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White House threatens Colombia over regulations affecting US auto exports

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White House threatens Colombia over regulations affecting US auto exports

US Trade Representative Jamieson Greer testifies before the Senate Finance Committee on Capitol Hill in Washington on April 8. (AP)

BOGOTA, Colombia, April 16, (AP): The White House is urging Colombia to halt the implementation of new auto safety regulations that could jeopardize American car exports to Colombia, as both nations prepare to discuss tariffs recently imposed on Colombian products including coffee, avocados, flowers and oil.

In a letter to Colombia’s Ministry of Commerce, US Trade Representative Jamieson Greer said that plans by Colombia to change certification requirements for cars and auto parts entering the country could lead to the “total cessation” of U.S. automotive exports to Colombia, which were worth almost $700 million last year.

The letter, dated April 11, was leaked to Colombian media outlets Tuesday and a copy was also obtained by The Associated Press. In it Greer warns that if Colombia does not change its plans, it would be conducting an “unfair trading practice that may generate swift enforcement action by the United States.” Colombian Minister of Commerce Cielo Rusinque refused to comment on the letter, but in a radio interview Tuesday she said the safety regulations would be among several issues that will be up for consideration when representatives of both nations meet to discuss tariffs later this month.

Since 2021, Colombia has been developing new technical requirements for brakes, car windows, tires and seatbelts that are aligned with international safety protocols developed by the United Nations. Colombia’s government now wants manufacturers who sell cars and car parts to Colombia to get certification from a third party that verifies their products meet these international standards.

The office of the US trade representative argues in its letter that cars manufactured in the United States must already comply with US federal motor safety standards and that Colombia has not provided any proof that these standards are insufficient. In a report on global trade barriers published earlier this year, the US trade representative’s office said that manufacturers have told the US government that they lack the capacity to obtain third party verification for their auto products.

The dispute over car exports comes just months after Colombia and the United States almost entered a trade war over deportation flights. In January President Gustavo Petro refused to accept deportation flights from the United States, arguing that Colombian citizens on those flights were being treated in an inhumane manner. In response, Trump threatened to impose 25% tariffs on Colombian exports such as coffee, flowers, avocados and oil.  

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Trump and Putin hint at US-Russia trade revival, but business environment remains hostile

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Russian President Vladimir Putin holds a meeting with members of Russia’s business community at the Kremlin in Moscow, Russia on May 26. (AP)

WASHINGTON, May 31, (AP): Hundreds of foreign companies left Russia after the 2022 invasion of Ukraine, including major US firms like Coca-Cola, Nike, Starbucks, ExxonMobil and Ford Motor Co. But after more than three years of war, President Donald Trump has held out the prospect of restoring U.S.-Russia trade if there’s ever a peace settlement.

And Russian President Vladimir Putin has said foreign companies could come back under some circumstances. “Russia wants to do largescale TRADE with the United States when this catastrophic ‘bloodbath’ is over, and I agree,” Trump said in a statement after a phone call with Putin. “There is a tremendous opportunity for Russia to create massive amounts of jobs and wealth. Its potential is UNLIMITED.”

The president then shifted his tone toward Putin after heavy drone and missile attacks on Kyiv, saying Putin “has gone absolutely crazy” and threatening new sanctions. That and recent comments from Putin warning Western companies against reclaiming their former stakes seemed to reflect reality more accurately – that it’s not going to be a smooth process for businesses going back into Russia.

That’s because Russia’s business environment has massively changed since 2022. And not in ways that favor foreign companies. And with Putin escalating attacks and holding on to territory demands Ukraine likely isn’t going to accept, a peace deal seems distant indeed. Here are factors that could deter US companies from ever going back: Russian law classifies Ukraine’s allies as “unfriendly states” and imposes severe restrictions on businesses from more than 50 countries.

Those include limits on withdrawing money and equipment as well as allowing the Russian government to take control of companies deemed important. Foreign owners’ votes on boards of directors can be legally disregarded. Companies that left were required to sell their businesses for 50% or less of their assessed worth, or simply wrote them off while Kremlin-friendly business groups snapped up their assets on the cheap. 

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Trump tells US steelworkers he’s going to double tariffs on foreign steel to 50%

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US President Donald Trump speaks to reporters in the rain after arriving on Air Force One at Joint Base Andrews, Md on May 30. (AP)

WEST MIFFLIN, Pa, May 31, (AP): US President Donald Trump on Friday told Pennsylvania steelworkers he’s doubling the tariff on steel imports to 50% to protect their industry, a dramatic increase that could further push up prices for a metal used to make housing, autos and other goods. In a post later on his Truth Social platform, he added that aluminum tariffs would also be doubled to 50%. He said both tariff hikes would go into effect Wednesday.

Trump spoke at US Steel’s Mon Valley Works-Irvin Plant in suburban Pittsburgh, where he also discussed a details-to-come deal under which Japan’s Nippon Steel will invest in the iconic American steelmaker. Trump told reporters after he arrived back in Washington that he still has to approve the deal. “I have to approve the final deal with Nippon and we haven’t seen that final deal yet, but they’ve made a very big commitment and it’s a very big investment,” he said.

Though Trump initially vowed to block the Japanese steelmaker’s bid to buy Pittsburgh-based US Steel, he reversed course and announced an agreement last week for “partial ownership” by Nippon. It’s unclear, though, if the deal his administration helped broker has been finalized or how ownership would be structured.

Nippon Steel has never said it is backing off its bid to outright buy and control US Steel as a wholly owned subsidiary, even as it increased the amount of money it promised to invest in US Steel plants and gave guarantees that it wouldn’t lay off workers or close plants as it sought federal approval of the acquisition. “We’re here today to celebrate a blockbuster agreement that will ensure this storied American company stays an American company,” Trump said as he opened an event at one of US Steel’s warehouses.

“You’re going to stay an American company, you know that, right?” As for the tariffs, Trump said doubling the levies on imported steel “will even further secure the steel industry in the US.” But such a dramatic increase could push prices even higher. Steel prices have climbed 16% since Trump became president in mid-January, according to the government’s Producer Price Index.   

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Kuwait Wins Big at Sharjah Finance Awards

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Kuwait’s Minister of Finance Noura Al-Fassam in a group photo.

KUWAIT CITY, May 29: The Ministry of Finance said it won the third edition of the Sharjah Award for Public Finance (2024-2025) in recognition of its outstanding role in providing financial services. Representatives of 17 countries vied for the award, the Ministry noted in a press release on Wednesday. Minister of Finance Noura Al- Fassam stated that winning this award reflects the ministry’s efforts in improving the efficiency of financial performance and enhancing the quality of services provided. The ministry confirmed that it is continuing to develop financial services under directives from the Council of Ministers towards digitizing services. The statement added that Al-Fassam received the award on behalf of the ministry, which participated in the digital payment project for government services that enables government entities to purchase online, pay government fees, and meet various needs to fulfill their financial obligations. (KUNA)

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