Latest news with #US-initiated
Yahoo
26-05-2025
- Politics
- Yahoo
Slovenian president says EU needs "silent dialogue" with Russia
Slovenian President Nataša Pirc Musar believes that the European Union should resume some form of dialogue with Russia – at least through quiet diplomacy conducted by a designated team. Source: Politico, as reported by European Pravda Details: The Slovenian president called it a mistake that the EU stopped communicating with Russia after the start of the full-scale war and believes that this should be resumed. "One of the mistakes of [the] European Union was that we stopped communicating with Russia," she said. The EU should nominate a group of "wise men and women" to initiate "silent" diplomacy with Russia as a first step towards direct dialogue, she added. Nataša Pirc Musar believes that Europe needs to focus on being included in negotiations with the US, Russia and Ukraine and that "dialogue, dialogue, dialogue" is needed, despite the fact that the US-initiated talks have not yet yielded results. Pirc Musar said that she raised these issues in a conversation with European Commission President Ursula von der Leyen and that she said they were working on it. In addition, she said in an interview that increased defence spending should not affect the social sphere. Background: Nataša Pirc Musar visited Ukraine in June 2024. At that time, she stated that Ukraine should decide for itself when and on what terms to enter into negotiations with Russia. Support Ukrainska Pravda on Patreon!
Yahoo
21-05-2025
- Business
- Yahoo
Uncertainty: worse than tariffs, better than decoupling
Last week, over 5,000 delegates gathered in a sprawling convention centre just outside Washington DC to answer one question: is the US still the most attractive foreign direct investment (FDI) destination in the world? The SelectUSA Investment Summit, established in 2007, is the US's most important event to promote FDI. It gathers international businesses, industry leaders, economic development organisations and representatives from all US states. This year's event, however, took place against the backdrop of a US-initiated trade war. Many versions of the US's current FDI standing emerged during the few days Investment Monitor was present at the event, but one thing was clear: the uncertainty brought on by tariffs is causing many businesses to pause, delay and hope for the best while some multinationals with long-term horizons double down. The plenary sessions that featured industry leaders and government representatives mainly focused on the positive and were mostly attended by country delegations. They discussed US President Donald Trump's America's First Investment Policy and pressed the suggestions that now is the 'perfect time to be investing in the US' (Barbara Humpton, CEO of Siemens Corporation) and that 'there's never been a better time to select the US than now' (Ola Källenius, Mercedes-Benz Group CEO). Mercedes-Benz has increased production of some models in the US to counter the tariffs. One of the very few statements on the main stage that alluded to the tariff mayhem of the past few months came from Michigan Governor Gretchen Whitmer, who acknowledged that 'trade policy is creating a lot of stress in industries all across our economies.' When a moderator asked Hyundai CEO José Muñoz whether his company has increased production in the US because of tariffs (the 'elephant in the room', the moderator called them), Muñoz gave a long answer about how his industry's time horizons are so long they do not make decisions based on 'incentives that come and go.' Some of Hyundai's moves, such as starting a tariff task force in April and shifting some of its production to the US from Mexico, suggest a different reality to Muñoz's unfazed answer. The rest of the Summit (except some smaller panels) took place downstairs, in the exhibition hall, where investment promotion agencies and other organisations from across the US had their own booths. Here, for the majority of people that Investment Monitor spoke to, there was no downplaying the difficulties that businesses are facing, given the rapid changes to trade policy. While many are still eager to engage with the US market, many feel the need for some level of predictability before fully committing. European American Chamber of Commerce executive director Fernanda Ceva, who had recently been in Germany conferring with companies interested in investing in the US, said: 'The impression that we have is that everyone is holding up to decide something until they have more certainty. I see that they're still interested in doing business with the US.' According to a poll of 6,000 German companies conducted by the German Chamber of Commerce and Industry, only 19% of firms in Germany are planning to expand to the US. German investments in the US account for 12% of the country's foreign investment. Yvonne Bendinger-Rothschild, the executive director of the European American Chamber of Commerce New York, said: 'The problem is more the uncertainty than the tariff itself [...] We're constantly going back and forth. If we saw there's going to be a 10% tariff, then people can plan with it to do something and make forecasts [...] If you think about it, that we have earnings reports that don't have a forecast in them, I mean, that turns every economist's stomach.' Christopher Chung, the CEO of the Economic Development Partnership of North Carolina, echoed this sentiment. 