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Archive for the category “Trade”

United States: Yoho and Sherman letter to Sec. Tillerson and Sec. Mnuchin on North Korean Sanctions (02.08.2017)

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Somalia: South West State of Somalia Position in the rift within the Gulf States (17.09.2017)

Opinion: The Ethiopian Financial Market is plummeting…

The Ethiopian People’s Republic Defense Force (EPRDF) Prime Minister Hailemariam Desalegn have ordered to fix economic problem the government has. EPRDF has been hailed for their financial growth, but with this sort of news. You know the growth and the reality is far from the truth. Ethiopia News Agency: “International Consultant of Trade, Investment and Economic Development, Dr. Taffere Tesfachew said on the occasion the fact that African countries are performing better than the global average is testimony to how far Africa is coming over the decade. He noted that the economic growth of countries like Ethiopia and Ivory Coast is highly impressive at this time when other African countries are struggling with one or two percent growth” (ENA, 2017).

So I have to question the economic growth, as the Forex Woes and the remittance from the diaspora are proving otherwise. Together with the need of more foreign aid to solve the famine of the drought. So the World Bank clearly knows the troubles of the Ethiopian government since they did this:

The World Bank today approved a $600 million International Development Association (IDA)* grant to support the Government of Ethiopia’s vision of building a national safety net system to provide effective support in chronically food insecure rural areas, including providing cover during droughts. The Rural Productive Safety Net Project (RPSNP) supports the evolution of the Government’s umbrella Productive Safety Net Program (PSNP) that has been in operation for the last 12 years and is one of the world’s largest safety net programs in the world. Run by the Government, the PSNP pools money from 11 donors, including $600 million of World Bank Group IDA funds. The PSNP provides regular cash or food transfers to 8 million people; currently 4 million of them are in areas affected by the ongoing drought. Its food-for-work component supports public works programs related to landscape restoration, irrigation, and agro-forestry” (World Bank, 2017).

So, when the World Bank gives this as a support of the government. You should take it serious and know the problems of the state. The need of financial support and to make sure drought doesn’t affect the starving citizens. EPRDF are doing badly and now the Forex Companies has to pay of the National Bank of Ethiopia (NBE) for the debt to Enterprise in Djibouti. Look!

Foreign Forex Woes:

The directive of foreign currency allocation entails all banks must sell foreign currency to a sector whose importance is very high. The banks are required to give priority to payments authorized by the central bank such as foreign loan, supplier’s credits, interest, profit, dividend and excess sales of foreign airlines. Hence, all banks are required to sell the currency collected from importers, although the current direction is high, according to a banker with almost two decades of experience. “Even though I agree with the fact that we shared the responsibilities with CBE,” said one of the vice president of a mid-sized bank. “But requesting such amount of Forex in a short time might lead to crisis.” Yohannes Ayalew (PhD), vice governor and chief economist of the central bank, disagrees. “It is a collective responsibility of all banks whether the call was quick or not,” said Yohannes. “There is no reason to ask CBE to cover all the payments.” The Forex shortage in the country has been haunting the country for years. Prime Minister Hailemariam Desalegn, in his press conference with local media nine months ago, admitted that the Forex crunch would last for the coming two decades” (Addis Fortune, 2017).

NBE Directive to pay of debt to Djibouti:

National Bank of Ethiopia (NBE) gave order to private banks in Ethiopia to pay the 15 million USD bill the Ethiopian Shipping Logistics Services Enterprise (ESLSE) to Djibouti’s company. The banks are, according to Fortune, given 3 days to sell the foreign currency to the Enterprise. The order is said to have come when the entire country is in short of foreign exchange. The shortage came following the drop in the country’s export performance and remittance earnings. ESLSE owes the money to the port of Djibouti and the central bank gave the order for every bank including the government owned Commercial Bank of Ethiopia (CBE)” (Addis Fortune, 2017).

