Archive Month: July 2018

Національний банк України пояснив 31 липня причини курсових коливань, які спостерігаються на валютному ринку другий тиждень поспіль.

Серед причин, які спричинили падіння гривні щодо долара США, регулятор назвав «активне проведення компаніями операцій з перерахування дивідендів за кордон (з початку липня з цією метою було куплено майже 300 мільйонів доларів США) та вихід нерезидентами з облігацій внутрішньої державної позики (з початку липня обсяг ОВДП в портфелях нерезидентів скоротився майже на 1,3 мільярда гривень)».

«На курсову динаміку минулого тижня також впливали значні обсяги повернення ПДВ наприкінці місяця, що значно зменшує обсяг вільного продажу валюти, а також збільшення попиту на готівкову валюту, зокрема зі сторони тіньового аграрного сектору у зв’язку з початком сезону», – ідеться в повідомленні.

Нацбанк вказує, що з початку минулого тижня продав 148 мільйонів доларів.

«Зокрема, сьогодні НБУ оголосив аукціон з продажу 50 мільйонів доларів США… За результатами аукціону НБУ продав 28,1 мільйонів доларів США за ціною відсікання 26,86 гривні за долар», – інформує НБУ.

24 липня вперше за чотири місяці Національний банк України встановив офіційний курс на рівні понад 26 з половиною гривень за долар – 26,58.

Відтоді курс продовжив зростання, 31 липня станом на 13:00 на міжбанківському валютному ринку зареєстровано 340 угод на суму понад 190 мільйонів доларів за середньозваженим курсом 26 гривень 86 копійок за долар, повідомляє профільний сайт «Мінфін».

 
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Iran said on Tuesday U.S. President Donald Trump was mistaken to expect Saudi Arabia and other oil producers to compensate for supply losses caused by U.S. sanctions on Iran, after OPEC production rose only modestly in July.

The comments, from Iran’s OPEC governor, came a day after a Reuters survey showed OPEC production rose by 70,000 barrels per day in July. Saudi production increased but was offset by a decline in Iranian supply due to the restart of U.S. sanctions, the survey found.

“It seems President Trump has been taken hostage by Saudi Arabia and a few producers when they claimed they can replace 2.5 million barrels per day of Iranian exports, encouraging him to take action against Iran,” Hossein Kazempour Ardebili told Reuters. “Now they and Russia sell more oil and more expensively. Not even from their incremental production but their stocks.”

He said oil prices, which Trump has been pressuring the Organization of the Petroleum Exporting Countries to bring down by raising output, will rise unless the United States grants waivers to buyers of Iranian crude.

“They are also calling for the use of the U.S. SPR [Strategic Petroleum Reserve]. This will also mean higher prices. U.S. waivers to our clients if they come is due to the failure of bluffers [Saudi and the other producers] and, if not given, will again push the prices higher,” he said.

“So they hanged him [Trump] on the wall. Now they want to have a mega OPEC, congratulations to President Trump, Russia and Saudi Arabia.”

OPEC governors represent their respective country on the organization’s board of governors and are typically the second most senior person in a country’s OPEC delegation after the oil minister.

“The longer-term solution, Mr President, is to support and facilitate capacity building in all countries, proportionate to their reserves of oil and gas. And we will remain the biggest opportunity,” Kazempour said.

 
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McDonald’s is fighting to hold onto customers as the Big Mac turns 50, but it isn’t changing the makings of its most famous burger.

The company is celebrating the 1968 national launch of the double-decker sandwich whose ingredients of “two all-beef patties, special sauce, lettuce, cheese, pickles, onions and a sesame seed bun” were seared into American memories by a TV jingle. But the milestone comes as the company reduces its number of U.S. stores. McDonald’s said Thursday that customers are visiting less often. Other trendy burger options are reaching into the heartland.

The “Golden Arches” still have a massive global reach, and the McDonald’s brand of cheeseburgers, chicken nuggets and french fries remains recognizable around the world. But on its critical home turf, the company is toiling to stay relevant. Kale now appears in salads, fresh has replaced frozen beef patties in Quarter Pounders, and some stores now offer ordering kiosks, food delivery and barista-style cafes.

The milestone for the Big Mac shows how much McDonald’s and the rest of fast-food have evolved around it.

“Clearly, we’ve gotten a little more sophisticated in our menu development,” McDonald’s CEO Steve Easterbrook said in a phone interview.

As with many of its popular and long-lasting menu items, the idea for the Big Mac came from a franchisee.

