Month: March 2018

East Timor and Australia signed a treaty at the United Nations in New York on Tuesday to resolve a long-running dispute over their maritime border and struck a deal on how to share revenue from the giant offshore Greater Sunrise gas field. Under the agreement, East Timor will receive a bigger share of the revenue than Australia depending on the development concept – 70 percent of the revenue if the gas is piped to the tiny country or 80 percent if the gas is piped to Australia for processing. The agreement establishes a maritime boundary in the Timor Sea for the first time. Australia had sought a boundary aligned with its continental shelf, but East Timor argued the border should lie half way between it and Australia – placing much of the Greater Sunrise field under its control. “With this treaty we open a new chapter in relations between Australia and Timor-Leste,” said Australian Foreign Minister Julie Bishop, who signed the treaty alongside East Timor’s Deputy Minister of the Prime Minister for the Delimitation of Borders Hermenegildo Augusto Cabral Pereira. “Australia has an enduring interest in a stable and prosperous Timor-Leste. As good friends and close neighbors we want Timor-Leste to achieve its economic potential,” she said. Pereira acknowledged: “These negotiations have been tough.” The protracted dispute had led the owners of Greater Sunrise – Woodside Petroleum, ConocoPhillips, Royal Dutch Shell and Japan’s Osaka Gas – to shelve the project. The Greater Sunrise field is estimated to hold 5.1 trillion …

Shortly before embarking on his first official visit to Africa, U.S. Secretary of State Rex Tillerson said Tuesday the U.S. is committed to building on a “strong foundation of U.S.-Africa relations” and accused China of “encouraging dependency” in its approach to Africa. In his first speech describing the administration’s Africa policy, Tillerson said the U.S. is “eager” to lower barriers to trade and investment in Africa, whose largest trading partner by far is China. He added that the U.S. approach of “incentivizing good governance” contrasts sharply to China’s, “which encourages dependency, using opaque contracts, predatory loan practices and corrupt deals that mire nations in debt and undercut their sovereignty.” Tillerson’s one-week, five-nation trip will focus on counterterrorism, promoting peace, good governance and trade and investment. “Our country’s security and economic prosperity are linked with Africa’s like never before,” the top U.S. diplomat said before an audience at George Mason University just outside of Washington. The trip comes two months after President Donald Trump triggered a wave of controversy when he reportedly referred to African nations as “s***hole countries” during an Oval Office meeting on immigration with a bipartisan group of senators. The African Union, which represents 55 countries on the continent, demanded an apology from Trump. A group of African ambassadors to the United Nations also denounced Trump’s remarks, saying they were “outrageous, racist and xenophobic.” After more than a year since entering the White House, Trump still has not nominated a chief U.S. diplomat for Africa. And embassies in …

The White House says that President Donald Trump, in a phone call with Canadian Prime Minister Justin Trudeau, has emphasized his commitment to a free trade agreement among the U.S., Canada and Mexico that is “fair to all three countries.” The two leaders talked Monday in the midst of ongoing negotiations in Mexico City over revamping the 1994 North American Free Trade Agreement and days after Trump said he plans to impose a 25 percent tariff on steel imports to the U.S. and 10 percent on aluminum, both of which would hit Canada, a big exporter of the metals to the United States. The White House said Trump noted that the “current agreement leaves the United States with a trade deficit,” although that is only true with regard to Mexico.  In 2016, the last year with complete government statistics, the United States reported it sent $12.5 billion more in goods and services to Canada than it imported, while it had a $55.6 billion trade deficit with Mexico. Trump said Monday he is not backing down on his decision to impose the steep tariffs on steel and aluminum imports, despite growing pressure from political and diplomatic allies and U.S. companies to avert a policy that could spark a trade war. Trump said on Twitter that Mexico and Canada could be exempted from the planned tariffs if a new and “fair” NAFTA is reached. He contended that the current agreement “has been a bad deal” for the U.S. with “massive relocation of …

Tariffs on car imports in the United States, if implemented, would hurt jobs in the world’s second-largest car market, the chief executive of German carmaker BMW said on Tuesday. “Should we get tariff walls it would have an impact on jobs in the United States,” Harald Krueger said at the Geneva car show, adding that the company was in a better position there than its rivals because of its plant in South Carolina. Trump on Saturday threatened European automakers with a tax on imports if the European Union retaliates against his plan to slap tariffs on aluminum and steel. …

Kenyan coffee has an international reputation for good quality. But Kenya’s coffee industry is struggling as production levels have dropped and a younger generation shows little interest in farming. VOA’s Daniel Schearf reports from Kirinyaga County, Kenya. …

U.S. President Donald Trump reaffirmed his pledge to impose stiff tariffs on imported steel and aluminum Monday. The plan sparked outcry and criticism from the international community, including from members of Trump’s party. VOA’s Jesusemen Oni has more. …

