Tag Archives: U.S. Economy

Trump suggests U.S. states re-open economies in three phases in new guidelines

WASHINGTON (Reuters) – Parts of President Donald Trump’s guidelines for re-opening the U.S. economy amid the coronavirus pandemic trickled out on Thursday afternoon, revealing a three-phase plan that could allow some states to begin as early as this month lifting limits meant to contain the disease’s spread.

In the first phase of Trump’s guidelines, to be publicly unveiled on Thursday evening, larger venues like restaurants and movie theaters could operate again with strict social distancing, according to a copy seen by Reuters. Non-essential travel could resume and schools could open their doors again in phase two. In phase three medically vulnerable people could resume public interactions.

The New York Times reported that Trump told governors of states that some could re-open their states by May 1 or earlier. He was also expected to soon announce hiring plans for tracking the disease’s spread, according to the Times.

(Reporting by Jeff Mason, Eric Beech, Lisa Lambert and Tim Ahmann; Editing by Chris Reese)

Mnuchin says U.S. economy could open in May, defying experts

WASHINGTON (Reuters) – U.S. Treasury Secretary Steven Mnuchin said on Thursday that the American economy could start to reopen for business in May, despite many medical experts saying that closures and social distancing measures will need to stay in place for longer to defeat the coronavirus.

Asked on CNBC whether he thought President Donald Trump could reopen the U.S. economy in May, Mnuchin said, “I do.”

“As soon as the president feels comfortable with the medical issues, we are making everything necessary that American companies and American workers can be open for business and that they have the liquidity they need to operate the business in the interim.”

U.S. economists have cautioned against bringing large numbers of people back to their workplaces too quickly.

“When the spread of the virus is under control, businesses will reopen, and people will come back to work,” Federal Reserve Chair Jerome Powell said in Washington on Thursday morning. “There is every reason to believe that the economic rebound, when it comes, can be robust.”

Trump on Wednesday said he hoped to reopen the economy with a “big bang” once the death toll from the virus is on the downslope. He did not give a timeframe for that reopening, but his chief economic adviser, Larry Kudlow, said on Tuesday it could take place in four to eight weeks.

Economists have cautioned against bringing large numbers of people back to workplaces too quickly, because that could spark new outbreaks and deal a major setback to recovery efforts.

A paper co-authored by Massachusetts Institute of Technology economist Emil Verner in March about the response to the 1918 flu epidemic found that cities that restricted public gatherings sooner and longer had fewer deaths – and ultimately emerged from that pandemic with stronger economic growth.

Weighing the economy against protecting people from infection or death is a “false tradeoff” he told Reuters in March.

Fed Chair Powell took a more cautious approach to reopening the economy, saying that much depended on the advice of medical experts and the government’s health officials.

But speaking in a Brookings Institution webcast event, he said he welcomed a healthy debate on how and when the economy could be reopened safely.

“We need to have a plan, nationally, for reopening the economy,” Powell said. “While we all want it to happen as quickly as possible, we all want to avoid a false start, where we partially reopen and that results in a spike in coronavirus cases and then we have to go back again to square one.”

(Reporting by David Lawder; editing by Jonathan Oatis)

Fed cuts rates and NYC, LA close restaurants to fight coronavirus

By Lindsay Dunsmuir and Nandita Bose

WASHINGTON (Reuters) – With panic buying on Main Street and fear-driven sell-offs on Wall Street, the U.S. Federal Reserve cut interest rates to near zero on Sunday in another emergency move to help shore up the U.S. economy amid the rapidly escalating coronavirus pandemic.

The mayors of New York City and Los Angeles ordered restaurants, bars and cafes closed, with takeout and delivery the only options for food sales. Movie theaters, small theater houses and concert venues were also ordered closed as the U.S. death toll from the outbreak hit 65.

“The virus can spread rapidly through the close interactions New Yorkers have in restaurants, bars and places where we sit close together,” said New York Mayor Bill de Blasio. “We have to break that cycle.”

