U.S. President Donald Trump on Monday extended by one year sanctions against Zimbabwe saying that the new government’s policies continue to pose an “unusual and extraordinary” threat to U.S. foreign policy.

The renewal comes despite calls by African leaders, including South Africa’s President Cyril Ramaphosa, for the sanctions to be lifted to give the country a chance to recover from its economic crisis.

“The actions and policies of these persons continue to pose an unusual and extraordinary threat to the foreign policy of the United States,” Trump said in a notice announcing the extension, adding: “I am continuing for (one) year the national emergency declared in Executive Order 13288.”

The renewal comes despite calls by African leaders, including South Africa’s President Cyril Ramaphosa, for the sanctions to be lifted to give the country a chance to recover from its economic crisis.

Trump administration officials had said the sanctions will remain until the government of President Emmerson Mnangagwa changes Zimbabwe’s laws restricting media freedom and allowing protests.

According to U.S. officials, there are 141 entities and individuals in Zimbabwe, including Mnangagwa and long-time former president Robert Mugabe, currently under U.S. sanctions.

Mnangagwa has called for the sanctions to be lifted against the ZANU-PF ruling party, top military figures and some government-owned firms, which were imposed during Mugabe’s rule over what the United States said were human rights violations and undermining of the democratic process.
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At President Donald Trump’s direction, the United States intends to scrap the preferential trade status granted to India and Turkey, officials said Monday.

Washington “intends to terminate India’s and Turkey’s designations as beneficiary developing countries under the Generalized System of Preferences (GSP) program because they no longer comply with the statutory eligibility criteria,” the U.S. Trade Representative’s Office said in a statement.

India has failed to provide assurances that it would allow required market access, while Turkey is “sufficiently economically developed” that it no longer qualifies, USTR added.

Under the GSP program, “certain products” can enter the US duty-free if countries meet eligibility criteria including “providing the United States with equitable and reasonable market access.”

India, however, “has implemented a wide array of trade barriers that create serious negative effects on United States commerce,” the statement said.

Turkey, after being designated a GSP beneficiary in 1975, has meanwhile demonstrated a “higher level of economic development,” meaning that it can be “graduated” from the program, according to USTR.
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Treasury Secretary Steven Mnuchin informed Congress on Monday that he will stop making payments into two government retirement funds now that the debt limit has gone back into effect.

In a letter to congressional leaders, Mnuchin said that he would stop making investments into a civil service retirement fund and a postal service retirement fund.

These are among the actions that Mnuchin is allowed to take to keep from exceeding the debt limit, which went back into effect on Saturday at a level of $22 trillion.

The debt limit had been suspended for a year under a 2018 budget deal. The Congressional Budget Office estimates that Mnuchin likely has enough maneuvering room to avoid a catastrophic default on the national debt until around September.

The U.S. government has never missed a debt payment although budget battle between then-President Barack Obama and Republicans in 2011 pushed approval of an increase in the debt limit so close to a default that the Standard and Poor’s rating agency downgraded a portion of the country’s credit rating for the first time in history.

The Congressional Budget Office said in a report that issuing new securities for the Civil Service Retirement and Disability Fund and the Postal Service Retiree Health Benefits Fund pushed the debt up by $3 billion each month. Mnuchin said both funds would be made whole once Congress approves an increase in the debt limit.

“I respectfully urge Congress to protect the full faith and credit of the United States by acting to increase the statutory debt limit as soon as possible,” Mnuchin said in his letter.
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Sharp differences have emerged between the United States and Britain over farming standards and practices in any post-Brexit trade deal.

 

The trans-Atlantic allies have already begun exploratory talks on a trade agreement after Britain’s EU exit, which is scheduled for March 29. Britain, however, is resisting U.S. demands to open its markets to agricultural products currently banned under EU law.

 

The most widely-cited example is Europe’s import ban on American “chlorinated chicken” — carcasses that have been washed using chlorine to remove harmful bacteria like E. coli and salmonella. Europe says an over-reliance on chlorine lowers overall production and hygiene standards in poultry farming, a claim the United States disputes.

 

The EU has also banned the import of beef from American cattle that have been treated with artificial growth hormones. The bloc says that one commonly used hormone may cause cancer and concludes there is not enough scientific data on the other hormones to approve their use for public consumption.

