No more Nutella?! French workers are threatening as much, bringing the world’s biggest Nutella factory to a near-standstill in a showdown over salary negotiations.

Tensions have been mounting at the site in Villers-Ecalles in Normandy, where activists from the Workers’ Force union have been barring trucks from entering or leaving the factory for a week.

The plant produces a staggering 600,000 jars of the chocolate and hazelnut spread every day — a quarter of the world’s production of a product cherished by children and adults alike.

After six days of failed efforts to end the standoff, Nutella owner Ferrero on Monday started threatening fines for workers involved in the blockade, according to a company statement.

But that didn’t deter unions. Workers’ Force says 160 of the factory’s 350 workers are taking part in a walkout to demand 4.5% salary increases, one-time 900-euro bonuses and better working conditions.

“It’s war, anger is mounting,” union activist Fabien Lacabanne said in a statement.

He said the company agreed to a 1.7% raise for the lowest paid workers, and one-time bonuses between zero and 400 euros, which unions say isn’t enough given rising living costs. Unions also complain of deteriorating factory conditions and increasing pressure to be more productive.

Italian-owned Ferrero said it is trying to protect workers who aren’t on strike, and wants to resume dialogue — but not until the workers stop blocking the factory.

The next negotiation meeting is scheduled for June 13.

French workers frequently go on strike during salary negotiations and occasionally resort to more dramatic methods. The last strike to hit the Villers-Ecalles factory was in 2011.

The action comes amid anger among many low-income French workers at pro-business policies by President Emmanuel Macron seen as favoring the rich — and that prompted the yellow vest protest movement.
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Michael Bowman contributed to this report.

Mexico warned Monday that President Donald Trump’s threatened new tariff on its exports to the United States would hurt both countries’ economies and cause even more Central American migrants to travel through Mexico to reach the United States.

At the start of talks in Washington, Mexican officials said they could only go so far in meeting Trump’s demand to block migrants’ passage through Mexico to avert Trump’s imposition of a 5% tariff next week. The officials specifically ruled out a “third safe country” agreement requiring U.S. asylum-seekers to first apply for refuge in Mexico.

​”There is a clear limit to what we can negotiate, and the limit is Mexican dignity,” Mexico’s ambassador to the United States, Martha Barcena, said.

Barcena added that U.S. tariffs “could cause financial and economic instability,” reducing Mexico’s capacity to address the flow of migrants and “offer alternatives” to people fleeing Guatemala, Honduras and El Salvador.

Mexican officials contended that an additional quarter million migrants could try to reach the U.S. if the tariff is imposed, on top of the tens of thousands already reaching the southern U.S. border each month.

Trump showed no sign of softening his demand as he tweeted during a visit to London.

Mexican President Andres Manuel Lopez Obrador remained confident the two sides would reach an agreement, telling reporters Monday that he was optimistic.

He said his government would not engage in confrontation, and would always defend those who migrate out of necessity due to violence or a lack of food or job opportunities. He also remained positive that no matter what happens in the dispute with the United States, Mexico has “exception, extraordinary,” people and can push through any adversity.

U.S. Secretary of State Mike Pompeo and Mexican Foreign Relations Secretary Marcelo Ebrard are due to hold further talks about the dispute on Wednesday.

U.S. lawmakers returning to Washington after a weeklong congressional recess sharply criticized Trump’s latest tariff tactic aimed at a major U.S. trading partner.

“This (tariffs) is not a popular concept,” Republican Sen. John Cornyn said of public opinion in Texas, which he represents. “Mexico is our biggest export market.”

Another Republican, Missouri Sen. Roy Blunt, expressed concerns that trade friction could harm a newly negotiated free trade pact between the United States, Mexico and Canada.

“I’m not a big advocate of tariffs, and I’d like to get the USMCA agreement approved,” Blunt told VOA. “I don’t see how the addition of a tariff (on Mexican goods) right now helps make that happen.”

“Mexico is a critical trading partner of the United States,” Democratic Sen. Ben Cardin of Maryland said. “You put up barriers, it’s going to end up costing us jobs, and it’s going to cost consumers.”

Cardin added that Trump’s threatened tariff “would be counterproductive,” as far as boosting U.S. border security.

“If we need cooperation on the southern border, they (Mexican officials) are not going to give us cooperation. Why bother if we’re going to have an antagonistic relationship?” Cardin said.
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The United States is again calling on European allies to be careful of what it says are security risks posed by Chinese telecommunication company Huawei, as countries build out their 5G networks.

“We’ve been clear: our ask is that our allies and our partners and our friends don’t do anything that would endanger our shared security interests or restrict our ability to share sensitive information,” said U.S. Secretary of State Mike Pompeo on Monday after meeting with Dutch Foreign Minister Stef Blok in The Hague.

The top U.S. diplomat’s remarks come amid the Dutch intelligence agency’s reported investigation over alleged hidden backdoors in the software that could have given Huawei unauthorized access to users’ data.

Huawei’s CEO Ren Zhengfei has maintained his company would not share confidential user information and Huawei denies it is controlled by Beijing. The company also says it does not work with the Chinese government, an assertion Pompeo and other U.S. officials have rejected.

Blok said while his government wants to align policies with allies, the Dutch will make its own security decisions as it prepares to auction off new 5G internet rights.

“There is a specialist committee working now to decide on what criteria to add to the 5G option and somewhere this summer those criteria will be published,” said the Dutch foreign minister.

Pompeo and Blok met on the sidelines of a three-day Global Entrepreneurship Summit co-hosted by the U.S. and the Netherlands in The Hague.

 

This preeminent annual gathering convenes entrepreneurs, investors, and their supporters from more than 120 countries.

 

Eyeing China, Pompeo said the United States is seeking terms for fair trade practices.

“Authoritarian states can steal ideas and prop up their own business enterprises, but they’ll never match the entrepreneurship and innovation found in free societies,” said Pompeo, stressing the importance of intellectual property rights protection, the rule of law, as well as a predictable and consistent legal system.

Friday, Pompeo warned German authorities that the U.S. could withhold national security information if Germany adopts 5G networks run by Huawei because “it is not possible to mitigate” the security risks.

 

The White House has effectively blacklisted Huawei, making it harder to continue doing business with American companies.

 

In response, China says it plans to target organizations or individuals that deemed to damage Chinese companies’ interests in a so-called “unreliable foreigners list.”

 
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Mexican President Andres Manuel Lopez Obrador reiterated on Sunday the need for oil independence as his government said it would tender six construction contracts in June for a planned oil refinery in the southern state of Tabasco.

Tensions between Mexico and the United States have been running high in recent days after President Donald Trump threatened to impose punitive tariffs on Mexican goods unless Mexico halts a surge in illegal migration.

