Ukraine's parliament passes bill weakening anti-corruption agencies. The public is furious
Fighting entrenched corruption is crucial for Ukraine's bid to join the European Union and maintain access to billions of dollars in Western aid. The legislation's passage has triggered public outrage in Ukraine, and a protest was planned Tuesday in Kyiv.
The changes would grant the prosecutor general new authority over investigations and cases handled by the National Anti-Corruption Bureau of Ukraine (NABU) and the Specialized Anti-Corruption Prosecutor's Office (SAPO).
'In effect, if this bill becomes law, the head of SAPO will become a nominal figure, while NABU will lose its independence and turn into a subdivision of the prosecutor general's office,' the agencies said in a joint statement on Telegram.
The bill goes to Zelenskyy for his signature or veto.
In a post on X, the EU's Enlargement Commissioner Marta Kos expressed concern over the vote in the Rada, calling it 'a serious step back.'
Kos added: 'Independent bodies like NABU & SAPO are essential for Ukraine's EU path. Rule of Law remains in the very center of EU accession negotiations.'
The Ukrainian branch of Transparency International criticized parliament's decision, saying it undermines one of the most significant reforms since what Ukraine calls its Revolution of Dignity in 2014 and damages trust with international partners.
The group urged Zelenskyy to veto the law, warning that otherwise he would share responsibility with the Rada for 'dismantling Ukraine's anti-corruption infrastructure.'
On Monday, Ukraine's domestic security agency detained two NABU officials on suspicion of links to Russia and searched other agency employees on unrelated allegations.
Zelenskyy's office didn't respond to a request for comment. Last week, the president carried out a reshuffle of his wartime cabinet, a move widely viewed as further consolidating power within his inner circle.
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Winnipeg Free Press
a minute ago
- Winnipeg Free Press
Trump is getting the world economy he wants — but the risk to growth could spoil his victory lap
WASHINGTON (AP) — President Donald Trump is getting his way with the world economy. Trading partners from the European Union to Japan to Vietnam appear to be acceding to the president's demands to accept higher costs — in the form of high tariffs — for the privilege of selling their wares to the United States. For Trump, the agreements driven by a mix of threats and cajoling, are a fulfillment of a decades-long belief in protectionism and a massive gamble that it will pay off politically and economically with American consumers. On Sunday, the United States and the 27-member state European Union announced that they had reached a trade framework agreement: The EU agreed to accept 15% U.S. tariffs on most its goods, easing fears of a catastrophic trans-Atlantic trade war. There were also commitments by the EU to buy $750 billion in U.S. energy products and make $600 billion in new investments through 2028, according to the White House. 'We just signed a very big trade deal, the biggest of them all,' Trump said Monday. But there's no guarantee that Trump's radical overhaul of U.S. trade policy will deliver the happy ending he's promised. The framework agreement was exceedingly spare on details. Most trade deals require months and even years of painstaking negotiation that rise and fall on granular details. High-stakes negotiations break Trump's way Financial markets, at first panicked by the president's protectionist agenda, seem to have acquiesced to a world in which U.S. import taxes — tariffs — are at the highest rates they've been in roughly 90 years. Several billion in new revenues from his levies on foreign goods are pouring into the U.S. Treasury and could somewhat offset the massive tax cuts he signed into law on July 4. Outside economists say that high tariffs are still likely to raise prices for American consumers, dampen the Federal Reserve's ability to lower interest rates and make the U.S. economy less efficient over time. Democrats say the middle class and poor will ultimately pay for the tariffs. 'It's pretty striking that it's seen as a sigh of relief moment,' said Daniel Hornung, a former Biden White House economic official who now holds fellowships at Housing Finance Policy Center and the Massachusetts Institute of Technology. 