Washington has made it clear any trade deal with Britain after Brexit must see these measures dropped.

 

U.S. President Donald Trump’s pick to lead the U.S. Trade and Development Agency, former Republican Congressman Darrell Issa, said recently that the millions of Britons visiting the United States every year enjoy perfectly safe food.

 

“We’d like to have that arrangement being one in which in Britain you can choose to have American chicken, American beef, or other agricultural products just as you could when you come to the United States,” he told VOA. “It is a key lynchpin of an agreement. Financial, manufacturing and agriculture has to be free and fair.”

 

Issa added that President Trump is committed to sealing a trade deal with Britain after Brexit, and that it could “be the next NAFTA”, referring to the North American Free Trade Agreement between the U.S., Canada and Mexico.

 

Writing in Britain’s The Telegraph newspaper Saturday, America’s ambassador to Britain, Woody Johnson, attacked what he called “myths” over U.S. farming and alleged they are part of a protectionist agenda.

 

Britain has repeatedly pledged that it will not lower food standards after Brexit. Responding to Ambassador Johnson’s comments, Britain’s international trade minister, Liam Fox, said London would hold its ground.

 

“Will we accept things that we believe are against the interests of our consumers or our producers? No we won’t. It’s a negotiation,” Fox told the BBC’s Andrew Marr show Sunday.

 

The dispute over American beef and poultry is also influencing debate over the Irish border, a key stumbling block in Britain’s attempt to secure an EU exit deal.

 

Britain and Europe want to avoid border checks between Northern Ireland, which is part of the United Kingdom, and the Republic of Ireland, an EU member state. Ireland’s prime minister, Leo Varadkar, recently expressed fears that the border could open a back door into the EU.

 

“If at some point in the future the United Kingdom were to allow chlorinated chicken or beef with hormones into their markets, we wouldn’t want that coming into our markets or the European Union as well,” Varadkar told reporters.

 

The United States says a trade deal would deliver huge benefits in sectors like financial services. Britain, meanwhile, is keen to bolster its post-Brexit credentials as a global trading power.

 

Far away from the skyscrapers of New York or London, it is farming that could prove the biggest barrier to any agreement.

 
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Sharp differences have emerged between the United States and Britain over farming standards and practices in any post-Brexit trade deal.

 

The trans-Atlantic allies have already begun exploratory talks on a trade agreement after Britain’s EU exit, which is scheduled for March 29. Britain, however, is resisting U.S. demands to open its markets to agricultural products currently banned under EU law.

 

The most widely-cited example is Europe’s import ban on American “chlorinated chicken” — carcasses that have been washed using chlorine to remove harmful bacteria like E. coli and salmonella. Europe says an over-reliance on chlorine lowers overall production and hygiene standards in poultry farming, a claim the United States disputes.

 

The EU has also banned the import of beef from American cattle that have been treated with artificial growth hormones. The bloc says that one commonly used hormone may cause cancer and concludes there is not enough scientific data on the other hormones to approve their use for public consumption.

Washington has made it clear any trade deal with Britain after Brexit must see these measures dropped.

 

U.S. President Donald Trump’s pick to lead the U.S. Trade and Development Agency, former Republican Congressman Darrell Issa, said recently that the millions of Britons visiting the United States every year enjoy perfectly safe food.

 

“We’d like to have that arrangement being one in which in Britain you can choose to have American chicken, American beef, or other agricultural products just as you could when you come to the United States,” he told VOA. “It is a key lynchpin of an agreement. Financial, manufacturing and agriculture has to be free and fair.”

 

Issa added that President Trump is committed to sealing a trade deal with Britain after Brexit, and that it could “be the next NAFTA”, referring to the North American Free Trade Agreement between the U.S., Canada and Mexico.

 

Writing in Britain’s The Telegraph newspaper Saturday, America’s ambassador to Britain, Woody Johnson, attacked what he called “myths” over U.S. farming and alleged they are part of a protectionist agenda.

 

Britain has repeatedly pledged that it will not lower food standards after Brexit. Responding to Ambassador Johnson’s comments, Britain’s international trade minister, Liam Fox, said London would hold its ground.