“We, our children and grandchildren aspire to live in a free, independent, sovereign country and we do not want to be a colony of any foreign country,” Lopez Obrador told a cheering crowd at an event to mark the start of the refinery’s construction.

“The most important thing at this moment in time is producing petroleum,” he added, saying the country needed to work toward “energy self-sufficiency.”

Much of Mexico’s gasoline need is met by U.S. imports, and Lopez Obrador wants Mexico to be able to cover its own demand.

“We have, I repeat, a good relationship with the United States, and with all governments in the world, but we do not want to be exposed and therefore it’s important that we are self-sufficient,” the president added.

Lopez Obrador has used similar language in the past when talking about oil, but his comments were lent extra weight because of the recent flare-up in tensions with Trump.

At the event, he repeated his desire to have good relations with Trump, but was at pains to say that maintaining the friendship of the American people was of paramount importance.

Mexican Energy Minister Rocio Nahle said at the same event that Mexico would tender six contracts for the plan to build the country’s first oil refinery in four decades.

“We will be tendering six construction contracts at the end of June so that all the parts that are under construction can start at the same time and we can finish the refinery in three years,” she said, without giving more details.

Investors in highly indebted state oil company Pemex, which will build the refinery, have repeatedly expressed concern that the project would divert funds from the more profitable exploration and production business. 
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Joyce Huang contributed to this report.

China says Washington bears the “sole and entire responsibility” for the breakdown in trade talks earlier this month and that Beijing won’t back down on matters of principle. In a defiant rebuttal of who is to blame, China released a white paper Sunday, arguing that it is the United States that has backtracked in the talks and that tariffs will not resolve the two country’s trade issues.

Since talks broke down earlier this month, Beijing has doubled-down, issuing its own tit-for-tat tariffs in response to Washington’s increase to 25% of a tax on $200 billion in Chinese goods. Beijing has also been stepping up anti-American propaganda through state media. On Friday, China’s Commerce Ministry announced the establishment of a “non-reliable entity list.”

That move was a response to Washington’s ban on the sale of American made goods to Huawei and 68 of its affiliates. The ban is expected to go into effect in less than 90-days.

Speaking at a press conference on Sunday, China’s vice minister of commerce Wang Shouwen said it was Washington, not Beijing that was backpedaling.

“If the U.S. side wants to use extreme pressure, to escalate trade friction, to force China to submit and make concessions, this is absolutely impossible,” he said. Wang is a member of China’s trade negotiating team.

Speaking to reporters, he said that by announcing a decision to raise tariffs earlier this month while talks were ongoing and then later launching procedures for tariffs to cover $300 billion more in Chinese goods, Washington had broken an agreement reached by President Donald Trump and Xi Jinping late last year in Argentina.

“During the consultations, China has overcome many difficulties and put forward pragmatic solutions. However, the U.S. has backtracked, and when you give them an inch, they want a yard,” he said.

In Argentina, Xi and Trump agreed to a temporary truce on raising tariffs. But there was no agreement to take that option off the table. Trump originally agreed to 90 days and later extended that period in early March citing progress in talks.

In early May, however, Trump Tweeted that talks were moving too slowly and accused Chinese negotiators of trying to renegotiate the text of the agreement.

That was one instance where the white paper argues that Washington backtracked, it also gives two other examples.

The white paper also said American negotiators “insisted on mandatory requirements concerning China’s sovereign affairs in the deal.” It was not clear what that refers to, but earlier reports have suggested that having an enforcement mechanism as part of a trade agreement between the two sides has long been a tough pill for Beijing to swallow.

In an April interview with CNBC, Treasury Secretary Steven Mnuchin said that the countries had “pretty much agreed” on an enforcement mechanism, adding that both sides would set up “trade offices.”

It is unclear when the two sides may be able to resume talks, if at all. President Trump has said he is willing to meet with Xi later this month on the sidelines of Group of 20 Nations summit in Japan. China has yet to confirm the meeting.

When asked about it on Sunday, Wang said he did not have any information to provide.

One thing that is clear from the white paper is that China cares a lot about tariffs. The white paper said that one prerequisite for a trade deal is that the U.S. should remove all additional tariffs imposed on Chinese exports and keep demands for Beijing’s purchase of goods “realistic.”

The paper gave several examples of how tariffs are having an impact on the United States and not good for either country or the global economy, but those critiques have all been part of the robust debate that is ongoing in the United States and elsewhere.

In China, however, as Beijing struggles with a slowing economy, concerns about jobs and ballooning debt, authorities have clamped down on any reporting about the trade war that strays from the communist party’s narrative.

China has also stepped up anti-American propaganda, airing decades old movies about the Korean War, which Beijing fought alongside the North against international forces led by the United States.

The Global Times claims the trade dispute “reminds Chinese of the military struggles between China and the U.S. during the Korean War.” Some state media have called the trade war a “people’s war” and there have been suggestions Chinese consumers should boycott American goods. But the effort to stir up nationalist fervor is a risky one for Beijing, analysts note.

Too much public backlash could have an impact on stability and hurt investment as well, said Liu Meng-chun, director of the Chung-Hua Institution of Economic Research’s mainland China division in Taiwan.

“The reason why there are arising calls or nationalistic sentiment is because China is to a certain degree trying to reach a consensus in society and rally support behind the government so that the country can shoulder the consequences of the breakdown of the trade talks,” Liu said.

 
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The Trump administration had taken steps in recent weeks to work with Democratic and Republican lawmakers to address concerns about the proposed United States-Mexico-Canada trade agreement — and then came the threat of a new tariff.

President Donald Trump said this past week that he would put a 5% tariff on Mexican imports unless America’s southern neighbor cracked down on Central American migrants’ efforts to cross the U.S. border.  

  

His recent decision to remove U.S. tariffs on steel and aluminum imports from Canada and Mexico had appeased mostly Republicans who were using their trade votes as leverage to do away with those penalties. 

 

The administration also had committed to meeting with a group of House Democrats to allay their concerns. That gesture created goodwill, and as House Speaker Nancy Pelosi, D-Calif., described it, put Democrats “on a path to yes.” 

 

Now it’s unclear where that path may lead. 

​Jobs at stake

 

Influential business groups fear that Trump’s threat against Mexico could derail the proposed trade agreement. 

 

“The last thing we want to do is put that landmark deal — and the 2 million manufacturing jobs that depend on North American trade — in jeopardy,” said Jay Timmons, president and CEO of the National Association of Manufacturers. 

 

The U.S. Chamber of Commerce said it was considering legal action to block the tariffs from going into effect.  

  

Some GOP senators are rankled, too, most notably Charles Grassley of Iowa, chairman of the Senate Finance Committee. 

