Democratic Republic of Congo’s plan to drill for oil in national parks could leave thousands of farmers and fishermen who rely on the land in a struggle to survive, rights groups said Monday.

The central African country announced last month that it was taking steps toward declassifying parts of Virunga and Salonga national parks, both recognized as world heritage sites by the United Nations, to allow for oil exploration.

The parks, which together cover an area about the size of Switzerland, are among the world’s largest tropical rainforest reserves and home to rare species including forest elephants.

Allowing drilling in the parks would cause a loss of biodiversity, release huge amounts of carbon dioxide into the atmosphere and pollute water that thousands of local people use for fishing and farming, according to several rights groups.

Congolese state spokesman Lambert Mende told Reuters that the government will study the potential impact of oil drilling on local communities before they proceed.

The government has previously defended its right to authorize drilling anywhere in the country and said it is mindful of environmental considerations, such as protecting animals and plants, in the two national parks.

“There are lake-shore communities, especially in Virunga, that are very dependent on fishing and on the park’s integrity,” said Pete Jones of environmental advocacy group Global Witness.

“That really needs to be taken into account and doesn’t seem to be part of the debate that’s happening, which is a shame,” he told Reuters.

Conservation group World Wildlife Fund (WWF) also said it is concerned about the impact of oil drilling on at least 50,000 people who benefit from the fishing industry in Virunga, and tens of thousands more who farm on the outskirts of the parks.

“The risks of pollution are clear and present. The fishing industry would suffer considerably if it gets to that point,” said Juan Seve, WWF country director in Congo.

The oil industry would be unlikely to create local jobs since specialists would be brought in from abroad, he added.

The U.N.’s cultural agency UNESCO has previously said that oil exploration should not be conducted at world heritage sites.
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The U.N. envoy for Libya said Monday he fears the recent agreement to resume oil production in the conflict-torn country will not hold unless two issues are speedily tackled — distribution of wealth and “endemic plundering of resources.”

Ghassan Salame told the Security Council in a video briefing that unless the issues are addressed it will also “be difficult to advance the political process.”

Libya descended into chaos following the 2011 uprising that toppled longtime dictator Moammar Gadhafi, who was later killed. The country is now split between rival governments in the east and west, each supported by an array of militias.

The Security Council has backed the holding of presidential and parliamentary elections in Libya this year but Salame warned that “without the right conditions, it would be unwise to conduct elections.”

He said national political consultations over the last 14 weeks that included more than 75 meetings in Libya and abroad and over 7,000 participants showed that “the Libyan people want clear and effective leadership by legitimate bodies, formed through elections.”

“However, a handful of people defy this popular desire,” Salame said. “The few who benefit from the status quo will, if left unchecked, do whatever they can to hinder elections. Unfortunately, they can do much, especially as they hold crucial, and too often lucrative, official positions.”

“Without clear and strong messaging to those who would attempt to stall or disrupt these elections, the conditions will not be met,” he warned.

In a statement after closed consultations following the open briefing, the Security Council “underlined support for the U.N.-facilitated, Libyan-owned political process, including the preparations for credible and inclusive elections.”

But the U.N.’s most powerful body made no mention of “spoilers” trying to thwart the elections.

The Security Council did welcome the National Oil Corp.’s announcement last Wednesday that it was in charge of the oil ports and would resume exports. The firm is controlled by the U.N.-backed government in Tripoli, which is in the west.

The self-styled Libyan National Army allied with the east’s interim government and led by Field Marshal Khalifa Hifter seized the ports earlier this year from another militia led by Ibrahim Jadhran, a rebel commander opposed to Hifter who took part in the 2011 uprising that toppled Gadhafi.

The seizure prompted the National Oil Corp., with international support, to issue a “force majeure” to halt exports, which are Libya’s main source of income.

The LNA said it agreed to return the ports for a commitment by the Tripoli-based government in the west to investigate allegations that oil and gas revenues had been used to fund terrorist organizations.

The Security Council condemned attacks by Jadhran’s militia against the country’s oil infrastructure and said it now expects the National Oil Corp. “to continue its work unimpeded.”

Salame told council members the U.N. “will redouble its efforts to push for economic reforms, as the very stability and unity of the country are at stake.”

Libya is “in decline,” he said. “The crisis in the oil crescent gave us a glimpse of what is in store if tangible progress is not made now — economic collapse, the breakdown of public services, and more frequent and intense outbreaks of violence.”

“In a country where terrorists lurk, where criminals are waiting to traffic migrants, where foreign mercenaries are increasing in number, where the oil industry hangs in the balance, this should be of concern to all,” Salame said. 

He urged Libya’s rival leaders to stand by their commitment at a May 29 international meeting in Paris “to engage constructively to enable elections to take place by the end of the year.”
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China is saddling poor nations with unsustainable debt through large-scale infrastructure projects that are not economically viable, the head of the U.S. Overseas Private Investment Corporation (OPIC) said on Monday.

