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Carbon credit projects in Brazil are a source of income for illegal loggers
Carbon credits have been issued to companies around the globe in exchange for their investments in conservation projects in Brazil. These projects aim to protect the Amazon Rainforest. Many of these projects benefit people and companies fined by Brazilian authorities because they destroyed the rainforest. Reporters examined 36 conservation projects in Brazil's Amazon that offered voluntary carbon offsets to the world's largest registries. The Brazilian environmental agency Ibama has punished landowners, developers, or forestry companies for their involvement in illegal deforestation. Offenses included clear-cutting rainforests without authorization, transporting trees felled without valid permits, and inputting false information into a government tracking system for timber. These infractions, according to government officials and experts, reflect the wide range of roles played in the illegal timber trade that is destroying the rainforest. Ibama fined 20 conservation projects for deforestation, before the carbon credits registry was created. In seven cases, fines were continued for deforestation committed by project backers after registration. Raoni Rajao said, "The whole concept is a failure." She was the head of the Brazilian Environment Ministry program to combat deforestation from December until now. He said that by paying people who have a history of breaking environmental laws, the carbon markets may be funding illegal deforestation groups. They might reduce deforestation one place but increase emissions in another with the same resources," said Rajao. He is now a professor of environmental policy at the Federal University of Minas Gerais. Brazil has fined people who violate laws that limit deforestation in the Amazon rainforest. The Amazon is the largest rainforest on earth, and it's lost a fifth of the original tree cover within the last half-century. Scientists warn that further deforestation will release large quantities of carbon dioxide which accelerates climate change. According to market watcher AlliedOffsets, the Amazon has become an important part the voluntary carbon markets, which was valued at $7.6 billion in the global market over the past five years. Carbon credits are generated by projects that reduce greenhouse emissions, such as avoiding deforestation of rainforests. Each carbon credit is equal to one metric ton saved of carbon dioxide. Polluters may then buy carbon credits in order to offset their own emissions. Referees who set standards on the global market accredit firms like Verra (a non-profit) and Cercarbono, its Colombian competitor. They have systems that verify whether a project reduces emissions in the way it was promised. The documents relating to 36 conservation projects in Brazil's Amazon, which were certified by Verra and Cercarbono as of the beginning of the year, numbered thousands of pages. Both keep public records on the project's boundaries, designs and credits. The reporters identified the key players, and compared them with Ibama’s database of fines. Ibama held the backers of five projects responsible for illegal logging within the boundaries of the conservation projects they were supporting, and not elsewhere. The study did not find any evidence that individual carbon credit projects were failing to meet their commitments to reduce deforestation compared to a projected baseline. A spokesperson for Verra confirmed that the registry would "take any allegations of illegal activity related to a registered project in one of our programmes seriously" and conduct a review on all projects flagged during the analysis. Cercarbono announced that it has opened a formal inquiry into projects flagged as illegally deforested by anyone who is familiar with the issue. A Cercarbono spokesperson stated that "there is no indication" that the integrity or the projects you mentioned has been compromised. Multinationals like the U.S. aircraft manufacturer Boeing, Spanish telecom Telefonica, and Colombian oil producer Ecopetrol are among those who have purchased credits for projects. Accrediting companies are often relied upon by buyers to ensure quality. Boeing announced that it has acquired carbon offsets which meet widely accepted science-based standards. Telefonica is a member of a corporate group that seeks to improve the integrity of voluntary carbon credits. Ecopetrol declined comment. Brazil's Environment Ministry overseeing Ibama said that the agency's database of enforcement offers a reliable record of environmental violations, which can and should be used to verify effectiveness of conservation projects sold as carbon credits. A DOCTOR WHO TURNED INTO A LOGGER Ricardo Stoppe Junior was one of the most prominent names on the Brazilian carbon credits market in the last five years. In June 2024 he was arrested as part of an investigation by the federal police called "Operation Greenwashing" and accused of being in charge of a massive illegal logging scheme. Stoppe has been promoting himself as the world’s top carbon credit entrepreneur for many years. A Brazilian doctor, he claimed to have put his life on hold in order to save 10,000 square kilometers (40 sq mi) of Amazon rainforest. According