 

“This is a misuse of presidential tariff authority and counter to congressional intent,” Grassley said. 

 

Congressional aides from both parties said that it’s too soon to say whether Trump’s proposal will derail the agreement. But it does make it harder for lawmakers to assess how the agreement would improve the economic landscape if the tariffs on Mexico go into place.  

  

Democrats seem mostly concerned with other breaking developments. 

 

Hours before Trump announced his tariff plan, his administration tried to set up the agreement for a possible congressional vote before the August recess. The administration completed the formal steps necessary to start the clock for submitting legislation to Congress.   

​Not ‘positive’

  

Pelosi said that was not a positive step'' andindicates a lack of knowledge on the part of the administration on the policy and process to pass a trade agreement.” 

 

Democrats want to strengthen enforcement of labor and environmental standards in Mexico.  They have pushed for Mexico to change labor laws that have encouraged wages as low as $1 or $2 per hour at some plants, giving U.S. companies a strong incentive to move operations south of the U.S.-Mexico border. 

 

Mexico lawmakers have approved a law that requires secret-ballot union votes and proof of workers’ consent for contracts. Democrats in Washington want to ensure follow-through, and Pelosi still holds the final say in determining when, or whether, the agreement comes up for a vote. 

 

Pelosi also joined several Republican senators in slamming Trump’s tariff threat, saying it is “not rooted in wise trade policy but has more to do with bad immigration policy on his part.” 

 

“Yet again, the president is sowing chaos over the border instead of delivering solutions for American workers and for American consumers,” Pelosi said. 

 

White House counselor Kellyanne Conway said the tariffs should not jeopardize passage of the trade pact and that the president simply wants Mexico to do more to stem the flow of migrants. 

 

She said the White House is confident it would pass the Democratic-run House, if Pelosi put it to a vote. 

​Investors unhappy

 

Trump said he had the authority to impose a 5 percent levy on all goods imported from Mexico and pledged to increase those duties to as high as 25 percent if Mexico did not dramatically reduce the number of migrants crossing the border. 

 

Investors have responded negatively, with the Dow Jones industrial average closing Friday down roughly 355 points, or 1.4%. 

 

Still, Conway told reporters that “tariffs are a good way to get a trading partner’s attention, and apparently it did.” 

 

Mexico’s foreign relations secretary, Marcelo Ebrard, announced that he and Secretary of State Mike Pompeo would lead talks Wednesday in Washington, a move seen as potentially easing tensions and avoiding retaliatory tariffs.  

  

Both Mexico and Canada are moving ahead with steps toward ratifying the trade agreement. 

 

Canada’s foreign minister, Chrystia Freeland, indicated that it’s up to the U.S. and Mexico to work out their dispute. “This is a bilateral issue,” she said. 
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VOA News Center associate producer Jesusemen Oni contributed reporting from Washington. 

Mexico’s president suggested Saturday that his country could clamp down on migration, and he said he thought the United States was ready to discuss its threatened use of tariffs as a means to combat illegal migration from Central America.

President Andres Manuel Lopez Obrador said at a Mexico City news conference that “there is willingness on the part of U.S. government officials to establish dialogue and reach agreement and compromises.”

His comments came ahead of talks in Washington next week, and Obrador said he said he expected “good results.” He added that Mexico was willing to “reinforce” existing “measures without violating human rights.”

Mexican Foreign Minister Marcelo Ebrard said Friday that he began negotiating with U.S. officials after U.S. President Donald Trump threatened to impose tariffs on Mexican products related to the migrant surge at the border.

Ebrard said on Twitter that he had spoken to U.S. Secretary of State Mike Pompeo by phone and said face-to-face talks between the two would take place Wednesday in Washington.

“We will be firm and defend the dignity of Mexico” at the talks, Ebrard said.

Obrador also responded Friday to the U.S. tariff threats with caution, urging “dialogue” over “coercive measures.” 

 

“I want to reiterate that we are not going to fall into any provocation. But we are going to be prudent, and we are going to respect the authorities of the United States and President Donald Trump,” Obrador said.  

That statement followed a two-page letter to Trump made public late Thursday, similar in tone, responding to Trump’s announcement on Twitter earlier in the day that the United States would begin imposing an escalating tax on imports from Mexico. 

 

“On June 10, the United States will impose a 5% Tariff on all goods coming into our Country from Mexico, until such time as illegal migrants coming through Mexico, and into our Country, STOP,” Trump tweeted. Until “the illegal immigration problem is remedied,” tariffs will continue to rise monthly, going as high as 25% by Oct. 1. 

 

U.S. border agents have apprehended an increasing number of people, largely from Central America, who crossed the southern U.S. border without authorization in recent months. 

 

In contrast to previous spikes in arrivals, recent groups have included a large number of children, prompting U.S. officials to scramble to support families and children traveling without parents — some of whom are seeking asylum.  

In an indication of the pressing demands at the border, U.S. Customs and Border Protection solicited bids for the purchase of tens of thousands of diapers, baby wipes and bottles this past week, according to documents reviewed by VOA on a government contracting website.

 

Trump’s announcement of the new tariffs came on the same day Mexico began the formal process of ratifying the United States-Mexico-Canada Agreement (USMCA) on trade. 

 

Mexico’s deputy foreign minister for North America, Jesus Seade, said such tariffs would be disastrous, expressing more alarm than the Mexican president. 

 

“If this threat is carried out, it would be extremely serious,” he told reporters. “If this is put in place, we must respond vigorously.” 

 

For one trade expert, who previously served as Mexico’s ambassador to China — a top trading partner for that country and the U.S. — the timing of Trump’s tariff statement raised questions about the future of the USMCA. 

 

“By mixing two things — immigration and now, just lately, drug flow, with trade — I think it confuses the issue,” said Jorge Guajardo, a senior director at the Washington-based international trade consulting firm McLarty Associates.  

The trade deal “was a triumph for all three countries, and now of course, that all comes into doubt,” Guajardo added. 

 

Some Republican members of Congress but no Democrats were consulted about White House plan, according to acting White House Chief of Staff Mick Mulvaney. 

 

Asked in a hastily arranged conference call with reporters about benchmarks Mexico would need to achieve to have the tariffs lifted, Mulvaney said there needed to be significant and substantial reductions in arrivals from Central America crossing into the United States. 

 

“We’re going to take this and look at it on a day-to-day and week-to-week basis,” said Mulvaney. “We are interested in seeing the Mexican government act tonight, tomorrow.” 

 

Trump has repeatedly accused Mexico of not doing enough to stop Central American migrants from traveling through the country on their way to the United States. 