For the second time since the financial crisis of 2008, the Fed cut rates at an emergency meeting, aiming for a target range of 0% to 0.25% to help put a floor under a rapidly disintegrating global economy.

U.S. President Donald Trump, who had openly pressed the Fed for further action, called the move “terrific” and “very good news.”

Store shelves have been stripped bare of essentials, schools closed and millions of jobs in jeopardy as businesses temporarily shut their doors.

“We’re learning from watching other countries,” Trump said. “It’s a very contagious virus … but it’s something that we have tremendous control of.”

Trump has faced criticism at home and abroad for sometimes downplaying the seriousness of the coronavirus and overstating his administration’s ability to handle it.

Dr. Anthony Fauci, the nation’s top infectious diseases expert, said the United States was entering a new phase of coronavirus testing but tempered the president’s optimism.

“The worst is yet ahead for us,” Fauci said, a warning he has issued frequently in the past week. “It is how we respond to that challenge that is going to what the ultimate end point is going to be.”

U.S. Vice President Mike Pence said testing for coronavirus was expanding with more than 2,000 labs across the country ready to process tests and 10 states operating drive-through testing.

The United States has lagged behind other industrialized nations in its ability to test for the coronavirus. In early March, the Trump administration said close to 1 million coronavirus tests would soon be available and anyone who needed a test would get one, a promise it failed to keep.

With limited testing available, U.S. officials have recorded nearly 3,000 cases and 65 deaths, up from 58 on Saturday. Globally more than 162,000 are infected and over 6,000 have died.

The U.S. Centers for Disease Control on Sunday recommended that events with gatherings of 50 or more people over the next eight weeks be postponed or canceled.

DON’T HOARD

The White House appealed to Americans not to hoard as the coronavirus spreads, reassuring them that grocery supply chains were strong.

Trump held a phone call on Sunday with 30 executives from grocery stores including Amazon.com Inc’s <AMZN.O> Whole Foods, Target Corp <TGT.N>, Costco Wholesale Corp <COST.O> and Walmart Inc <WMT.N>, the White House said.

“Have a nice dinner, relax because there’s plenty, but you don’t have to … you don’t have to buy the quantities,” Trump said. “We’re doing really, really well. A lot of good things are going to happen.”

Trump tested negative for coronavirus, his doctors said on Saturday, as the president extended a travel ban to Britain and Ireland to try to slow the pandemic.

Trump’s spokesman, Judd Deere, said temperature checks will be conducted on everyone who enters the White House grounds, beginning Monday morning.

Travelers returning to the United States and being screened for the coronavirus were met by long lines and massive delays at some major airports, prompting federal officials to deploy more staff and Trump to appeal for patience.

Joe Biden and Bernie Sanders, squaring off in a Democratic debate, blasted Trump’s handling of the coronavirus and touted their own plans to deal with it.

In their first one-on-one debate, the two Democratic contenders to face Trump in the November election said the Republican president had contributed to worries about the pandemic by minimizing the threat before declaring a national emergency on Friday.

CLOSURES EXPAND

The U.S. containment measures have so far been mild compared to the nationwide lockdowns imposed in Italy, France and Spain.

“I think Americans should be prepared that they are going to have to hunker down significantly more than we as a country are doing,” Fauci said on NBC’s “Meet the Press.”

Even though Americans are not barred from going to the movies, ticket sales in North America fell to their lowest level in more than two decades this weekend, according to measurement firm Comscore.

Democratic New York State Governor Andrew Cuomo announced that schools in New York City, Westchester, Nassau and Suffolk counties would close from Monday, and he called on Trump to mobilize the Army Corps of Engineers to create more hospital beds.

Cuomo had been criticized for not closing schools as other states have done, given that New York has a large cluster of coronavirus cases.

A clinical trial to evaluate a vaccine designed to protect against coronavirus will begin on Monday, the Associated Press reported, citing an unnamed U.S. government official.

