British vessels prohibited from docking in Buenos Aires province
Press TV – August 4, 2012
Argentina has prohibited all ships sailing under the British flag from docking at any of the ports in the Buenos Aires province, Press TV reports.
The measure was adopted on Friday in a bill passed by the legislature of the province of Buenos Aires, the country’s largest province.
“We can’t have a colonial enclave affecting the region with NATO’s presence in our Malvinas Islands. We have to actively protest against those who explore and exploit our natural resources and violate our sovereignty,” said Remo Carlotto, an MP from the ruling party.
The bill prohibits vessels involved in “natural resources exploration and exploitation activities” in waters surrounding the Malvinas Islands, banning them from “mooring, loading or developing logistical operations” in the area”.
The move comes after months of political dialogue over the disputed archipelago between Argentina and Britain has failed to bear fruit.
“We have to keep moving forward using all the tools we have to defend our country’s sovereignty in the [Malvinas] islands. Argentina has taken significant steps. It has stood up and recovered its political and economic sovereignty,” said Martin Sabbatella, another lawmaker from the ruling party.
Earlier this year, Argentina took legal action against five British oil companies.
Argentina and Britain fought a 74-day war in 1982 over the islands.
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China Hits back at New US Sanctions over Iran
Al-Manar | August 1, 2012
Beijing reacted furiously Wednesday to new US sanctions imposed on a Chinese bank over transactions with Iran, urging Washington to revoke them and saying it would lodge an official protest.China, US flags
China’s Foreign Ministry urged the United States to lift the sanctions on the Bank of Kunlun and stop “damaging China’s interests and Sino-US relations.”
US President Barack Obama on Tuesday imposed new economic sanctions on Iran’s oil export sector and on a pair of Chinese and Iraqi banks accused of doing business with Tehran.
Obama said the new measures underlined the United States’ determination to force Tehran “to meet its international obligations” in nuclear negotiations, according to a statement released by the White House.
The US president accused the Bank of Kunlun and the Elaf Islamic Bank in Iraq of arranging transactions worth millions of dollars with Iranian banks already under sanctions because of alleged links to Tehran’s weapons program.
In a brief statement, China’s foreign ministry expressed “strong dissatisfaction and firm opposition” to the US move and said it would officially protest the decision.
“China has regular relations with Iran in the energy and trade fields, which have no connection with Iran’s nuclear plans,” the statement said.
Source: AFP
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Venezuela formally joins Mercosur trading bloc
Press TV – July 31, 2012
Venezuela has become a full member of the Mercosur regional trading bloc following a six-year-long delay.
Venezuela’s President Hugo Chavez is now set to take part in a ceremony in Brasilia, which celebrates Caracas’ membership in the South American trade bloc.
The visit to Brasilia will be Chavez’s first official trip abroad in a year after his being diagnosed with cancer in June 2011 and his treatment process in Cuba.
Mercosur is an economic union and political agreement between Argentina, Brazil, Paraguay, and Uruguay founded in 1991. Its purpose is to promote free trade and the fluid movement of goods, people, and currency.
The bloc’s combined market encompasses more than 250 million people and accounts for more than three-quarters of the economic activity on the continent, or a combined GDP of USD 1.1 trillion.
Although the governments of Argentina, Brazil, Paraguay, and Uruguay had approved Venezuela’s admission into the bloc in 2006, the accession was delayed pending ratification by the Paraguayan congress.
This is while Paraguay has recently been suspended from the group over the controversial dismissal of President Fernando Lugo.
The lower house of the Paraguayan congress impeached Lugo on June 21. The senate opened his trial a day later and quickly reached a guilty verdict, ousting the president.
Mercosur’s leaders did not impose economic sanctions on Paraguay, but banned Paraguayan officials from participating in the bloc’s meetings.
Paraguay’s suspension created an opportunity for Venezuela to be incorporated into the bloc since the opposition in the Paraguayan congress was the only obstacle to Caracas’ membership.
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Private contractors to look after Britain’s nukes
Press TV – July 29, 2012
An alliance of private contractors will take over the role of looking after UK’s nuclear weapons in Scotland, local media report.