'What we are hearing at this event is largely around, just tell us what the rules of the game are going to be and assure us that these are the rules that will be in place for a while, and they're not going to change in two or three years, because that makes it really hard for these companies,' he said. 'That kind of back and forth [...] creates a little too much uncertainty, and that makes it hard for [companies] to push ahead with their decision.' Hours before the second day of the summit began, the first day when media would be allowed in, the US and China reached a major milestone in trade negotiations when they announced a tariff pause. The US would reduce its 145% tariff on Chinese goods to 30%, and China would reduce its 125% tariff to 10% for 90 days. The pause was a welcome development for everyone, as it seems to signal that the pace of change is slowing down. Oklahoma Governor Kevin Stitt suggested it would 'give them the time to really sit down and have cooler heads prevail.' But others highlighted that the pause was just that, a pause. 'You're seeing a little bit more certainty now that there's going to be negotiations, but again, it's a pause,' said Ed Brzytwa, vice president of International Trade at the Consumer Technology Association and a former official of the US Trade Representative's Office. 'The President himself confirmed that at the end of the 90 days, if China doesn't cut a much more substantive deal, that the tariffs could come back on, maybe not all the way to 145% but certainly not as low as 30%.' While some importers or inventors have stopped or delayed plans, businesses have also been trying to circumvent trade barriers through other means. The demand for bonded warehouses in the US, buildings where imports can be kept before payment of a duty, has surged since the tariff uncertainty began. Goods can be stored in bonded warehouses for up to five years. Shifting global supply chains, once seen as the best method to avoid being affected by US hostilities with China, has become a tougher path. 'Companies have been trying to reposition their supply chains out of China, but they're facing tariffs of 46% in Vietnam, 32% in Taiwan and similarly high tariffs in Thailand, Japan and South Korea,' Brzytwa noted. 'So, they're being penalised for making the right decision.' Whatever happens with the tariffs, the interdependence of the global economy with the US means decoupling is not an option. This dependence fares well for the North American country, because firms would rather wait out this period of uncertainty than leave the US and try to replace it with another market (an impossible task given that the US is the world's largest consumer market). The same cannot be said for companies that are caught in a waiting game with no end in sight. 'Europe and the US are each other's biggest trading partners, and no tariff is going to change that,' Bendinger-Rothschild explained. 'What the tariffs are going to change is how we're going to go about doing business with one another, but we're not going to stop. You can't replace either Europe for a US company or the US as a European. [Companies] have confidence in the economy, because the moment we have the most faint of good news, the market is shooting up.' The cautious approach foreign firms are taking, even as tariff pauses have been put in place, shows the implications of the US's loss of credibility on global business decisions. While the 90 day pause with China has just begun, we are already a third of the way through the other 90-day tariff pause – the one that began a week after universal reciprocal tariffs were announced in April. This break is set to last until July, prompting countries to rush to make concessions and deals with the US. The deals being made during this period, however, are not true trade deals, according to Rothschild-Bendinger. 'A trade agreement is a comprehensive agreement where you have everybody give a little, take a little,' she highlighted. 'A trade agreement is not selling somebody more soybeans.' Given the uncertainty around what the tariffs will look like at the end of the pause, some officials this publication spoke to said their companies are accounting for that uncertainty by factoring a base tariff rate into their projections. Huynh Thien Phu, business development specialist at Vietnam-based coconut water supplier Betrimex, said his firm is 'accepting [...] that it's going to be around 10-15%. If it's around 10%, let's say 11%, then it's okay. We already pay five. Adding another five wouldn't hurt us as much; we can adapt to it. But, hopefully it's not high, in the 40s.' Vietnam was hit with one of the highest tariff rates in April, at 46% and is currently in trade talks with the US. Brent Omhdal, executive vice president for government affairs at Taiwanese semiconductor firm GlobalWafers, commented: 'If you believe the news reports, the new normal is 10% tariffs, so I think businesses, including our industry, are adjusting.' Even the US's development of the artificial intelligence (AI) industry, which was heavily touted by speakers during the plenary sessions, could be slowed down by the tariffs because of the uncertainty around the price of inputs. On tariffs affecting semiconductors, Omhdal said of GlobalWafers: 'Being the only manufacturer of silicon here in the US at 300mm, you could benefit from the tariff in that way. At the same time, we need to actually import some substrates, even from our own company.' A few days after the conference, GlobalWafers announced a $4bn expansion in the US. The semiconductor industry is also facing uncertainty from an ongoing government probe. In April, the Trump administration initiated an investigation into semiconductors under Section 232, which enables the president to restrict imports that threaten national security. 