to AlliedOffsets' public transaction data and price tracking, he sold $15 million in credits since 2020. Stoppe's success in the carbon market came despite public records showing Ibama fines against him and his partners since 2014 for deforestation-related offenses. A confidential 302-page report by the police, reviewed and analyzed by, documents how authorities determined that he used his Carbon Projects to fund a criminal plan to bribe public officials in order to forge land title and launder over a million cubic metres of illegally felled rainforest timber. Last year, a federal judge ordered Stoppe's arrest and the freezing of $300 million in assets of Stoppe and his four associates for their alleged involvement in a criminal group responsible for illegal land grabs and logging. All five lawyers disputed the accusations of federal police and denied that their clients had done anything wrong. Since then, they have been placed under house arrest while awaiting charges from prosecutors. The prosecutors declined to comment about the case. Stoppe denied participating in criminal activity in his first interview following five months behind bars. He said his projects had brought environmental protection and legal rigor to a part the rainforest that was plagued by illegal land grabs. There's no such thing as a state. No police. "Nothing," Stoppe replied. "It is like the Wild West." He blamed the accusations against him on a lack of oversight by his business partners, and on investigators' bad faith. He denied participating in illegal deforestation. History of Fines Stoppe purchased a tract of land in the southern Amazonas State, which was named "Our Lady of the Ituxi Waterfalls" after cascades that were considered sacred by the neighboring Indigenous community. Stoppe stated that his plan was to clear the land and raise cattle. After a near-death encounter in the jungle when a branch knocked off his horse, he said that changed. He said that after nearly a week of being in a state of coma he realized he didn't want to destroy the rainforest. Stoppe transformed the forest surrounding the ranch into "Fortress Ituxi," his first carbon-market conservation project, which he will register in 2020 with the global certification body Verra. Ibama fined him at the time twice for falsifying data in Brazil's Timber Tracking System, totaling over 125,000 reais (approximately $23,000). Two years later he recruited ranchers from the surrounding area for a new project called "Unitor", which aimed to protect a large tract of rainforest that stretched between the Iquiri National Forest Territory and the Kaxarari Indigenous Territory. Stoppe, along with two other landowners, had already racked up Ibama penalties totaling over 8,6 million reais by the time they registered their second project. This included fines for clearing native forest and grazing cows on land that was deforested. The Brazilian Environment Ministry has not commented on specific cases that involve Stoppe and landowners. Stoppe's proposal for Unitor, which he submitted to Verra, highlighted its benefits. It warned against "criminal groups that invade federal public lands to deforest them and to commercialize wood illegally harvested." Many of the carbon credit projects we reviewed were based on a similar sales pitch. According to common methods of generating credits through conservation, the more serious the threat is, the higher the value of the avoided deforestation. Police claim that Stoppe sold the solution to a problem he created. The federal police report describes the alleged scheme, using wiretaps, land titles and permits, satellite images, and bank records. The police report alleges that Stoppe and his accomplices bribed officials to create land claims in national forests and other public lands, converting them into private estates which they then grouped together into carbon credit projects. According to a police report, these conservation projects were also a way to easily cover up massive illegal logging. The group registered their "forestry management plans" under a program of the state that allows selective logging in order to thin out a forest. Police say that Stoppe and his partner used state-issued logging permits for their project area to wash wood they had illegally extracted elsewhere. Lumber in the Amazon with legal permits is worth many times more than undocumented lumber. Thiago scarpellini, the lead investigator at the police department, said in an interview that Stoppe was the leader of a scheme to facilitate illegal logging on nearby public lands like the Kaxarari Reservation. He stated that Stoppe is "the subject of this investigation but he is not the only person working in this manner." He didn't elaborate. According to the report, Scarpellini’s team of investigators had compared the logging permits with satellite images of Stoppe’s projects. They found that they had created enough fraudulent permits to wash more than 1.1 millions cubic meters of illegal wood. Stoppe claimed he would prove to the court all land claims made in his name, and denied any involvement in illegal logging. Verra Registry put Stoppe's projects on hold after his arrest. The President Luiz inacio Lula da silva is trying to position Brazil as the global leader for "green" development. This