oil

US court overturns $16.1 bn judgment against Argentina over oil firm seizure

  • The court struck down a 2023 ruling from Judge Loretta Preska of the US District Court for the Southern District of New York that ordered Argentina to pay $16.1 billion to minority shareholder companies she said were harmed by the nationalization of YPF. The appeals court said Friday that breach of contract claims made by these companies were not recognizable under Argentine law.
  • A US appeals court on Friday overturned a $16.1 billion judgment against Argentina for nationalizing the oil company YPF in 2012.
  • The court struck down a 2023 ruling from Judge Loretta Preska of the US District Court for the Southern District of New York that ordered Argentina to pay $16.1 billion to minority shareholder companies she said were harmed by the nationalization of YPF. The appeals court said Friday that breach of contract claims made by these companies were not recognizable under Argentine law.
A US appeals court on Friday overturned a $16.1 billion judgment against Argentina for nationalizing the oil company YPF in 2012.
The ruling was a big victory for President Javier Milei as he tries to boost Argentina's troubled economy.
"We won the YPF trial," Milei wrote in capital letters on the social media platform X, calling the 2-1 ruling by the 2nd US Circuit Court of Appeals in New York the "best possible outcome."
The court struck down a 2023 ruling from Judge Loretta Preska of the US District Court for the Southern District of New York that ordered Argentina to pay $16.1 billion to minority shareholder companies she said were harmed by the nationalization of YPF.
The appeals court said Friday that breach of contract claims made by these companies were not recognizable under Argentine law.
The case was heard in the United States rather than Argentina mainly because YPF is listed on the New York Stock Exchange.
Jurisdiction was consistently an issue, as Argentina argued the case should be argued back home but in the end the US courts kept it in New York.
In the expropriation, the Argentine state took over 51 percent of YPF, which at the time was partially controlled by the Spanish energy giant Repsol.
Two years later Repsol was awarded $5 billion in damages but smaller shareholders like Petersen Energia Inversora and Eton Park Capital Management, which together controlled a 25.4 percent stake, got nothing and sued in 2015.
They argued that the government had not made a tender offer, as mandated by Argentine law, to these two companies, which were YPF's second- and third-largest investors.
Argentina has argued that having to pay the settlement -- $18 billion including interest, it says -- would cause severe harm to the finances of a country with persistent debt and inflation problems.
It said the settlement would have amounted to a large chunk of its foreign currency reserves.
YPF is an emblematic Argentine company founded in the early 20th century as a state-owned entity but it was privatized in 1993 and eventually came under the control of Repsol.
Then-president Cristina Kirchner re-nationalized YPF in 2012, arguing that it did not produce enough oil and gas to satisfy Argentine demand.
If the $16.1 billion judgment had been upheld, much of the money would have gone to Britain-based Burford Capital, a company that provides financing for other firms' lawsuits.
mry/dw/msp

US

Middle East war: global economic fallout

  • The Shuwaikh port was targeted at dawn "by enemy drones, preliminary reports revealed material damage but no human casualties", the Kuwait port authority said on X. - Oil rises - Oil prices rose Friday even as US President Donald Trump pushed back a deadline for Iran to reopen the Strait of Hormuz.
  • Here are the latest economic events in the Middle East war: - Iran turns back ships - Iran's Revolutionary Guards said Friday that they had turned back three ships trying to transit the Strait of Hormuz, saying the route was closed to vessels travelling to and from ports linked to countries aiding the US-Israeli attacks.
  • The Shuwaikh port was targeted at dawn "by enemy drones, preliminary reports revealed material damage but no human casualties", the Kuwait port authority said on X. - Oil rises - Oil prices rose Friday even as US President Donald Trump pushed back a deadline for Iran to reopen the Strait of Hormuz.
Here are the latest economic events in the Middle East war:

Iran turns back ships

Iran's Revolutionary Guards said Friday that they had turned back three ships trying to transit the Strait of Hormuz, saying the route was closed to vessels travelling to and from ports linked to countries aiding the US-Israeli attacks.
Energy market intelligence firm Kpler said Friday it had identified two container ships belonging to Chinese firm COSCO that had attempted to leave the Gulf by crossing the narrow waterway, but had turned around.

Kuwait says port damaged

Kuwait's main commercial port was damaged in a drone attack, authorities said, as Iran pressed its campaign in the Gulf in retaliation for US-Israeli strikes.
The Shuwaikh port was targeted at dawn "by enemy drones, preliminary reports revealed material damage but no human casualties", the Kuwait port authority said on X.

Oil rises

Oil prices rose Friday even as US President Donald Trump pushed back a deadline for Iran to reopen the Strait of Hormuz.
Wall Street's main stock indices were lower in midday trading while European markets were mostly lower.

Ukraine, Saudi deal

Ukraine and Saudi Arabia signed an air-defence agreement during President Volodymyr Zelensky's visit to the kingdom, two senior officials told AFP Friday.
Details of the accord were not announced. Kyiv has sought to leverage its expertise in downing Russian drones to help Gulf nations, under attack from the same kind of Iranian-designed Shahed drones that Russia fires on Ukraine. 

'Significant slowdown' in Spain

Spain's economy could face a "significant slowdown" due to the Middle East war, the Bank of Spain said Friday, warning of potential "episodes of financial market instability".
Separately, Spain's annual inflation jumped to 3.3 percent in March from 2.3 percent the previous month, driven by higher costs for petrol and heating oil, preliminary data showed Friday.

Iran all in on crypto

Iran has witnessed massive cryptocurrency flows since the start of the Middle East conflict.
Experts say they are being used to circumvent sanctions placed on Iran's Revolutionary Guards as well as a financial safe haven by civilians hit by soaring inflation.

Fewer flights cancelled

The percentage of Middle East flights cancelled has dropped considerably since the early days of the war, according to an aviation data firm, but the number of scheduled also fell.
Only 13 percent of flights to and from the region were cancelled on Friday, according to Cirium, compared to more than 65 percent in the first days of the war.

Germany to keep coal online longer

Chancellor Friedrich Merz said Friday that if the energy crisis sparked by the Middle East war dragged on and caused shortages, Germany might have to keep running coal-fired power plants longer than planned.
"I am not prepared to jeopardise the core of our industry just because we have decided on phase-out plans that have become unrealistic," he said.

Japan to ease coal restrictions

Japan's government plans to temporarily lift restrictions on coal-fired power plants as it seeks to ease an energy crunch caused by the Middle East war, an official told AFP.
Power suppliers have until now been required to keep the operating rate of coal-fired thermal power stations that emit large amounts of carbon dioxide at or below 50 percent.

Egypt imposes business curfew

Egypt has ordered shops, restaurants and shopping malls to close at 9:00 pm (1900 GMT) from Saturday, hoping to curb energy bills that have more than doubled because of the Iran war.

Overnight queues

Ethiopians said Friday they slept in their cars in hours-long queues for petrol as shortages caused by the Middle East war began to take their toll. 
The Horn of Africa country is particularly vulnerable as it imports all its petrol, primarily from the Gulf.

Tea stuck in Kenya

Between 6,000 and 8,000 tonnes of tea, worth around $24 million, is stuck at Kenya's port of Mombasa because of the war in the Middle East, trade officials said Friday.
Around 65 percent of the east African tea market has been affected by the war that began on February 28 when the United States and Israel launched strikes on Iran, EATTA director George Omuga said.
As a result, "six to eight million kilos" are stuck in Mombasa, he told AFP.
burs/rl/sbk/jj