The criticism of Beijing — targeted by President Donald Trump in a trade war that has sent ripples through economies around the world — comes as Washington seeks to ramp up development finance in the face of China’s global ambitions.

Unveiled in 2013, President Xi Jinping’s “Belt and Road” initiative aims to build an infrastructure network connecting China by land and sea to Southeast Asia, Central Asia, the Middle East, Europe and Africa.

China has pledged $126 billion for the plan, which has been praised by its supporters as a source of vital financing for infrastructure-starved partners in the developing world.

But in an interview with Reuters in Johannesburg, OPIC CEO Ray Washburne warned that the Chinese strategy created a debt trap for many poor nations.

“Just look at any project in these countries and they’re overbuilding the size,” he said. “We try to have countries realize that they’re indebting themselves to the Chinese.”

Washburne is not the first to warn of growing debt linked to Chinese infrastructure projects.

International Monetary Fund Managing Director Christine Lagarde in April cautioned China’s Belt and Road partners against considering the financing as “a free lunch.”

Sri Lanka formally handed over commercial activities in its main southern port in the town of Hambantota to a Chinese company in December as part of a plan to convert $6 billion of loans that Sri Lanka owes China into equity.

U.S. officials have warned that a strategic port in the tiny Horn of Africa nation of Djibouti could be next, a prospect the government there has denied.

Washburne also voiced concern over a $360 million expansion of the airport in Zambia’s capital Lusaka currently being carried out with financing from the Exim Bank of China.

“The local economy isn’t benefiting from that. It’s a much too large airport. They’ll have too much debt on it. At some point, someone’s got to pay. Pay or the Chinese take control,” he said.

Keeping pace

Lawmakers in the United States are advancing a new law — the BUILD Act – through Congress that Washburne says should bolster private U.S. investment in developing nations by doubling OPIC’s access to U.S. Treasury credit to $60 billion.

About a quarter of the active portfolio of OPIC, a government agency that helps U.S. businesses invest in emerging markets, is currently focused on Africa and it typically invests around $1 billion annually on the continent.

“With the right quality projects, it could double here,” Washburne said, adding that many investments would focus on the kinds of infrastructure projects Chinese firms are currently dominating.

“The Chinese are in with ports and railroads and highways, things that we need to be in as a competitor.”

OPIC this month launched an Africa-focused initiative that will earmark more than $1 billion over the next three years for projects supporting transportation, information and communications technology and value chains.

“Instead of giving them a fish, we want to teach them how to fish,” Washburne said. “They’ll have to stand on their own two feet. So we’re not in making loans or doing projects that don’t make economic sense.”
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China’s economic growth slowed in the quarter ending in June, adding to challenges for Beijing amid a mounting tariff battle with Washington.

The world’s second-largest economy expanded by 6.7 percent, down from the previous quarter’s 6.8 percent, the government reported Monday.

Even before the dispute with Washington erupted, forecasters expected growth to cool after Beijing started tightening controls on bank lending last year to rein in surging debt.

Economic activity is expected to decline further as global demand for Chinese exports weakens and lending controls weigh on construction and investment, major contributors to growth.

Beijing has responded to previous downturns by flooding the state-dominated economy with credit. But that has swelled debt so high that global rating agencies have cut China’s government credit rating.

Chinese leaders are in the midst of a marathon effort to encourage self-sustaining growth driven by domestic consumption and reduce reliance on exports and investment. 

Consumer spending is rising more slowly than planned, leaving economic growth dependent on debt-supported investment.
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U.S. President Donald Trump advised British Prime Minister Theresa May to sue the European Union instead of negotiating with the bloc, as part of her Brexit strategy.

“He told me I should sue the EU,” May told BBC television. “Sue the EU. Not go into negotiations — sue them.”

Her revelation about how Trump advised her ended several days of speculation about what advice the U.S. leader had offered the prime minister.

Trump said last week in an interview with The Sun newspaper that he had given May advice, but she did not follow it. The president told the newspaper ahead of his meeting with May that she “didn’t listen” to him.

“I would have done it much differently. I actually told Theresa May how to do it but she didn’t agree, she didn’t listen to me. She wanted to go a different route,” Trump said.

Trump did not reveal what advice he offered May in a press conference with her Friday. Instead, he said, “I think she found it too brutal.”

He added, “I could fully understand why she thought it was tough. And maybe someday she’ll do that. If they don’t make the right deal, she may do what I suggested, but it’s not an easy thing.”

May also told the BBC that the president had advised her not to walk away from the negotiations “because then you’re stuck.”