'But if the new baseline across all trading partners is 15%, that is a meaningful drag on growth that increases recession risks, while simultaneously making it harder for the Fed to cut.' The EU agreement came just four days after Japan also agreed to 15% U.S. tariffs and to invest in the United States. Earlier, the United States reached deals that raised tariffs on imports from Vietnam, Indonesia, the Philippines and the United Kingdom considerably from where they'd been before Trump returned to the White House. More one-sided trade deals are likely as countries try to beat a Friday deadline after which Trump will impose even higher tariffs on countries that refuse to make concessions. Trump's long-held theory now faces reality The U.S. president has long claimed that America erred by not taking advantage of its clout as the world's biggest economy and erecting a wall of tariffs, in effect making other countries ante up for access to America's massive consumer market. To his closest aides, Trump's use of tariffs has validated their trust in his skills as a negotiator and their belief that the economists who warned of downturns and inflation were wrong. Stocks rose slightly on Monday morning on tariffs that once seemed unthinkably risky. 'Where are the 'experts' now?' Commerce Secretary Howard Lutnick posted on X. But the story is not over. For one thing, many of the details of Trump's trade deals remain somewhat hazy and have not been captured in writing. The U.S. and Japan, for instance, have offered differing descriptions of Japan's agreement to invest $550 billion in the United States. 'The trade deals do seem to count as a qualified win for Trump, with other countries giving the U.S. favorable trade terms while accepting U.S. tariffs,' said Eswar Prasad, a Cornell University economist. 'However, certain terms of the deals, such as other countries' investments in the U.S., seem more promising in the abstract than they might prove in reality over time.' Trump is also facing a court challenge from states and businesses arguing that the president overstepped his authority by declaring national emergencies to justify the tariffs on most of the world's economies. In May, a federal court struck down those tariffs. And an appeals court, which agreed to let the government continue collecting the tariffs for now, will hear oral arguments in the case Thursday. And he's yet to reach an accord with China — which has deftly used the threat of retaliatory tariffs and withholding exports of rare earth minerals that are desperately needed for electric vehicles, computer chips and wind turbines to avoid caving in to Trump's demands. The U.S. and China are talking this week in Stockholm, Sweden. Economists remain skeptical of the impacts for US consumers There is also skepticism that tariffs will produce the economic boom claimed by Trump. Analysts at Morgan Stanley said 'the most likely outcome is slow growth and firm inflation,' but not a recession. After all, the 15% tariffs on the EU and Japan are a slight increase from the 10% rate that Trump began charging in April during a negotiation period. While autos made in the EU and Japan will no longer face the 25% tariffs Trump had imposed, they will still face a 15% tax that has yet to appear in prices at U.S. dealerships. The administration has said the lack of auto price increases suggests that foreign producers are absorbing the costs, but it might ultimately just reflect the buildup of auto inventories to front-run the import taxes. Monday Mornings The latest local business news and a lookahead to the coming week. 'Dealers built stocks ahead of tariff implementation, damping the immediate impact on retail prices. That cushion is starting to wear thin,' Morgan Stanley said in a separate note. 'Our Japan auto analyst notes that as pre-tariff inventory clears, replacement vehicles will likely carry higher price tags.' Economist Mary Lovely of the Peterson Institute for International Economics warned of a 'slow-burn efficiency loss'' as U.S. companies scramble to adjust to Trump's new world. For decades, American companies have mostly paid the same tariffs – and often none at all – on imported machinery and raw materials from all over the world. Now, as a result of Trump's trade deals, tariffs vary by country. 'U.S. firms have to change their designs and get inputs from different places based on these variable tariff rates,'' she said. 'It's an incredible administrative burden. There's all these things that are acting as longer-term drags on economy, but their effect will show up only slowly.'' Mark Zandi, chief economist at Moody's Analytics, said that the United States' effective tariff rate has risen to 17.5% from around 2.5% at the start of the year. 'I wouldn't take a victory lap,' Zandi said. 'The economic damage caused by the higher tariffs will mount in the coming months.'
Global News
31 minutes ago
- Global News
Trump vows tariffs for ‘the rest of the world.' Where does Canada stand?