It would take a year to 18 months to fully validate any potential vaccine, the AP added, citing public health officials.

(For an interactive graphic tracking global spread of coronavirus, open https://tmsnrt.rs/3aIRuz7 in an external browser.)

(Reporting by Doina Chiacu, Lindsay Dunsmuir, Andrea Shalal, Nandita Bose, Matt Spetalnick, Humeyra Pamuk, John Whitesides, Steve Holland in Washington; Writing by Lisa Shumaker and Matt Spetalnick; Editing by Daniel Wallis, Diane Craft, Lincoln Feast and Gerry Doyle.)

Washington considers actions to bolster U.S. economy as COVID-19 cases mount to over 1025

Reuters
By Steve Holland and Richard Cowan

WASHINGTON (Reuters) – As U.S. coronavirus cases rose steadily, the White House and Congress negotiated measures on Tuesday to bolster the U.S. economy and Americans’ paychecks against the outbreak’s impact, although there was no immediate sign of a deal.

The rise in the number of U.S. cases of COVID-19, a highly contagious and sometimes fatal respiratory illness, has concerned health officials and spurred calls within Congress for action to expand testing and avert an economic meltdown.

“We had a good reception on Capitol Hill. We’re going to be working with Republican and Democratic leadership to move a legislative package,” Vice President Mike Pence, who is leading the White House’s coronavirus task force, told a White House briefing.

Almost three-quarters of U.S. states have confirmed cases of COVID-19. A running national tally kept by the Johns Hopkins University center tracking the outbreak puts the number of cases at 1,025, with 28 deaths. Washington state’s governor warned of tens of thousands more cases without “real action,” and New York’s governor deployed National Guard troops as a containment measure in a hard-hit New York City suburb.

U.S. stocks rebounded in their largest daily gain since late 2018 on hopes that a government stimulus package was in the making. In Asia, though, on Wednesday, Asian shares and Wall Street futures fell as growing scepticism about Washington’s stimulus knocked the steam out of the rally.

A central feature of the administration’s legislative proposal is payroll tax relief, although the extent and duration of the proposal were unclear.

White House officials have also said the administration could undertake executive action to help small businesses and workers, including those who do not receive paid sick leave.

Trump is scheduled to meet with bank executives at the White House on Wednesday.

U.S. Treasury Secretary Steven Mnuchin, who is leading negotiations on behalf of Republican President Donald Trump, met with Democratic House Speaker Nancy Pelosi to discuss a possible deal.

“We’re going to work together on a bipartisan basis to figure out how we can get things done quickly that are going to help the Americans that are most impacted by this and small and medium-sized businesses that are impacted,” he said.

Pelosi said the meeting was aimed at seeing “where our common ground was” on a set of legislative proposals.

In remarks to reporters, she warned that any package should not contain “trickle-down solutions that only help a few.”

Democrats are challenging the Trump administration to tightly target new measures at people directly affected by the coronavirus. Any measure would need to pass the Democratic-controlled House as well as the Republican-controlled Senate before reaching Trump’s desk.

“I hope we don’t play politics with this. Mixing politics with a pandemic is not good. It’s terribly counterproductive,” said Republican Senator Pat Roberts.

‘MIXED REVIEWS’

All three major U.S. benchmark stock indexes on Tuesday rose nearly 5%, one day after suffering their largest losses since the 2008 financial crisis.

Prospects for a second day of gains on Wednesday dimmed as U.S. equity index futures slid 1% after the overnight trading session got under way.

Trump met with Republican lawmakers and again downplayed the risks from the coronavirus. “It will go away. Just stay calm. It will go away,” he said.

A senior Senate Republican aide said Trump’s payroll tax proposal got “mixed reviews” among Republican senators who attended.

Some Senate Republicans said a potential deal could include $300 billion in payroll tax relief that could help people make rent and mortgage payments, or pay medical bills if family members’ work hours are reduced during the outbreak.