Beset by the ever expanding informal channels of remittance, Ethiopia may continue to grapple with shortage of hard currency unless swift and collective measures are put in place, ‘Scaling up Formal Remittance to Ethiopia’ report discloses. A billion dollar transaction takes place via informal channels with 78 percent of the total remittance passing through informal networks in Ethiopia. Some experts believe that the transfer of money through unregulated channels will also likely result in illicit financial flow and dealings. The seizure of 541,659 USD around Harar is a recent indication of informal corridors of hard currency. Informal channels happen to be lophooles for global terrorism and corruption. It will open doors for illegal activities, people may use it to collect huge sums of money for their own dangerous causes, says Ethiopian Financial Security Director General Gemecu Weyema” (Gebrehiwot, 2017).

All of these articles proves the problems of the National Bank of Ethiopia (NBE) and their lacking foreign exchange. This has become a problem as the remittance hasn’t come through the formal channels, as the informal economy are big in Ethiopia. Together with drop of foreign exports that has also hurt the amount of exchange.

Clearly, the government of Ethiopia has a bigger problem that they want to reveal, as the NBE and the Foreign Exchange is plummeting. Therefore, the need at the same time for World Banks loans. Shows the dire situation of the economy. It is not like the Ethiopian News Agency would speak ill of own government and their policies. Since, the propaganda of own growth are more important, than actually telling about the weakness of the economy. This is a reality since the financial policy of Forex Exchange is in favor of the NBE.

This can also make it more profitable to for an informal market, instead of in the open market. The Ethiopian government really needs foreign exchange to pay of debt and use all their means. Instead, they are trying to cover-up their troubles, as they have debt to Enterprise in Djibouti and have troubles with the famine caused by drought. Peace.

Reference:

Addis Fortune – ‘Ethiopian Government Orders Private Banks to Cover ESLSE Forex Needs’ (12.09.2017) link: https://www.ezega.com/News/NewsDetails/4679/Ethiopian-Government-Orders-Private-Banks-to-Cover-ESLSE-Forex-Needs

Addis Fortune – ‘Ethiopia: NBE Ordered Banks to Cover ESLSE’s 15 Million USD Bill’ (13.09.2017) link: http://www.2merkato.com/news/alerts/5220-ethiopia-nbe-ordered-banks-to-cover-eslses-15-million-usd-bill

Ethiopia News Agency – ‘Gov’ts Need to Act Together to Achieve Economic Success: UNCTAD 2017 Report’ (14.09.2017) link: http://www.ena.gov.et/en/index.php/economy/item/3705-gov-ts-need-to-act-together-to-achieve-economic-success-unctad-2017-report

Gebrehiwot, Desta – ‘Ethiopia: Informal Channels Raise Red Flag On Forex Earning’ (14.09.2017) link: http://allafrica.com/stories/201709140729.html

World Bank – ‘World Bank to Help Ethiopia Build a National Safety Net System as a More Effective Response to Droughts’ (14.09.2017) link: http://www.worldbank.org/en/news/press-release/2017/09/14/world-bank-to-help-ethiopia-build-a-national-safety-net-system-as-a-more-effective-response-to-droughts

UK Statistics Authority Chairman Sir David Norgrove letter to Foreign Secretary Boris Johnson: “On his clear misuse of statistics” (17.09.2017)

Opinion: Boris Johnson shows his ‘Alternative Reality’ concerning Brexit!

Boris Johnson, the writer, the journalist and who turned politician. The now Foreign Secretary of United Kingdom in the Conservative-Democratic Unionist Party (Tories-DUP) Government. Clearly, he has his own marbles and his own vision. As it sparkles on the night sky like stars. He thinks it shines and is the reason for light hitting mother earth, not that the light is the reflection and sun-light shining on the stars and moons to reflect back on mother earth. It is the same way I feel while reading the The Daily Telegraph, the article he written in prospects of gaining support for his vision.