In 1967, Michael James “Jim” Delligatti lobbied the company to let him test the burger at his Pittsburgh restaurants. Later, he acknowledged the Big Mac’s similarity to a popular sandwich sold by the Big Boy chain.

“This wasn’t like discovering the light bulb. The bulb was already there. All I did was screw it in the socket,” Delligatti said, according to “Behind the Arches.”

McDonald’s agreed to let Delligatti sell the sandwich at a single location, on the condition that he use the company’s standard bun. It didn’t work. Delligatti tried a bigger sesame seed bun, and the burger soon lifted sales by more than 12 percent.

After similar results at more stores, the Big Mac was added to the national menu in 1968. Other ideas from franchisees that hit the big time include the Filet-O-Fish, Egg McMuffin, Apple Pie (once deep-fried but now baked), and the Shamrock Shake.

“The company has benefited from the ingenuity of its small business men,” wrote Ray Kroc, who transformed the McDonald’s into a global franchise, in his book, “Grinding It Out.”

Franchisees still play an important role, driving the recent switch to fresh from frozen for the beef in Quarter Pounders, Easterbrook says. They also participate in menu development, which in the U.S. has included a series of cooking tweaks intended to improve taste.

Messing with a signature menu item can be taboo, but keeping the Big Mac unchanged comes with its own risks. Newer chains such as Shake Shack and Five Guys offer burgers that can make the Big Mac seem outdated. Even White Castle is modernizing, recently adding plant-based “Impossible Burger” sliders at some locations.

A McDonald’s franchisee fretted in 2016 that only one out of five millennials has tried the Big Mac. The Big Mac had “gotten less relevant,” the franchisee wrote in a memo, according to the Wall Street Journal.

McDonald’s then ran promotions designed to introduce the Big Mac to more people. Those kind of periodic campaigns should help keep the Big Mac relevant for years to come, says Mike Delligatti, the son of the Big Mac inventor, who died in 2016.

“What iconic sandwich do you know that can beat the Big Mac as far as longevity?” said Delligatti, himself a McDonald’s franchisee.
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U.S. companies seeking to be exempted from President Donald Trump’s tariff on imported steel are accusing American steel manufacturers of spreading inaccurate and misleading information, and they fear it may torpedo their requests.

Robert Miller, president and CEO of NLMK USA, said objections raised by U.S. Steel and Nucor to his bid for a waiver are “literal untruths.” He said his company, which imports huge slabs of steel from Russia, has already paid $80 million in duties and will be forced out of business if it isn’t excused from the 25 percent tariff. U.S. Steel and Nucor are two of the country’s largest steel producers.

“They ought to be ashamed of themselves,” said Miller, who employs more than 1,100 people at mills in Pennsylvania and Indiana.

Miller’s resentment, echoed by several other executives, is evidence of the backlash over how the Commerce Department is evaluating their requests to avoid the duty on steel imports. They fear the agency will be swayed by opposition from U.S. Steel, Nucor and other domestic steel suppliers that say they’ve been unfairly hurt by a glut of imports and back Trump’s tariff.

U.S. Steel said its objections are based on detailed information about the dimensions and chemistry of the steel included in the requests. “We read what is publicly posted and respond,” said spokeswoman Meghan Cox. Nucor did not reply to requests for comment.

The 20,000-plus waiver applications that the Commerce Department has received illustrate the chaos and uncertainty ignited by Trump’s trade war against America’s allies and adversaries. It’s a battle that critics of his trade policy, including a number of Republican lawmakers, have warned is misguided and will end up harming U.S. businesses.

Trump and European leaders agreed this past Wednesday not to escalate their dispute over trade, but the tariff on steel and a separate duty on aluminum imports remains in place as the U.S. and Europe aim for a broader trade agreement. The metal taxes would continue to hit U.S. trading partners such as Canada, Mexico and Japan even if the U.S. and the EU forge a deal.

Miller bristled over insistence by Nucor and U.S. Steel that steel slab is readily available in the United States. “That’s just not true,” he said.

His company isn’t the only one looking overseas for a product described as being consistently in short supply. California Steel Industries, a mill east of Los Angeles in Fontana, described the slab shortage as “acute” on the West Coast and declared that its waiver request is critical to its survival.

Aiming to rebuild the U.S. steel industry, Trump relied on a rarely used 1962 law that empowers him to impose tariffs on particular imports if the Commerce Department determines those goods threaten national security. He added a twist: Companies could be excused from the tariff if they could show, for example, that U.S. manufacturers don’t make the metal they need in sufficient quantities.