Democrats accused Trump of being more focused on soothing Wall Street’s nerves than on protecting the public from the health and economic fallout of the fast-spreading epidemic. The White House has been accused of inadequate preparation for the outbreak and a slow rollout of coronavirus testing.

“President Trump and his administration should be putting people before corporations, and they should be focused on taking appropriate steps to keep the American people and their economic security safe,” Senate Democratic leader Chuck Schumer said.

Democrats are pushing for paid sick leave, expanded and free testing for the coronavirus and other measures.

OUTBREAK EXPANDS

More than 116,000 people have contracted the coronavirus worldwide since it surfaced in China late last year, according to the World Health Organization. More than 4,000 people have died.

Italy, which has the highest death toll outside of China, has put its entire population of 60 million on virtual lockdown.

At least 35 U.S. states and the District of Columbia have reported infections of COVID-19. New Jersey on Tuesday reported its first death.

New York Governor Andrew Cuomo said schools would be closed and public gatherings suspended in a coronavirus “hot zone” in New Rochelle, a New York City suburb, and deployed National Guard troops there.

The United Nations said it would be closing its headquarters in New York to the public until further notice.

As the outbreak spreads, daily life in the United States has been increasingly disrupted, with concerts and conferences canceled and universities telling students to stay home and take classes online.

Democratic presidential contenders Joe Biden and Bernie Sanders both canceled rallies in Ohio on Tuesday night, citing warnings from public health officials, as six states voted in the party’s nominating contests.

The Democratic National Committee said its presidential debate in Arizona on Sunday would be conducted without a live audience because of health concerns.

(Reporting by Richard Cowan, Susan Cornwell, Susan Heavey, Andrea Shalal, David Lawder and Lisa Lambert in Washington, Deborah Bloom in Olympia, Washington and Nathan Layne and Gabriella Borter in New York; Additional reporting by Brendan O’Brien, Eric Beech and Makini Brice, Rama Venkat in Bengaluru; Writing by Paul Simao and Lawrence Hurley; Editing by Bill Berkrot, Cynthia Osterman and Peter Cooney)

DSV plans Shanghai-Alabama cargo flights to ease capacity constraints amid coronavirus

COPENHAGEN (Reuters) – Freight-forwarder DSV Panalpina said on Friday it would start direct cargo flights between Shanghai and Huntsville, Alabama from next week to cope with capacity constraints caused by the coronavirus outbreak in China.

The global freight industry has been hard-hit by uncertain demand and crews’ health concerns following the outbreak of the deadly virus in China, leading airlines and freight firms to scale back services, causing delivery delays and mounting backlogs.

Starting on Feb. 25, DSV plans to operate flights between Shanghai and Huntsville thrice weekly using the firm’s Boeing 747-8 freighter plane, it said in a statement.

“Due to the risk of spreading of the coronavirus (COVID-19), multiple airlines have either suspended or reduced the number of flights to and from mainland China,” it said.

Crew on DSV’s plane would rest in South Korea before flying to Shanghai and would virtually not disembark the plane while in Shanghai before returning to the United States with cargo.

“By doing it this way we can safely have this setup,” Flemming Nielsen, executive vice president, told Reuters.

Last week DSV said the coronavirus was squeezing air and sea freight capacity, but that it was still possible to ship goods on airplanes to countries neighboring China and fly them out from there.

DSV said it estimates capacity has shrunk by 5,000 tons a day due to the suspension of flights to China.

(Reporting by Nikolaj Skydsgaard; Editing by Susan Fenton)

Fed policymakers cautiously optimistic on U.S. economy despite new risks, minutes show

By Lindsay Dunsmuir

WASHINGTON (Reuters) – Federal Reserve policymakers were cautiously optimistic about their ability to hold interest rates steady this year, minutes of the central bank’s last policy meeting showed, even as they acknowledged new risks caused by the coronavirus outbreak.