will be on display when Brazil hosts the United Nations Climate Summit in November. Brazil, in an effort to meet its climate change commitments made under the Paris Agreement of 2016, passed a law in 2017 to create a carbon market regulated by the government, similar to those found in Europe, China, and California. The law, when it comes into effect, will require Brazilian industries to reduce greenhouse emission or pay for them to be offset in a regulated marketplace, which includes conservation projects that sell carbon credits. The government also encourages carbon credit projects which actively restore damaged biomes instead of paying landowners to avoid deforestation. The findings regarding Brazil's voluntary market are "very grave" and highlight challenges facing regulators in setting up a new market. Cristina Reis is the deputy secretary of sustainable economic development for Brazil's Finance Ministry. "SOMETHING WRONG" Ibama fined Stoppe and his partner 18 additional times for, among other things, razing 42 sq km of rainforest and falsifying 180,000 cubic meters in timber. According to an analysis of Ibama’s fines that were independently levied from the police investigation, some of these offenses fell within the scope of Stoppe’s carbon credit project. Edivan Kaxarari is a leader in the local Indigenous community. He said that some locals were hesitant about Stoppe's promise to protect the forest. They turned down the chance to work on a project to create carbon credits. The documentation for Stoppe's Carbon Credit Projects filed with Verra shows that he and partners staked a claim on land along Bull Road, which is a local road that passes by other ranches as well as the Kaxarari Reservation. Edivan, a reporter and Edivan drove down the dusty roads to Stoppe's Ituxi Ranch for two hours. He surveyed the disappearing forests of his ancestral lands. Edivan surveyed the vanishing forests on his people's ancestral lands as he drove with reporters down a dusty road to Stoppe's Ituxi ranch. Ibama’s enforcement database revealed that the agency had penalized Stoppe and his partner at least six different times for illegally deforestation on Bull Road. Edivan, who had been watching illegal logging for many years, said he was on his guard when "white men" came to the reservation two years ago and preached the environmental benefits Stoppe's projects of carbon credits. They also proposed a project in Kaxarari territory. Stoppe confirmed that he has begun discussions with Kaxarari regarding a partnership on a project involving carbon credits. Edivan, a participant in the meeting, said "They brought this carbon project proposal and mentioned what had already been done on the Ituxi Ranch with Dr. Ricardo." They didn't give much time for us to accept. Edivan and other leaders of the community expressed concerns over the proposal. Why is someone deforesting if they are working on a carbon project? He said. There's something wrong." (Reporting and editing by Claudia Parsons; Additional reporting by Marcela Parsons; Additional reporting by Brad Haynes; Jackie Botts, Ricardo Brito, and Jake Spring)
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US Gulf Coast fuel imports are at a record low, as refiners choose heavier crude
Fuel oil imports in the U.S. Gulf Coast refinery hub hit a new record low in the month of June, as refiners were forced to use more heavy and sour crude due to tighter global supply. Refineries that run heavier, sourer oil produce more heavy residue. This is then processed in a second unit to make higher-value products such as gasoline or diesel. According to Kpler's ship tracking service, Gulf Coast fuel oil imports reached a new record low of 213,000 barrels a day in June. This is down from 233,000 barrels p.d. for the month. In June 2024, they were 430,000 barrels p.d. The Gulf Coast refineries account for over 55% of the total U.S. refining capacity. The drop was primarily due to a decline in Mexican crude oil volumes. In June, they fell to their lowest level since April 2020 at only 22,000 bpd. This is down from 71,000 in the previous month. The global high-sulphur oil supply has tightened due to the seasonal increase in demand for air conditioning in the Middle East between June and August. The feedstock is less economical to refine compared to crude, which has led prices up. According to prices published by Argus Media, the daily premium for high sulphur fuel over Mexican heavy crude Maya averaged $4.20 per barrel in May. This was the largest monthly average premium since last October. Gulf Coast refiners prefer Maya because they run heavy and medium oil. A refinery source reported that higher prices for fuel oil high in sulphur have prompted refiners use less feedstock, and more heavy crude. Austin Lin, principal oil analyst at Wood Mackenzie, said that U.S. refiners were weighing the benefits of using high-sulphur feedstocks against crude. The margins weren't as good. Roslan Khasawneh is a senior oil analyst with Kpler. He said that U.S. refiners are relying less on imported residual feedstocks in the long term and more on domestic production. Khasawneh explained that this was one of the reasons why U.S. fuel oils inventories have been trending downwards to multi-decades lows, and domestic fuel oil yields have been slightly higher since mid- to late last year. According to the Energy Information Administration (EIA), U.S. fuel oil reserves on the Gulf Coast dropped last week to their lowest level since March 1996. They were 10.63 million barrels. Khasawneh continued, "Gulf Coast oil imports are on a clear downward trend since Russia invaded Ukraine. This is due to the U.S. embargo on Russian oil imports." (Reporting and editing by Marguerita Choy in Houston)