 

“Will we accept things that we believe are against the interests of our consumers or our producers? No we won’t. It’s a negotiation,” Fox told the BBC’s Andrew Marr show Sunday.

 

The dispute over American beef and poultry is also influencing debate over the Irish border, a key stumbling block in Britain’s attempt to secure an EU exit deal.

 

Britain and Europe want to avoid border checks between Northern Ireland, which is part of the United Kingdom, and the Republic of Ireland, an EU member state. Ireland’s prime minister, Leo Varadkar, recently expressed fears that the border could open a back door into the EU.

 

“If at some point in the future the United Kingdom were to allow chlorinated chicken or beef with hormones into their markets, we wouldn’t want that coming into our markets or the European Union as well,” Varadkar told reporters.

 

The United States says a trade deal would deliver huge benefits in sectors like financial services. Britain, meanwhile, is keen to bolster its post-Brexit credentials as a global trading power.

 

Far away from the skyscrapers of New York or London, it is farming that could prove the biggest barrier to any agreement.

 
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London and Washington are beginning exploratory talks over a trade deal after Britain leaves the European Union – which both sides say could deliver huge economic benefits. But already sharp differences have emerged over what might be included, as Britain resists U.S. demands to open its markets to agricultural products currently banned under EU law. Henry Ridgwell reports from London.
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London and Washington are beginning exploratory talks over a trade deal after Britain leaves the European Union – which both sides say could deliver huge economic benefits. But already sharp differences have emerged over what might be included, as Britain resists U.S. demands to open its markets to agricultural products currently banned under EU law. Henry Ridgwell reports from London.
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The Trump administration is preparing to tighten the six-decade trade embargo on Cuba on Monday by allowing some lawsuits against foreign companies using properties confiscated by the Cuban government after its 1959 revolution, U.S. officials say.

Every president since Bill Clinton has suspended a section of the 1996 Helms-Burton act that would allow such lawsuits because they would snarl companies from U.S.-allied countries in years of complicated litigation that could prompt international trade claims against the United States.

Major investors in Cuba include British tobacco giant Imperial Brands, which runs a joint venture with the Cuban government making premium cigars; Spanish hoteliers Iberostar and Melia, who run dozens of hotels across the island; and French beverage-maker Pernod-Ricard, which makes Havana Club rum with a Cuban state distiller.

U.S. officials told The Associated Press that Trump would allow Title III of Helms-Burton to go into effect in a limited fashion that exempts many potential targets from litigation. The measure is being presented as retaliation for Cuba’s support of Venezuelan President Nicolas Maduro, who the U.S. is trying to oust in favor of opposition leader Juan Guaido.

Allowing a limited number of lawsuits could make investment in Cuba more burdensome for companies thinking of entering the market, who will now have to do additional research into their legal liability, but it is unlikely to be a major blow against the Cuban economy.

After nearly 60 years of trade embargo, the Cuban economy is in a period of consistently low growth of about 1 percent a year, with foreign investment at roughly $2 billion, far below what it needs to spur more prosperity. But tourism, remittances and subsidized oil from Venezuela have allowed the government to maintain basic services and a degree of stability that appears unshaken by the Trump administration’s recent moves against Cuba and its major remaining allies in Latin America — Venezuela and Nicaragua.
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The Trump administration is preparing to tighten the six-decade trade embargo on Cuba on Monday by allowing some lawsuits against foreign companies using properties confiscated by the Cuban government after its 1959 revolution, U.S. officials say.

Every president since Bill Clinton has suspended a section of the 1996 Helms-Burton act that would allow such lawsuits because they would snarl companies from U.S.-allied countries in years of complicated litigation that could prompt international trade claims against the United States.

Major investors in Cuba include British tobacco giant Imperial Brands, which runs a joint venture with the Cuban government making premium cigars; Spanish hoteliers Iberostar and Melia, who run dozens of hotels across the island; and French beverage-maker Pernod-Ricard, which makes Havana Club rum with a Cuban state distiller.

U.S. officials told The Associated Press that Trump would allow Title III of Helms-Burton to go into effect in a limited fashion that exempts many potential targets from litigation. The measure is being presented as retaliation for Cuba’s support of Venezuelan President Nicolas Maduro, who the U.S. is trying to oust in favor of opposition leader Juan Guaido.