The Ministry of Defence (MoD) announced the agreements, saying that a 15-year contract has been clinched with ABL Alliance to look after the Trident weapons system at HM Naval Base Clyde.
Almost 190 jobs in the civilian and military sectors will be transferred to the alliance as part of the contract, the Daily Telegraph reported.
ABL Alliance will provide support to the Trident Strategic Weapon System at the Royal Naval Armament Depot (RNAD) Coulport and the Strategic Weapon Support Building (SWSB) Faslane.
“HM Naval Base Clyde has an excellent safety record and we are determined to maintain the highest standards of safety”, the MoD said.
“The MoD will continue to own the Naval Base sites, including Coulport, and Naval Base Commander Clyde will retain overall responsibility for security and for the activities carried out at Coulport and the SWSB.
“The site will also continue to be a MoD nuclear authorised site, so will be subject to regulation by the Defence Nuclear Safety Regulator, the Office of Nuclear Regulation and other regulatory bodies”, it added.
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Obama signs $70 million Israel military aid bill

US President Barack Obama signs the US-Israel Enhanced Security Cooperation Act in the Oval Office on July 27, 2012.
Press TV – July 28, 2012
US President Barack Obama has signed a piece of legislation ratified by Congress that gives Israel another $70 million in military assistance, on top of the $3 billion the United States had already pledged to provide to the Israeli military this year.
On Friday, Obama signed the United States-Israel Enhanced Security Cooperation Act of 2012, which provides more US taxpayer dollars to help Israel expand its Iron Dome short-range rocket defense system, Xinhua reported.
The Iron Dome is a short-range rocket defense system designed to intercept rockets and artillery shells fired from a range of between four and 70 kilometers.
Representatives of the pro-Israeli lobby, the American Israel Public Affairs Committee (AIPAC), and Israeli journalists were invited to the signing ceremony, which was held at the White House.
“I have made it a top priority for my administration to deepen cooperation with Israel across the whole spectrum of security issues — intelligence, military, technology,” Obama said before signing the bill in the Oval Office.
“And, in many ways, what this legislation does is bring together all the outstanding cooperation that we have seen, really, at an unprecedented level between our two countries that underscores our unshakeable commitment to Israel security,” he added.
According to a White House fact sheet published on Friday, Obama said that “despite tough fiscal times” he “fought for and secured full funding for Israel” in fiscal year 2012, including $3 billion in Foreign Military Financing.
The fact sheet also said that Obama secured an additional $205 million in 2011 to set up the Iron Dome system.
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Unemployed autoworkers real losers in Peugeot-Iran row: Analyst
Press TV – July 27, 2012
France’s largest car maker PSA Peugeot Citroen made a “disastrous” choice to sever ties with Iran, given Europe’s economic crisis and failing car markets, an expert says.
In February, the automaker decided to end relations with the Islamic Republic, losing the half-million vehicle sales Iran would have provided in 2012.
“Such a move, amid the European sovereign debt crisis and plummeting auto sales across the continent, seems like it could only be a disastrous business decision. And it is,” Ramin Mazaheri wrote in an article published on Press TV website.
Unable to replace the lucrative market, Peugeot was later forced to jettison 8,000 jobs to compensate for billions of euros it lost as a result, he noted.
Mazaheri dismissed the “strengthening of sanctions” against Iran and banking difficulties as the reasons behind the company’s decision.
“In exchange for selling seven percent of the company’s shares to General Motors, owned by the American government, the US insisted that Peugeot should stop selling cars to Iran,” he explained.
The analyst further referred to Iran’s policy of “economic protectionism,” which has helped the country to produce more cars than Italy or the UK and become the world’s 12th largest auto manufacturer.
Peugeot’s pullout will not affect the Iranian car industry as Iran will now continue to partner with other auto companies and to “improve the quality of Iranian vehicles by importing car kits to be assembled in Iranian factories,” according to Mazaheri.