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How Trump's Trade War is Upending the Global Economy
The tariffs imposed by Donald Trump since his inauguration on January 20, 2017 have sent shockwaves through financial markets, and uncertainty has spread throughout the global economy. This timeline shows the major events: Trump imposes tariffs of 25% on Mexican imports, 10% on Chinese goods and most Canadian imports from February 1. He demands that they reduce the flow fentanyl into the United States and the illegal immigration. Trump agrees to a 30-day suspension of his tariff threat against Mexico and Canada in exchange for concessions made on border security and criminal enforcement. The U.S. doesn't reach a similar deal with China. Trump delays tariffs until the Commerce Department confirms that systems and procedures are in place for processing low-cost packages from China and collecting tariff revenue. Trump increases tariffs on aluminum and steel to 25%, "without any exceptions or exclusions". March 3 - Trump announces that 25% tariffs will be imposed on imports from Mexico and Canada from March 4, and that all Chinese imports will face a 20% tariff on fentanyl. After a phone call with General Motors, Ford, and Stellantis' chairperson and CEOs, he agrees to defer tariffs on certain vehicles manufactured in Canada and Mexico for a month. Trump exempts Canadian and Mexican goods under the North American Trade Pact from 25% tariffs for one month. Trump announces a 25% import tariff on cars and light trucks. April 2 - He announces global duties with a base of 10% on all imports, and significant higher duties for some of the United States biggest trading partners. Trump suspends most of the country-specific tariffs he had imposed less than 24 hours before, following a financial market upheaval that resulted in trillions of dollars being wiped off bourses worldwide. The 10% blanket duty on nearly all U.S. imported goods remains in place. Trump has announced that he will increase the tariffs on Chinese imports from 104% to 125%, which was the level in effect the day before. The extra duties on Chinese products, including those related to fentanyl, will now be 145%. The U.S. government grants exemptions to steep tariffs on some electronics, including smartphones and computers, imported from China. In an effort to impose tariffs in both sectors, the Trump administration launched national security investigations under Section 232 of Trade Act of 1962 on imports of pharmaceuticals and semiconductors. May 4, Trump imposes 100% tariffs on all films produced outside of the U.S. May 9 - Trump announces a limited bilateral agreement with British Prime Minister Keir starmer that keeps 10% tariffs in place on British exports and modestly increases agricultural access to both countries. It also lowers U.S. prohibitive duties on British auto exports. On May 12, the U.S. & China agreed to temporarily reduce reciprocal tariffs. The U.S. and China agree to temporarily reduce reciprocal tariffs. May 13: The U.S. reduces the "de minimis", or low-value tariff, on China's shipments. Duties for items up to $800 are reduced to 54% instead of 120%. May 23 - Trump announces a recommendation to impose a 50% tariff on all goods imported from the European Union, starting June 1. He warns Apple that it will face a 25% tariff on phones sold in the U.S. if they are manufactured outside the country. Trump retracts his threat to impose 50% tariffs on EU imported goods, and agrees to extend the deadline to July 9 for negotiations. May 28 - The U.S. Trade Court blocks Trump's tariffs in an sweeping ruling, saying that the president exceeded his authority when he imposed duties across-the board on imports of U.S. trading partners. The Trump administration has announced that it will appeal this ruling. May 29: A federal appeals Court temporarily reinstates Trump's most comprehensive tariffs. The court suspends its ruling in order to hear the government's appeal. It also orders that the plaintiffs and administration respond to the court by June 5, and by June 9, respectively. Trump signs an executive order activating the increase in tariffs for imported steel and aluminium to 50%, up from 25%. Trump warns automakers at a White House event on June 12 that he could soon increase auto tariffs. Trump announces a 20% tariff for many Vietnamese exports. Trans-shipments through Vietnam from other countries will be subject to a 40% tax. He said on Truth Social, that countries who align themselves with "Anti-American Policies" of BRICS would be charged an extra 10% tariff. Trump on Truth Social: The additional duties announced earlier in the year will be delayed until August 1 as the U.S. completes several trade agreements. (Compiled in Gdansk by Paolo Laudani, Mateusz Rabiega and Lincoln Feast; edited by Milla Nissi Prussak Jamie Freed.