But there are hurdles to clear on the path to securing an exemption. A single company may have to file dozens of separate requests to account for even slight variations in the metal it’s buying. That means a mountain of paperwork to be filled out precisely. If not, the request is at risk of being rejected as incomplete. All this can be time-consuming and expensive, especially for smaller businesses.

The requests are open to objections. The Commerce Department posts the exemption requests online to allow third parties to offer comments — even from competitors who have an interest in seeing a rival’s request denied. But objections are frequently being submitted just as the comment period closes, undercutting the requester’s ability to fire back.

Willie Chiang, executive vice president of Plains All American Pipeline, told the House Ways and Means subcommittee on trade last week that his company had no opportunity to respond to objections that contained “incorrect information” before the Commerce Department denied its exclusion request. Chiang didn’t say who submitted the inaccurate information.

“The intent here is to restrict imports on a broad scale,” said Richard Chriss, executive director of the American Institute for International Steel, a free trade group opposed to tariffs. “It wouldn’t make sense from the administration’s perspective to design a process that readily granted exclusions.”

The Commerce Department declined to comment for this story.

Department officials have so far made public only a small number of their rulings.

An analysis of the numbers by the office of Rep. Jackie Walorski, an Indiana Republican and one of the most vocal opponents of the steel tariff on Capitol Hill, shows that 760 requests have been approved while 552 have been denied. The department hasn’t yet approved a waiver request that triggered objections, according to Walorski’s review.

The congresswoman’s office also examined the more than 5,600 publicly available comments and found they were submitted on average about four days before the end of the 30-day comment period. More than 50 percent of the comments weren’t delivered until 48 hours or less before the comment window closed. It took department an average of nine days to post comments online after receiving them, according to the analysis. The most prolific commenters were Nucor and U.S. Steel with 1,064 and 1,009, respectively.

A waiver request Seneca Foods Corporation submitted for tinplated steel it had already agreed to purchase from China was among the denials. U.S. Steel had objected, calling the tinplate a “standard product” that’s readily available in the United States. In fact, U.S. Steel said it currently supplies the material to Seneca Foods, the nation’s largest vegetable canner.

The New York-based Seneca Foods declined to comment. But in its waiver application, the company said domestically made tinplate “is of inferior quality to imported material.” Seneca Foods also said it’s unclear, at best, if U.S. suppliers have the ability or willingness to expand their production in the long term to meet the company’s annual demand for the material.

Philadelphia-based Crown Cork & Seal, a manufacturer of metal packaging for food and beverages, submitted a sharply worded attachment to its waiver application that anticipated pushback from domestic manufacturers. American steel mills, the document said, cannot meet aggregate demand for tinplate and have no plans to increase their capacity.

“We anticipate the U.S. mills will attempt to rebut this statement when they object to this exclusion request, but we encourage the Department of Commerce to see through their manipulative attempt to exploit the rules of the exclusion request process,” the application said.

Daniel Shackell, Crown Cork & Seal’s vice president for steel sourcing, said he’s not optimistic about the company’s chances of getting all 70 of its waiver requests approved. Eight have been granted so far primarily because the metal specified in those requests is not made in the United States. Twelve others have been denied, leaving 50 still to be decided.

“It’s hard not to interpret that the Commerce Department wants domestic suppliers to have an edge,” Shackell said.

Jay Zidell, president of Tube Forgings of America, a small company in Portland, Oregon, said he’s filed 54 exclusion requests and U.S. Steel has objected to 38 of them. U.S. Steel declared it is “willing and ready to satisfy” Tube Forgings’ demands for carbon steel tubing. But Zidell said the comments ignored past problems with metal quality and workmanship that led his company to sever a prior relationship with U.S. Steel.

Still, he’s worried the Commerce Department won’t approve all of the requests. Tube Forgings already has spent $600,000 on tariffs, he said, and may be on the hook for much more than that.

“The entire system is just screwed up,” Zidell said.
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U.S. President Donald Trump has suspended Rwanda’s ability to ship apparel products duty-free to the United States due to a trade dispute over Rwanda’s increased tariffs on American used clothing and footwear, the U.S. Trade Representative’s office said on Monday.

The ban, ordered by Trump in a proclamation that followed a 60-day notification period, will maintain Rwanda’s other duty-free benefits under the African Growth and Opportunity Act.