The readout on Wednesday of the policy discussion, at which policymakers unanimously voted to keep interest rates unchanged in a target range of between 1.50% and 1.75%, also showed Fed officials were skeptical about any big rethink of the central bank’s inflation target.

“Participants generally saw the distribution of risks to the outlook for economic activity as somewhat more favorable than at the previous meeting,” the Fed said in the minutes of the Jan. 28-29 meeting. It went on to say the current stance of monetary policy was likely to remain appropriate “for a time.”

Coming into this year the Fed had made clear that, after three interest rate cuts in 2019, it plans to hold interest rates steady, barring a significant change in the U.S. economic outlook.

Policymakers have pointed to U.S. consumer spending levels, dissipating U.S-China trade tensions and loose financial conditions as supporting their view, but how long such an upbeat assessment can last has already been tested by escalating concern about the global economic impact of the coronavirus outbreak that started in China.

On Monday Apple Inc <AAPL.O> issued a revenue warning due to the disruption the epidemic is causing to its supply chain. China, the world’s second-largest economy, is still struggling to get its manufacturing sector back up and running after imposing severe travel restrictions to contain the flu-like virus.

Fed Chair Jerome Powell said last week it was too early to tell if the knock-on economic impact on the United States would be severe or sustained enough to cause the Fed to change its current path.

Since the outbreak began investors have brought forward their bets of when the Fed will cut interest rates again, to around June of this year. In the minutes, policymakers said the threat “warranted close watching.”

Despite that, Fed officials offered a fairly upbeat assessment of the economy, expecting consumer spending to “likely remain on a firm footing,” job gains to expand at a healthy pace, continued moderate economic expansion and inflation returning to its 2% goal. The Fed is forecasting the economy growing 2.0% this year.

That is at odds with some economic data released since the meeting. The Commerce Department reported last week a slowdown in consumer spending in January. Business investment has also experienced a deepening downturn and the U.S. manufacturing sector remains weak.

As part of a discussion on rethinking the Fed’s inflation goal during the central bank’s review of its main policy tools, there were vocal doubts about adopting an inflation range.

“Most participants expressed concern that introducing a symmetric inflation range … could be misperceived as a signal that the Committee was comfortable with continued misses below its symmetric inflation objective,” the Fed said.

BALANCE SHEET

Elsewhere in the minutes, Fed policymakers discussed how to handle its growing balance sheet. The Fed has been buying $60 billion monthly of U.S. Treasury bills since October to increase the level of reserves in the banking system in response to a liquidity crunch.

Powell has said the Fed would aim to begin scaling back that amount sometime in the April-June period, when the level of reserves in the banking system would likely be deemed adequate.

After that, “regular open market operations would be required over time in order to accommodate trend growth in the Federal Reserve’s liabilities and maintain an ample supply of reserves,” Fed policymakers noted in the minutes.

The Fed also expects to continue offering support in the market for repurchase agreements, or repo, at least through April but in the minutes staff floated a plan that included phasing out the term repo operations after April. Those policymakers who commented on the plan were comfortable with the idea, according to the minutes.

Several policymakers asked for more discussion “before long” on the possibility of creating a standing repo facility, which would allow banks to borrow cash as needed at a fixed rate.

(Reporting by Lindsay Dunsmuir in Washington; Additional reporting by Jonnelle Marte in New York; Editing by Andrea Ricci and Matthew Lewis)

Oil back in positive territory ahead of U.S.-China trade deal

By Ron Bousso

LONDON (Reuters) – Global oil benchmark Brent crude rose to more than $64.50, recovering from four days of declines on easing Middle East tensions, as the United States and China prepared to sign a preliminary trade deal.

Brent crude gained 43 cents, or 0.7%, to $64.63 a barrel by 1507 GMT. U.S. West Texas Intermediate crude futures rose 11 cents, or 0.2%, to $58.20 a barrel.

The outlook for oil demand was supported by the expected signing of a Phase 1 U.S.-China trade deal on Wednesday, marking a major step in ending a dispute that has cut global growth and dented demand for oil.