war

Mideast war leaves 6,000 tonnes of tea stuck at Kenya port

  • As a result, "six to eight million kilos" are stuck in Mombasa, he told AFP. "So that's an average of $24 million worth of tea at the port," he added.
  • Between 6,000 and 8,000 tonnes of tea, worth around $24 million, is stuck at Kenya's port of Mombasa because of the war in the Middle East, trade officials said Friday.
  • As a result, "six to eight million kilos" are stuck in Mombasa, he told AFP. "So that's an average of $24 million worth of tea at the port," he added.
Between 6,000 and 8,000 tonnes of tea, worth around $24 million, is stuck at Kenya's port of Mombasa because of the war in the Middle East, trade officials said Friday.
The East African Tea Trade Association (EATTA) manages auctions at the port city, which serves as a global marketplace where hundreds of thousands of tonnes of tea from the region are sold every year.
Around 65 percent of the east African tea market has been affected by the war that began on February 28 when the United States and Israel launched strikes on Iran, EATTA director George Omuga said.
As a result, "six to eight million kilos" are stuck in Mombasa, he told AFP.
"So that's an average of $24 million worth of tea at the port," he added.
The tea has been sold to customers but cannot be shipped, mainly to the Middle East, which accounts for about 20 percent of the market, he estimates.
Shipments to Pakistan, which makes up 40 percent of the market, have also been disrupted by a surge in transport costs because of changes in shipping routes and higher insurance premiums.
Tea sales, meanwhile, have fallen by nearly 20 percent in recent weeks because of the war, resulting in lost revenue of $8 million per week.
Kenyan meat and horticulture are also feeling the impact of the conflict, suffering losses amounting to millions of dollars every week.
During the first three weeks of March, only five percent of the 150 to 200 tonnes of daily meat exports were delivered, most of which were destined for the Middle East, according to Nicholas Ngahu, CEO of the Kenya Meat and Livestock Exporters Industry Council (KEMLEIC).
The Middle East also accounts for between 10 and 15 percent of Kenya's flower exports, and serves as a major transit point, particularly for shipments to Europe.
The disruption is troublesome for Kenya, which is also dependent on fuel imports.
Pump prices remained unchanged in March, but traders are worried about the consequences of a possible surge.
Vivo Energy Kenya, which operates Shell service stations in the east African country, on Thursday reported "temporary stock-outs at some service stations", attributed to a rise in demand.
The firm said it is "working continuously to replenish affected sites as quickly as possible", without providing further details.
Thousands of independent service stations are facing supply shortfalls as "panic buying is driving demand", John Njogu, CEO of the Petroleum Outlets Association of Kenya, told AFP.
But unlike neighbouring Ethiopia, long queues have not yet formed at Kenyan petrol stations.
jcp/ayv/giv/jhb

US

US and Israel hit nuclear sites as Rubio trails end to Iran war

BY AFP TEAMS IN TEHRAN, JERUSALEM, BEIRUT, DUBAI, ISLAMABAD AND WASHINGTON

  • "When we are done with them here in the next couple weeks, they will be weaker than they've been in recent history," Rubio told reporters in Paris after G7 talks.
  • US-Israeli strikes hit two Iranian nuclear facilities on Friday, as America's top diplomat left a meeting with his G7 counterparts to declare that Washington expects its military operation to prove victorious within a couple of weeks.
  • "When we are done with them here in the next couple weeks, they will be weaker than they've been in recent history," Rubio told reporters in Paris after G7 talks.
US-Israeli strikes hit two Iranian nuclear facilities on Friday, as America's top diplomat left a meeting with his G7 counterparts to declare that Washington expects its military operation to prove victorious within a couple of weeks.
Markets fell and oil prices rose against the backdrop of ongoing fighting in the Gulf and in Lebanon, with no clear end to the conflict in sight and despite US President Donald Trump's repeated insistence that indirect talks with Iran are going well.
"When we are done with them here in the next couple weeks, they will be weaker than they've been in recent history," Rubio told reporters in Paris after G7 talks.
Rubio also said that he had won support from his G7 colleagues to oppose Iran's attempts to impose a toll on ships crossing the Strait of Hormuz, a key sea lane for oil and gas shipments from the Gulf.
"Not only is this illegal, it's unacceptable, it's dangerous to the world, and it's important that the world have a plan to confront it," Rubio said.

Iran's messages

In a joint statement, the G7 foreign ministers "reiterated the absolute necessity to permanently restore safe and toll-free freedom of navigation in the Strait of Hormuz" and called for "an immediate cessation of attacks against civilians and civilian infrastructure".
Iran had sent "messages" to the American side but had not responded to a US-proposed peace plan, Rubio said.
Iranian media reported a US-Israeli attack on the Khondab heavy water complex in central Iran, citing a local official, while the country's atomic energy agency said a uranium processing plant 600 kilometres away in Ardakan was also hit.
Israel's army confirmed that it struck the two facilities, while the Iranian sources said there was no release of radioactive material at either site.
Renewed strikes and diplomatic action came after Iran's Revolutionary Guards warned civilians across the Middle East Friday to stay away from areas near US forces.
Trump has insisted the Islamic republic wants to "make a deal" and extended a deadline for Tehran to open the Strait of Hormuz or face the destruction of its energy assets from Friday to April 6.
But the Iranian side, which has made it clear it wants to end fighting on its own terms, indicated no let up in reprisal attacks against Israel and targets across the Gulf.
Civilians should "urgently leave locations where American forces are stationed so that no harm comes to you," the Guards said.

'Losing hope'

Iran has reportedly replied to a 15-point US plan with its own demands, including war reparations and recognition of its sovereignty over Hormuz.
"The US, Israel and Iran each think they're winning the war," Crisis Group Iran specialist Ali Vaez wrote on X.
"If all three think their plan is working, each also believe(s) it has more cards up their sleeve," he added, which encourages each side to hold out for more in negotiations.
With war engulfing the region four weeks after the United States and Israel first attacked Iran on February 28, Tehran resident Ensieh said every day she was "losing more hope".
"We're caught between three mad powers, and war is terrifying," the 46-year-old dentist told AFP journalists outside Iran. "I know I'll never be the same person again."
A month of US and Israeli attacks have damaged at least 120 museums and cultural and historic sites nationwide, a top Tehran official said.
Markets have been upended by Iranian attacks on trade and energy targets in the Gulf, with Kuwait saying Friday its main commercial port was damaged in a drone attack at dawn.
A top Iranian official threatened to attack Saudi Arabia's Red Sea port of Yanbu, home to the Samref oil refinery, as well as the coastal Fujairah oil complex in the United Arab Emirates, should a ground invasion take place.
"Step onto Iranian soil, and $150 becomes the floor for oil," Vice President Esmael Saghab Esfahani wrote on X.
Iran's message on Hormuz was just as defiant, with the Guards saying the strait was "closed" to vessels travelling to and from enemy ports, and that they had turned back three ships seeking to cross.
Oil prices were more than three percent higher Friday even after Trump pushed back his ultimatum for a second time.

'Heavy price'

The Tasnim news agency said Tehran also called for an end to US and Israeli attacks on its territory and on aligned regional groups -- a reference to Lebanon's Hezbollah, among others.
Lebanon was drawn into the war after Hezbollah fired rockets at Israel.
Blasts rocked a largely deserted southern Beirut early on Friday morning and again in the afternoon, with the government reporting two people killed.
Over one million people are displaced in a "deepening humanitarian crisis", the UNHCR refugee agency's local representative Karolina Lindholm Billing warned, adding that "the risk of a humanitarian catastrophe... is real".
Israel has shown no sign of wavering, with Defence Minister Israel Katz vowing to "intensify and expand" strikes on Iran in response to missile attacks on its soil. 
The escalation threat came despite opposition leader Yair Lapid warning its military was "stretched to the limit and beyond".
burs-ec-tgb/dc