“We regret this outcome and hope it is temporary,” Deputy USTR C.J. Mahoney said in a statement. He adding that the move would affect about $1.5 million in annual Rwandan exports, or only about three percent of the country’s total exports to the United States.
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U.S. Secretary of State Mike Pompeo has warned against providing an International Monetary Fund bailout for Pakistan’s new government that includes funding to pay off Chinese lenders. In an interview with CNBC television on July 30, Pompeo said the United States looked forward to engagement with the government of Pakistan’s expected new prime minister, Imran Khan, but said there is “no rationale” for a bailout that pays off Chinese loans to Pakistan.

“Make no mistake. We will be watching what the IMF does,” Pompeo said. “There’s no rationale for IMF tax dollars, and associated with that American dollars that are part of the IMF funding, for those to go to bail out Chinese bondholders or China itself,” Pompeo said. The Financial Times reported on July 29 that senior Pakistani finance officials were drawing up options for Khan to seek an IMF bailout of up to $12 billion.

An IMF spokeswoman said the international lending agency has not as yet received an aid request from Pakistan nor had discussions with Pakistani officials about their intentions. Pakistan has had 14 IMF financing programs since 1980.

Pakistan is struggling to avert a currency crisis that has presented the new government with one of its biggest challenges. Many analysts expect that another IMF bailout, the second in five years, will be needed to plug an external financing gap.

Pakistan, which has taken around $5 billion in loans from China and its banks to fund major infrastructure projects, had sought another $1 billion in loans to stabilize its plummeting foreign currency reserves. U.S. officials, including Treasury Secretary Steven Mnuchin, have criticized China’s infrastructure lending to developing countries like Pakistan, arguing that it has saddled them with unsustainable debt.

The $57 billion China-Pakistan Economic Corridor, a series of port and rail improvements associated with China’s One Belt One Road infrastructure push, has led to massive imports of Chinese equipment and materials, swelling Pakistan’s current account deficit.

Western officials say that while Pakistan has taken on huge debts to finance the projects, China’s investment has gained access for China’s military to Pakistan’s Gwadar Sea Port, which is strategically placed west of India.

“We aspire to a regional order — independent nations that can defend their people and compete fairly in the international marketplace,” Pompeo said during a speech on the Indo-Pacific region on July 30. “We will help them. We will help them keep their people free from coercion or great power domination,” he said.

Some information in this report was provided by Reuters.
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Mexican President-elect Andres Manuel Lopez Obrador says he wants to create 400,000 jobs by planting 1 million hectares (2.47 million acres) with timber and fruit trees.

Lopez Obrador said in a video posted Sunday that he wants to plant half the total amount in 2019, focusing on timber species like cedar and mahogany. The other half would be planted in 2020.

Referring to the Usumacinta river basin near the border with Guatemala, Lopez Obrador said 50,000 to 100,000 hectares could be planted there. He said the upper canopy of timber species could provide cover for cacao plantings beneath. Cacao is the source of chocolate.

Lopez Obrador sees the planting program as a way to offer rural Mexicans work in their home communities, so they do not have to emigrate.
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Група експертів Світової організації торгівлі «частково підтримала» позицію України в справі проти Росії щодо обмеження імпорту залізничного обладнання, повідомила прес-служба Міністерства економічного розвитку.

У відомстві зазначили, що група експертів підтвердила порушення Росією окремих положень Генеральної угоди з тарифів і торгівлі 1994 року та Угоди про технічні бар’єри у торгівлі.

«Це перший запит, який Україна направила у Світову організацію торгівлі для протистояння торговельній агресії Росії, зокрема її непрозорим, невиправданим та таким, що носять дискримінаційний характер, діям стосовно товарів українського походження», – заступник міністра Наталія Микольська.

За її словами, Росія необґрунтовано призупинила дію виданих українським виробникам сертифікатів відповідності, обмежила у видачі нових сертифікатів та не визнає сертифікати, видані у сертифікаційних органах Митного союзу.

Згідно з повідомленням, у межах справи Україна доводила, що призупинення дії сертифікатів відповідності (14 приписів) та неприйняття до розгляду заявки на проведення сертифікації (3 рішення) призвело до дискримінації, невиправданих перешкод у торгівлі та недотримання встановленої процедури оцінки відповідності товару.

Група експертів погодилася з Україною, що видавши 14 приписів про призупинення сертифікатів відповідності, Росія застосувала процедуру оцінки відповідності таким чином, що умови доступу до ринку для українських, російських та європейських виробників залізничної продукції, були не однаковими, дискримінаційними для України.