Allowing a limited number of lawsuits could make investment in Cuba more burdensome for companies thinking of entering the market, who will now have to do additional research into their legal liability, but it is unlikely to be a major blow against the Cuban economy.

After nearly 60 years of trade embargo, the Cuban economy is in a period of consistently low growth of about 1 percent a year, with foreign investment at roughly $2 billion, far below what it needs to spur more prosperity. But tourism, remittances and subsidized oil from Venezuela have allowed the government to maintain basic services and a degree of stability that appears unshaken by the Trump administration’s recent moves against Cuba and its major remaining allies in Latin America — Venezuela and Nicaragua.
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Even as China and the United States are working to finalize a trade agreement, Beijing is grappling with the challenge of building political consensus about implementing and enforcing the deal on the ground.

The challenge for the Xi Jinping-led government is both economic and political at a time when the annual political congress has just begun in Beijing.

Delegates to the meetings include the heads of major Chinese corporations both private and state-owned.

The deal may hit State Owned Enterprises hard, an important Communist Party base, as they stand to lose subsidies and monopoly status. SOEs employ millions of people in key sectors like energy, mining, banking and manufacturing.

“The Chinese government will face resistance from SOEs and coastal provinces with dynamic trade with the US and other countries,” said Zhiqun Zhu, chair of the department of international relations at Bucknell University.

During the political sessions, President Xi will be closely watched in China and the world over as he deals with issues like the trade deal, the Huawei controversy and an increasingly slowing economy. The two-week sessions will be attended by around 5,000 delegates from around the country.

The US is not just asking China to buy more American goods, it is demanding structural changes from Chinese industry, which enjoy preferential treatment compared to foreign investors in many sectors. The deal could mean an end to government subsidies and monopoly status for SOEs in several markets.

“Structural reforms will be more difficult [for China] due to vested interests of SOEs and local governments and businesses with extensive trade,” Zhiqun said.

Paul Gillis, a professor at Peking University’s Guanghua School of Management said, “Trade policy changes always have winners and losers. Expect opposition from the losers”.

Nature of challenge

The resistance will be internal, voiced in closed-door discussions of small groups of legislators and not during televised discussions of the National People’s Congress and the China People’s Political Consultative Conference, the two bodies that are part of the so-called “Twin Sessions.”

In the main sessions, which are televised live, no one speaks out of turn and without his or her speech vetted by senior leaders in advance, sources said.

“We have our system which is centralized. Once the President gives a directive, the delegates will not say no,” said Shen Dingli, a Shanghai based international relations specialist.

“The Twin Sessions will follow the leader’s view. The leader wants reform while making sure there is no pre-mature reform because that would be result in weakening China,” he said.

Under the surface, provincial leaders from more developed provinces and cities like Shanghai, Guangzhou are expressing concern about the negative fallout on the local economy if the deal is implemented.

Heads of several state owned corporations are already asking the government that their performance must be evaluated differently once the deal is implemented, informed sources said. They expect to take a hit on their profitability as the deal will give a bigger role to foreign competitors.

“At the end of the day, it is up to the central government and President Xi. If they are really determined to carry out structural reforms, they can, despite challenges and resistance,” Zhiqun said. China’s former Premier Zhu Rongji faced a lot of resistance when he carried out structural reforms in the 1990s but he still succeeded in his mission, he said.

Taking the hit

On the other hand, some analysts believe that the giant state-owned corporations are quite capable of handling the new challenge that will emanate from the trade deal with the US.

“They will face tougher competition in China from further opening up and reduction of state support, but I think they can handle that,” Gillis said. He was referring to the expected increase in the role of foreign companies once the deal is implemented in China.

The SOEs have been facing competition from foreign players since 2001 when China became a member of the World Trade Organization, he said. This time the competition will be more intense as restrictions on foreign firms will be reduced.

“The competition seems to have made many of these companies stronger,” Gillis said.

Chinese experts said the US should not expect China to restructure its economy as soon as the ink dries on the contract. Beijing was moving towards market based economy for its own reasons before the trade war and is now ready to hasten the process.