Global Edition

Oil climbs, stocks fall as markets see no end to war

  • Friday's market reaction contrasted with the sharp plunge in oil prices and gains for stocks after Trump first delayed the deadline earlier this week.
  • Oil prices rose and stocks fell Friday as initial optimism over US President Donald Trump's decision to again delay his deadline for strikes on Iran's energy assets faded.
  • Friday's market reaction contrasted with the sharp plunge in oil prices and gains for stocks after Trump first delayed the deadline earlier this week.
Oil prices rose and stocks fell Friday as initial optimism over US President Donald Trump's decision to again delay his deadline for strikes on Iran's energy assets faded.
Trump has extended a deadline for Tehran to open the Strait of Hormuz or face the destruction of its energy assets, pushing it from Friday to April 6.
But with Iran maintaining a hold on the strait, Trump's announcement largely failed to lift the mood for markets.
Oil prices climbed, with international benchmark Brent crude rising 2.6 percent to $104.49. The US benchmark oil contract, WTI, jumped 4.1 percent to $98.39.
Wall Street stocks were down by one percent or more in early afternoon trading. European stocks fell and Asian markets ended the day mostly lower.
Friday's market reaction contrasted with the sharp plunge in oil prices and gains for stocks after Trump first delayed the deadline earlier this week.
"Trump appears to be losing his grip on the markets," said FOREX.com analyst Fawad Razaqzada.
"Investors no longer seem to take his statements at face value -- if anything, they're beginning to trade against them, waiting for tangible proof before reacting," he added. 
Kathleen Brooks, research director at XTB, said: "Investors are facing the facts: the Strait of Hormuz is effectively closed and it does not appear that there is a real end in sight to the war."
Trump has insisted Iran wanted "to make a deal" to end the war engulfing the region, but Iranian leaders have indicated no let-up in reprisal attacks against Israel and targets across the Gulf.
Kuwait said Friday its main commercial port was damaged in a drone attack.
Iran's Tasnim news agency said the country has responded to Washington's 15-point plan to end the war and was awaiting a reply.
The report, citing an unnamed source, said officials had called for an end to US-Israeli attacks on Iran and Tehran-backed groups elsewhere in the region. 
It also called for war reparations and for Iran's sovereignty over the Strait of Hormuz to be respected.
"The simple fact is that sentiment is likely to stay negative for as long as the Strait of Hormuz remains unsafe for shipping and controlled by Iran," said David Morrison, analyst at Trade Nation. 
Adding to market woes, China on Friday opened an investigation into US trade practices in response to Washington's probes this month of Beijing's exports. 
Tokyo's stock market closed lower, while Hong Kong and Shanghai edged up.
The market's doubts about the chance of a peace deal came as governments around the world looked to shore up their economies against surging energy costs, which are adding to inflationary pressures.
Vietnam temporarily waived an environmental levy on fuel to cut petrol prices by more than a quarter, India said it had lowered fuel taxes and Japan is looking to temporarily lift restrictions on coal-fired power plants in a bid to ease an energy crunch. 
Spain, Poland and South Korea earlier this week announced support plans that included fuel tax cuts.

Key figures at around 1630 GMT

Brent North Sea Crude: UP 2.6 percent at $104.49 a barrel
West Texas Intermediate: UP 4.1 percent at $98.39 a barrel
New York - Dow: DOWN 1.1 percent at 45,474.90 points
New York - S&P 500: DOWN 1.0 percent at 6,414.18
New York - Nasdaq Composite: DOWN 1.4 percent at 21,110.59
London - FTSE 100: DOWN less than 0.1 percent at 9,701.95 (close)
Paris - CAC 40: DOWN 0.9 percent at 7,701.95 (close) 
Frankfurt - DAX: DOWN 1.4 percent at 22,300.75 (close)
Tokyo - Nikkei 225: DOWN 0.4 percent at 53,373.07 (close)
Hong Kong - Hang Seng Index: UP 0.4 percent at 24,951.88 (close)
Shanghai - Composite: UP 0.6 percent at 3,913.72 (close)
Euro/dollar: UP at $1.1524 from $1.1523 on Thursday
Pound/dollar: DOWN at $1.3291 from $1.3313
Dollar/yen: UP at 160.10 yen from 159.83 yen
Euro/pound: UP at 86.72 pence from 86.55 pence
burs-rl/sbk

Israel

Overnight petrol queues in Ethiopia as war shortages hit

BY TOLERA FIKRU GEMTA AND DYLAN GAMBA

  • I spent the night in my car without food," said taxi driver Awoke Derese on Friday morning.
  • Ethiopians said Friday they slept in their cars in hours-long queues for petrol as shortages caused by the Middle East war began to take their toll. 
  • I spent the night in my car without food," said taxi driver Awoke Derese on Friday morning.
Ethiopians said Friday they slept in their cars in hours-long queues for petrol as shortages caused by the Middle East war began to take their toll. 
The effective blockade of the Strait of Hormuz by Iran, through which a fifth of the world's oil and gas normally passes, has caused shortages in many countries. 
Ethiopia, a nation in the Horn of Africa with around 130 million people, is particularly vulnerable as it imports all its petrol, primarily from the Gulf.
Drivers waiting in an enormous queue at a petrol station in the Summit 72 area of the capital Addis Ababa said the wait was "more than a day". 
"I've been in the queue since last night at around 7:00 pm. I spent the night in my car without food," said taxi driver Awoke Derese on Friday morning.
"I have already lost two days of business. I pay 2,000 birr ($13) per day in rental fees for the car. My family is at risk because I can't support them," he told AFP. 
Shortages started to be noticed earlier this week. At another petrol station in the Summit 72 area, a worker said they had been closed for four days and did not know when fresh deliveries would arrive. 
Bakery worker Natenahel Gedamu said his business needed fuel for generators and baking machines. 
"We ran out yesterday and have not produced anything since," he said.
"I'm worried the station may run out of fuel before I reach it. I've already tried several stations -- this feels like my last chance," added Natenahel, who had been queueing since 4:00 pm the previous day.
Land-locked Ethiopia relies on the port of Djibouti for its imports. It has only 13 strategic reserve depots, according to the state-owned Ethiopian Petroleum Supply Enterprise, which did not respond to requests for comment from AFP. 
Prime Minister Abiy Ahmed last week urged Ethiopians to "use oil sparingly and prioritise basic needs" until "the problem is resolved". 
More than 40 percent of Ethiopians live below the poverty line, according to the World Bank, and fear the inflation -- already running around 10 percent -- from rising fuel prices.
Addis Ababa has been undergoing a major reconstruction drive in recent years, but some building projects were on hold this week, AFP journalists saw. 
This included the "corridor" project to widen and renovate its streets and work in the Bole district near the airport. 
tg-dyg/er/kjm

diplomacy

E-commerce in the crosshairs at WTO in digital taxes battle

BY AGNèS PEDRERO

  • From 1998 onwards, the temporary moratorium on customs duties on electronic transmissions has been renewed at successive WTO ministerial conferences.
  • The future of digital taxes is dividing countries at the World Trade Organization, with the moratorium that has prohibited customs duties on electronic transmissions since 1998 front and centre in the debate.
  • From 1998 onwards, the temporary moratorium on customs duties on electronic transmissions has been renewed at successive WTO ministerial conferences.
The future of digital taxes is dividing countries at the World Trade Organization, with the moratorium that has prohibited customs duties on electronic transmissions since 1998 front and centre in the debate.
The moratorium is highly important for developed countries -- notably for the United States, which is calling for it to be made permanent rather than kept under regular review.
So far, only India has openly voiced disagreement with renewing the moratorium, according to several sources close to the discussions in Yaounde at the WTO's ministerial conference, the organisation's biennial supreme decision-making body.
"There is only one country that's been vocally not supporting," a Western diplomatic source told AFP.
"Normally, it's kind of a handful of countries, whereas it's only been one so far this time."
But since decisions are made by consensus at the WTO, exerting pressure on this issue could be a way for India to gain concessions elsewhere.

Software, cloud, telemedicine

WTO members generally apply tariffs to imported goods and services, but in 1998, they agreed not to impose them on e-commerce.
"The rule is to have no tariffs on what circulates via the internet," Valerie Picard, an official with the International Chamber of Commerce, who is attending the conference, told AFP.
"So when you download software, when an SME uses the cloud, when a freelancer sells a design service abroad, there are no taxes at the border," she said.
"The moratorium applies to everything that is digital. It goes far beyond digital books and music. It also includes, for example, security updates, online courses, telemedicine," she added.
From 1998 onwards, the temporary moratorium on customs duties on electronic transmissions has been renewed at successive WTO ministerial conferences.
However, discussions were particularly tense at the last ministerial meeting in 2024 in Abu Dhabi. At the last minute, India agreed not to veto an extension -- but only for a maximum of two years.
In the absence of a common understanding on the scope, "the continued extension of this moratorium warrants careful reconsideration", India's commerce minister Piyush Goyal said Thursday.
The moratorium is set to expire on March 31, unless ministers in Yaounde decide otherwise.
The African, Caribbean and Pacific Group of States at the WTO is proposing to keep the moratorium until the next ministerial conference.
The United States, supported by several countries including Japan, Mexico, Australia, Norway and Switzerland, wants to make the moratorium permanent.
"The United States is not interested in another temporary extension of the moratorium," US Trade Representative Jamieson Greer said Thursday.

