Connect with us

Commodities

Factbox-Autos, energy and migration on U.S., Canada, Mexico joint agenda

Published

on

Factbox-Autos, energy and migration on U.S., Canada, Mexico joint agenda
© Reuters. FILE PHOTO: Flags of the U.S., Canada and Mexico fly next to each other in Detroit, Michigan, U.S. August 29, 2018. REUTERS/Rebecca Cook/File Photo

WASHINGTON (Reuters) – U.S. President Joe Biden, his Mexican counterpart Andres Manuel Lopez Obrador, and Canadian Prime Minister Justin Trudeau meet for talks in Washington on Thursday for the first summit between leaders of the three countries in more than five years.

Economic cooperation, climate change, immigration and the coronavirus pandemic are likely to feature prominently. What follows are some of the issues that could dictate the flavor of talks.

AUTOS

The three governments want to take advantage of a new trade deal known as the United States-Mexico-Canada Agreement (USMCA) to deepen supply chains, but that push has been clouded by months of wrangling over disputes in the auto industry.

Canada and Mexico complain the Biden administration is trying to skew the market for electric vehicles (EV) with tax credits, and both are also at odds with Washington over the interpretation of regional content rules for the auto sector.

Mexico’s economy minister said U.S. protectionism even threatened to aggravate its migration challenges.

A joint statement on Wednesday from top business lobbies of the three countries noted the private sectors of Mexico and Canada were worried the U.S. interpretation of automotive content rules posed “risks for our integrated supply chains.”

ENERGY

Mexico, meanwhile, has alarmed officials and business groups in both the United States and Canada by seeking to change the rules that govern its electricity market to favor the country’s state-run power utility over private investors.

The U.S. government has leant on Lopez Obrador to resolve those concerns and the business lobbies’ statement said the U.S. and Canadian private sectors were “very worried” by Mexico’s efforts to reduce competition in the energy sector.

Besides EV tax credits, Trudeau is expected to raise with Biden Enbridge (NYSE:) Inc’s Line 5 pipeline, which the U.S. state of Michigan wants to close on environmental grounds.

IMMIGRATION

Biden is under domestic pressure to curb a sharp increase in illegal crossings at the U.S. southern border, and Lopez Obrador has urged Washington to help stem the flow of people by investing in Central America and Mexico’s poorer south.

Washington’s efforts to help fund alternatives to mass migration have been hindered by allegations of corruption and authoritarianism dogging governments in Central American countries that send many of the migrants north.

The perilous trek undertaken by migrants during the COVID-19 pandemic has also stirred warnings of a humanitarian crisis as well as encouraging calls to tighten borders.

The surge in migration has created business for organized crime, officials say, but security cooperation is still recovering from the anger sparked in Mexico by the U.S. arrest of a former Mexican defense minister last year.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Commodities

Bypassing sanctions by the EU is included in the list of criminal offenses in the EU

Published

on

sanctions by EU

Bypassing European sanctions is included in the list of criminal offenses in the EUThe EU Council decided on Monday to include violations of EU sanctions in the list of criminal “offenses in the EU”.

“The EU has adopted an unprecedented European sanctions list targeting Russia’s economy (…). Their implementation requires joint efforts to achieve results, and today’s decision is an important tool to ensure that any attempts to circumvent these measures will be stopped,” said Czech Justice Minister Pavel Blazek, who holds the EU Council Presidency, as quoted in a communiqué published in Brussels.

Member states currently have different definitions of what is a violation of restrictive measures and what penalties should be imposed in the event of a violation, the document noted. “This could lead to varying degrees of sanctions and the risk of circumvention of these measures, potentially allowing sanctioned individuals to continue accessing their assets and supporting regimes against which EU measures are in effect,” the EU Council communiqué said.

It explains that listing violations of restrictive measures as “crimes in the EU” is the first of two steps aimed at making sure that sanctions are applied equally across the EU and deterring attempts to circumvent or violate EU measures.

This draft directive, Brussels reminds us, must then be discussed and adopted by the European Parliament and the EU Council.

Earlier we reported that the U.S. had decided to extract crude oil in Venezuela.

Continue Reading

Commodities

The U.S. has decided to produce crude oil in Venezuela

Published

on

crude oil in Venezuela

The U.S. wants to give the U.S. Chevron Corp., one of the largest oil companies in the country, a license to produce crude oil in Venezuela, according to The Wall Street Journal.

There will be new American oil executives in Venezuela. This is a signal of easing sanctions against the country, the newspaper said. Chevron has decided to regain partial control over oil production in Venezuela’s fields, in which the company paid a share due to joint ventures with Petroleos de Venezuela SA.

Talk of new investment is not yetunderway, because the debts to Chevron are not repaid. This may take several years, the sources say.

In July, Diosdado Cabello, leader of the parliamentary faction and vice president of the ruling United Socialist Party of Venezuela (PSUV), accused the U.S. of attacks on the country’s oil facilities. Venezuela has been under U.S. oil sanctions since 2019. In June of this year, the State Department allowed Italian Eni and Spanish Repsol to supply oil from Venezuela to Europe.

Earlier we reported that more than 50% of Germans said they refused to buy new clothes and electronics.

Continue Reading

Commodities

Bloomberg: UAE to boost oil production beyond plan by 2025

Published

on

UAE to boost oil production

UAE to boost oil production. One of Russia’s main competitors for oil exports plans to reach five million barrels per day by 2025. The Middle Eastern country was initially expected to reach this level only by 2030, Bloomberg reported, citing sources.

“Energy concern Abu Dhabi National Oil Co. (Adnoc), which produces almost all of the UAE’s oil, wants to be able to produce 5 million barrels a day by 2025. The company planned to reach such a level only by 2030,” – says the material.

But a crude oil production boost will be difficult without additional financing for expenses for the project. Adnoc explained the acceleration of production increase by the policy of the leading countries of the world on accelerated energy transition to renewable energy sources (RES).

“As we embrace the energy transition and focus our business on the future, we will continue to explore potential opportunities that can further add value, free up capital and improve profitability,” the Arab oil company said.

To realize the goal, Adnoc has asked international companies that are partners in its oil fields to increase long-term crude production by 10% or more, sources said. In the case of positive results of the negotiations, the UAE will be able to significantly increase the volume of oil production by 2025, concludes Bloomberg.

On September 19, the Times of India, citing sources in the Indian Ministry of Commerce, reported that the Asian country has saved since February 2022, $439.7 million on imports from Russia of oil at a discount. A total of about 62.5 million barrels of Russian crude were purchased by Indian state and private companies over the last six months. Moreover, volumes of imports have increased many times over as compared to 2021.

Earlier, we reported that Nigeria stopped benefiting from the sale of Nigerian oil due to the lack of dollars.

Continue Reading

Trending

©2021-2022 Letizo All Rights Reserved