Крім того, група експертів підтвердила, що Росія порушила свої зобов’язання (відповідно до статті III:4 ГАТТ 1994 (Національний режим) стосовно невизнання сертифікатів, виданих українським виробникам в інших країнах Митного союзу, що це, у свою чергу, створює переваги для національних виробників.

Також група експертів СОТ визнала, що Росія порушила зобов’язання за статтею I:1 ГАТТ 1994 (Загальний режим найбільшого сприяння). Україною було доведено, що Росією неправомірно не визнаються сертифікати, видані в інших країнах Митного союзу, якщо такі товари не виробляються в Митному союзі.

Водночас у Мінекономрозвитку розвитку розповіли, що група експертів не підтвердила існування систематичного обмеження імпорту з боку Росії, посилаючись на те, що протягом певного періоду часу (квітень 2014 – грудень 2016) ситуація в Україні в частині безпеки була непорівняною із ситуацією в інших країнах.

«Тобто Росією не проводився інспекційний контроль через наявність на території України «антиросійських настроїв та загрози безпеці російським громадянам», які є наслідком військових дій, які Росія сама і розв’язала», – пояснили у відомстві.

Міністерство заявляє, що здійснює детальний аналіз звіту, «на міжвідомчому рівні» опрацьовується можливість його оскарження.

Справа відкрита у 2015 році за скаргою України.
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Some European companies are rethinking their strategies to cushion the impact of trade tensions between the world’s two biggest economies, the United States and China.

The focus will switch back to China after a truce on tariffs emerged from U.S. President Donald Trump’s meeting with European Commission President Jean-Claude Juncker on July 25.

Trump and Juncker agreed to suspend any new tariffs on the European Union, including a proposed 25 percent levy on auto imports, and hold talks over duties on imports of European steel and aluminum. However, Trump retained the power to impose tariffs if no progress is made.

In the case of China, Trump threatened that he was ready to impose tariffs on an additional $500 billion of imports.

The United States has already imposed tariffs on $34 billion of Chinese imports. In return, China has levied taxes on the same value of U.S. products.

Below are recent comments from European companies on trade tensions:

Russian steelmaker MMK has delayed the launch of a project in Turkey, which was expected to add $90-$100 million to its core earnings, due to uncertainty created by global trade wars, the company said.
Siemens Healthineers plans to cushion the impact of U.S.-China trade tensions by changing its supply routes to ship goods from its European factories. The firm expects tariffs to have a low single digit million euro impact on Healthineers’ results this year, which could rise to a double-digit million euro effect next year.
German automaker BMW said it would increase suggested retail prices of the relatively high-margin X5 and X6 SUV models by 4 percent to 7 percent. The company has said that it would be unable to “completely absorb” a 25 percent Chinese tariff on imported U.S.-made models.
China-based car dealers said Mercedes maker Daimler moderately raised prices in the country of its GLE midsize SUV which is produced in Alabama. Daimler is looking at ways to mitigate the impact of the trade tensions, including reviewing whether to shift some U.S. production to Asia. The company blamed tariffs for a 30 percent drop in second-quarter profit.
Wind turbine maker Siemens Gamesa warned that trade tensions would drive up U.S. costs by 2 to 4 percent, depending on the product and whether further tariffs are imposed. The company is working to reduce the impact on margins by optimizing its supply chains.
French electrical equipment company Schneider Electric foresees growth slowing in the second half of the year and expects the first extra costs linked to higher U.S. tariffs, which could reach 20 million euros.
“If the trade war escalates we are more concerned about the consequences that it can have on global macro environment,” STMicro said, adding that the direct impact of trade war risks were currently negligible.
Fiat Chrysler cut its 2018 outlook, hurt by a weaker performance in China. Its operating profit for the second-quarter was negatively impacted by China import duty changes.
French mining group Eramet warned that current favorable markets could be hurt by trade rows.
Philips confirmed its sales growth target for this year but added that trade worries and the consequences of Brexit continued to cause uncertainty.
Finnish steel maker Outokumpu sees a double impact from the U.S. tariffs, with surging imports to Europe resulting in heavy price pressure, whilst in the Americas base prices have risen, benefiting local manufacturers itself.
Fellow Finnish company Valmet said tariff increases could derail the recovery and depress its medium-term growth prospects.
Chinese-owned Volvo Cars said it was shifting production of its top-selling SUV production for the U.S. market to Europe from China to avoid Washington’s new duties on Chinese imports.
The Alliance of Automobile Manufacturers, whose members include General Motors, Volkswagen AG and Toyota, also warned on the impact of the tariffs. A study released by a U.S. auto dealer group warned that the tariffs could cut U.S. auto sales by 2 million vehicles.
Sweden’s Electrolux said U.S. tariffs announced in July would have an impact of $10 million plus this year. In the third quarter. It expects raw material costs to rise by 0.5 billion Swedish crowns.
Belgian steel wire maker Bekaert reported it sees underlying operating profit 20 percent below analysts’ estimates in the first half, blaming wire rod costs partly driven up by tariffs.
Swedish lock maker Assa Abloy sees a further increase in steel prices in the second part of the year in the U.S., partly due to new import tariffs.
Austrian steelmaker Voestalpine said about a third of its U.S. sales would be impacted by import tariffs, adding it was talking to its customers about who would bear the cost.
Norway’s REC Silicon booked an impairment charge of $340 million “due to the market disruption from the curtailment of solar incentives in China, as well as continued trade barriers that prevent access to primary markets inside China.”
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Spanish taxi drivers blocked major city streets including Barcelona’s Gran Via and Madrid’s Castellana on Monday in a protest to pressure the government to curb licenses to online ride-hailing services such as Uber.