'Worst case' scenario

Approving an open-ended moratorium "will deliver stability and predictability for all traders", while showing that the WTO can deliver results, said Joseph Barloon, the US ambassador to the organisation.
To limit opposition to the moratorium, the United States under President Donald Trump has negotiated a clause in recent bilateral agreements with certain countries, notably Indonesia.
"The worst case would, of course, be that we don't have an extension of the moratorium. That's something that we cannot exclude," the Swiss WTO ambassador Erwin Bollinger said ahead of the conference.
Some developing countries are more reticent about the moratorium because they see it as a loss of tax revenue and argue that the rapid pace of digital transformation only exacerbates the problem.
According to a 2023 study published by the Organisation for Economic Co-operation and Development, the potential budgetary impact of the moratorium is limited, "amounting to, on average, 0.68 percent of total customs revenue or 0.1 percent of total government revenue".
The OECD also noted that in most countries, the shortfall could be offset by increased VAT revenue from imports of digital services.
apo/ag/rjm/rl

automobile

Volkswagen in talks with defence firms on use of Germany plant: CEO

  • "The Volkswagen company's activities in the defence sector would rather focus on military transport, because that is our core competence."
  • Struggling German carmaker Volkswagen is in talks with defence firms to repurpose a plant in northern Germany for the production of military transport equipment, the firm's boss said Friday. 
  • "The Volkswagen company's activities in the defence sector would rather focus on military transport, because that is our core competence."
Struggling German carmaker Volkswagen is in talks with defence firms to repurpose a plant in northern Germany for the production of military transport equipment, the firm's boss said Friday. 
Europe's biggest auto manufacturer is battling a crisis due to factors ranging from a stuttering shift to electric cars and fierce Chinese competition, and the 10-brand Volkswagen Group is in the process of cutting 50,000 jobs by 2030. 
As part of the savings plans, car production is due to end at a factory in the city of Osnabrueck, and the group has been exploring other uses for it.  
"We are in contact with various defence companies," Volkswagen Group CEO Oliver Blume said at a congress organised by the FAZ newspaper in Frankfurt. 
"This could also be a solution for Osnabrueck," he added.
The Financial Times reported this week Volkswagen is in talks with Israel's Rafael Advanced Defence Systems to switch production at VW's Osnabrueck plant to make components for the Iron Dome air defence system, including heavy-duty trucks and electricity generators but not the projectiles themselves.
Volkswagen could benefit from the expansion into the defence sector, which is booming as Europe re-arms. That could help offset losses at its carmaking business, with profits last year at their lowest for almost a decade.
Blume however insisted that Volkswagen was "not concerned with weapons systems". 
"The Volkswagen company's activities in the defence sector would rather focus on military transport, because that is our core competence."
Volkswagen's Osnabrueck site currently employs about 2,300 people making the T-Roc Cabriolet as well as the Cayman and Boxster for sister brand Porsche.
The agreement to wind down production there was part of an agreement struck with unions at the end of 2024. 
Asked about the FT report earlier this week, a government spokesman declined to comment directly. 
But he noted that "the automotive industry is undergoing a transformation and faces intense international competition." 
"We naturally welcome initiatives that secure jobs in Germany."
vbw/sr/gv

transport

German state railway loss widens, passengers warned of trouble ahead

  • Speaking on Friday, Palla said it would take time for the railway to improve both its financial performance and its service.
  • Germany's beleaguered state railway operator Deutsche Bahn said Friday its losses widened last year and warned passengers to brace for less-than-perfect service for years to come.
  • Speaking on Friday, Palla said it would take time for the railway to improve both its financial performance and its service.
Germany's beleaguered state railway operator Deutsche Bahn said Friday its losses widened last year and warned passengers to brace for less-than-perfect service for years to come.
Deutsche Bahn lost 2.3 billion euros ($2.6 billion) in 2025, compared to a loss of 1.8 billion euros a year earlier, hit by a 1.4-billion euro blow to the value of the long-distance division, DB Fernvekhr.
In bad news for long-suffering passengers, DB head Evelyn Palla told a press conference that the write-off resulted from expectations of a poor service stretching into the future.
"We have reassessed our future revenue forecasts, basing them on the actual state of our infrastructure," she said. "And this remains inadequate."
Long derided at home, DB made headlines abroad during the 2024 European Football Championships after fans and even players arrived at destinations hours later than planned.
Almost 40 percent of long-distance services arrived late last year -- not including trains that were cancelled, which are not counted in punctuality statistics.
Germany's government has promised to borrow and spend billions on renewing the network. 
But Transport Minister Patrick Schnieder in September pushed back a punctuality target of 70 percent for long-distance trains to 2029 from 2026.
Speaking on Friday, Palla said it would take time for the railway to improve both its financial performance and its service.
"There is a long way ahead of us," she said. "It will take at least 10 years to get German railways back into good shape. We need to recognise this reality and put it into our numbers."
Though fully-owned by the government, DB is nevertheless under pressure to boost profitability.
DB Cargo, its loss-making freight arm, is facing an EU investigation under state aid rules and the firm said in February it would cut about 6,000 jobs in Germany, equivalent to half its domestic workforce.
Without the write-off, DB's operating profit improved by over 600 million euros to 297 million euros after an operating loss in 2024.
vbw/fz/gv

US

Japan to boost coal-fired power as Mideast war causes energy turmoil

  • But Yoko Mulholland of climate think-tank E3G told AFP that the plans to lift coal power restrictions "deepen the risk that Japan will not meet its goal of phasing out inefficient coal plants by 2030". 
  • Japan's government plans to temporarily lift restrictions on coal-fired power plants as it seeks to ease an energy crunch caused by the Middle East war, officials said on Friday. 
  • But Yoko Mulholland of climate think-tank E3G told AFP that the plans to lift coal power restrictions "deepen the risk that Japan will not meet its goal of phasing out inefficient coal plants by 2030". 
Japan's government plans to temporarily lift restrictions on coal-fired power plants as it seeks to ease an energy crunch caused by the Middle East war, officials said on Friday. 
Officials presented the plan at a meeting of a panel of experts, who approved the proposal, the industry ministry said on its website.
"Given the current situation in the Middle East affecting fuel prices, we believe that uncertainty regarding future LNG procurement is increasing," an industry ministry official said at the meeting, which was broadcast online.
"We think it will be necessary, by increasing the operation of coal-fired power plants, to... ensure the reliability of stable supply," he said.
Power suppliers have previously been required to keep the operating rate of coal-fired thermal power stations that emit large amounts of carbon dioxide at or below 50 percent.
But the government now intends to allow the full operation of older, less efficient coal-fired plants, for a year from the new fiscal year starting April, according to the plan presented at the meeting.
Japan relies on thermal power plants to generate around 70 percent of its electricity needs, with coal constituting 30 percent of their fuel.
Liquefied natural gas (LNG) accounts for another 30 percent, and oil comprises seven percent.
The emergency measure to boost reliance on coal is estimated to "result in an LNG savings effect of approximately 500,000 tonnes", the official added.
But Yoko Mulholland of climate think-tank E3G told AFP that the plans to lift coal power restrictions "deepen the risk that Japan will not meet its goal of phasing out inefficient coal plants by 2030". 
Not only threatening climate health, the move can also "lock Japan into a vicious cycle of fossil-fuel dependence" and delay progress toward Prime Minister Sanae Takaichi's stated goal of 100 percent domestic energy self-sufficiency, she said. 
"This crisis has laid bare the risks of relying on imported fossil fuels, and now is the time for Japan to shift course to fully embrace renewable energy as a strategic national asset."
Since the Middle East war prompted Iran to partially close the crucial Strait of Hormuz trade route and target energy facilities in the Gulf, many Asian nations have pivoted towards coal to power their economies.
South Korea plans to lift a cap on coal-powered generation capacity while also increasing nuclear plant operations.
The Philippines also intended to boost the output of its coal-fired power plants to keep electricity costs down as the war wreaks havoc with gas shipments.
Japan is the fifth-biggest importer of oil with more than 90 percent of it coming from the Middle East.
Around 10 percent of its LNG imports are also from the region.
Tokyo purchases nearly 80 percent of its coal imports from Australia and Indonesia, according to the Agency for Natural Resources and Energy.
Japan on Thursday said it had also started to release another part of its strategic oil reserves, as it faced supply challenges to its oil imports.
hih-kh-tmo/fox