“The 8,000 now-unemployed auto workers, as well as those who worked at the thousands of secondary jobs associated with the Peugeot plants” are the real victims of the company’s decision, he concluded.
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Don’t Expand NAFTA
The United States is leading the way to another corporate-friendly free-trade agreement, and it’s bringing its NAFTA partners along for the ride.
By Manuel Perez-Rocha and Stuart Trew · IPS · July 26, 2012
The United States recently announced that Canada and Mexico will join negotiations for the Trans-Pacific Partnership (TPP)—a secretive U.S.-led multinational trade and investment agreement currently being negotiated with eight other countries in the Pacific Rim region.On the other side of the Pacific, Japanese legislators are defecting in droves to try to stop the country’s entry into the negotiations. But the situation is much different in Canada and Mexico, which were admitted to the table with much fanfare during the G20 summit in June. The Japanese response is justifiable, and a recent statement of solidarity against the TPP by North American unions offers a good building block for resisting an agreement that for Mexicans and Canadians amounts to a neoliberal expansion of NAFTA on U.S. President Barack Obama’s terms.Mexico and Canada had been trying to secure a spot at the TPP table for months prior to the G20, and it became a leading story in both countries. Their anxiety played nicely into Obama’s hands, allowing the U.S. trade representative to put humiliating entry conditions on both countries — essentially giving these NAFTA neighbors a second-rate status, or what in Spanish is called convidados de palo (to be invited but without a say). Neither Canada nor Mexico will be able to see any TPP text until they finally join the negotiations in December, following the required 90-day U.S. congressional approval process. Once at the table, they will not be able to make any changes to the finished text or propose any new text in the finished chapters. There is a very real possibility that the existing TPP countries, the United States in particular, will use the following months to fashion a trap for the TPP latecomers.
North American Labor Solidarity
While most media outlets welcomed the NAFTA partners to the TPP table, national labor federations from the United States, Mexico, and Canada were cautious for very good reasons, and it wasn’t just the obviously imbalanced negotiating dynamic. On July 11, the AFL-CIO, the Canadian Labour Congress, and the National Union of Workers (UNT) of Mexico outlined some of those reasons in an important statement of solidarity, which included a vision of what they believe a 21st-centry trade agreement should look like.
The labor unions state that although they “would welcome a TPP that creates good jobs, strengthens protection for fundamental labor rights—such as freedom of association and authentic collective bargaining—protects the environment, and boosts global economic growth and development for all, American, Canadian, and Mexican workers cannot afford another corporate-directed trade agreement.” The joint statement explains that to have any positive effect on the region, “the TPP must break from NAFTA, which imposed a destructive economic model that expands the rights and privileges of multinational corporations at the expense of working families, communities, and the environment.”
The unions conclude that if “the TPP follows the neoliberal model and substitutes corporate interests for national interests, workers in all three countries will continue to pay a high price in the form of suppressed wages, a more difficult organizing environment, and general regulatory erosion, even as large corporations will continue to benefit.” Unfortunately, by all accounts, including leaked TPP chapters and statements from the U.S. trade representative, this is exactly what the Obama administration hopes to achieve through these negotiations.
Expanding Investor Rights
Instead of breaking with NAFTA, the TPP expands it in almost every chapter, from intellectual property rights to “regulatory coherence,” and from rules for increased “competition” in state-owned enterprises to opening government purchases to foreign bidders.
Particularly worrying to Canadians and Mexicans, and not mentioned in the joint statement from North American unions, are the extreme investors’ rights foreseen in the TPP. Under NAFTA, Mexico and Canada continue to be pummeled by investor-state lawsuits from U.S. and Canadian companies, or international firms using their U.S. registration to challenge government measures that can be shown to interfere with profits, even if that interference is not intended. These investment disputes, launched under NAFTA’s Chapter 11 protections, have resulted in hundreds of millions of dollars in fines or settlements to be paid out from public funds. Two recent cases against Mexico and Canada help describe the problem.