 

The U.S. system, however, is not infallible. While the country has increased its apprehension rate at the border in recent years, U.S. border agents stop an estimated 65% to 80% of people crossing into the country without authorization, according to a 2018 DHS report.
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The Trump administration is committed to making fossil fuels cleaner rather than imposing “draconian” regulations on coal and oil, U.S. Energy Secretary Rick Perry said Thursday at an energy conference in Salt Lake City.

Perry previously said the administration wants to spend $500 million next year on fossil fuel research and development as demand plummets for coal and surges for natural gas. 

 

“Instead of punishing fuels that produce emissions through regulation, we’re seeking to reduce those emissions by innovation,” Perry said at the conference.

Fossil fuel emissions have been cited by scientists as a major source of global warming. 

 

U.N. Secretary-General Antonio Guterres recently said the world must change how it fuels factories, vehicles and homes to limit future global warming.

Perry said the Trump administration has proven it can make energy cleaner, but he provided no details involving coal and other fossil fuels, other than the closing of old, inefficient coal-burning power plants and exporting increasing volumes of natural gas, an alternative to coal.  

Department of Energy spokesman Dirk Vande Beek didn’t immediately return an email and voicemail seeking more details about Perry’s claim.

Perry pointed to an overall drop in emissions as proof of progress.

Greenhouse gas emissions dropped 13 percent from 2005 to 2017, according to the most recent report from the Environmental Protection Agency.

Lindsay Beebe of the Sierra Club in Utah said trying to make fossil fuels cleaner is misspent energy.

“I don’t know that it’s possible right now, but what is ready right now are renewables. Wind, solar and geothermal are commercially viable and at scale,” Beebe said.

The summit Thursday was briefly interrupted when 15 protesters took the stage to criticize the administration’s fixation on fossil fuels. 

 

They said the misguided approach ignores climate change. Police then escorted them out.

After they left, Utah Gov. Gary Herbert, who sponsored the event, said he and other leaders appreciated the “youthful enthusiasm” but their call to immediately discard fossil fuels and shift entirely to renewable energy isn’t realistic.

They would like us to quit by Friday and not take anything out of the ground,'' Herbert said.That obviously doesn’t work from a practical standpoint.”

Americans burned a record amount of energy in 2018, with a 10% jump in consumption from booming natural gas helping lead the way, the U.S. Energy Information Administration said.

Fossil fuels in all accounted for 80% of Americans’ energy use. 
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The International Monetary Fund said on Thursday it had not pressured Venezuela to release economic indicators after years of silence, while two sources said the country’s surprise data release this week was due to pressure from China.

The central bank on Tuesday unexpectedly released data confirming Venezuela is suffering hyperinflation and massive economic contraction. The release reversed President Nicolas Maduro’s unofficial policy of classifying economic indicators as state secrets.

The data reported a 22.5 percent contraction in Venezuela’s economy in the third quarter of 2018 from the same period of the previous year. The bank did not provide a full-year 2018 figure for economic activity.

Monthly inflation in April 2019 was 33.8 percent, while 2018 full-year inflation reached 130,060 percent, the bank said.

The IMF said it suspended work with Venezuela on its economic data in January, when opposition leader Juan Guaido invoked the constitution to assume the interim presidency, arguing Maduro’s 2018 re-election was illegitimate.

Most Western countries, including the United States, have backed Guaido as the OPEC nation’s interim head of state.

However, Maduro and ruling socialist party continue to control state institutions including the military, state oil company PDVSA and the central bank.

The Fund said in March it was awaiting guidance from member countries on whether to recognize Guaido as the country’s leader. The United States and Venezuelan ally China are important IMF members, as they have the world’s two largest economies.

“Work in this area has been suspended since late January as political developments gave rise to questions regarding government recognition,” the spokesman said.

Last year, the IMF issued a “declaration of censure” against Venezuela for failing to report timely and accurate economic data, such as gross domestic product and inflation.

The move was a warning that Caracas could be barred from voting on IMF policies, and eventually expelled, unless it resumed timely and accurate reporting.

Maduro has repeatedly dismissed the IMF as an agent of U.S. colonialism and criticized the institution for leading harsh austerity programs in developing countries.

China, which has for years sought to increase its influence within the IMF, had pressured Maduro’s government to release the data, according to two sources with knowledge of the matter.

One of the sources said China had hoped releasing the data would help bring Venezuela into compliance with the IMF, making it harder for the institution to recognize Guaido.

An IMF spokesman said the fund could not fully assess the quality of the data because there was no contact with the government.

“We cannot offer a view on data quality as we have not had the opportunity to make a full assessment in the absence of contacts with the authorities,” the spokesman said.
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U.S. stocks lost ground again on Thursday, as conflicting comments on trade talks from President Donald Trump and Beijing  reinforced investor nervousness that a lengthy battle could be in the offing and harm global growth.

Trump said talks with China were going well but those comments were countered by a senior Chinese diplomat who said provoking trade disputes is “naked economic terrorism.”

The lack of clarity around the trade battle has rattled investors of late, after the S&P 500 had risen more than 17% through the first four months of the year on optimism a trade deal between the two countries could be reached.

That optimism has faded, however, as the escalating dispute between the two countries has weighed heavily on Wall Street in May, with each of the three main indexes declining at least 5% for the month. The benchmark S&P 500 is nearly 6% lower from its closing high on April 30.

“The market is coming to that realization that we are not getting really clean or clear information and it is going to be a lot of noise and just prepare for that,” said Ben Phillips, chief investment officer at Eventshares in Newport Beach, California.

“It is a difficult market right now. There are a lot of macro signals that are starting to roll over and the question is the trade dispute causing that or is it other factors.”

A government report on Thursday showed U.S. inflation was much weaker than initially thought in the first quarter on a sharp slowdown in domestic demand, while growth was also slightly lower than estimated in April.

The Dow Jones Industrial Average fell 27.59 points, or 0.11%, to 25,098.82, the S&P 500 lost 2.11 points, or 0.08%, to 2,780.91 and the Nasdaq Composite dropped 9.19 points, or 0.12%, to 7,538.12.

The trade jitters helped sustain demand for safe haven debt, as U.S. Treasury yields held near 20-month lows. The yield curve between three-month bills and 10-year notes remained inverted, the inversion the widest in nearly 12 years.

That, in turn, weighed on interest-rate sensitive bank stocks, which dropped 1.5% and were on track for a third straight day of declines, while the broader financial sector declined 0.8%.

The energy sector fell 1.3%, as oil prices continued their slump in part due to a smaller-than-expected decline in U.S. crude inventories. The sector has fallen more than 10% this month.

Among stocks, Dollar General Corp jumped 7.2% after the discount retailer’s same-store sales and profit topped expectations.

Viacom Inc climbed 3.6% after report that CBS Corp is preparing for merger talks with the media company. CBS rose 2.5%.