fashion

Global mohair supply flourishes in South Africa's desert

BY CLéMENT VARANGES

  • Almost everything is palatable," said Sean Hobson, whose family has raised angoras on his farm since 1865.
  • On a farm in South Africa's semi-arid south, herds of angora goats foraged across open land stretching to the horizon, their pale fleeces glinting in the harsh sun.
  • Almost everything is palatable," said Sean Hobson, whose family has raised angoras on his farm since 1865.
On a farm in South Africa's semi-arid south, herds of angora goats foraged across open land stretching to the horizon, their pale fleeces glinting in the harsh sun.
Linked by dirt tracks and dotted with remote farms, the sparsely populated Karoo region sits at the heart of the global mohair trade, supplying more than half of the world's output of the fibre prized for its sheen and softness.
A Cape Dutch-style gable in one corner of the farm bears the inscription "Wheatlands 1912." 
"This is the newest house on the property," said Lloyd Short, who grew up on the 7,700-hectare (19,000-acre) family farm.
But Wheatlands owes its reputation not to architecture or rural charm, but to its goats with drooping ears, curved horns and lustrous golden fleeces.
Their silky curls can fetch up to 900 rands ($53) per kilogramme and are used in knitwear, often blended with wool. 
The Italian mill Vitale Barberis Canonico, renowned for luxury suit fabrics, is among those sourcing South African mohair for their yarn.
"The first two shearing are the most valuable," said Short, a seventh-generation farmer, who collects an average of between one and 1.5 kilogrammes per animal. Output rises slightly with age, but the fibre loses value over time.
Short and his brother each have around 2,000 goats and supply a major French fashion house exclusively, allowing it to trace its sourcing and protect its brand.
The industry's reputation was tested in 2018, when animal rights organisation People for the Ethical Treatment of Animals (PETA) released footage of a goat killed after an artery was accidentally cut during shearing -- an incident farmers say is rare.
Brands, including Swedish H&M, American Gap, Zara and Topshop, swiftly dropped mohair.
Confidence only began to recover after the introduction of an independently audited animal welfare certification.
"Farmers go through annual audits, so they get visited once a year by their brokers and then they also get third-party audited," said Marco Coetzee, director of the sector's representative organisation, Mohair South Africa.

'Specialised fibre'

South Africa accounted for 56 percent of global production in 2024, according to industry figures.
The sector supports around 30,000 jobs, including hundreds in the Karoo, an unlikely new home for a breed originally from Turkey.
How the goats arrived in the 19th century remains unclear. Accounts differ whether they were a gift from an Ottoman dignitary or imported by a British officer. 
More than one and a half centuries later, angoras thrive on the region's succulent plants.
"It's an incredibly healthy area, there are wonderful veld species, sweet plants. Almost everything is palatable," said Sean Hobson, whose family has raised angoras on his farm since 1865.
More humid regions are less suitable due to parasites and ticks, he explained.
To protect the animals, farmers dip them between the twice-yearly shearings, followed by a conditioning rinse to help the fibres form their distinctive curl.
"The world buys mohair, firstly because of the lustre," said Pierre van der Vyver, chief executive of broker House of Fibre, adding it "is very strong, doesn't break or shrink."
The smell of a shearing shed hangs in the air at his warehouse near the port city of Gqeberha, formerly known as Port Elizabeth, where hundreds of bales await shipment.
Alongside South African rival OVK, the company controls more than 70 percent of global supply, with neighbouring Lesotho accounting for another 16 percent.
Almost all buyers, except Vitale Barberis Canonico, purchase mohair in bales. Processing is dominated by two South African firms, Samil and Stucken, which also handle fibres from Australia and the United Kingdom.
"The Chinese want to compete with us, but fortunately, there is a lot of technique involved in mohair processing," said van der Vyver. 
"It's a far slower process than for wool processing. It is a specialised fibre."
clv/fal/ho/giv/kjm

Global Edition

Nepali rapper Shah sworn in as prime minister

BY PAAVAN MATHEMA

  • "It makes me even more delighted to have a 35-year-old youth as my successor," the outgoing interim prime minister, who hugged Shah after he took the oath, said in a statement.
  • Nepal's rapper-turned-politician Balendra Shah was sworn in as prime minister on Friday after sweeping the first election since deadly anti-corruption protests toppled the government last year.
  • "It makes me even more delighted to have a 35-year-old youth as my successor," the outgoing interim prime minister, who hugged Shah after he took the oath, said in a statement.
Nepal's rapper-turned-politician Balendra Shah was sworn in as prime minister on Friday after sweeping the first election since deadly anti-corruption protests toppled the government last year.
The 35-year-old reformist and his Rastriya Swatantra Party (RSP) dominated polls this month on a platform of youth-driven political change.
"I, Balendra Shah, in the name of the country and people, pledge that I will be loyal to the constitution," Shah said, dressed all in black, including his trademark dark sunglasses.
Crowds at the ceremony cheered and chanted his name after he formally took office, where he named key cabinet posts, including former youth activist Sudan Gurung as interior minister.
At least 77 people were killed in the anti-corruption youth uprising, which began over a brief social media ban but tapped into longstanding fury over economic hardship in the nation of 30 million people.
Shah, better known as Balen, was sworn in a day after he released his first public statement since winning the March 5 elections, via a rap song posted on social media.
"The strength of unity is my national power," Shah sang in the song, which has racked up nearly three million views since being released on social media and streaming sites on Thursday evening.
Shah had remained silent publicly since his RSP party won the election in a landslide, winning a commanding majority of 182 in the 275-seat House of Representatives.
He campaigned alongside the RSP president, combative television host Rabi Lamichhane, 51, a former deputy prime minister and interior minister and now a fellow lawmaker who retains a pivotal role in power.
"My heart is full of courage, my red blood is boiling; my brothers stand with me, this time we will rise," Shah said in his song, over a video of him campaigning for election.
"May my breath not run out; I will run like a leopard," he added.
Finance Minister Swarnim Wagle, a former United Nations economic advisor, takes up hard task of reforming Nepal's battered economy.
Foreign Minister Shishir Khanal, a former education minister, must balance landlocked Nepal's relations between giants India and China.
Indian Prime Minister Narendra Modi was swift to congratulate Shah on Friday, saying he looked forward to taking "India-Nepal friendship and cooperation to even greater heights", he said in a statement.
China also congratulated Shah, with foreign ministry spokesman Lin Jian telling reporters Beijing wanted to "deepen practical cooperation" with Nepal.

'Caution and boldness'

Sushila Karki, 73, a former chief justice who had led the caretaker administration for six months, said the country's future lay in the hands of a younger generation.
"It makes me even more delighted to have a 35-year-old youth as my successor," the outgoing interim prime minister, who hugged Shah after he took the oath, said in a statement.
"May you succeed in honouring the people's mandate by striking a balance between caution and boldness."
Karki, who had ordered an investigation into the crackdown on protesters, said in her statement Thursday that a report with the findings would be released. She did not give further details.
According to a leaked copy of the report seen by AFP, the commission investigating the events recommended the prosecution of ex-prime minister KP Sharma Oli, who was toppled in the uprising.
Four-time prime minister and Marxist leader Oli, 74, was defeated by Shah in Oli's own constituency. 
At least 19 young people were killed in a crackdown on the first day of protests. No one has been convicted of the killings.
Former interior minister Ramesh Lekhak and ex-police chief Chandra Kuber Khapung should also be investigated and prosecuted, according to the recommendations in the report.
The report said that in 48 of the 63 completed autopsies victims died from bullet wounds, with the majority struck in the chest or head.
pm-pjm/lga

US

Cryptocurrencies aiding Iran during war

BY LUCIE LEQUIER

  • In a country where inflation was already nearing 50 percent before the conflict started, cryptocurrencies are acting as a "lifeline" for the population in the face of the collapse of the national currency, said analyst Martin. lul-bcp/rl/abs/ami
  • Since the start of the Middle East conflict, Iran has witnessed massive cryptocurrency flows.
  • In a country where inflation was already nearing 50 percent before the conflict started, cryptocurrencies are acting as a "lifeline" for the population in the face of the collapse of the national currency, said analyst Martin. lul-bcp/rl/abs/ami
Since the start of the Middle East conflict, Iran has witnessed massive cryptocurrency flows.
Experts say they are being used to circumvent sanctions placed on Iran's Revolutionary Guards as well as a financial safe haven by civilians hit by soaring inflation.
AFP examines how exactly digital currencies are being used in the country.

Millions of dollars

In an unusually large movement, more than $10 million worth of cryptocurrencies left Iranian exchange platforms between February 28 -- the first day of Israeli-US airstrikes -- and March 2, according to data analytics firm Chainalysis.
By March 5, nearly one-third of these funds had been transferred to foreign exchanges.
While some of this exodus can be explained by citizens rushing to protect their savings, the sheer size of the sums involved suggests the involvement of "regime actors", Kaitlin Martin of Chainalysis told AFP.
Such action would likely occur out of fear of further sanctions or cyberattacks, according to experts.
In June 2025, at the height of the previous Israel-Iran conflict, leading cryptocurrency platform Nobitex had $90 million stolen by hackers linked to Israel, according to blockchain company TRM Labs.