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Prices of gas in Europe trade within a narrow range due to strong supply
The Dutch and British wholesale prices of gas were in a tight range on Monday due to the strong supply from Norway, and LNG. According to LSEG, the benchmark Dutch contract for August deliveries at TTF hub increased by 0.06 euros to 33.46 Euro per megawatt-hour (MWh) as of 0843 GMT. The contract for the day ahead was up by 0.15 euros at 32.65 Euro/MWh. The British contract for tomorrow's day has dropped by 0.25 pence, to 78.25 cents per therm. Fundamentals remain the same. The fact that Norwegian production is back at normal levels, and the low wind generation expected in the weeks to come will keep prices relatively stable," said Auxilione. LSEG data shows that gas-for-power is increasing across the country in line with the weaker renewable forecasts. A high-pressure period expected in the coming week will cause wind speeds to drop and fall below normal. The Norwegian export nominated volume has increased by 2 million cubic meters (mcm), or 321 mcm/day. The Norwegian holiday season means that maintenance is minimal in July. The day ahead will see prices trading in the recent ranges. Trump tariff uncertainty and confusion could also have an impact on global markets as they fall as the U.S. flagged a delayed tariff without any indication of what may happen," said Wayne Bryan. Donald Trump, President of the United States, said that several trade agreements will be finalised in the coming days. The United States will inform other countries about higher tariffs by July 9 and they are set to go into effect on August 1. The benchmark contract on the European carbon markets was down by 0.65 euros at 71.41 euro per metric tonne. (Reporting and editing by Nina Chestney; Marwa Rashad)
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EU to use 'nature credit' to fill funding gap
The European Commission announced on Monday that it will create rules to "nature credit" farmers and foresters for taking care of ecosystems in order to make their work more profitable. The EU is looking for ways to boost funding for environmental protection without further straining the public budgets already stretched by other priorities such as defence. The EU estimates that it is short of funding for biodiversity protection by 37 billion euros ($43 billion). This is because the EU pays huge subsidies to farmers through its Common Agricultural Policy. It said that the Commission would form an expert group this year, including government officials, farmers, and local communities, to develop methodologies for "nature credit" and fund a project pilot for these credits before 2027. It would allow companies or countries to buy credits from farmers, foresters, and other land managers who protect nature, by planting trees, restoring wetland or switching to regenerative agriculture, for example. The expert group will examine how to certify and regulate a market for nature credits, before deciding if this should be incorporated into EU law. Reporters were told by EU Environment Commissioner Jessika Rosawall that "this is not about turning the nature into a product, but recognising actions which restore and sustain the nature". This idea is similar to a market more developed for "carbon credit", where projects that reduce CO2 emission sell credits to businesses seeking to support efforts against climate change. Carbon credit market is tainted by recent scandals where projects aresuing credits have failed to deliver on the benefits claimed for climate change. Last week, Brussels announced an EU climate goal for 2040 that would allow countries to use international carbon credits for the first time towards the EU target. The Commission stated on Monday that it was aware of "challenges" and "opportunities" highlighted by the carbon credit markets. Kate Abnett reports. $1 = 0.8519 euro