For the past few months, British politics have been obscured by squabbling, irritability and bravado about how, when and on what terms Britain will exit the European Union, and what the country’s relationship will be with its largest trading partner after Brexit.

Britons narrowly voted to leave the EU in a referendum in June 2016.

 
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U.S. President Donald Trump advised British Prime Minister Theresa May to sue the European Union instead of negotiating with the bloc, as part of her Brexit strategy.

“He told me I should sue the EU,” May told BBC television. “Sue the EU. Not go into negotiations — sue them.”

Her revelation about how Trump advised her ended several days of speculation about what advice the U.S. leader had offered the prime minister.

Trump said last week in an interview with The Sun newspaper that he had given May advice, but she did not follow it. The president told the newspaper ahead of his meeting with May that she “didn’t listen” to him.

“I would have done it much differently. I actually told Theresa May how to do it but she didn’t agree, she didn’t listen to me. She wanted to go a different route,” Trump said.

Trump did not reveal what advice he offered May in a press conference with her Friday. Instead, he said, “I think she found it too brutal.”

He added, “I could fully understand why she thought it was tough. And maybe someday she’ll do that. If they don’t make the right deal, she may do what I suggested, but it’s not an easy thing.”

May also told the BBC that the president had advised her not to walk away from the negotiations “because then you’re stuck.”

For the past few months, British politics have been obscured by squabbling, irritability and bravado about how, when and on what terms Britain will exit the European Union, and what the country’s relationship will be with its largest trading partner after Brexit.

Britons narrowly voted to leave the EU in a referendum in June 2016.

 
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Liang Liang is feeling a lot of stress lately. He owns an import wholesale business in Los Angeles.

“I have been watching the news every day — when will the tariffs be put in place? When are my goods arriving; it’s a fight against time. I’m trying to order all my products for the rest of the year,” he said. His goods, such as toys and T-shirts, come from China through the largest port complex in the United States, the twin ports of Los Angeles and Long Beach.

He expects a 10 to 20 percent increase in shipping costs because of the trade war between the United States and China.

Shipping costs likely to rise

China is the largest trading partner for both ports. As tariffs from both countries increase the cost of goods, manufacturers and retailers may order fewer products, which will cause a decrease in trade volume between the two countries, according to Stephen Cheung, president of the World Trade Center Los Angeles.

“Once that happens, you’re going to see an increase in the rates for shipping because then you don’t have the volume to justify the goods going back and forth,” he said.

Cheung explained that shipping costs will affect all goods between the U.S. and China, not just the ones on the list to be taxed. He said the trade and logistics sector, which includes the ports and the supply chain of trucks and warehouses, will be the first to feel the effects of the trade war.

Liang said he will absorb the cost and live with smaller profits, up to a point.

“If the tariffs increase by another 20 percent, we’ll have to raise our prices,” he said.

“The consumers are going to feel it in their wallets very quickly,” Cheung said.

​Supply chain may be less reliable

The U.S. as a manufacturing center depends on parts from China, but that supply may become less reliable as the trade war continues. Cheung said there may be uncertainty about whether the products will be produced or “whether they will be in the same price, so this potentially can have a huge aspect in terms of our exporting capability not only to China but to the rest of the world, Cheung said. “And there are a lot of jobs that are tied to this,” he added.

Officials at the ports of Long Beach and Los Angeles said it is too early to tell the impact of the trade tariffs.

“We’ll have to wait and see how various businesses restructure their supply networks and adjust to the tariff environment,” said Duane Kenagy, the Port of Long Beach’s interim deputy executive director.

He said so far, the port has seen record container volumes this year, but there is concern.

“The impacts of a sustained long-term trade war could be devastating to both economies,” Kenagy said.

Political theater?

Liang said he has hope, saying he thinks the trade war is actually political theater for the U.S. and China.

“China also has its position on trade. The Chinese government also has to be accountable to the 1.4 billion people of China. I think China and the U.S. will disagree over trade on the surface. (For Trump), it’s a show for the November midterm elections, so he can be accountable to the electorate,” Liang said.

Washington has been critical of China’s unfair trade practices and concerned with a trade imbalance. The U.S. imported more than $500 billion of Chinese goods last year compared to $130 billion of U.S. products exported to China.

These concerns and issues of American intellectual property are reasons the Trump administration announced tariffs on an additional $200 billion in Chinese imports.

“If you’re utilizing this as a tactic, that’s fine. What are the steps that you’re going to use to mitigate some of these damages that will be happening to the local community? These are huge issues that have not been addressed yet,” Cheung said.
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As the Trump administration announces tariffs on an additional $200 billion in Chinese imports, the largest port complex in the United States is bracing for its impact. For the twin ports of Los Angeles and Long Beach, China is the largest trader, and what happens at these ports can ripple through the rest of the U.S. economy. VOA’s Elizabeth Lee reports.
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