Iran implicated

According to Chainalysis, several digital wallets used during this surge in cryptocurrency activity are directly linked to the Revolutionary Guards.
"Even during these internet outages some outflows are seen, suggesting that some have access to the exchange's cryptoasset holdings even when its website is inaccessible," noted cryptocurrency analysts Elliptic.
The state's grip is massive. Last year, wallets associated with the Guards were funded with more than $3 billion in cryptocurrencies, representing more than half of the country's cryptocurrency flows -- a share that continues to grow according to Chainalysis.

'Shadow banking'

For Iran, largely cut off from the traditional financial system by international sanctions, cryptocurrencies are an alternative channel -- allowing the state to sell embargoed oil or to discreetly finance allied armed groups, such as the Houthi rebels in Yemen according to US authorities.
The Financial Times earlier this year reported that Iran offered ballistic missiles, drones and other advanced weapons systems for sale using cryptocurrencies.
These digital assets contribute to a veritable "shadow banking", Craig Timm of the anti-money laundering organisation ACAMS, told AFP.
Quicker to send and less expensive than a bank transfer, cryptocurrencies are difficult to trace owing also to loopholes in global regulations, he added.

'Lifeline'

The Revolutionary Guards and Iranian central bank favour "stablecoins" -- digital currencies generally pegged to the dollar in a bid to avoid volatility.
But civilians are turning en masse to bitcoin, the world's leading cryptocurrency, which can be withdrawn from platforms and stored in personal wallets, beyond the authorities' reach.
Bitcoin currently trades for more than $68,000.
This strategy was already widely evident during brutally suppressed protests in Iran ahead of the war, according to Chainalysis.
In a country where inflation was already nearing 50 percent before the conflict started, cryptocurrencies are acting as a "lifeline" for the population in the face of the collapse of the national currency, said analyst Martin.
lul-bcp/rl/abs/ami

energy

Myanmar travellers ride the rails as fuel prices rise

BY HLA-HLA HTAY

  • At Naypyidaw station, 26-year-old monk Zanaka said he was taking a train for the first time in his life.
  • Myanmar's ageing railway stations are bustling with life, crowded with passengers as surging fuel prices due to the Mideast war drive commuters to choose trains over costly planes and cars.
  • At Naypyidaw station, 26-year-old monk Zanaka said he was taking a train for the first time in his life.
Myanmar's ageing railway stations are bustling with life, crowded with passengers as surging fuel prices due to the Mideast war drive commuters to choose trains over costly planes and cars.
On a journey from the country's largest city Yangon to the capital Naypyidaw AFP journalists sat in air-conditioned carriages full of travellers napping and sharing tea, fried rice and instant noodles.
First class adult train tickets cost 19,000 kyats ($4.50), while the cheapest bus fares for the route now start at 35,000 kyats.
At one point on Thursday the train chugged past a queue of trucks waiting for fuel -- the trains themselves run on diesel, with the state railway company maintaining its own stocks.
People dozed on station benches or sat on luggage on  platforms as they waited for their trains.
Myanmar has been consumed by a civil war since 2021, when a military coup swept aside Aung San Suu Kyi's democratically elected government, sparking armed resistance to junta rule.
Rail travel is not traditionally the most popular mode of transport in the country, and many trains are older and less comfortable, while much of the network was built under British colonial rule. 
But people from rural areas have long relied on affordable railways to journey between cities -- despite occasional attacks by rebel forces targeting trains since 2021.
"The costs are high if we use a car. Also there are not many security checkpoints on the train," said Zeya Ko Ko, 28, a passenger on the Naypyidaw train.
"Buses are also challenging as fuel can run out in some areas due to the fuel crisis."

First time

Since the US-Israel war against Iran began nearly a month ago, global fuel prices have soared with international shipping disrupted and fears of shortages, especially in import-reliant Asia.
In Myanmar, prices at the petrol pump have jumped and the junta has instituted fuel-saving measures, including alternate day bans on private vehicles, based on odd- or even-numbered licence plates.
Long queues of cars and motorbikes have formed at petrol stations around the country in the last three weeks.
"We have difficulty travelling for urgent health problems. As private vehicles are being restricted with even-odd numbers, we cannot leave right away when we are sick," said Pearl Hmway, a 53-year-old restaurant owner from Mandalay region, as she waited for for a train home.
A Naypyidaw station official told AFP more people were using trains because of fuel shortages, and extra services had been laid on.
"The government increased the number of scheduled trains because of higher demand," he said, speaking on condition of anonymity as he was not authorised to speak to the media.
Passengers said train tickets were selling out quickly, making booking them online harder.
At Naypyidaw station, 26-year-old monk Zanaka said he was taking a train for the first time in his life.
Bus fares had risen alongside fuel prices, making his journey twice as expensive by road as by rail, he explained.
"That's why we are taking the train on the way back," he said. 
"The train is faster and there's no need to wait in a queue."
bur-sco/slb/ane

cyclone

Cyclone triggers outages at major Australian LNG plants

  • Australia is one of the world's largest LNG exporters, supplying Asian nations reeling from fuel disruptions caused by Iran's Strait of Hormuz blockade as Tehran retaliates against Israeli-US attacks.
  • Some of the world's largest LNG plants were forced shut on Friday by a cyclone off western Australia, squeezing fuel supplies already stretched thin by war in the Middle East.
  • Australia is one of the world's largest LNG exporters, supplying Asian nations reeling from fuel disruptions caused by Iran's Strait of Hormuz blockade as Tehran retaliates against Israeli-US attacks.
Some of the world's largest LNG plants were forced shut on Friday by a cyclone off western Australia, squeezing fuel supplies already stretched thin by war in the Middle East.
Energy giant Chevron said it suffered outages at its Gorgon and Wheatstone gas plants, which collectively supply more than five percent of the world's liquefied natural gas. 
Fuel company Woodside said its Karratha plant, which processes fuel from one of the world's biggest offshore gas operations, had also fallen offline. 
Australia is one of the world's largest LNG exporters, supplying Asian nations reeling from fuel disruptions caused by Iran's Strait of Hormuz blockade as Tehran retaliates against Israeli-US attacks.
Gas sector analyst Josh Runciman said the cyclone had come at the "worst time", warning that even a minor hit to output could ripple through global markets. 
"This current disruption does little to reassure LNG importers about the reliability of LNG supply," said Runciman, from the Institute for Energy Economics and Financial Analysis. 
US President Donald Trump somewhat soothed energy markets on Thursday by pushing back a deadline for Iran to open the shipping channel, which once carried one-fifth of the world's oil and gas. 
Oil prices eased after Trump postponed his demand to April 6, although most equities also dropped as hopes for an imminent ceasefire faded. 
The US-Israel war on Iran has caused major disruptions to global supplies of both oil and LNG. 
Qatar, one of the world's top LNG producer, has seen gas exports plunge as Iran targets energy installations and fuel tankers steer clear of the strait. 
A sprawling industrial complex sitting just off Australia's western coast, Chevron's Gorgon plant is capable of pumping out more than 15 million metric tonnes of gas each year.
At full capacity, the smaller Wheatstone project produces almost nine million metric tonnes. 