Union representatives were due to meet officials of Prime Minister Pedro Sanchez’s government later in the day to try to resolve the dispute, in which taxi drivers have choked main roads and snarled airports, bus and train stations since Saturday.

Along with counterparts in many other European countries, Spain’s taxi drivers say that ride-hailing apps have made it impossible to compete.

“Uber and Cabify are putting the viability of the taxi sector and 130,000 jobs at risk … The union considers this unfair competition intolerable,” the UGT union said in a statement.

Union representatives say the current law of one ride-hailing license for every 30 taxi licenses is not being respected and want an end to the practice of transferring ride-hailing permits between drivers.

With backers including Goldman Sachs and BlackRock and valued at more than $70 billion, Uber has faced protests, bans and restrictions around the world as it challenges traditional taxi operators, angering some unions.

London cab drivers are examining the possibility of bringing a class action suit against Uber after the mobile app was granted a temporary license renewal to operate in the British capital.
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Turkish steel makers are looking to expand in West Africa and other emerging markets in response to tariffs and planned quotas which threaten their sales to the United States and the European Union, a senior sector official said.

Namik Ekinci, board chairman for the Turkish Steel Exporters Association (TSEA), told Reuters that Turkey was looking to boost its trade with West Africa and sub-Saharan countries, where there is demand for the less capital-intensive steel products that Turkey mainly exports.

“Looking at the product types these countries consume, it’s products that we have the capability to produce like rebar and pipes. Therefore, these countries are markets where we have a chance,” Ekinci said.

“This is why the market we are working with in the first stage is West Africa,” he said, adding that the Caribbean, South America and Southeast Asia were the next targets.

According to TSEA data, more capital-intensive products, used in the automotive and white goods sectors, account for a quarter of Turkey’s steel production, while products like rebar and pipes account for 53 percent.

The world’s eighth biggest steel producer, Turkey ranks second in global exports of rebar, figures from the World Steel Association show.

In a move that ignited fears of a global trade war, U.S. President Donald Trump in March imposed a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports, leading to a 56 percent slump in Turkey’s exports to the United States between January and May.

In early July European Union countries also voted in favor of a combination of quota and tariffs to prevent a surge of steel imports into the bloc that could follow the U.S. levies.

In order to tackle the U.S. tariffs and protectionist measures, Ekinci said Turkey wanted to increase its effectiveness in other emerging markets “as the United States and the European Union adopt measures to make trade harder.”

He said a union of Turkish exporters would jointly start a new firm to penetrate the target markets through time charter shipments, aiming to increase Turkey’s market share in West Africa from below 5 percent to 15 percent by cutting shipping costs.

The project is expected to cut transport costs of steel exported to West Africa to around $30 per tonne, from nearly $100, making it significantly more competitive, Ekinci said.
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The United States has eased export controls for high technology product sales to India, granting it the same access as NATO allies, Australia, Japan and South Korea, U.S. Commerce Secretary Wilbur Ross said on Monday.

Ross, speaking at U.S. Chamber of Commerce event, said the move to grant Strategic Trade Authorization status STA1 to India reflects its efforts to improve its own export control regime, its adherence to multilateral export rules and its growing status as a U.S. defense partner.

“STA1 provides India greater supply chain efficiency, both for defense, and for other high-tech products,” Ross said, adding that the elevated status would have affected about $9.7 billion worth of Indian goods purchases over the past seven years.
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White House economic adviser Larry Kudlow said Sunday he believes the 4.1 percent growth the U.S. recorded in the last three months is sustainable in the coming months despite skepticism expressed by independent economists.