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China's central banks purchases gold for the eighth consecutive month in June
Official data released by the People's Bank of China on Monday showed that China's central banks added gold to their reserves for the eighth consecutive month. China's gold reserves increased to 73.90 millions fine troy ounces by the end June from 73.83 at the end May. China's gold reserves increased to $242.93 Billion at the end last month from $241.99 Billion at the end May, according to central bank data released on Monday. Carsten Menke is an analyst with Julius Baer. He said, "We expect the PBOC will remain a consistent buyer over the next few year, motivated by their desire to diversify away from the U.S. Dollar and - in the extreme case – to be less vulnerable to potential U.S. sanction targeting the dollar." Gold, which is traditionally viewed as a safe haven from economic and political uncertainty, has reached multiple records so far this season on the backs of uncertainty regarding tariffs, interest rate reductions, geopolitical conflict and central bank purchases. The PBOC will be re-established in May 2024. The 18-month gold buying spree has been halted The Chinese demand for gold has been significantly affected. The central bank will resume gold purchases in November 2024. The industry ministry announced in late June that China is implementing a plan to implement 2025-2027. Increase your income By 2027, the country's gold reserves will increase by 5 to 10 percent and its gold and Silver output by at least 5%. A report from the Official Monetary and Financial Institutions Forum shows that one third of central banks manage a total $5 trillion. Plans to increase gold exposure Over the next one to three years, this will be the highest level for at least five years. HSBC, however, said in a report last week that gold purchases by central banks are not a concern. Will moderate Gold could correct closer to $3,000 if it continues to rise. Reporting by Anushree mukherjee, Xiuhao chen and Liz Lee in Beijing. Editing by Louise Heavens & Joe Bavier.
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Sources say that OPEC will complete the voluntary reduction in oil production cut in September.
Five sources claim that OPEC+ producers will approve a big increase in output for September, as they finish unwinding the voluntary output cuts of eight members. They will also allow the United Arab Emirates (UAE) to pump more oil to meet a higher quota. In April, plans to undo cuts of 2,17 million barrels of oil per day (bpd), began with an increase of 138,000 bpd. In May, June, and July, the increase was 411,000 barrels per day (bpd), despite lower oil prices. The group voted on Saturday to approve a 548,000-bpd increase for August. On Monday, five sources familiar with the discussion said that the group will likely approve a September increase of approximately 550,000 bpd when it meets on 3 August. This will bring the total planned return to the market of 2,17 million bpd from the eight member countries: Saudi Arabian, Russia, Kuwait, Oman and Iraq, Kazakhstan, Algeria. The sources also said that the UAE will be able to produce an extra 300,000 bpd as it increases its production quota. (Dmitry Zhdannikov, Maha El Dahan and Dmitry Zhdannikov contributed additional reporting; Dmitry Zhdannikov wrote the article; Jason Neely edited it.)