If Mexico, the U.S. and Canada don’t renegotiate the North American Free Trade Agreement in two months, Washington might put the talks on the back burner until after a new Mexican president is elected or takes office, U.S. trade representative Robert Lighthizer said Monday.   He spoke after the seventh round of renegotiation talks wrapped up in Mexico City with little progress reported.   “The window is fairly short. It’s not like we can do this in my judgment, at the end of May and think we can get anything done,” Lighthizer said. “It’s not irrational to think you would have lower speed talks at some point, just to keep the talks going … and wait until after the elections,” referring to Mexico’s July 1 presidential election.   “The question is: ‘Til when? When do you start up — after the election, or do you start up after the new president is in place and has his own people in place,” Lighthizer said.   He said the latest talks produced agreement on only three of the 27 remaining NAFTA chapters, including health and sanitation, transparency and regulatory practices.   Lighthizer said progress had been slower than hoped, and noted it might be harder to get any deal through the U.S. Congress after November.   “There is some possibility that the Democrats will take over the Congress, and even if that doesn’t happen, they’ll be a different makeup of Congress for sure,” he said.   Since renegotiations began, agreement has been …

Isabel dos Santos, the former head of Angola’s state-owned Sonangol oil company, is denying her successor’s allegations that she engaged in questionable business dealings related to the firm. In a 13-page typed statement released late Sunday, Dos Santos – Africa’s richest woman, with a net worth that Forbes business magazine estimates at $2.6 billion – denounced what she called “slanderous” and “defamatory campaigns” against her. Last week, Sonangol chair Carlos Saturnino reported that an internal audit showed a transaction of $38 million to a company based in Dubai; it had been approved by dos Santos shortly after she was removed from her post in November after roughly 16 months. Dos Santos defended the transaction as a “totally legitimate” payment for consultancy services. She said she was fulfilling her legal obligations until her replacement could be sworn in, according to Reuters news service. On Friday, Angola’s public prosecutor’s office acknowledged it was looking into Saturnino’s accusations. Dos Santos had been appointed chair of Sonangol’s board by her father, Jose Eduardo dos Santos, Angola’s president from 1979 until last September. She was dismissed by his successor, President Joao Lourenco, who vowed to clean up Angola’s corruption-tainted economy. The younger dos Santos’ goal was to restructure Sonangol, Reuters reported last November. In 2016, she had fired Saturnino from his job as the oil company’s production and exploration leader.    The 2014 nosedive in global oil prices rocked Angola, where, according to the World Bank, oil accounts for a third of gross domestic product …

Workers pried President Donald Trump’s name from signs outside his family company’s luxury hotel in Panama on Monday, as Trump’s executives were ousted from their management offices in a business dispute under orders from Panamanian officials. Trump’s security guards also left.   The end to a 12-day standoff over control of the property came early in the day when a Panamanian judicial official and police officers backed the hotel’s majority owner, Orestes Fintiklis, as he took possession of the offices. The Trump-affiliated management and security officials then left the 70-story, waterfront high-rise.   “This was purely a commercial dispute that just spun out of control,” said Fintiklis, a Miami-based private equity investor and head of the hotel owners’ association. “And today this dispute has been settled by the authorities and the judges of this country.”   The episode was a rare occasion when a foreign government has stood up against the operations of one of Trump’s family businesses, and it was unclear whether Trump might consider retaliating diplomatically. The Panamanian Embassy in Washington did not immediately respond to a request for comment. U.S. government officials referred questions to the Trump Organization, which did not respond to phone messages and emails requesting comment.   A Panamanian judicial official told The Associated Press a statement would come later in the day.   The Trump Hotel’s website had ceased offering direct bookings at the hotel by early Monday afternoon. “We apologize,” the site said. “There are no available rooms for your requested stay.” …

Ten years after a financial crisis rocked the nation’s economy, the Senate is poised to pass legislation that would roll back some of the safeguards Congress put into place to prevent a relapse. The move to alter some key aspects of the Dodd-Frank law has overwhelming Republican support and enough Democratic backing that it’s expected to gain the 60 votes necessary to clear the Senate. Several Democratic lawmakers facing tough re-election races this year have broken ranks with Minority Leader Chuck Schumer, D-N.Y., and Senator Elizabeth Warren, D-Mass. The legislation would increase the threshold at which banks are considered too big to fail. Such banks are subject to stricter capital and planning requirements, and lawmakers are intent on providing them relief in hopes that it will boost lending and the economy. Banks have long complained about the cost of complying with the many requirements of Dodd-Frank. Under the Senate bill, some of the nation’s biggest banks would no longer have to undergo an annual stress test conducted by the Federal Reserve. The test assesses whether a bank has enough capital to survive an economic shock and continue lending. Dozens of banks would also be exempted from making plans called “living wills” that spell out how the bank will sell off assets or be liquidated in a way that won’t create chaos in the financial system. The legislation increases from $50 billion to $250 billion the threshold at which banks are considered critical to the system. The change would ease regulations on …