PVH Corp plunged 14.2% as the worst performer on the S&P 500, after the Calvin Klein owner cut its annual profit forecast as it grapples with tariffs and slowing retail growth.

Declining issues outnumbered advancing ones on the NYSE by a 1.11-to-1 ratio; on the Nasdaq, a 1.38-to-1 ratio favored decliners.

The S&P 500 had 1 new 52-week high and 25 new lows; the Nasdaq Composite 25 new highs and 119 new lows.
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President Donald Trump said Thursday he still believes China “would love to make” a new trade deal with the United States and might now regret backtracking on some agreements negotiators for the two countries had reached.

“We had a deal and they broke the deal,” Trump said at the White House. “I think if they had to do it again they wouldn’t have done what they did.”

Trump contended that tariffs he has imposed on hundreds of billions of dollars worth of Chinese imports has prompted some manufacturers in China to move their production to other countries.

“I think we’re doing very well with China,” he said, adding that tariffs have had little effect on inflation in the U.S.

Trade talks between officials of the world’s two biggest economies broke off recently, but U.S. Treasury Secretary Steven Mnuchin has said he likely will travel to Beijing “in the near future” to continue negotiations.

Meanwhile, Chinese Vice Foreign Minister Zhang Hanhui  accused the U.S. of engaging in “naked economic terrorism” in the trade war. He leveled the accusation in Beijing during a news briefing on President Xi Jinping’s official visit to Russia next week.

Beijing and Washington have been engaged in a trade war since last July, when Trump first imposed tariffs on hundreds of Chinese products worth billions of dollars, leading to a set of retaliatory tit-for-tit tariff increases. Trump and Xi had agreed to de-escalate the trade war last December while they started negotiations to reach a lasting deal.  

But Trump recently boosted taxes on $200 billion worth of Chinese goods after accusing Beijing of reneging on promises to make structural changes to its economic practices. He has threatened to add tariffs to all Chinese imports, which could amount to levies on another $300 billion worth of Chinese exports to the U.S.  

Zhang said while China does not want a trade war, it is not afraid of it, and described the Trump administration’s actions as “economic bullying.”

Beijing countered Trump’s levies by announcing new tariff increases on $60 billion worth of U.S. exports that will take effect Saturday.

An editorial Wednesday in The People’s Daily, the official newspaper of China’s ruling Communist Party, warned that China could end exports of rare earth minerals to the U.S. as leverage in the trade war. Rare earths are a group of 17 chemical elements used in everything from smartphones and other high-tech electronics to military equipment. 
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The highly-anticipated showdown on Wednesday night between Trish Regan of Fox Business and Liu Xin of China Global Television Network (CGTN) — the overseas arm of state-controlled China Central Television (CCTV) — turned out to be a tame question-and-answer session with little exchange of barbs.

 

Some observers say that, as both are neither policymakers nor experts on trade, their “disappointing” talks contributed nothing of substance, but stoked up emotions of national pride in China.

Others, however, welcome such dialogues that allow free exchange of differing views to continue and set an example for U.S. and Chinese officials to resume their trade negotiations.

 

The media hype has not only shed light on the increasingly sharp divide between the two countries over trade but also press freedom in China as well, they add.

 

Face-off

 

The buildup for the debate started last week when Liu released a commentary, accusing Regan of “economic warmongering,” which led to Regan’s invitation via Twitter for an “honest” debate and Wednesday’s face-off between them.

Liu appeared as a guest, via satellite from Beijing, on Regan’s U.S. based show.

Citing rights issues, CGTN wasn’t allowed to live-stream the segment, but many Chinese appeared to watch it on the internet.

 

As expected, during the 16-minute-long segment, Liu stuck closely to China’s talking points on every question Regan raised, be it China’s intellectual property (IP) theft, state capitalism or tariffs.

 

When asked by Regan to respond to a hypothetical question if the United States “forces” China’s Huawei to share its technological developments, Liu replied: “if it is through cooperation, if it is through mutual learning… if you pay for the use of this IP or this high-tech knowledge, I think it’s absolutely fine. Why not? We all prosper because we learn from each other.”

 

Liu, however, admitted that cases of IP theft do exist, but that doesn’t mean all Chinese people are stealing. And IP protection has been a consensus in China, she added.

 

Analysts, in general, believe Liu is on a mission to defend China’s trade stance although Liu insisted she is neither a member of the Communist Party of China, nor speaks for the party, which controls her station.

 

State mouthpiece?

 

“They [state media broadcasters including Liu] all come on the debate or shows with a mission. Many won’t show their true color as the mouthpiece of the Communist Party, but in fact, deep in their mind and thoughts, they have long joined the party,” Lu Nan, an outspoken Chinese dissident, who now lives in the United States, said during a Mingjin TV discussion.

 

Lu added that he gave Liu credit for having skillfully argued her way out in a language that is not her mother tongue although truth beat many of her arguments.

 

David Bandurski, co-director of the China Media Project, an independent research program in partnership with the Journalism & Media Studies Centre at the University of Hong Kong, also noted “the seemingly ever-present hand of the Chinese party-state,” saying that Liu can’t afford to act as she pleases in a country, where media professionals are asked to pledge loyalty to the party-state.

 

Stoking nationalistic emotions

 

“Their debate, so-called… could play a substantial role in stoking emotions of national pride in China, regardless of the outcome. Liu is already being portrayed on social media as a national champion,” Bandurski told VOA in an email, adding the show has little substance.

 

The show has indeed attracted so much attention in China that, right after it ended, the top-trending sentence on Weibo — a Twitter-like microblogging platform in China — was “Liu was interrupted by Trish three times in the first 30 seconds of the show.”

 

Many Chinese netizens cheered for Liu’s success.

 

One Weibo user praised Liu to be “neither overbearing nor servile and have showed good demeanor from a big country” while another wrote that Liu “stands to reason and has done a good job.”

 

There were, however, others who said they were disappointed with the show because it came nowhere near a heated debate.

 

Set an example

 

Nevertheless, Harley Seyedin, president of the American Chamber of Commerce in South China, said the conversation between Regan and Liu could set an example for both the United States and China to follow and reach a final resolution for the trade dispute.

 

“As these two super anchors can come to together and held a very civilized conversation on very difficult issues, I think, as two nations, we should be able to sit down at the table and resolve the issues,” Seyedin told a CGTN show right after the Regan-Liu talk.

 

Xu Huiming, an associate professor of journalism at Guangzhou University, agreed, saying talks are better than no talks.

 

“Shall there be no exchange of views, you won’t know what’s on the mind of the others. Any exchange of views, even if they differ from one another, raises attention to those who are interested in the matter,” the professor said.
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In recent weeks, Australia and India have re-elected incumbent prime ministers. These Asia-Pacific countries, who have a difficult relationship with China, are unlikely to make the kind of policy changes that Beijing has been seeking for a long time, analysts said.

