worth the money, she said, because at about $1 per pair you can afford to scrap and replace a pair after a few uses.

“People are conscious of the kind of low standards, low quality of Chinese products,” Le said. “I think one of the reasons is that many of these products are consumer items and small items, and they are imported by border trade, not through official channels which normally have stricter regulations and inspections to ensure the quality.”

 

Shoppers with more money prefer Japanese products as top quality, especially ever-popular motor scooters and consumer electronics, Moy said.Korean food and consumer electronics are also gaining favor with consumers, he said. 
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