“There’s just a lot of good things going on,” Kudlow told CNN.  He said President Donald Trump “deserves a victory lap,” with “low tax rates, rolling back regulations, opening up energy, for example. Trade reform I think is already paying off. The fundamentals of the economy look really good.”

He said “business investment spending is really booming. That’s a productivity creator. That’s a job creator. That’s a wage creator for ordinary mainstream folks, terribly important.”

Kudlow said the five calendar quarters occurring fully during Trump’s 18-month presidency have now been recorded with average economic growth of 2.9 percent for the world’s largest economy.

“I don’t see why we can’t run this for several quarters,” Kudlow said.

As the 4.1 percent growth rate for the April-to-June period was announced Friday, Trump boasted that the U.S. was on track to hit its highest annual growth rate in its gross domestic product in 13 years and predicted that as the country reaches new trade deals with other countries, the U.S. would exceed its second quarter advance.

“These numbers are very, very sustainable,” he said. “This isn’t a one-time shot.”

On Sunday, Trump said on Twitter, “The biggest and best results coming out of the good GDP report was that the quarterly Trade Deficit has been reduced by $52 Billion and, of course, the historically low unemployment numbers, especially for African Americans, Hispanics, Asians and Women.”

Skeptics less upbeat

Some independent economists, however, voiced skepticism that the $18.6 trillion annual U.S. economy would continue to advance at the same pace as the last three months.

Some forecasters said the gains in recent months were mostly, although not totally, the result of temporary factors, such as the initial boost from tax cuts Trump supported that took effect earlier this year. Most analysts say that for all of 2018 the U.S. could reach 3 percent growth, which would be the best since a 3.5 percent gain in 2005, but not again hit the annual 4.1 percent growth rate recorded last quarter.

“We believe quarter two will represent a growth peak as the boost from tax cuts fades, global growth moderates, inflation rises, the Fed tightens monetary policy and trade protectionism looms over the economy,” said Gregory Daco, chief U.S. economist at Oxford Economics.

Mark Zandi, chief economist at Moody’s Analytics, said, “The second quarter was a strong quarter, but it was juiced up by the tax cuts and higher government spending.”

In the U.S., consumer spending accounts for about 70 percent of the economy, with Ian Shepherdson, the chief economist of Pantheon Macroeconomics, saying that such spending accounted for the robust second quarter.

“Consumers were really on a tear,” he said. “So to grow at 4 [percent] probably tells you people were spending the tax cuts that they enjoyed back in January, but that’s extremely unlikely to happen again.”

 
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Agriculture ministers from the G-20 countries criticized protectionism in a joint statement Saturday and vowed to reform World Trade Organization (WTO)

rules, but did not detail what steps they would take to improve the food trade system.

In the statement, they said they were “concerned about the increasing use of protectionist nontariff trade measures, inconsistently with WTO rules.”

The ministers from countries including the United States and China, in Buenos Aires for the G-20 meeting of agriculture ministers, said in the statement they had affirmed their commitment not to adopt “unnecessary obstacles” to trade, and affirmed their rights and obligations under WTO agreements.

The meeting came amid rising trade tensions that have rocked agricultural markets. China and other top U.S. trade partners have placed retaliatory tariffs on American farmers after the Trump administration put duties on Chinese goods as well as steel and aluminum from the European Union, Canada and Mexico.

U.S. growers are expected to take an estimated $11 billion hit due to China’s retaliatory tariffs. Last week, the Trump administration said it would pay up to $12 billion to help farmers weather the trade war.

U.S. Agriculture Secretary Sonny Perdue told Reuters in an interview on the sidelines of the meeting that Trump’s plan would include between $7 billion and $8 billion in direct cash relief that U.S. farmers could see as early as late September.

Despite the payments, the measures are “not going to make farmers whole,” Perdue said.

Citing the Trump administration’s relief measures, German Agriculture Minister Julia Kloeckner said farmers “don’t need aid, [they] need trade.”

“We had a very frank discussion about the fact that we don’t want unilateral protectionist measures,” Kloeckner said in a news conference after the meeting.

The ministers, whose countries represent 60 percent of the world’s agricultural land and 80 percent of food and agricultural commodities trade, did not specify which measures they were referring to in the statement. Asked for details, Kloeckner said the ministers did not want to “criticize a single

country.”