Australia this month re-elected Prime Minister Scott Morrison stunning pollsters who had anticipated his defeat for several months. India gave a landslide victory to Prime Minister Narendra Modi’s Bharatiya Janata Party, who campaigned largely on a nationalistic agenda.

China wants support from Australia and India on issues like the U.S.-China trade war, the Huawei controversy, South China Sea controversy and the Belt and Road Initiative.

The Communist Party in Beijing attaches great importance to obtaining support from democratic countries as a means to enhance China’s global influence. It has spent huge sums to obtain the support of the relatively poor European countries like Greece in order to expand the Chinese footprint. But Australia and India are unlikely to support China on many of the issues that are core to Beijing’s foreign policy.

But there may be some exceptions. India has invited Huawei to start trials of its 5G telecommunications network while Australia has blocked it.

“Australia was the first country to reject Huawei’s 5G technology and it is very hard to see how it is going to revisit the decision,” said Richard McGroger, senior fellow at Lowy Institute in Sydney.

China’s official media expressed dissatisfaction over a statement by Morrison describing China as a customer of Australia and the United States as a friend. He made a clear distinction between the two countries when he said, “China is an incredibly important country for Australia’s future. Our relationship with China is of course different to our relationship with the United States,” he said during the elections.

McGregor said there was no reason to be upset over the remarks. “I think it was not a good choice of words. I am sure the Prime Minister did not intend to send any kind of wrong signal and I doubt very much he will be describing China that way again,” he said.

Beijing may have preferred a change of government in Australia which would revisit some of the decisions taken by the coalition under Morrison earlier. But Morrison is back as Prime Minister and he is unlikely to review past decisions.

Besides, Australia has its own domestic reasons to support the United States on issues like opposing China’s military build up in the South China Sea.

“Of course, Australia is worried about the Chinese bases in the South China Sea, since most Australian trade passes through those waters,” he said.

China-India relations

In his congratulatory message to India’s re-elected prime minister, Chinese President Xi Jinping called on Modi to continue joint efforts with China in “promoting multi-polarization and economic globalization as well as upholding multilateralism.”

Analysts see this statement as a sign that Xi wants India to join in a broad coalition against the dominating influence of the United States.

Xi’s choice of words is significant because they come ahead of the meeting of Shanghai Cooperation Organization in Kyrgyz Republic capital, Bishkek, on June 13-14. He will meet Modi along with Russian President Vladimir Putin, Pakistan Prime Minister Imran Khan and heads of central Asian countries. China will once again push forward its agenda for opposing U.S. trade policies.

As the re-elected government settles down in New Delhi after a stormy election, envoys from India and China are making swift preparations for a series of exchanges between the leaders. A meeting of foreign ministers will happen soon.

Modi is inviting Xi to his election constituency and pilgrimage city of Varanasi in northern India for an informal summit in September.

The first Mar-a-Lago style informal summit took place with the two leaders meeting each other without aides took place in the Chinese city of Wuhan last year. The idea is for the two leaders to understand each other, see issues from a larger canvass and give “strategic guidance” to their ministers on enhancing India-China relations.

The Wuhan summit took place one year after India and China were engaged in a 72-day long border spat at a place called Doklam near the Bhutan border.

“There will be some serious effort to improve relationship. I think they will also look at the possibility of finding an early solution to the border dispute between the two countries,” said Phunchok Stobdan, former Indian diplomat and strategic expert.

“They might also discuss the Dalai Lama issue,” he said. The Tibetan leader fled China and came to India in 1959. He has since been demanding “greater autonomy” for Tibetan speaking people in China while Chinese leaders describe him as a “separatist and splittist” element who is instigating a section of Tibetans to break up from China.

Modi will also be careful about allowing implementation of China’s Belt and Road Initiative because it can be an emotional issue, more so because the Indian public regards Beijing as Pakistan’s biggest ally and protection. Modi and his party fought the election speaking against what he regards as Pakistan based terrorists causing mayhem in India.

An important issue on Xi’s mind is to garner support from different countries against Washington’s aggressive trade actions, which has also affected India and other countries. An important question is whether he will manage to persuade Modi to come out openly against the trade war.

“India usually tries to stay middle of the road instead of choosing between the U.S. and China. It is unlikely to come out strongly against U.S. trade actions,” Stobdan said.

India cancelled oil shipments from Iran under pressure from Washington, incurring huge losses. But it is likely to go back to the earlier practice of importing Iranian oil despite U.S. sanctions, Stobdan said.

“India is ready to make exceptions when it comes to its long-term a relationship with Iran and Russia. Everyone’s watching if India would regard its relationship with China at the same level,” he said.
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Water restrictions are to be imposed in Sydney, Australia’s biggest city, for the first time in almost a decade because of falling reservoir levels and a long-standing drought. Residents who breach the regulations could be fined US$150.

The flow of rainwater into some of Sydney’s reservoirs is at its lowest since World War II. From Saturday, households will face restrictions that will target the use of water outdoors. Garden sprinklers will be banned, and tougher measures could follow. The New South Wales state government says that “early and decisive action” will help to conserve supplies as a record-breaking drought worsens.

Australia’s Bureau of Meteorology is predicting below-average rainfall and higher temperatures for the next three months across the much of the continent.

“With the lowest inflows into Sydney’s water storage since 1940, the government has come to a decision that it is best to go into water restrictions,” said Melinda Pavey, the New South Wales state Minister for Water. “We may get rain. The Bureau of Meteorology’s predictions are not fabulous, but as we know as we plan weekends, they are not always right and I hope that they are wrong. We are taking the appropriate course of action to take it to level one.”

New South Wales has been in drought since the middle of 2017.

Catherine Port, from Sydney Water, a government-owned company, says its officers will patrol to ensure the water ban is not broken.

“Sydney Water have a team of community water officers that will be out in the community to monitor and ensure that water restrictions are complied with. Penalties that will apply is AUD$220 for individuals and $550 for businesses,” she said.

Critics, though, insist that Sydney’s plight is in part the result of poor planning and a failure to take water recycling seriously.

Falling reservoir levels prompted authorities to switch on a multi-million dollar desalinization plant in January. At full capacity, it could supply Sydney, a city of 4.6 million people, with 15 per cent of its water needs.

Smaller towns in New South Wales, Australia’s most populous state, are also facing water crises. In Tamworth, residents are on level four restrictions that ban all use of water outdoors, and swimming pools cannot be filled or topped up. Level five restrictions are considered to be an emergency measure.

Australia is the world’s driest inhabited continent.