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Thailand presents new trade proposal that offers zero tariffs for many US products
The Thai Finance Minister announced on Monday that Thailand had submitted a new proposal to the United States. It offered to reduce tariffs to zero for many U.S. imported products in an effort to avoid steep tariff increases on its own goods. Washington has threatened to levy a 36% tax on Thai imports, if no agreement is reached before July 9th when the 90-day period that caps tariffs at 10% for most countries expires. Last year, the United States was Thailand's largest export market, accounting for 18.3%, or $54,96 billion, in total. Washington claims that its trade deficit with Thailand is $45.6 billion. After returning from Washington, where he had held talks, Minister Pichai Chunhavajira said to reporters: "We listened to their feedback and what was important to them, and we have adjusted the trade proposal." Pichai stated that the U.S. Trade Rep's office praised Thailand for its efforts, but suggested minor changes. The improved proposal, he said, includes zero tariffs on many U.S. imported goods and other measures to bring the trade balance with the United States in less than 10 year's time. The proposal also includes a commitment to increasing imports of American products to boost bilateral trade. He said, "It is not only about reducing the tariffs; it's also about further opening up the trade." Pichai stated that "we are not offering zero tariffs across the board but we do offer zero tariffs for a significant number of products." He added, "I think the conditions that we have set are very favorable and should satisfy their needs." Pichai stated that trade talks will continue even after the tariff pause is over, since negotiating terms of trade requires consultations between multiple stakeholders. The top three Thai exports to America were rubber products, computers and teleprinters/telephone sets. The top three U.S. imports were crude oil and machinery, followed by chemicals. Pichai announced earlier that Thailand will import more U.S. gas and lower tariffs for corn imports from the United States. According to the Thai Feed Mill Association, U.S. Corn is subject to an import tax of 73%. PTT Group, the Thai state-owned energy company, signed an agreement in June to purchase 2 million metric tonnes of liquefied gas annually from Glenfarne’s Alaska LNG Project over a period of 20 years. Donald Trump, the U.S. president, has championed this $44 billion project. Pichai said earlier that Southeast Asia's 2nd largest economy could grow by just over 1 percent this year because of the impact U.S. Tariffs. Thailand's economy is struggling with low consumption, rising household debt, slowing tourist numbers, uncertainty in trade and potential steep U.S. Tariffs. The central bank predicted economic growth for this year of 2.3%, after the 2.5% growth in 2016 was below the regional average. Reporting by Orathai Shriring, Kitiphong Thaichareon, and Thanadech Staporncharnchai. Writing by ChayutSetboonsarng. Editing by David Stanway and Martin Petty.
US Coast Guard states boardings of Chinese fishing vessels in South Pacific legal
The U.S. Coast Guard has rejected comments by a Chinese diplomat that its recent boardings of Chinese fishing boats in the Pacific Islands along with local authorities are unlawful, saying the joint patrols are at the behest of Pacific countries to secure seaside fisheries.
reported last month that six Chinese fishing boats were found to be breaching Vanuatu's fisheries law after being examined by local police who were on board the very first U.S. Coast Guard boat to patrol the waters of the Pacific Islands country.
The U.S. Coast Guard and Kiribati cops also boarded two Chinese fishing boats during a patrol in February, the first joint patrol in a decade, however discovered no issues aboard.
China's Ambassador to New Zealand Wang Xiaolong said in a. letter flowed by the Chinese embassy on Friday making use of. shiprider agreements between the U.S. and Vanuatu, Kiribati and. Papua New Guinea to perform law enforcement activities. versus China's fishing vessels was a violation of. international law.
In the letter, Wang declared the agreements are not binding. on China's fishing fleet.
China is not required to accept the police of. countries other than seaside states for fishing activities in. their exclusive economic zones, the letter stated.
U.S. Coast Guard Rear Admiral Michael Day on Wednesday said. the Chinese ambassador's declaration was unreliable and the. bilateral shiprider agreements complied with worldwide law.
We do these boardings at the behest of those host nations. who welcome us to board, to deal with them collaboratively in. securing their Exclusive Economic Zones, he stated at a press. conference in Honolulu to mark the return of the U.S. Coast. Guard cutter Harriet Lane after its Pacific Islands patrol.
A free and open Indo-Pacific is predicated upon the. following of worldwide guidelines and standards and laws, and I am. happy to state the coast guard is complying with all worldwide. law and these are legal boardings.
Leader Nicole Tesoniero said shiprider arrangements with. Samoa, Fiji, Vanuatu and Papua New Guinea had actually led to 23. boardings of fishing boats running in the far reaches of the. respective countries' exclusive financial zones, with 12. violations found by local cops.
The targeting of vessels within the unique financial. zones as well as the enforcement actions were all determined by. our partners, she stated.
The patrol follows Vanuatu and Solomon Islands, Pacific. Island countries with close ties to China, blocked the U.S. Coast. Guard from concerning port to refuel in 2022 and 2023 as it. undertook a patrol for unlawful fishing on behalf of the Pacific. Islands Forum regional block.
Australia, New Zealand and Britain have also stepped up navy. patrols for unlawful fishing in partnership with Pacific Islands. countries, a number of whom do not have armed forces or boats to keep track of. coastal waters and special economic zones spanning countless. kilometres.
(source: Reuters)