'Vital' supply

"Chevron Australia is working to restore production at the Gorgon and Wheatstone gas facilities following production outages," Chevron said in a statement.  
"We will resume full production at both facilities once it is safe to do so." 
Woodside's Karratha plant serves the massive North West Shelf gas project, described by the company as one of the largest LNG operations in the world. 
"If there is any material impact to production or assets, Woodside will update the market in accordance with its continuous disclosure obligations," the company said in a statement.  
The ongoing war meant Australian LNG exports had become "more vital than ever", International Energy Agency chief Fatih Birol said earlier this week. 
"But Australia alone will not be able to offset the entire lack of LNG coming from the Middle East," he said during a trip to capital Canberra. 
Some 40 percent of Japan's LNG comes from Australia, according to the Asia Natural Gas and Energy Association.
LNG prices in some parts of Asia have more than doubled since the joint US-Israel strikes against Iran on February 28.
Tropical Cyclone Narelle was inching towards the coast of Western Australia on Friday afternoon, whipping up winds as strong as 200 kilometres (125 miles) per hour. 
With LNG profits set to soar on the back of the Middle East crisis, Australia is reportedly mulling a new windfall tax on fuel exporters.
sft/hmn

diplomacy

US in the spotlight at WTO meet

BY AGNèS PEDRERO

  • Many observers, however, are pleased that the United States has not quit the WTO, thus avoiding major upheaval in the international trading system.
  • The United States is set to come under scrutiny Friday on day two of the World Trade Organization's ministerial conference, with Washington wanting to shake up the multilateral trade system.
  • Many observers, however, are pleased that the United States has not quit the WTO, thus avoiding major upheaval in the international trading system.
The United States is set to come under scrutiny Friday on day two of the World Trade Organization's ministerial conference, with Washington wanting to shake up the multilateral trade system.
In the corridors of the WTO gathering in Cameroon's capital Yaounde, which runs until Sunday, a lot of the talk is about the United States.
"The Americans are highly awaited; without them, we can't move forward," confided one delegate from a Southeast Asian country, speaking on condition of anonymity.
"The other members primarily expect the United States to clarify its intentions, and are asking it to demonstrate its continued commitment to the WTO through concrete actions," Sebastien Jean, an associate director at the French Institute of International Relations think-tank, told AFP.
Yaounde marks the WTO's first ministerial conference since US President Donald Trump returned to the White House last year, unleashing a barrage of attacks on multilateralism and WTO rules with sweeping tariffs and bilateral trade deals, violating WTO rules along the way, according to many experts.
Trump has made tariffs a central instrument of his economic and foreign policy.
"US trade policy measures are a corrective response to a trading system, embodied by the WTO, that has overseen and contributed to severe and sustained imbalances," US Trade Representative Jamieson Greer said Wednesday.
Under successive presidents, Washington is also accused of blocking the appointment of judges to the WTO's Appellate Body -- a mechanism for resolving trade disputes between countries -- which has been paralysed since late 2019.
Many observers, however, are pleased that the United States has not quit the WTO, thus avoiding major upheaval in the international trading system.

'Ultimatum'

The US position, however, seems rigid. Washington has issued two documents, the latest on Monday, on reforming the WTO, contesting some of its fundamental rules.
"The US is setting down an ultimatum, and that ultimatum is that the current global order no longer suits the objectives" of the White House, said Jane Kelsey, a law specialist from the University of Auckland, who came to the conference with a coalition of NGOs, experts and activists.
"And the US threatens to relegate the organisation to even greater irrelevance if it doesn't get what it wants," she told AFP.
"So that kind of threat is hovering over this ministerial." 
A chief US demand is revision of the WTO's fundamental "most favoured nation" principle, which aims to extend any trade advantage granted to one country to all trade partners.
This system directly contradicts Trump's approach to trade.
The United States also wants the WTO to establish criteria to determine whether a country should be considered as developing, given that such countries benefit from certain advantages in the way rules are applied.
Here, Washington is targeting China, which despite its economic heft is classified as a developing country at the WTO.

Uncertainty in the air

The United States also wants measures encouraging countries to be more open in reporting subsidies.
WTO members are required to do so, but again, Western countries accuse Beijing of lacking transparency.
Like many other members, the United States is also calling for the development of plurilateral agreements within the WTO, something India categorically rejects, preferring to stick with the current full consensus system.
Washington is also demanding that WTO rules do not infringe upon countries' national "security".
This demand is being met with resistance, as other countries think the concept remains vague when it comes to justifying, for example, additional tariffs.
But according to Sebastien Jean, "great uncertainty remains" about what the United States is seeking at the WTO.
"Is it reform to improve its functioning, or is it disorganisation, or even lasting paralysis?
"Recent statements by Jamison Greer suggest that they wouldn't mind prolonging the uncertainty and paralysis" when it comes to institutional reform, he said. 
"This could lead them to make very minimal concessions, on procedural points or on very specific issues."
apo/ag/vk/rjm/abs

technology

US judge suspends govt sanctions on AI company Anthropic

BY BENJAMIN LEGENDRE

  • In the northern district of California, Judge Rita Lin granted Anthropic's request for a preliminary injunction in its suit against the government, freezing a presidential order that barred all federal agencies from using Anthropic technology.
  • A US federal judge on Thursday suspended sanctions imposed by President Donald Trump's administration on Anthropic, saying the measures likely violated the law in blacklisting the AI powerhouse for expressing unease about the Pentagon's use of its technology.
  • In the northern district of California, Judge Rita Lin granted Anthropic's request for a preliminary injunction in its suit against the government, freezing a presidential order that barred all federal agencies from using Anthropic technology.
A US federal judge on Thursday suspended sanctions imposed by President Donald Trump's administration on Anthropic, saying the measures likely violated the law in blacklisting the AI powerhouse for expressing unease about the Pentagon's use of its technology.
In the northern district of California, Judge Rita Lin granted Anthropic's request for a preliminary injunction in its suit against the government, freezing a presidential order that barred all federal agencies from using Anthropic technology.
The ruling also suspends a Pentagon designation of Anthropic, creator of the Claude AI model, as a national security supply chain risk -- a label typically reserved for organizations from unfriendly foreign countries.
The designation not only blocks use of the company's technology by the Pentagon, but also requires all defense vendors and contractors to certify that they do not use Anthropic's models in their work with the department.
"We're grateful to the court for moving swiftly, and pleased they agree Anthropic is likely to succeed on the merits," a company spokesperson said. 
"While this case was necessary to protect Anthropic, our customers, and our partners, our focus remains on working productively with the government to ensure all Americans benefit from safe, reliable AI."
The dispute erupted last month after Anthropic infuriated Pentagon chief Pete Hegseth by insisting its technology should not be used for mass surveillance or fully autonomous weapons systems.
Hegseth said on X that Anthropic had "delivered a master class in arrogance and betrayal as well as a textbook case of how not to do business with the United States Government or the Pentagon."
The tech sector has largely supported Anthropic in the wake of the punitive measures, which were suspended for seven days by Thursday's ruling to allow the government time to file an emergency appeal in the short term.
At a hearing earlier this week, Lin said she was concerned that the government was "trying to punish Anthropic... for criticizing the government's contracting position in the press," which would be a violation of the constitutional right to freedom of expression.
In her ruling, she said the government's designation of Anthropic as a supply chain risk was "likely both contrary to law and arbitrary and capricious."
"Nothing in the governing statute supports the Orwellian notion that an American company may be branded a potential adversary and saboteur of the US for expressing disagreement with the government," she wrote.
Lin also cited other "serious procedural problems with the government's actions" as reasons for issuing the injunction.
bl/sst/js

Global Edition

Oil climbs, stocks slide as Iran war uncertainty reigns

  • Pakistan's Foreign Minister Ishaq Dar confirmed Thursday that indirect negotiations between the United States and Iran were being held, using Islamabad as an intermediary.
  • Oil prices jumped and equities slid Thursday as hopes for a peace deal between the United States and Iran wavered, with US President Donald Trump threatening to "obliterate" the country even as he claimed negotiations to end the conflict were ongoing.
  • Pakistan's Foreign Minister Ishaq Dar confirmed Thursday that indirect negotiations between the United States and Iran were being held, using Islamabad as an intermediary.
Oil prices jumped and equities slid Thursday as hopes for a peace deal between the United States and Iran wavered, with US President Donald Trump threatening to "obliterate" the country even as he claimed negotiations to end the conflict were ongoing.
Markets had been buoyed at the start of this week by Trump saying that strikes targeting Iran's energy infrastructure would be postponed, adding that the two sides were in peace talks.
But uncertainty over the talks, continued strikes by all sides in the conflict, and the virtual closure of the Strait of Hormuz -- through which around 20 percent of oil and liquefied natural gas normally passes -- have cast a shadow over market sentiment.
On Thursday, Trump said Iran had allowed 10 oil tankers to sail through the waterway as a "present," and pushed back a deadline for strikes on Iranian power plants to April 6.
His comments on delaying strikes came after the US close, with oil paring the massive gains it had made through the day.
Earlier, Brent crude closed up 5.7 percent at $108.01 per barrel, and West Texas Intermediate ended up 4.6 percent at $94.48. 
Kim Forrest, chief investment officer at Bokeh Capital Partners, said the war makes "for really nervous investors."
"Every day there's only one or two stories that are really driving stocks and all else falls from there. So when they're in a sour mood, it's going to be a big, bad selling day."
Wall Street's main stock indices were down, with the Nasdaq furthest in the red, losing 2.38 percent. European and Asian markets also ended with losses.
"When the oil price surges, the market playbook stays the same: stocks and bonds sell off," said Kathleen Brooks, research director at XTB.
The yield on government bonds rose across the board.
Conflicting messages from the US and Iran are "raising questions about whether there is really an off-ramp to the conflict in the days ahead," said Deutsche Bank's Jim Reid.