 
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The Trump administration said on Tuesday that no major trading partner met its currency manipulation criteria but nine countries, including China, required close attention as Washington presses tariffs and negotiations to address trade deficits.

The Treasury Department, in a semi-annual report to Congress, said it reviewed the policies of an expanded set of 21 major U.S. trading partners and found that nine required close attention due to currency practices: China, Germany, Ireland, Italy, Japan, South Korea, Malaysia, Singapore, and Vietnam.

“No major U.S. trading partner met the relevant 2015 legislative criteria for enhanced analysis” as a currency manipulator, the department said in a statement.

President Donald Trump has imposed tariffs on $200 billion worth of Chinese imports and begun the process of imposing tariffs on another $300 billion in Chinese goods.

Talks to end the trade dispute between the two countries collapsed earlier this month, with the two sides in a stalemate over U.S. demands that China change its policies to address a number of key U.S. grievances, including theft of intellectual property and subsidies for state enterprises.

The Treasury Department said Washington believes direct foreign exchange intervention by the People’s Bank of China has been limited in the past year.

“Treasury will continue its enhanced bilateral engagement with China regarding exchange rate issues, given that the RMB (yuan) has fallen against the dollar by 8 percent over the last year in the context of an extremely large and widening bilateral trade surplus,” Secretary Steven Mnuchin said in the statement.

China needs to aggressively address market-distorting forces, including subsidies and state-owned enterprises, the Treasury statement said. Improved economic fundamentals would support a stronger yuan and help reduce China’s trade surplus with the United States, it said.
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Officials in Zimbabwe say the bodies of eight illegal miners have been retrieved from an abandoned gold mine about 50 kilometers north of Harare. The news Monday was a reminder of the risk faced by desperate illegal miners trying to make a living in the economically troubled southern African country. Matopo is a gold rich area in southern Zimbabwe, and some men there enter such mines, despite the danger involved. 

These men are illegal miners, using a metal detector to search for gold at the Nugget Mine, about an hour’s drive from Bulawayo, Zimbabwe’s second largest city. 

​Piniel Ndingi-Nyoni is one of those who entered the mine, despite the recent collapse of a mine shaft that killed four men. 

Ndingi-Nyoni says he has no choice but to take the risk. 

“Problems at home force me to do this. We need school fees, you need food, there are medical bills to take care of, so all that force you to stay in the bush. It is not funny at all. In this cold weather, we sleep in shacks while the wife is at home. At times, we can go for three months without getting anything,” Ndingi-Nyoni said.

​A few minutes later, the illegal miners disappeared into the bush at the sight of officials in the area. Once the coast is clear, they re-appear.

No man gives up, is the motto 42-year-old Edward Madyauta lives by. He says he has gold rush dreams. But he says on several occasions, he has gone for months on a wild-goose chase. 

What about fears of being trapped under, as what happened a few meters away?

“I do not fear death, because (I) usually get gold before depth gets past my height. So that can’t collapse on me. But those who go under have a higher risk of the shaft collapsing on them,” Madyauta explained.

On Monday, searchers found the bodies of eight men working an abandoned mine in Mazowe, north of the capital. It was the third fatal incident involving illegal miners this year. 

Polite Kambamura, deputy minister of mines, says the government is worried about the trend and has embarked on a campaign to urge people to stay away from abandoned mines.

​“We are going to call on owners of such mines to show cause why they are not mining. We are risking the lives of many people. If a mine stays for long without any activity, the ground will weaken up,” Kambamura said. “Some of those miners are going underground to mine on pillars. The moment they mine on pillars, then there is no more support and the ground will fall off.”

But with Zimbabwe’s economy in meltdown and no recovery in sight, one wonders if any of the miners, like Nyoni and Madyauta in Matopo, will listen to the advice.
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Zimbabwe’s disused mines continue to be a death trap for poor and desperate illegal miners in search of the precious minerals to earn a living. Columbus Mavhunga travelled to Matopo a gold rich area about 500 kilometers south of Harare, where mining continues despite some having been trapped earlier this month.
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Fiat Chrysler proposed a merger Monday with Renault, a union that would create the world’s third biggest automaker.

The merger, if it happens, would vault the new company, with annual sales of 8.7 million vehicles, into a position ahead of General Motors and behind only Volkswagen and Toyota, both of which sell about 10.6 million.

The merger could give the combined companies a better chance in the battle among auto manufacturers to build new electric and autonomous vehicles.

Investors in both companies showed their initial approval of the announcement, with Renault’s shares jumping 15 percent in afternoon trading in Paris and Fiat Chrysler stock up more than 10 percent in Milan. The proposal calls for shareholders to split ownership of the new company.

Fiat Chrysler said the deal would save the combined companies $5.6 billion annually with shared payments for research, purchasing and other expenses. The deal does not call for closure of any manufacturing plants but the companies did not say whether any employees would lose their jobs.

The deal would give Fiat access to Renault’s electric car technologies, allowing it to meet the strict carbon dioxide emission standards the European Commission is enacting.

For its part, Renault might be able to gain ground in the U.S. market because of Fiat’s extensive operations in North America.

The French government owns 15 percent of Renault and said it supports the merger, while adding that “the terms of this merger must be supportive of Renault’s economic development, and obviously of Renault’s employees.”

 
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Only the chirping of birds and insects break the silence at a gold mining site in the Eastern Region of Ghana, right at the foot of the Atewa forest reserve.

Caterpillar excavators stand still, as the two Ghanaian companies operating them wait for a new mining permit  a process that has been in the works for months.

But a fresh pile of sludge spilt over a patch of vegetation suggests the mine is being operated illegally.

Felix Addo-Okyreh, who works for Ghana’s Environmental Protection Agency (EPA), says the sludge — referred to as slime’ in mining jargon — is dirty waste water created when gold is separated from sediment, sometimes with the help mercury. It is stored in dams on the site.

“It rained heavily last week. The embankment of the dam was weak. It got broken, and this is the result,” he says.

The toxic slime landed a few meters away from a stream that flows into the Birim, a river supplying water to millions of people in the capital Accra.

Ghana cracked down on illegal small-scale gold mining in 2017, after the national water company warned that the chemicals discharged by what is locally known as galamsey could force the country to import all its drinking water within the next two decades.

That year the government set up a military task force to dismantle illegal mining sites and imposed a 20-month ban on all small-scale mining to give nature a breather. Satellite imagery and digital technologies are being used to better monitor mining activity.

Yet Global Forest Watch data released last month shows the rate of deforestation in Ghana increased by 60 percent in 2018, faster than in any other part of the world. The country lost 1.13 percent its primary forest last year, in part due to gold mined illegally and often siphoned away by Chinese buyers.