The United States will impose a tariff for 'essentially the rest of the world' instead of making individual trade deals, U.S. President Donald Trump told reporters Monday. 'We're going to be setting a tariff essentially for the rest of the world, and that's what they're going to pay if they want to do business in the United States, because you can't sit down and make 200 deals,' Trump said during a joint media event with U.K. Prime Minister Keir Starmer. Trump's remark comes a day after he announced a trade deal with the European Union, which will see a 15 per cent tariff imposed on most European goods being exported to the U.S. The deal with the EU looks very similar to the one Trump announced with Japan, which would have a 15 per cent tariff on most Japanese exports to the U.S. Story continues below advertisement While Trump has said negotiations with other nations and trading blocs were progressing towards a deal before Aug. 1, he has singled out Canada as a country with which he was not making progress. Last week, Trump said his administration hasn't 'had a lot of luck with Canada' in its trade negotiations. He added that there may not be a deal with Canada. 'I think Canada could be one where there's just a tariff, not really a negotiation,' he told reporters. 'We don't have a deal with Canada; we haven't been focused on them,' he said. Prime Minister Mark Carney on Monday said he would only sign a deal that was 'a good deal for Canada.' 'The negotiations are at an intense phase,' Carney told reporters in Prince Edward Island. Tweet This Click to share quote on Twitter: "The negotiations are at an intense phase," Carney told reporters in Prince Edward Island. Canada and the EU have both similarities and differences when it came to their respective commercial relationships with the U.S., Carney said. 'We have some similarities with the European Union in terms of our commercial relationships with the United States. We're one of their most important trade partners,' he said. 4:59 Canada – U.S. trade negotiations ahead of deadline 'He does not like Canada' These deals don't portend well for Canada, said Concordia University economist Moshe Lander, especially considering some recent threats Trump made against Canada's economy. Story continues below advertisement 'Trump's getting his way. He's menacing countries, big and small, and putting the world economy back to the 1930s,' Lander said. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy Trump's statement on Monday seems to indicate that he would rather settle on a flat tariff rate for his trading partners, said Sal Guatieri, director and senior economist at BMO Capital Markets. 'For countries that run a trade surplus with the U.S. goods, they most likely will need to settle for something in that 15 per cent range,' he said. Earlier this month, Carney said it was 'unlikely' that a zero-tariff trade deal could be reached in August. Carney told reporters there was 'not a lot of evidence' for any country to have a tariff-free agreement and it was unlikely Trump would agree to one with Canada. Where does Canada's trade stand with U.S.? Canada's balance of trade with the U.S. is not like that of the EU. Story continues below advertisement Excluding oil, gas and energy, Canada runs a trade deficit with its neighbour. However, Guatieri said Trump was likely to only look at the overall balance of trade. 'Unfortunately, I don't think the White House is making much of a distinction with respect to Canada's trade with the U.S.,' he said. 'It's just saying basically in total, Canada is running a surplus with the U.S. and needs to pay a higher tariff. The main message from these six trade deals (that Trump has signed recently) is that basically no country will be unscathed. Everyone will end up with higher tariffs than was the case a year ago under the new White House,' he said. Trump has been ratcheting up his threats against Canada as the trade talks intensify. Last month, he said Canada was a 'a very difficult country to trade with' and threatened to scrap the talks altogether if Canada did not withdraw its Digital Services Tax. Last month, he raised the stakes of his trade war. In a letter to Carney posted to Truth Social, Trump threatened a 35 per cent tariff on 'Canadian products sent into the United States, separate from all Sectoral Tariffs.' 'If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 35 per cent that we charge,' the letter adds. Story continues below advertisement 'He does not like Canada,' Lander said. 'Canada is not going to get any sort of favourable treatment in whatever deal comes out,' he added. 2:04 What Trump's EU trade deal reveals about talks with Canada Autos, steel, aluminum hardest hit Those threats come as the steel and aluminum sectors continue to face steep U.S. tariffs. Story continues below advertisement 'Unfortunately, it doesn't look like any country so far is able to get their 50 per cent duty on steel and aluminum down to a smaller number,' Guatieri said. He added, 'One partial save for Quebec is that the U.S. really does need Canadian aluminum. They have limited capacity to increase their aluminum production or buy foreign-made aluminum from countries other than Canada.' Both Japan and the EU managed to get their tariff rate on automobiles reduced from 25 per cent to 15 per cent. Guatieri said Canada is likely to get a similar deal on autos. 'We would still be somewhat competitive in selling our vehicles to the U.S., especially when you consider that there is an exemption for U.S. content in Canadian-made vehicles. That would help (but) not fully shield Canada's auto industry,' he said. According to BMO, Canada's effective tariff rate for trade with the U.S. is currently around six per cent. This is because Trump's tariffs on Canada do not include goods that are CUSMA-complaint. This would be 'manageable' for the broader economy, Guatieri said, but added that the auto, steel and aluminum industries could see some serious pain, including potential layoffs. 'We think most of the rest of the country is somewhat insulated from this trade war, but unfortunately Ontario and Quebec are not,' Guatieri said.