Boris Johnson or from now on Bojo, has his own vision, certainly not one of a kind. This article could have been written by any maverick inside the United Kingdom Independence Party (UKIP). The only thing making it difference isn’t the nationalist stance, but more on the economic foundation and self belief, that the EU negotiations will benefit the UK. He has to believe it, since his career needs it. Bojo are clearly trying to sell a story and tries to deflect. Even with lies and submission of “we will fix it in the end, please trust us”.

Bojo words speaks best for themselves, but if Europeans had any hope of a deep insights to the negotiations or understanding of the Tories policy considering Brexit. There is no insights that we didn’t know. Because the UK thinks they can walk-away without any hurt or damage. That the future will be better and without any deep consequence, therefore, another world of alternative reality. Nearly like a Tories fan-fiction. Fixated in the ideals of leaving, breathing and winning, without any actions and any consequences.

If we had been asked to design the EU ourselves with a blank sheet of paper we would have nothing like the body that exists today. We tried so often to frustrate it. I was there at the Antibes ecofin when British officials made a gallant attempt to strangle the euro at birth with a project called the hard ecu. I was there when they ambushed Margaret Thatcher at the Rome summit with conclusions that the British thought had been explicitly rejected. I remember how we kept trying to stop this or that – we rejected the very notion of political union; we tried to stop the expansion of majority voting. And I remember the mantra of EU officials – Britain objects, Britain protests – but in the end she always signs up” (Johnson, 2017).

We are not going to dismantle the corpus of EU law on exit. On the contrary the objective of the repeal bill is to incorporate it. Our systems of standards will remain absolutely flush with the rest of the EU. We would not expect to pay for access to their markets any more than they would expect to pay for access to ours. And yes – once we have settled our accounts, we will take back control of roughly 350m per week. It would be a fine thing as many of us have pointed out if a lot of that money went on the NHS, provided we use that cash injection to modernise and make the most of new technology” (Johnson, 2017).

If we organise, if we plan, if we build the homes and the infrastructure we need, if we give our young people the skills and the confidence that they could so easily acquire – then we can also ensure that this country is not just the place where everyone wants to come and live – but the place with the highest standard of living, with the per capita GDP, the productivity and the quality of life that we deserve. That means insisting on a culture that is pro-business and pro-enterprise, but one that is so dynamic that fat cats can no longer sit unpunished in their jobs when they let everyone down” (Johnson, 2017).

It is like he expected the EU only to benefit the UK. Not like it was a genuine partnership between all Member States. Some laws and regulations are made to fit more the Netherlands, other fixed for Spain. This is how agreements are being built. Just like UK has gotten specialized grants for agriculture, roads and other projects in Wales. Not because the Polish or Germans wants to pay directly for the development of Cardiff or Swansea, but they do, as a part of the EU. It’s like the whole article tried to forget that part and forget the lost funding of Universities and Colleges by EU grants and funds. But, hey the UK don’t need that.

Than he had to reveal a lie, a fixed number to sound brash, a loud and high voiced 350 million pounds a week. Not like the sums that it cost for trading, being a member and also single market opportunity has its advantages, that is why the Tories are positive for staying it and not wanting to leave that part of the union. As part of the free-trade paradigm. Because the British knows they need to trade with the EU and their Financial Institutions are benefiting from it. That he has to use an artificial high number to say, we get wealthy if we leave and can spend it on the sick. Is just playing pitiful politics with businesses and livelihood. Not that he has a single solution or program to fix the ceasing of dozens bilateral agreements. That is something David Davis and other knuckleheads can fix.

So as the months are going, he suddenly says actually “If we plan….” like they shouldn’t have had a plan before the vote or withdrawal, before the announcement and letter delivered to the European Union. It shows the disregard of the public and the businesses. That the Tories had no plan, David Cameron, never wanted to leave and therefore fled the post as Prime Minister. So the Tories-DUP, initially has to plan, since the haven’t done that already. Their own Foreign Minister is stating that on the 16th September 2017, that if they plan… If they plan.