China has pledged to buy more than $50 billion in energy supplies from the United States over the next two years, according to a source briefed on the trade deal.

The trade war between the world’s two biggest energy consumers had a tangible impact on global oil demand growth last year, said Tamas Varga, an analyst at broker PVM. Varga pointed to 2019 demand growth of 890,000 barrels per day (bpd), compared with initial forecasts of 1.5 million bpd.

“This year, however, the pace is expected to pick up again and average 1.25 million bpd … In the event of a trade deal upward revisions can be anticipated,” Varga said.

Regardless of trade wars, China’s crude oil imports in 2019 surged 9.5% from the previous year, setting a record for a 17th straight year as demand growth from new refineries propelled purchases by the world’s top importer, data showed.

However, gains were limited by easing concern over possible supply disruptions as a result of tensions in the Middle East.

The recent declines came as investors unwound bullish positions built after the killing of a senior Iranian general in a U.S. air strike on Jan. 2, which sent oil prices to a four-month high, said Harry Tchilinguirian, global oil strategist at BNP Paribas in London.

“As geopolitical tensions take a back seat for now, we may see more of the same in the short term,” Tchilinguirian told the Reuters Global Oil Forum.

Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman, said his country will work for oil market stability at a time of heightened U.S.-Iranian tension.

He also said it was too early to talk about whether the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, would continue with production curbs that are due to expire in March.

Separately, U.S. crude oil inventories were expected to have fallen last week, a preliminary Reuters poll showed on Monday.

The poll was conducted ahead of reports from the American Petroleum Institute (API), an industry group, and the Energy Information Administration, an agency of the U.S. Department of Energy.

(Additional reporting By Jessica Jaganathan; Editing by Louise Heavens and David Goodman)

China says in touch with U.S. on signing of Phase 1 trade deal

China says in touch with U.S. on signing of Phase 1 trade deal
BEIJING (Reuters) – China and the United States are in touch over the signing of their Phase 1 trade deal, China’s commerce ministry said, which will see lower U.S. tariffs on Chinese goods and higher Chinese purchases of U.S. farm, energy and manufactured goods.

The Phase 1 deal was announced last week after more than two years of on-and-off trade talks, although neither side has released many specific details of the agreement.

Both the Chinese and U.S. trade teams are in close communication, Gao Feng, a spokesman at the Chinese commerce ministry, told reporters at a regular briefing on Thursday, adding there is no specific information on the deal to disclose currently.

“After the official signing of the deal, the content of the agreement will be made public,” Gao said.

U.S. officials say China agreed to increase purchases of U.S. products and services by at least $200 billion over the next two years.

According to Washington, that would include additional purchases of U.S. farm products of $32 billion over two years. That would average an annual total of about $40 billion, compared to a baseline of $24 billion in 2017 before the trade war started.

Chinese officials have so far not publicly confirmed much of Washington’s version – especially on goods purchase commitments. But China said on Friday when the deal was announced that it will import more U.S. wheat, rice, corn, energy, pharmaceuticals and financial services.

Earlier on Thursday, China unveiled a new list of tariff exemptions for U.S. imports, mostly chemical products, days after the world’s two largest economies announced the Phase 1 deal. China said the second part of the waiver list will be released at an appropriate time.

Washington said the deal also includes stronger Chinese legal protections for patents, trademarks, copyrights, including improved criminal and civil procedures to combat online infringement, pirated and counterfeit goods.

The two countries have reached a consensus over the protection of trade secrets, guarding intellectual property rights for pharmaceutical products, and cracking down on counterfeits and pirated goods on e-commerce platforms, Chinese Vice Minister of Commerce Wang Shouwen said on Friday.

China will step up protection of intellectual property but at its own pace, Wang said.