In 2009, two separate NAFTA investment panels established through the International Center for Settlement of Investment Disputes (ICSID) ruled in favour of U.S. companies Cargill and Corn Products International in their nearly identical cases against a Mexican tax on drinks containing high fructose corn syrup (HFCS), a sugar alternative. The tax was a means of levelling the playing field for Mexican cane sugar producers, who were having no luck accessing the U.S. market on equal terms to U.S. sugar producers despite NAFTA’s promises of open borders.
Cargill and CPI argued in part that the Mexican tax made soft drinks sweetened with HFCS less competitive on the Mexican market, depriving them of their national treatment rights in NAFTA. The ICSID panels did not agree that the HFCS tax amounted to a form of regulatory expropriation or performance requirement as the firms had also argued, but did agree on the national treatment claim. Cargill was awarded more than $77 million and CPI more than $58 million in damages. In the CPI case, the ICSID panel deprived Mexico of any countermeasures to defend against a one-way inflow of cheap sugar supplements from the United States.
Canada also just lost an important investor-state dispute with Exxon Mobil, which could cost the Canadian government as much as $65 million. At issue were measures requiring offshore oil and gas producers in the province of Newfoundland and Labrador to turn over a portion of their profits to research and development or education and training programs. A NAFTA investment panel ruled in favor of the company, which claimed that the measures were an illegal performance requirement on the firm. Three Canadian courts had previously upheld the legality of the measures, and the Canadian government had excluded the legislation enforcing the measures from national treatment and other investment protections in NAFTA, making the investment panel ruling extremely perplexing. The frustration is worsened by the fact that Exxon Mobil was the richest company in the world in 2011. Under NAFTA and the TPP, investors have rights but no enforceable responsibilities to the countries in which they are operating.
These are just two local cases amid a myriad of investor lawsuits against countries all over the world. Though the Obama administration recently released a new model Bilateral Investment Treaty, it is almost identical to NAFTA, with only modest safeguards for regulation in the public interest — safeguards that closed-door tribunals are under little obligation to take into account. In fact, the trend globally is for these secret tribunals to rule expansively in the interest of corporations, perhaps as a means of perpetuating the system by making it more attractive to investors. There is simply no justification for reproducing the investor-state dispute regime in the TPP. In fact, NAFTA should be renegotiated to remove investor-state dispute settlement from Chapter 11.
This outcome—removing extreme investment protections from the TPP—is not out of the question. In June of this year, before a negotiating round in San Diego, California, 130 state legislators from all 50 states and Puerto Rico signed a letter to President Obama’s senior trade official warning that they will oppose the deal unless the administration alters its current approach. In the letter they say that “Our experience with NAFTA and other trade deals shows that investor-state dispute settlement is used by large corporations to undermine state and federal laws they don’t like – laws that are fully constitutional, that do not discriminate, and that are needed to protect public health and safety.”
There is also the question of Australia, the one TPP partner refusing to abide by these investment rules. In April 2011, the Australian government released a new trade policy that discontinues the inclusion of investor-state dispute settlement in bilateral or regional trade agreements. Despite their second-rate status at the TPP table, Canada and Mexico could eventually help the United States put pressure on Australia and others who doubt the value of these extreme corporate rights. But public pressure might prove strong enough to foil these efforts, as it did when the Multilateral Agreement on Investment was ditched in 1999, followed by the Free Trade Area of the Americas (FTAA) in 2005.
A New FTAA, A New Struggle
With Canada and Mexico joining the TPP, the agreement is looking more and more like a substitute for the FTAA. So it is not surprising that opposition to the TPP is growing as quickly as it did against that former attempt to expand the neoliberal model throughout the Western hemisphere.
The intense secrecy of the TPP negotiations is not helping the Obama administration make its case.In their statement, North American unions “call on our governments to work with us to include in the TPP provisions to ensure strong worker protections, a healthy environment, safe food and products, and the ability to regulate financial and other markets to avoid future global economic crises.” But the truth is that only big business is partaking in consultations, with 600 lobbyists having exclusive passwords to online versions of the negotiating text.