'With these investigations, they could impose a tariff of 25% or more [...] on the finished good that has a semiconductor in it,' Brzytwa explained. 'Technology products have many different types of inputs [...] If there's a tariff on the semiconductor or the printed circuit board or let's just say the glass casing, it makes it much more difficult and expensive to manufacture that product in the US.' Companies have long been interested in investing in the US. And, despite the uncertainty, they still are. But given the events of the past few months, the ability to confidently predict the economic conditions under which that investment might happen has practically disappeared. Most firms can do is stay agile, vigilant and ready to change course. Christopher Chung told Investment Monitor about his meeting with the North American CEO of a big aerospace company. 'We were talking afterwards, and he turned to his communications person, and basically his question was, have we heard anything from the White House in the past 30 minutes? He didn't say it as a joke.' "Uncertainty: worse than tariffs, better than decoupling " was originally created and published by Investment Monitor, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
IOL News
14-05-2025
- Business
- IOL News
The true value of land: it's not who owns it, but how it's used
The eThekwini Municipality intends to build a world-class Logistics Park in Clairwood, south of Durban. Clairwood was historically a residential area that has undergone significant industrial development. Image: File Land reform conversations should not be limited to who owns the land; they should also focus on how that land is used and whether it delivers meaningful benefits for the communities that fought to reclaim it. Peter Setou, the Chief Executive of Vumelana Advisory Fund, says far greater attention needs to be paid to what happens after land has been transferred. 'Thankfully, there is growing recognition that land reform cannot be viewed in isolation from broader economic development. When communities gain access to land, that is only the beginning. "The challenge and opportunity lie in ensuring that the land becomes a source of economic benefit, creates jobs, exposes communities to access markets and enables skills development,' Setou said. The non-profit organisation established to help communities in the land reform programme put their land to productive use said resolving the land question is not only morally and politically right but also an economic imperative in a country that has gained the reputation of being ranked the most unequal society in the world by the World Bank. It said with a staggering 41.9% of the local population swelling the ranks of the unemployed in the last quarter of last year, according to Stats SA's expanded definition of unemployment, which includes those discouraged from seeking work. Setou said the increasingly uncertain geopolitical developments, the looming spectre of US-initiated debilitating trade wars, soaring tariffs and the possible termination of the African Growth and Opportunity Act (AGOA) which grants African nations duty-free access to the lucrative US market, adds credence not only for an accelerated land reform programme, but the deliberate enablement of rural economies and the empowerment of beneficiary communities. He said this would enable them to make their land productive to ensure that they can effectively participate in commercial agriculture, eco-tourism and other broader economic areas within the land value chain. 'The potential of land ownership to slam the brakes on the scourge of unemployment and deepening levels of poverty has been acknowledged by the National Development Plan (NDP), which envisaged agriculture as the sector that has the potential to create close to 1 million new jobs by 2030. "The attainment of this ambitious plan hinges on the implementation of tailored, post-settlement support programmes that can attract much-needed investment and on fostering skills transfer and development and ensuring financial sustainability of the land,' Setou said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ The organisation said that whilst there has been criticism levelled at the pace of land reform, the pockets of achievement and progress made thus far prove that a successful land reform programme can be a catalyst for job creation and skills development. 