2 hours ago
Canada-U.S. trade negotiations at 'intense phase,' Carney says as deadline looms
Prime Minister Mark Carney said Monday trade negotiations with the U.S. are at an intense phase ahead of Friday's deadline to reach an agreement. [Canadians] don't deserve the uncertainty that's been thrust upon them… they want the right kind of resolution. They want a deal that makes sense for Canada, Carney said during a news conference in Prince County, P.E.I. The negotiations are at an intense phase, it's a complex negotiation. Carney's comments come after U.S. President Donald Trump mused last week that a deal with Canada might not be in the cards. We haven't really had a lot of luck with Canada, Trump told reporters Friday outside the White House in response to a question about the state of tariff talks with U.S. trading partners. I think Canada could be one where there's just a tariff, not really a negotiation. WATCH | Talks moving slowly, Trump says: The two countries have been negotiating to reach some sort of trade agreement by Friday. The talks come after Trump imposed tariffs on a number of Canadian goods and he has promised more could come by the deadline. The president wrote to Carney earlier this month, threatening to slap a 35 per cent tariff on goods that don't comply with the Canada-U.S.-Mexico Agreement (CUSMA). That rate would apply to Canadian exports currently being tariffed at 25 per cent, under Trump's emergency powers, citing what he says is a national security threat from fentanyl trafficking. Separately, Canadian steel and aluminum are facing a 50 per cent tariff that the U.S. has imposed on all countries, while the U.S. tariff on Canadian energy and potash is set at 10 per cent. Trump has also slapped a 25 per cent tariff on non-U.S. content of automobile imports and threatened to impose levies on pharmaceuticals, lumber and copper. During a visit to Washington last week, Canada's top trade negotiators downplayed the likelihood they'll get an agreement by Friday. We're going to continue to work toward the Aug. 1 deadline, said Canada-U.S. Trade Minister Dominic LeBlanc. But all of these deadlines are with the understanding that we'll take the time necessary to get the best deal that we think is in the interest of the Canadian economy and Canadian workers. WATCH | Canada's team downplays prospects for deal by Aug. 1: Despite Trump's comments last week, Carney still expressed optimism that a deal could be reached by Friday. They're tough negotiations, as they should be. We're standing up for Canada, for Canadian interests, he said Monday. There is a landing zone that's possible but we have to get there. We'll see what happens. WATCH | Carney says Canada is 'in a different position' than EU on trade deal with U.S.: The U.S. president has been using tariffs and tariff threats to push for trade agreements with a number of countries. The EU was the latest U.S. trading partner to reach an agreement. The European bloc reached a deal that would see the U.S. impose a 15 per cent tariff on its imports — half of the 30 per cent that Trump had initially threatened. Carney has said in recent weeks that an agreement with the Americans may include accepting some levies on exports. But the prime minister suggested on Monday that Canada is in a better position than other U.S. trading partners because the Americans rely on certain Canadian exports, specifically energy. The United States and Canada can do many good things together. We have done that in the past, we can do more in the future but on fair terms for our country, Carney said. Darren Major (new window) · CBC News · Senior writer Darren Major is a senior writer for CBC's parliamentary bureau in Ottawa. He previously worked as a digital reporter for CBC Ottawa and a producer for CBC's Power & Politics. He holds a master's degree in journalism and a bachelor's degree in public affairs and policy management, both from Carleton University. He also holds master's degree in arts from Queen's University. He can be reached at With files from Mike Crawley and Reuters
