Category Archives: News

US Companies Will Not Benefit From Iran Nuclear Deal

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Despite the fact that the United States led the negotiations with Iran to sign an agreement to limit nuclear weapons proliferation, US companies will not benefit economically from that agreement. Companies based in other countries, such as in Europe, Russia and China, will however be able to gain financially from the accord.

This is due to the fact that much of the sanctions placed on Iran from the United States are decades old, ever since relations between the two countries have been strained. The US has imposed an embargo on Iran since 1995, aimed at checking the development of weapons of mass destruction and missiles, Iran’s support for terrorism around the world, and human rights abuses.

During the recent negotiations between the Obama administration and Iran the US stuck to its position of only lifting sanctions connected to nuclear proliferation, despite Iran insisting that the US lift all sanctions immediately. In the end, though, due to high pressure from Iran and others to sign the deal, the US backed down and agreed to end the arms embargo after five years and the missile embargo after eight years. The remaining US sanctions will stand.

In addition, the nuclear-related sanctions that the US will end are on foreign, and not US companies. The sanctions prohibit non-US companies from investing in the oil sector of Iran, trading in oil, and financing those transactions. Doing business with Iranian banks and other companies connected to the sanctions will also be prohibited.

The bottom line is that US companies will still not be allowed to do business with Iran,  even after the accords are signed, except in very limited situations.

Three US Wines Banned From Russian Market

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The Russian agency which oversees consumer rights, protection and human well-being, known as the Rospotrebnadzor, banned three different types of US-made wines after examining them for safety.

The three banned wines are Crane Lake Cellars Crane Lake Moscato, Geyser Peak Winery’s Geyser Peak Merlot, and the Gnarly Head Chardonnay from the Delicato Family Vineyards.

In a statement issued by the Rospotrebnadzor they said that after their investigation of the three wines they found high levels of phthalates in the Chardonnay, and both the Moscato and Merlot had unacceptable levels of phthalates and bifenazate, a pesticide.

“Phthalates are the first class of danger according to the sanitary and toxicological indicators, and can cause functional and other organic changes in the central and peripheral nervous system, as well as oncological illnesses, and fertility problems in both men and women,” the Rospotrebnadzor stated.

Over the last few months the Rospotrebnadzor has banned other foods from western countries, causing some to wonder if the bans are not entirely over safety concerns.

“Some observers see as a politically motivated move targeted at imports from countries that slapped sanctions on Russia over its support for separatists in Ukraine,” the Moscow Times stated.

Amazon to Extend Its Loan Program to Sellers

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Beginning later this year Amazon will extend its business loan program to sellers in eight additional countries where credit can make a huge difference in that company’s success. Amazon, the giant on-line retail platform, has had a business loan program for small sellers in just two countries, Japan and the United States. Known as Amazon Lending, this program was launched in 2012 and is run as an invite-only lending program not available to all Amazon sellers.

The new countries which will become part of this unique program are Canada, China, Germany, France, Italy, India, the United Kingdom and Spain. Amazon loans are geared to helping small sellers better compete for new vendors and taking more market share.

Amazon is not alone in introducing loan programs: eBay’s PayPal and Alibaba Group Holdings are also extending credit to help boost their vendor base. Some analysts have voiced skepticism about these trends, saying that retailers do not properly assess the credit market in which the sellers are operating and therefore could be taking on too much risk. In countries like China and India small businesses have high rates of failure.

Amazon said that risk is not a problem for them since they offer loans based on internal data and also because they take loan payments directly from the profits from sales that it pays their sellers.

Trade War with Canada and Mexico Looms Over US

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Angered by US laws requiring that meat sold to consumers be labeled with the name of country to animal was born, grown and killed, Canada and Mexico won a formal complaint they had lodged with the World Trade Organization against the US requirements.

Mexico and Canada say these rules discriminate against imported meat, and are threatening to take steps to retaliate in what could become a full-blown trade war.

“Our governments will be seeking authorization from the WTO to take retaliatory measures against U.S. exports,” stated the Mexican and Canadian ministers for trade and agriculture.

Canada has already published a list of potential products to target for trade sanctions, such as wine, chocolate, ketchup and cereal. Mexico has not released a similar list, yet.

The beef and pork industries in Canada point to the fact that the US restrictions increase their expenses, reducing livestock exports. They say they have lost an estimated $1 billion a year in revenue as a result of this law.

Michael Conaway the Republican chairman of the House of Representatives Committee on Agriculture would like to see Congress do something fast.

“It is more important now than ever to act quickly to avoid a protracted trade war with our two largest trade partners,” Conaway said.

Republicans have a majority in the Congress, but they will most likely come up against a strong Democratic response to leave the labeling regulations in place. The top Democrat in the Committee on Agriculture, Collin Peterson, said he would oppose a change in the law. He added that he believes there are still steps that can be taken at the WTO before making any big changes.

The focus of the dispute is a law enacted in 2009 that requires retail outlets to label meat and pork in a way that gives consumers more information about the safety and the origin of the meat they purchase and eat.

US Stepping Up Aid to Nepal After Massive Earthquake

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Nine days after a 7.8 magnitude earthquake shook Nepal, killing over 7,300 people and wounding thousands more, US transport planes began to bring rescue teams and supplies to the more remote areas of the country which have been devastated by the quake.

A US Air Force C-17 aircraft and four Osprey tilt-rotor helicopters arrived late on Sunday, allowing the US to step up its rescue mission in the beleaguered country located between India and China. US Brigadier General Paul Kennedy said that pilots would begin flying sorties from Kathmandu, the capital, to far-flung areas, starting on Monday.

“They’re going to make an immediate difference,” he said. “We’ve got search and rescue teams waiting to go out to the remote areas, we’ve got relief supplies, especially shelters. Most people don’t understand that a shelter is the most pressing need, so we’re going to take these things out starting tomorrow (Monday) morning.”

 

The most recent official death toll in Nepal was figured to be 7,250 with about 14,000 wounded. Officials cautioned that it is expected that the final death count will be much higher. In bordering countries China and India at least 100 people have been reported as killed.