Just consider that for a moment and think of the time since the letter was sent to European Commission, even further back to the Brexit Election. Clearly, if they plan, they might not get to hurt or to bad of a deal with the EU. Not like it is giving the public hope of their negotiations tactics or framework. Since they still at the planning stage. Peace.

Reference:

Boris Johnson – ‘How Brexit Britain will triumph’ (16.09.2017) – Facebook Article/Daily Telegraph

U.S. Senate Committe of Finance letter to DHS on Trump Resorts (14.09.2017)

Brexit: The Tories-DUP will continue to subdue the nation with no publications on their negotiations!

If you are confused about what is at stake or in consideration from the United Kingdom government or the Conservative Party and Democratic Unionist Party (Tories-DUP) government, than it is now by intent. Since, the latest revelation from the Secretary of State for Exiting the European Union Robin Walker, have a few brilliantly to a few MPs where he described their level of transparency and accountability, which is far by none! They do not want the world to know, if anyone knows or knew what the plan was for the Tories when they left the European Union. It is amazing, that the United Kingdom are playing at this level. That they have so little touch and wish to inform own citizens of their outcome and possible plan of discontinuing their role as a Member State.

Mr. David Lammy asked on the 5th September:

“To ask the Secretary of State for Exiting the European Union, what plans his Department has to publish studies into the effect of the UK leaving the EU on different sectors of the UK economy” (Parliament.uk, 13.09.2017).

Today, Robin Walker answered it by:

“It is not standard practice to provide an ongoing commentary on internal analytical work that is being carried out within government. The Government’s plan for leaving the EU has been discussed at length, and Parliament will have a say on the final deal we achieve with the European Union by putting that deal to a vote in both Houses before it comes into force. But as Parliament has also agreed, we will not publish anything that would undermine our ability to negotiate the best deal for the UK” (Parliament.uk, 13.09.2017).

Mr. John Trickett asked on the 5th September:

“To ask the Secretary of State for Exiting the European Union, how many civil servants have been sent to Brussels at any point to engage in the detail of the Brexit negotiation talks; and how many of these have been seconded from outside the Government” (Parliament.uk, 13.09.2017).

Today, Robin Walker answered it by:

“We have released information on the UK’s senior negotiating team on Gov.uk. As an indication of the number of civil servants in attendance at negotiations in Brussels, at the second round we had over 90 civil servants in attendance, and for the third round, over 100. The total number of staff will vary from round to round as we deploy the negotiating team best able to work on the issues under negotiation. We are drawing together expertise from a wide range of departments where there is specific relevant knowledge on the issues to be negotiated” (…) “I can confirm that of the Department for Exiting the European Union staff who attended the negotiations in July and August, none were seconded from outside of Government. We do not hold information on the contractual arrangements of individuals from other Government Departments” (Parliament.uk, 13.09.2017).

These answers are clearly not enlightening, but are showing the contempt of the Parliament, the Representatives and the citizens as a whole, Brexit negotiators wish to work in secrecy and in peace, without interference, as the knowledge of their plans are hidden in the shadows and not in the open. It is weird, it is strange that the United Kingdom does it like this. That the Brexit team and the ones working for the government want to hold it like a corporate secret. Instead of being open and transparent. Therefore, if the British does not trust their government act in their interests. I understand, because there is nothing to trust. The Tories-DUP government are holding them in contempt and not caring for the people need to know what they are up too. This is not an easy food run, if you bring takeaway Chinese or a Pizza!

This is the ending of a long term Membership Status and all the dozens of agreements that has been made, together with law and protocol for trading and travelling, that has to be reissued and reassured to secure both Unions. Clearly, the Tories and their Secretary thinks it is okay to not publish information, since it can damage their cause. Nevertheless, their cause of action should be in public, since it is in public interest. So if Banks and Industry moves now, they are justified, they do not know their terms for staying behind. London Financial Centre could just move to Dublin or Frankfurt. There the big-multinational financial institutions could secure new benefits within the Euro-Zone. Not be dependent on random guesses of negotiations of the Tories-DUP in Brussels.