'Through the partnerships we have facilitated between beneficiary communities and private sector investors, we have redefined the narrative of the land reform programme and provided a living testament of a resoundingly successful land reform outcome. "We don't have to reinvent the wheel. We already have a winning formula that we can build upon to leverage the land reform programme into a formidable initiative that can generate positive and far-reaching social and economic benefits for everyone,' Setou said. Meanwhile, last month, a Vodacom spokesperson told this publication that challenges they faced as mobile network operators (MNOs) in securing land for site builds are the lengthy period it takes to obtain approvals from municipalities. Secondly, they said power upgrades on existing infrastructure to support new technologies are a challenge due to the long lead time of six to eight months. 'In addition, the supplier's insufficient power capacity to meet the required specifications for implementing the 3-phase for our technologies is a big test for the business. Lastly, bylaws, public participation and environmental requirements can impact the site acquisition process. For example, it can take up to 18 months to obtain site approvals.' The company said its deep rural network acceleration programme is negatively affected by lengthy delays in site build approvals by municipalities and trusts that oversee communal land. It said that when these delays occur, they prolong their efforts to bridge the digital divide in rural areas. 'Critically, the delays with local authorities in approving applications further hold up economic development in these areas, as the deployment of tech infrastructure can transform societies for the better and be a catalyst for economic growth and the alleviation of poverty. "Our view is that the Spatial Planning and Land Use Management Act (SPLUMA) needs to be reviewed to cater for telecommunications network development,' Vodacom said. Independent Media Property
The Star
08-05-2025
- Business
- The Star
China, US scheduled to hold trade talks
China and the United States are scheduled to hold official trade talks later this week, as Beijing reiterates its commitment to dialogue and cooperation while firmly safeguarding its legitimate interests in the face of escalating US-initiated trade tensions. Analysts said that mounting pressure from domestic stakeholders in the US may have pushed Washington back to the negotiating table. They also said that the international community is watching closely to see whether the upcoming talks can help stabilize the global economy and provide a turning point to ease trade tensions and address trade disputes between the world's two largest economies through dialogue. The Foreign Ministry confirmed on Wednesday that Vice-Premier He Lifeng, China's lead person for China-US economic and trade affairs, will have a meeting with the US' lead person, Treasury Secretary Scott Bessent, during He's visit to Switzerland from Friday to Monday. The ministry said that the talks were scheduled at the request of the US. The conversations mark the first official public engagement between the world's two largest economies since the Trump administration's decision to impose hefty tariffs on imports from China plunged the two sides into a trade war. In the lead-up to Beijing's decision to agree to engage with Washington, senior US officials had been signaling adjustments to tariff measures and had proactively conveyed messages through various channels, expressing their desire to engage in talks with China on tariffs and related issues, the Ministry of Commerce said on Wednesday. "Taking into account the global expectations, China's interests, and the calls from the US business community and consumers, China has decided to agree to engage in contact with the US," said a spokesperson for the ministry. Bessent said on Tuesday that the two sides would hold meetings on Saturday and Sunday in order to lay the groundwork for future negotiations. "My sense is that this will be about de-escalation, not about the big trade deal, but we've got to de-escalate before we can move forward," he told Fox News. "The current tariffs and trade barriers are unsustainable, but we don't want to decouple." Although analysts viewed the talks more as a symbolic gesture, they said it nonetheless signals that the possibility of dialogue and cooperation still exists, which could pave the way for easing trade tensions and injecting much-needed certainty into global economic growth. Robin Xing, Morgan Stanley's chief China economist, said: "We believe that both sides are hoping to reach a comprehensive agreement. The current stage of mutual escalation and tit-for-tat measures between the two countries might temporarily subside." However, due to the numerous issues involved and the considerable differences between the two sides in many areas, the negotiations will be very complex and will require a substantial amount of time to complete, Xing added. Beijing made clear that it is entering the talks with caution. "If the US wants to talk, our door is always open," the Commerce Ministry spokesperson said. "But if you say one thing and do another, or even attempt to use talks as a cover to continue coercion and extortion, China will never agree, let alone sacrifice its principled position and international fairness and justice to seek any agreement." The spokesperson stressed that negotiations must be grounded in "mutual respect, equal consultation and mutual benefit". Cui Fan, a professor of international trade at the University of International Business and Economics in Beijing, said, "China has emerged as the most resolute, decisive and forceful