A majority of Democratic representatives (132 out of 191) have expressed that they are “troubled that important policy decisions are being made without full input from Congress.” They have written to U.S. Trade Representative Ron Kirk to urge him and his staff to “engage in broader and deeper consultations with members of the full range of committees of Congress whose jurisdiction touches on the wide-ranging issues involved, and to ensure there is ample opportunity for Congress to have input on critical policies that will have broad ramifications for years to come.” In their letter, the representatives also challenge “the lack of transparency of the treaty negotiation process, and the failure of negotiators to meaningfully consult with states on the far-reaching impact of trade agreements on state and local laws, even when binding on our states, is of grave concern to us.”U.S. Senators, for their part, have also sent a letter complaining of the lack of congressional access to the negotiations. What openness and transparency can we in Canada and Mexico expect when the decision to join the TPP, under humiliating conditions, was made without any public consultation?
NAFTA turns 20 years old in 2014. Instead of expanding it through the TPP we must learn from NAFTA’s shortcomings, starting with the historic lack of consultation with unions and producers in the three member countries. It is necessary to correct the imbalances in NAFTA, which as the North American union statement explains enhanced corporate power at the expense of workers and the environment. In particular, we need to categorically reject the investor-state dispute settlement process that has proven so costly, in real terms and with respect to our democratic options in Canada and Mexico. The unions’ statement of solidarity provides a strong foundation for the growing trinational opposition to the TPP in Leesburg, Virginia, and beyond.
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Iran Khodro says coping with Peugeot exit
Tehran Times | July 25, 2012
Iran’s main automobile company, Iran Khodro, says it is coping with a decision early this year by troubled French car maker Peugeot to halt exports of vehicle kits for assembly, according to reports on Wednesday.
“Iran Khodro has managed to become self-sufficient in producing 90 percent of the parts for the (popular Peugeot model) 206, and an effort is being made to use local suppliers for parts that were previously imported,” Hossein Najari, Deputy CEO for production was quoted as saying.
Peugeot’s parent company PSA Peugeot Citroen in February suspended its sales of car assembly kits to Iran, which had been its top export market in terms of trade volume up to then.
The decision appeared to be tied to Peugeot’s alliance with U.S. group General Motors, and U.S. sanctions pressure on Iran.
PSA Peugeot Citroen on Wednesday announced it will seek to cut 1.5 billion euros ($1.8 billion dollars) in costs over the next three years after declaring a 819-million-euro ($989-million) loss for the first half of 2012.
Its exports to Iran, where locally assembled versions of its 405 and 206 models are prevalent on the roads, represented up to 800 million euros in revenue per year before they were suspended, according to figures given in Tehran.
The maker of two-thirds of France’s cars is in a tailspin as a deepening recession in many markets in Europe takes its toll on its business — Europe is Peugeot’s main market. The company’s share price has more than halved since March.
The first-half loss contrasts starkly with a profit of €805 million in the same period last year and came on the back of a 5.1 percent fall in revenue to €29.6 billion.
The company doesn’t expect Europe to pick up anytime soon, saying Wednesday that it expects its European market to contract by 8 percent this year.
In response, Peugeot announced earlier this month that it would close a major factory in France and cut 8,000 jobs — part of a plan to save €2.5 billion by 2015. Those savings will also come from efficiencies gained by an alliance with General Motors. About half — €1 billion — of those savings will come this year alone.
“The group is facing a difficult time,” Chairman Philippe Varin said. “The depth and persistence of the crisis impacting our business in Europe requires the launch of the reorganization of our French production and a reduction in our structural costs.”
But the company’s cost-cutting plans have run afoul of President Francois Hollande’s Socialist administration, which has said the restructuring is unacceptable and that it will force Peugeot to save some of the jobs it wants to eliminate.
On Wednesday, the government will unveil a plan to support the auto industry — part of its carrot-and-stick strategy with Peugeot. It’s expected to give incentives to French consumers to buy French cars and to support the clean-energy vehicles that the company excels at.
But much of Peugeot’s problems stem from an over-supplied European car market, and it’s unclear how much the government can do for the company. France’s car industry was already given a bailout under former President Nicolas Sarkozy.
(Source: agencies)
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