“We all know what happens if a single person or country doesn’t adhere to WTO rules, trying to get a benefit for themselves through protectionism,” she said. “This will usually lead to retaliatory tariffs.”

In the statement, the ministers said they agreed to continue reforming the WTO’s agricultural trade rules.

“Independent of all the news there was surrounding [the meeting], we managed to reach a unanimous consensus,” Argentine Agriculture Minister Luis Miguel Etchevehere said.

U.S. President Donald Trump and European Commission President Jean-Claude Juncker struck a surprise deal on Wednesday that ended the risk of further escalating trade tensions between the two powers.

After the meeting, Trump said the European Union would buy “a lot” of U.S. soybeans.

Earlier, Kloeckner told Reuters that the trade relationship between the United States and the European Union was improving, but that there was no guarantee the bloc would import the quantity of soybeans that Washington expects.
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President Donald Trump falsely claimed he’s pulled off “an economic turnaround of historic proportions.”

Speaking at the White House Friday after the government reported that the economy grew at an annual rate of 4.1 percent in the second quarter, Trump declared that the gains were sustainable and would only accelerate. Few economists outside the administration agree with this claim.

His remarks followed events Thursday in Iowa and Illinois, where Trump falsely repeated a claim that the U.S. economy is the best “we’ve ever had” and incorrectly asserted that Canada’s trade market is “totally closed.”

WATCH: Trump Says Economy Numbers Sustainable, But Experts Doubtful

A look at the claims:

Historic turnaround

TRUMP: “We’ve accomplished an economic turnaround of historic proportions.” — remarks Friday at the White House.

THE FACTS: Trump didn’t inherit a fixer-upper economy.

The U.S. economy just entered its 10th year of growth, a recovery that began under President Barack Obama, who inherited the Great Recession. The data show that the falling unemployment rate and gains in home values reflect the duration of the recovery, rather than any major changes made since 2017 by the Trump administration.

While Trump praised the 4.1 percent annual growth rate in the second quarter, it exceeded that level four times during the Obama presidency. But quarterly figures are volatile and strength in one quarter can be reversed in the next. While Obama never achieved the 3 percent annual growth that Trump hopes to see, he came close. The economy grew 2.9 percent in 2015.

The economy faces two significant structural drags that could keep growth closer to 2 percent than 3 percent: an aging population, which means fewer people are working and more are retired, and weak productivity growth, which means that those who are working aren’t increasing their output as quickly as in the past.

Both of those factors are largely beyond Trump’s control.

Trade deficit

TRUMP: “One of the biggest wins in the report, and it is, indeed a big one, is that the trade deficit — very dear to my heart because we’ve been ripped off by the world — has dropped.”

THE FACTS: Trump is correct that a lower trade deficit helped growth in the April-June quarter, but it’s not necessarily for a positive reason.

The president has been floating plans to slap import taxes on hundreds of billions of dollars of foreign goods, which has led to the risk of retaliatory tariffs by foreign companies on U.S. goods.

This threat of an escalating trade war has led many companies to increase their levels of trade before any tariffs hit, causing the temporary boost in exports being celebrated by Trump.

Richard Moody, chief economist at Regions Financial, said the result is that the gains from trade in the second quarter will not be repeated.

​Best economy ever

TRUMP: “We’re having the best economy we’ve ever had in the history of our country.” — remarks in Granite City, Illinois.

THE FACTS: Even allowing for Trump’s tendency to exaggerate, this overstates things.

The unemployment rate is near a 40-year low and growth is solid, but by many measures the current economy trails other periods in U.S. history. Average hourly pay, before adjusting for inflation, is rising around a 2.5 percent annual rate, below the 4 percent level reached in the late 1990s when the unemployment rate was as low as it is now.

Pay was growing even faster in the late 1960s, when the jobless rate remained below 4 percent for nearly four years. And economic growth topped 4 percent for three full years from 1998 through 2000, an annual rate it hasn’t touched since.

Canada market closed

TRUMP: “The Canadians, you have a totally closed market … they have a 375 percent tax on dairy products, other than that it’s wonderful to deal. And we have a very big deficit with Canada, a trade deficit.” — remarks in Peosta, Iowa.

THE FACTS: No, it’s not totally closed. Because of the North American Free Trade Agreement, Canada’s market is almost totally open to the United States. Each country has a few products that are still largely protected, such as dairy in Canada and sugar in the United States.

Trump also repeated his claim that the U.S. has a trade deficit with Canada, but that is true only in goods. When services are included, such as insurance, tourism, and engineering, the U.S. had a $2.8 billion surplus with Canada last year.
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