That is what can be stated today, that the Brexit department plans to keep it in secret and do not want to be transparent. They want to be secret and neglect their duty to serve the people and their interests. The businesses has all rights to move shop, since if it is all done in secrecy, who will benefit and what will be the end-game? Who knows, right?

Robin Walker, has opened the eyes of hopefully many, if not the Brexit negotiations will be rockier, since the people and corporations cannot trust their government. They have no rights to now, when they do not publish needed public information. Tories-DUP are playing hide-and-seek. We do not know if their hidden or if they are seeking. They could do both. What we do know, is that they do this for a purpose, and that they do not trust the public will to accept their craft, their framework and the possible arrangements they are creating after the Membership with the European Union. Peace

The newly appointed North Ireland Affairs Committee are a Power-Grab by Tories-DUP!

It is special that the newly appointed North Ireland Committee in the United Kingdom Parliament are filled with majority of Democratic Unionist Party (DUP) and Conservative Party (Tories), also minor part with Labour Party.

The Northern Ireland Affairs Committee membership for the 2017 Parliament has been agreed by the House.

The Chair and Members of the Committee are:

Dr Andrew Murrison MP (Chair) (Conservative)

Mr Gregory Campbell MP (Democratic Unionist Party)

Maria Caulfield MP (Conservative)

Mr Stephen Hepburn MP (Labour)

Lady Hermon MP (Independent)

Kate Hoey MP (Labour)

Jack Lopresti MP (Conservative)

Conor McGinn MP (Labour)

Nigel Mills MP (Conservative)

Ian Paisley MP (Democratic Unionist Party)

Jim Shannon MP (Democratic Unionist Party)” (Parliament.uk – ‘Northern Ireland Affairs Committee membership agreed’ 12.09.2017).

So the NI Affairs Committee are not becoming open to the different parties of the Northern Ireland. These parties that are lost is: Sinn Fein, Ulster Unionist Party (UUP), People Before Profits (PBP), Alliance Party of Northern Ireland, Social Democratic and Labour Party (SDLP) and Traditional Unionist Voice (TUV). All of these parties are silenced. The Good Friday Agreement are not listen to, when the DUP are the only voice in the Committee on the Northern Irish devolution. Since, the UK Government are in marriage with DUP, the Tories need their support to survive.

The Northern Ireland questions opens up even more, as the DUP are in control both in UK Parliament and now also in NI. As their negotiations in Stormont is stalling. Tories-DUP are clearly not listening to the worrying signs after election. Since they are appointing this Committee. They are clearly not listening to Sinn Fein. They are not caring about any of the other parties who don’t have MP’s in White Hall. London isn’t listening to Belfast. They are only listening to the Pro-Unionist, to the ones already loyal to UK. The ones who wants to closer to Dublin are silenced and this sort of selection of people shows it.

DUP have made a coup, they have secured more power and control the funding of Northern Ireland. You can wonder if a Labour government gave all Scottish National Party (SNP) in the Scotland Affairs Committee. All the other parties in the Parliament would create havoc. The Northern Irish should react to this. The Republic of Ireland government should react to this. Since this is proof that the Tories-DUP doesn’t care about Good Friday Agreement. This is all about power and control. Proof in the act of just this. Would they do this to similar acts in Scotland and Wales? Would that be okay?

It might just be a committee now, but what is next? The Tories needs the DUP. Tories-DUP are not ready to listen. To take measures that makes sure the devolution of Stormont get back to work and honor the Good Friday Agreement. The GFA is now on the back-burner. It is evident. Peace.

Brexit: Kevin Barron MP will abstain from voting on the European Union (Withdrawal) Bill (11.09.2017)

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