Daniel Kwamena Ewur, an officer for conservation group A Rocha, said the ban pushed more small-scale miners to work within the protected Atewa forest, operating at night when security officials are off duty.  

Local authorities and NGOs have started training illegal miners to learn alternative livelihood skills such as soup-making and farming bees. But critics doubt these activities are economically viable.

“It’s kind of scratching the surface of the core issues of livelihood driving people,” said Nafi Chinery, Ghana country manager for the New York-based Natural Resource Governance Institute.

Chinery believes the anti-galamsey campaign has been more about politics than impact. “We don’t have enough data about who is actually involved in galamsey,” she added.

Around 1.1 million Ghanaians were estimated to work in small-scale mining before the ban, which was lifted in December, accounting for around 30 percent of the country’s annual mineral production. 

EPA’s head of mining Michael Ali says the government is now going to great lengths to “sanitize” the gold industry by formalizing galamsey sites, being stricter with paperwork and cracking down on the use of mercury.

“The mission is to reduce it to the barest minimum,” said Ali. “We cannot eliminate it completely, unless the citizens themselves police it.”

The EPA has reclaimed ten acres of illegally mined land around the Atewa forest, near the southeastern town of Kyebi. Trees were planted to encourage residents to take initiative and help meet an ambitious reclamation target of more than 7,000 square kilometers of land by 2022.

In the nearby town of Sagymase, 65-year old cocoa farmer Janet Achampong does not know what to do about the gaping pit left on land she leased to illegal miners five years ago. She cannot afford to fill the hole herself and reconvert it to farmland.

The government has acknowledged money is short and says it is seeking support from the international community. In Sagymase, Norwegian donors are funding the reclamation of six acres of galamsey land over the next four years.

A Rocha’s Ewur is facilitating the project, but is wary of planting trees and food crops in soil that has been mixed with chemicals.

“There is some quantity of mercury in the belly of this land,” said Ewur. “I would not eat the mangoes that grow here.”   
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President Donald Trump says he is “honored” to give U.S. farmers hurt by the trade war with China another $16 billion in aid. 

Flanked by potato growers, ranchers and dairymen in the White House, Trump said Thursday the aid “will help keep our cherished farms thriving and make clear that no country has a veto on America’s economic and national security.”

Trump added that trade has been “very unfair” to the farmers who he says support him politically.

This is the second multibillion-dollar bailout the Trump administration has provided to U.S. farmers who have seen Chinese markets for their products dry up because of tariffs China imposed on U.S. goods to retaliate for U.S. tariffs on Chinese products. The White House gave farmers $12 billion last year.

U.S. Agriculture Secretary Sonny Perdue says farmers should see the first installment of the new $16 billion in aid in July or August. Perdue said he doubts if the United States and China can reach a trade deal by then.

Most of the money will go to farmers who grow and sell such crops as soybeans, corn, peanuts and wheat. Money will also be set aside to buy excess products from the farmers and send them to schools and food banks.

“I can’t recall a president more concerned about farmer well-being. We are working hard to assess trade damages and this package ensures farmers will not bear the brunt,” Perdue said.

While Trump said Thursday that many farmers told him he is “doing the right thing,” some trade experts call the bailout a political ploy and say farmers are more concerned about winning back the lost Chinese market.
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In a potential challenge to U.S.-led efforts to build consensus on the Boeing Co 737 MAX flying again, Canada and Europe said on Wednesday they would bring back the grounded aircraft on their own terms if their specific concerns are not addressed.

Global regulators will meet in Fort Worth, Texas, on Thursday where the U.S. Federal Aviation Administration hopes to reach an international consensus on how to move forward with the MAX, U.S. officials told Reuters.

The plane was grounded worldwide in March following a fatal Ethiopian Airlines crash just months after a similar Lion Air disaster in Indonesia which together killed 346 people.

Global airlines that had rushed to buy the fuel-efficient, longer-range aircraft have since canceled flights and scrambled to cover routes that were previously flown by the MAX.

“From our point of view, if we all work together and we all reach the same aim, fine. If we don’t, we’ll choose our own time to decide when the planes are safe to fly again,” Canadian Transport Minister Marc Garneau told Reuters in an interview.

“The number one focus for us is that we in Canada must be satisfied. It doesn’t matter what others do. So if we are not perfectly synchronized with certain other countries that’s how it going to be,” Garneau said.

Regulators are expected to discuss Boeing’s proposed software fix and new pilot training that are both key to re-starting flights. Boeing has not yet formally submitted its proposals to the FAA.

A spokesman for the European Aviation Safety Agency said on Wednesday that it would complete an additional independent design review of the plane once the FAA approves Boeing’s proposed changes and establishes “adequate training of Boeing MAX flight crews.”

Foreign regulators have already signaled disagreements over measures to end the grounding, with Garneau calling in April for pilots to receive simulator training for the MAX, rather than computer courses, going a step beyond FAA-backed proposals.

Acting FAA Administrator Dan Elwell told Congress last week the FAA is working closely with other civil aviation authorities “to address specific concerns related to the 737 MAX.”

United Airlines Chief Executive Oscar Munoz said on Wednesday that FAA approval is only the first step, with public and employee confidence key to deciding when to fly its 14 MAX jets again.
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British lawmakers are denouncing Prime Minister Theresa May’s latest proposal to withdraw from the European Union (EU) amid growing demands from her own Conservative Party for her resignation.

May said on Tuesday a bill she plans to present to Parliament next month would include a provision to vote on whether to hold a second referendum to leave the EU, a key demand of many opposition lawmakers.

May also offered closer trading arrangements with the EU as another incentive in what she called a “last chance” opportunity to finalize a Brexit deal.

Speaking before the House of Commons on Wednesday, May implored lawmakers to support her bill, warning a rejection would lead to “division and deadlock.”

May said her withdrawal bill would be disclosed Friday so that lawmakers would have time to study it.

Legislators previously spurned May’s exit deal three times and her latest attempt to win support faces an uphill fight. She plans to ask lawmakers to vote on the bill again during the week of June 3.

Members of May’s own Conservative Party accused her of relenting to pro-EU demands while opposition Labour Party lawmakers rejected her latest plan as too little too late.

On Tuesday, May said after Parliament votes on the measure, she will establish a timetable for her departure as leader of the Conservative Party and as prime minister.

A growing number of Conservative Party members, however, are pressing her to cancel the vote and step down sooner.

May is likely to face even more pressure when the results of this week’s European Parliament elections are released, as the Conservative Party is expected to suffer heavy losses.

The election will be held in Britain on Thursday, but the results won’t be announced until all European countries have finished voting late Sunday.

British citizens voted in a referendum to leave the EU three years ago and the country was scheduled to leave the EU on March 29, but the 28-nation bloc extended the deadline until October 31.

 

 
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