Rival plans

Washington was said to have presented a 15-point plan to end the war. Tehran's state-run TV reported officials had put forward their own five conditions for hostilities to end.
On Thursday, Trump said taking control of Iran's oil was an option, as Washington had done after ousting Venezuela's leader in a military operation.
Pakistan's Foreign Minister Ishaq Dar confirmed Thursday that indirect negotiations between the United States and Iran were being held, using Islamabad as an intermediary.
"Pressure on energy prices, shipping flows and broader financial conditions remains one of the few meaningful sources of leverage (Iran) retains," said Saxo Markets' Charu Chanana.
"There is therefore little incentive to relinquish that leverage prematurely, particularly if market stress strengthens its negotiating position," she added.
The OECD on Thursday cut its eurozone growth outlook and forecast higher inflation for 2026 as energy prices have skyrocketed.
The conflict has also weighed on German consumer sentiment heading into April, a survey showed Thursday, adding to the woes facing Europe's top economy.
France, which holds the G7 Presidency, will on Monday host a meeting bringing together the group's finance ministers, energy ministers and central bank governors. 

Key figures at around 2015 GMT

Brent North Sea Crude: UP 5.7 percent at $108.01 a barrel
West Texas Intermediate: UP 4.6 percent at $94.48 a barrel
New York - Dow: DOWN 1.0 percent at 45,960.11 points (close)
New York - S&P 500: DOWN 1.7 percent at 6,477.16 (close)
New York - Nasdaq: DOWN 2.4 percent at 21,408.08 (close)
London - FTSE 100: DOWN 1.3 percent at 9,972.17 (close)
Paris - CAC 40: DOWN 1.0 percent at 7,769.31 (close)
Frankfurt - DAX: DOWN 1.5 percent at 22,612.97 (close)
Tokyo - Nikkei 225: DOWN 0.3 percent at 53,603.65 (close)
Hong Kong - Hang Seng Index: DOWN 1.9 percent at 24,856.43 (close)
Shanghai - Composite: DOWN 1.1 percent at 3,889.08 (close)
Euro/dollar: DOWN at $1.1523 from $1.1565 on Wednesday
Pound/dollar: DOWN at $1.3313 from $1.3365
Dollar/yen: UP at 159.83 yen from 159.47 yen
Euro/pound: UP at 86.55 pence from 86.52 pence
burs-aha/msp

flood

Lagos secures flood insurance for 4 million at-risk Nigerians

  • The coastal mega-city of Lagos and its estimated more than 22 million inhabitants are among those facing the brunt of climate change in coastal west Africa, where oceans are rising, rainfall is becoming erratic and urban populations are booming.
  • Nigeria's Lagos state has taken out a $7.5 million flood insurance policy to cover millions of people, the Insurance Development Forum said Thursday, as the country's economic capital faces rising sea levels and floods linked to climate change.
  • The coastal mega-city of Lagos and its estimated more than 22 million inhabitants are among those facing the brunt of climate change in coastal west Africa, where oceans are rising, rainfall is becoming erratic and urban populations are booming.
Nigeria's Lagos state has taken out a $7.5 million flood insurance policy to cover millions of people, the Insurance Development Forum said Thursday, as the country's economic capital faces rising sea levels and floods linked to climate change.
The coastal mega-city of Lagos and its estimated more than 22 million inhabitants are among those facing the brunt of climate change in coastal west Africa, where oceans are rising, rainfall is becoming erratic and urban populations are booming.
In a statement, Governor Babajide Olusola Sanwo-Olu warned that inaction on climate change could cost the wider state government around $40 billion by 2050, "with severe consequences for our people, infrastructure and economy".
"Our wetlands and biodiversity are also under threat. These realities demand urgent action," he said.
The policy's premium was financed to the tune of 90 percent by InsuResilience Solutions Fund -- which is itself financed by Germany -- with Lagos state covering the remainder. 
It covers up to four million people across seven local government areas in the state, including for government disaster relief as well as direct cash transfers to affected communities.
The Lagos-funded portion is set to increase in the second and third year of the policy.
The scheme is a form of parametric flood insurance, which pays out under certain conditions -- such as a specific amount of rainfall, captured via satellite image -- instead of at a certain level of damage, which can take time to assess.
It wasn't immediately clear what the payout trigger would be, but the Insurance Development Forum -- a body affiliated with the United Nations Development Programme and the World Bank Group -- said the insurance was "a major milestone" in a state where 80 percent of households are low-income and "insurance penetration is below 0.5 percent".
Lagos, the most populous city in Africa's most populous country, is sinking, and is threatened by floods linked to climate change as well as poor management of waterways and expanding industry that eats up shorelines and wetlands.
nro/giv

diplomacy

US lays it on the line as WTO mulls future of global trading

BY AGNèS PEDRERO

  • The European Union said it was committed to an open, fair and rules-based trading system.
  • The United States launched a broadside at the hamstrung World Trade Organization as its main gathering opened Thursday, while China rushed to the WTO's defence, making the case for rules-based global trade.
  • The European Union said it was committed to an open, fair and rules-based trading system.
The United States launched a broadside at the hamstrung World Trade Organization as its main gathering opened Thursday, while China rushed to the WTO's defence, making the case for rules-based global trade.
The WTO's ministerial conference -- its supreme decision-making body -- got under way in Yaounde against a backdrop of war in the Middle East, heightened trade tensions and global economic turmoil.
"US trade policy measures are a corrective response to a trading system, embodied by the WTO, that has overseen and contributed to severe and sustained imbalances," said US Trade Representative Jamieson Greer.
The status quo "has become economically unworkable and politically unacceptable", Greer said in a video statement.
He insisted the "new order" would involve agreements between smaller groups of countries, rather than "wasting years and even decades to agree on a lowest-common denominator".
The 166-member WTO, which struggles to conclude agreements as they must be approved by consensus, is facing a crunch moment on reforming its ways and practices.
Over four days in Cameroon, trade ministers from around the world will try to revitalise an institution weakened by geopolitical strains, stalled negotiations and rising protectionism.

'Worst disruptions'

Yaounde marks the WTO's first ministerial conference since US President Donald Trump returned to the White House last year, unleashing a barrage of attacks on multilateralism and WTO rules with sweeping tariffs and bilateral trade deals.
The global trading system is experiencing the "worst disruptions in the past 80 years", WTO chief Ngozi Okonjo-Iweala warned at the opening ceremony.
"The world order and the multilateral system we used to know has irrevocably changed," she said, adding: "We cannot deny the scale of the problems confronting the world today."
Cameroon's Trade Minister Luc Magloire Mbarga Atangana said: "Reform must lead to a WTO... capable of meeting today's challenges and restoring confidence in the multilateral trading system."
While all WTO members agree that the global trade body must be reformed, they do not all agree on how to go about it, and the ideal end result.
Chinese Commerce Minister Wang Wentao said the WTO was facing an "unprecedented existential challenge" and urged countries to "jointly oppose acts of unilateralism and protectionism".
"We need to come together and stay on course to firmly support the rules-based multilateral trading system with the WTO at its core," he said, in a video statement.
The European Union said it was committed to an open, fair and rules-based trading system.
But EU trade ministers said the WTO was "at a critical juncture" and needed "deep and comprehensive reform" to avoid its relevance diminishing.

New ways of doing business

Washington is particularly critical of the WTO's "most-favoured nation" principle, which aims to extend any trade advantage granted to one trading partner to all others, seeking to avoid discrimination.
For now, only the EU has indicated it would be open to considering this issue.
China, like other developing countries, has said it wants this rule to "remain the bedrock of the WTO".
On the other hand, the EU, China and the United States agree on the need to consider a framework within which interested countries can move forward, including through agreements among groups of countries.
But India is opposed to this, preferring to stick with consensus.
No major new agreement is expected in Yaounde, but the WTO hopes that its members will succeed in adopting a roadmap on reform, with the aim of achieving something more concrete further down the line.
WTO ministerial conferences are usually held every other year. Yaounde is the 14th, and the second held in Africa.
apo/rjm/nl/pdw