among all global economies in its countermeasures against the US' protectionist actions." China has maintained a firm stance of not accepting any negotiations unless the US corrects its wrongdoings, according to Cui. The unintended consequences of the US' unilateralism and its protectionist actions against China, such as deteriorating consumer sentiment and a record-high trade deficit, have put significant domestic pressure on the White House to find a resolution to the ongoing trade tensions. US consumer confidence fell in April to an almost five-year low on growing pessimism about prospects for the economy and the labor market due to tariffs, decreasing nearly 8 points to 86, according to the Consumer Confidence Index released on April 29 by The Conference Board, a global think tank whose headquarters are in New York City. Meanwhile, data released on Tuesday by the US Census Bureau showed that the US trade deficit ballooned 14 percent to a record $140.5 billion in March, as businesses stockpiled goods to get ahead of the sweeping tariffs that US President Donald Trump imposed in April. Luo Zhiheng, chief economist at Yuekai Securities, said that Trump's extensive use of tariffs has severely affected the US' economic growth and damaged its international reputation, a development that Luo said will ultimately backfire on the US. "What China needs to do now is to turn itself into the world's largest consumer market and a core hub of global imports, filling the market gaps left by the US. As a community of shared interests, China will garner more friends ... thereby enhancing its negotiating leverage against the US," Luo said. - China Daily/ANN
Economic Times
04-05-2025
- Business
- Economic Times
ADB chief urges Asian economies to push reforms amid uncertainty
Masato Kanda, ADB President Synopsis ADB President Masato Kanda urges Asian economies, including India, to proactively pursue reforms for sustained growth amidst global uncertainty. He emphasized sound economic policies, regional connectivity, and private sector development as crucial strategies. While acknowledging the impact of US tariffs, Kanda sees an opportunity for Asian economies to enhance resilience and interconnectedness through continued reforms and diversification. Asian economies like India must not be complacent and should push ahead with reforms to ensure long-term growth and stability amid increasing uncertainty, Asian Development Bank president Masato Kanda said on Sunday. ADVERTISEMENT Speaking on the sidelines of the annual meeting of the multilateral lender, Kanda suggested income redistribution to boost demand, steps to enhance competitiveness to foster private sector investment, and better education, among others. "Countries must pursue two key strategies. First is to implement sound economic policies to safeguard stability and sustain investment flows. Second is to enhance regional connectivity to strengthen the region's collective resilience," he said. Private sector development is key to create jobs and drive cutting-edge innovation, he about the impact of the US-initiated tariff war on the Asian region, Kanda said it was difficult to assess the impact in view of the rapidly changing situation, but said this was an opportunity for Asian economies to open up and make themselves more resilient and interconnected within the region."They are exposed to these because they have benefitted from the open trade system," he said, urging countries to continue on the reform path. ADVERTISEMENT The Asian Development Bank (ADB) on April 9 revised India's economic growth forecast for FY26 down to 6.7% from 7% earlier, citing uncertainty stemming from the increase in US tariffs. It projected regional growth at 4.9% in 2025 and 4.7% in President Donald Trump announced reciprocal tariffs on several countries on April 2, including a 26% duty on Indian imports. Although he announced a 90-day pause until July 9, a baseline tariff of 10% remains in place. ADVERTISEMENT Kanda said the regional economies were much stronger and resilient since the Asian financial crisis, but they cannot be complacent given the uncertainty."They should reform to become more diversified, deepen their capital and financial markets," he said, adding that human capital development was crucial in a global economy undergoing technological transformation. ADVERTISEMENT On countries restricting people-to-people movement, the ADB president said free movement of labour enhanced global competitiveness and minister Nirmala Sitharaman will attend the annual meeting of the board of governors scheduled to take place from May 4 to 7, 2025. ADVERTISEMENT On India-Pakistan To a query on the impact of deepening tension between India and Pakistan, Kanda said ADB hopes for peace and regional stability."As an international organisation, ADB is an apolitical entity. So, I can't comment on political issues," he said. "But our belief is, peace and political stability are the basis for inclusive and sustainable growth and development, so we really hope peace and regional stability is in place. ADB has supported peace and stability through economic cooperation and we will continue to do that." (The reporter is in Milan at the invitation of ADB) (You can now subscribe to our Economic Times WhatsApp channel) (Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online. NEXT STORY