“The question is: Can China stop all subsidies to state owned enterprises? In some cases, China is not ready now, it needs a few years. It’s better if the US accepts a time bound commitment from China,” Shen said.

The US and China look at the situation differently, he said. The US believes that the presence of several competing players in the market is good for the customer. The Chinese think national competitiveness can be enhanced quickly if the government steps in to mobilize national resources to create and nurture a few gigantic national SOEs, he said.

 
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Even as China and the United States are working to finalize a trade agreement, Beijing is grappling with the challenge of building political consensus about implementing and enforcing the deal on the ground.

The challenge for the Xi Jinping-led government is both economic and political at a time when the annual political congress has just begun in Beijing.

Delegates to the meetings include the heads of major Chinese corporations both private and state-owned.

The deal may hit State Owned Enterprises hard, an important Communist Party base, as they stand to lose subsidies and monopoly status. SOEs employ millions of people in key sectors like energy, mining, banking and manufacturing.

“The Chinese government will face resistance from SOEs and coastal provinces with dynamic trade with the US and other countries,” said Zhiqun Zhu, chair of the department of international relations at Bucknell University.

During the political sessions, President Xi will be closely watched in China and the world over as he deals with issues like the trade deal, the Huawei controversy and an increasingly slowing economy. The two-week sessions will be attended by around 5,000 delegates from around the country.

The US is not just asking China to buy more American goods, it is demanding structural changes from Chinese industry, which enjoy preferential treatment compared to foreign investors in many sectors. The deal could mean an end to government subsidies and monopoly status for SOEs in several markets.

“Structural reforms will be more difficult [for China] due to vested interests of SOEs and local governments and businesses with extensive trade,” Zhiqun said.

Paul Gillis, a professor at Peking University’s Guanghua School of Management said, “Trade policy changes always have winners and losers. Expect opposition from the losers”.

Nature of challenge

The resistance will be internal, voiced in closed-door discussions of small groups of legislators and not during televised discussions of the National People’s Congress and the China People’s Political Consultative Conference, the two bodies that are part of the so-called “Twin Sessions.”

In the main sessions, which are televised live, no one speaks out of turn and without his or her speech vetted by senior leaders in advance, sources said.

“We have our system which is centralized. Once the President gives a directive, the delegates will not say no,” said Shen Dingli, a Shanghai based international relations specialist.

“The Twin Sessions will follow the leader’s view. The leader wants reform while making sure there is no pre-mature reform because that would be result in weakening China,” he said.

Under the surface, provincial leaders from more developed provinces and cities like Shanghai, Guangzhou are expressing concern about the negative fallout on the local economy if the deal is implemented.

Heads of several state owned corporations are already asking the government that their performance must be evaluated differently once the deal is implemented, informed sources said. They expect to take a hit on their profitability as the deal will give a bigger role to foreign competitors.

“At the end of the day, it is up to the central government and President Xi. If they are really determined to carry out structural reforms, they can, despite challenges and resistance,” Zhiqun said. China’s former Premier Zhu Rongji faced a lot of resistance when he carried out structural reforms in the 1990s but he still succeeded in his mission, he said.

Taking the hit

On the other hand, some analysts believe that the giant state-owned corporations are quite capable of handling the new challenge that will emanate from the trade deal with the US.

“They will face tougher competition in China from further opening up and reduction of state support, but I think they can handle that,” Gillis said. He was referring to the expected increase in the role of foreign companies once the deal is implemented in China.

The SOEs have been facing competition from foreign players since 2001 when China became a member of the World Trade Organization, he said. This time the competition will be more intense as restrictions on foreign firms will be reduced.

“The competition seems to have made many of these companies stronger,” Gillis said.

Chinese experts said the US should not expect China to restructure its economy as soon as the ink dries on the contract. Beijing was moving towards market based economy for its own reasons before the trade war and is now ready to hasten the process.

“The question is: Can China stop all subsidies to state owned enterprises? In some cases, China is not ready now, it needs a few years. It’s better if the US accepts a time bound commitment from China,” Shen said.

The US and China look at the situation differently, he said. The US believes that the presence of several competing players in the market is good for the customer. The Chinese think national competitiveness can be enhanced quickly if the government steps in to mobilize national resources to create and nurture a few gigantic national SOEs, he said.

 
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