(Reporting by Stella Qiu and Martin Pollard; Writing by Ryan Woo; Editing by Muralikumar Anantharaman, Lincoln Feast and Giles Elgood)

Mexico steps up pressure on U.S. Congress to approve trade deal

By Dave Graham

MEXICO CITY (Reuters) – Mexico’s government on Monday ramped up pressure on Democratic lawmakers to approve a new North American trade deal, urging U.S. House Speaker Nancy Pelosi to push it through Congress and rejecting demands for greater oversight of its labor market.

President Andres Manuel Lopez Obrador said he would this week send another letter to Pelosi, a Democrat, pressing for the ratification of the three-nation deal agreed last year known as the United States-Mexico-Canada Agreement (USMCA).

“I’m sure that Mrs Pelosi and the lawmakers of the Democratic Party are going to help us,” Lopez Obrador told a regular news conference, saying he believed the U.S. Congress would approve the deal before the end of 2019.

Mexico also wrote to Pelosi last month.

Lopez Obrador said his understanding was that both U.S. President Donald Trump, who had pushed for the deal, and Republican lawmakers agreed the USMCA should be ratified soon.

Still, standing alongside Lopez Obrador, Jesus Seade, deputy foreign minister for North America and the Mexican official in charge of USMCA negotiations, said he was “pessimistic” the accord would be approved by U.S. lawmakers before 2020.

“Far from reaching a deal, in the last two weeks, statements from certain labor sectors have re-emerged, floating ideas that would be totally unacceptable to Mexico,” Seade said.

Mexico, which ratified the USMCA earlier this year, is eager for the agreement to be approved because the country’s exports and foreign direct investment are heavily dependent on having unfettered access to the U.S. marketplace.

U.S. lawmakers, notably Democrats, have held up the process over concerns that lower-cost Mexico will continue to be able to attract investment at the expense of U.S. workers.

Lopez Obrador’s left-leaning government has pledged to improve workers’ pay, and earlier this year pushed through a labor bill that will strengthen the rights of trade unions.

The president, Seade and Foreign Minister Marcelo Ebrard all underlined that Mexico had fulfilled its commitments under the USMCA framework as they urged Congress to pass the deal.

However, Democrats have sought assurances from Mexico that measures to strengthen workers’ rights will be enforced, causing friction with the Lopez Obrador administration.

Among the sticking points have been U.S. attempts to establish dispute panels for labor, Seade said. Mexico’s position is that panels should be allowed across the board, not for specific areas, he noted.

Enforcement remained a bone of contention, Seade said, noting that there were those on the U.S. side seeking to impose “more intrusive” mechanisms to bind Mexico.

“We told them we won’t accept that,” he said.

The USMCA was agreed after a lengthy negotiation to replace the 1994 North American Free Trade Agreement (NAFTA).

(Reporting by Dave Graham; Editing by Chizu Nomiyama and Nick Zieminski)

Phase one trade deal with China is in good shape: U.S. Commerce Secretary

Phase one trade deal with China is in good shape: U.S. Commerce Secretary
WASHINGTON (Reuters) – The initial “phase one” trade pact with China appears to be in good shape and is likely to be signed around mid-November, although a finite date is still in question, U.S. Commerce Secretary Wilbur Ross said on Friday.

“We’re pretty comfortable that the phase one is in good shape,” he told Fox Business Network in an interview.

U.S. President Donald Trump and other administration officials had looked toward the Nov. 11-17 Asia Pacific Economic Cooperation summit as a possible venue to sign the deal with Chinese President Xi Jinping before Chile this week canceled its plan to host the international summit.

“Hopefully we can resurrect a date right in that range,” Ross told the television network, adding that the question of a new location remained.

Lead trade negotiators from both the United States and Chine are expected to speak by telephone on Friday as Ross prepared separately to travel to Asia for a three-day summit of Southeast Asian nations in Thailand.

“There will some transactions announced — some very good-sized transactions — announced while I’m on this trip,” he said, but gave no other details.

(Reporting by Susan Heavey; Editing by Catherine Evans and Louise Heavens)