Call it the Snapchat effect. Some high-tech mirrors out there are borrowing from the social media giant, which offers face “lenses” to decorate selfies shared among its users. Instead of putting dog ears or sparkly rainbow tongues on photos, popular on Snapchat, these mirrors allow consumers to apply virtual lipstick shades, eyeglasses and earrings. And they’re gaining popularity among retailers who want to lure shoppers back into stores. “Virtual try-on offers people the ability to try on numerous products, many more than they would be able to try on otherwise,” said Peter Johnson of FaceCake Marketing Technologies. Johnson was recently demonstrating Dangle — it uses augmented reality to let customers try on multiple earring styles without ever touching a pair of earrings. In Dangle’s case, the “mirror” is actually a computer monitor and handheld tablet. Using the device’s cameras and facial recognition technology, Dangle positions virtual earrings on customers. Each pair gently swings and sways, giving the experience a realistic feel. Retailers can showcase their entire stock of earrings, allowing customers to try on multiple styles and colors. It’s a unique way to shop and gives retailers added benefits, too. No one can steal a pair of virtual earrings. “In-store jewelry, even costume jewelry, is now quite expensive,” said Johnson, “This is a way to keep inventory secure, while people are making decisions about what they want to wear.” Cross-selling is another advantage. A store associate who sells evening wear for example, can use Dangle to show how different earring styles …

Washington is bracing for the start of a possible trade war between the United States and its closest allies and biggest commercial partners and a radical departure from America’s trading posture of the last seven decades. VOA’s Michael Bowman reports, the Trump administration is not backing down from last week’s announcement of looming tariffs on foreign-made steel and aluminum, with further details expected in coming days …

China has added its voice to a growing chorus of concern about the rising threat of a trade war and tariffs that U.S. President Donald Trump is expected to impose on steel and aluminum imports later this week.   A top Chinese diplomat says that while Beijing does not want a trade war with Washington, it will defend its interests if necessary.   Speaking at a press conference ahead of China’s annual legislative meetings, Vice Foreign Minister Zhang Yesui also gave assurances that the rise of world’s second largest economy and a rise in military spending was no cause for alarm.   “China does not want a trade war with the Untied States, but we will absolutely not sit idly by and watch as China’s interests are damaged,” Zhang said.   Tit for tat Last week, the U.S. president announced plans to slap tariffs of 25 percent on steel and 10 percent on aluminum imports.   China is a key country Washington is aiming to target with the tariffs, but the decision also has sparked a global backlash with leaders of other affected nations such as Canada and Europe, which are warning they, too, are prepared to take countermeasures.   Analysts have said that if President Trump follows through on his pledges to get tough with China on trade, Beijing could respond by targeting the airline and agricultural sectors, even focusing on communities in the United States where support for the president was strong during the 2016 election.   Zhang, …

The EU will soon unveil a plan for taxing major internet companies like Amazon and Facebook by imposing a levy of two to six percent on revenues in every country where they operate, French finance minister Bruno Le Maire said Sunday. “The range will be from two to six percent; but closer to two than to six,” Le Maire told the Journal du Dimanche newspaper. The European Commission has said it will present by end March an overhaul of its tax rules, which currently allow US digital economy giants to report their income from across the bloc in any member state. That leads them to pick low-tax nations like Ireland, the Netherlands or Luxembourg, depriving other nations of their share of the revenue even though they may account for more of a company’s earnings. “The heads of these companies know themselves that this system can’t continue,” Le Maire said. Critics say the tax-avoidance strategies used by the tech titans known as GAFA — Google, Amazon, Facebook and Apple — deprive EU governments of billions of euros while giving them an unfair advantage over smaller rivals.  The Organisation for Economic Cooperation and Development says such strategies cost governments around the world as much as $240 billion (195 billion euros) a year in lost revenue, according to a 2015 estimate. Asked if the proposed rate might be criticised as too low, Le Maire said: “I would rather have a law that can be implemented quickly instead of drawn-out negotiations.” American tech giants …

President Donald Trump threatened on Saturday to impose a tax on European cars if the European Union chooses to retaliate against his plans to place tariffs on imported steel and aluminum. In a tweet Saturday morning, Trump said the U.S. had an “$800 Billion Dollar Yearly” trade imbalance because of “very stupid” trade deals and policies. He warned that if the EU increased “tariffs and barriers” against American-made products, “we will simply add a Tax on their Cars.” Presently, the U.S. imposes a 2.5 percent tariff on European-built cars and Europe imposes a 10 percent tariff on U.S.-built cars. Earlier this week, Trump announced that he plans sometime in the coming week to impose tariffs of 25 percent on steel and 10 percent on aluminum imports. He said the tariffs would be in effect for a long period of time. Trump’s tweet Saturday appeared to be in response to European Commission President Jean-Claude Juncker’s warning that the EU could respond by taxing quintessentially American-made products, such as bourbon whiskey, blue jeans and Harley-Davidson motorcycles. Juncker told German media Friday that he does not like the words “trade war.” “But I can’t see how this isn’t part of warlike behavior,” he said. Trump had tweeted earlier in the day: “Trade wars are good, and easy to win.” Trump’s announcement, made during a meeting with steel and aluminum industry executives at the White House, led a sharp drop in the U.S. markets and sparked concerns of a trade war Friday. China, Canada …