Trump to reveal Iran deal's fate amid low hopes for survival

Agencies
May 8, 2018

Washington, May 8: President Donald Trump is preparing to tell the world whether he plans to follow through on his threat to pull out of the landmark nuclear accord with Iran and almost surely ensure its collapse.

There are no signs that European allies enlisted to "fix" the deal had persuaded him to preserve it.

In a burst of last-minute diplomacy, punctuated by a visit by Britain's top diplomat, the deal's European members gave in to many of Trump's demands, according to officials, diplomats and others briefed on the negotiations. Yet they still left convinced he is likely to re-impose sanctions and walk away from the deal he has lambasted since his days as a presidential candidate.

As they braced for an expected withdrawal Tuesday, US officials were dusting off plans for how to sell a pullout to the public and explain its complex ramifications to the global financial world, said the officials and others, who weren't authorized to speak ahead of an announcement and requested anonymity.

Building up anticipation for the big reveal, Trump announced on Twitter he would disclose his decision at 2 p.m., with an announcement set for the Diplomatic Room of the White House. With uncharacteristic discipline, he kept the decision confined to a small group within the White House National Security Council, leaving even many his aides guessing what he had decided.

An immense web of sanctions, written agreements and staggered deadlines make up the 2015 nuclear deal struck by the U.S., Iran and world powers. So Trump effectively has several pathways to pull the United States out of the deal by reneging on its commitments.

Under the most likely scenario, Trump will allow sanctions on Iran's central bank — intended to target its oil exports — to kick back in, rather than waiving them once again on Saturday, the next deadline for renewal, said the individuals briefed on Trump's deliberations. Then the Trump administration would give those who are doing business with Iran a six-month grace period to wind down business and avoid running afoul of those sanctions.

Depending on how Trump sells it — either as an irreversible U.S. pullout, or one final chance to save it — the deal could ostensibly be strengthened during those six months in a last-ditch effort to persuade Trump to change his mind.

The first 15 months of Trump's presidency have been filled with many such "last chances" for the Iran deal in which he's punted the decision for another few months, and then another.

Other US sanctions don't require a decision until later, including those on specific Iranian businesses, sectors and individuals that will snap back into place in July unless Trump signs another waiver. A move on Tuesday to restore those penalties ahead of the deadline would be the most aggressive move Trump could take to close the door to staying in the deal.

Even Trump's secretary of state and the U.N. agency that monitors nuclear compliance agree that Iran, so far, has lived up to its side of the deal. But the deal's critics, such as Israel, the Gulf Arab states and many Republicans, say it's a giveaway to Tehran that ultimately paves the path to a nuclear-armed Iran several years in the future.

Iran, for its part, has been coy in predicting its response to a Trump withdrawal. For weeks, Iran's foreign minister had been saying that a re-imposition of U.S. sanctions would render the deal null and void, leaving Tehran little choice but to abandon it as well.

But yesterday President Hassan Rouhani said Iran could stick with it if the European Union, whose economies do far more business with Iran than the U.S., offers guarantees that Iran would keep benefiting.

It is far from clear that Europe can credibly provide that assurance. Even with the deal in place, Iran complained constantly that European banks and businesses were staying away out of fear they'd be punished by the United States.

The global financial system is so interconnected and so dependent on New York that it's nearly impossible to conduct business that doesn't touch the US financial system. That gives Trump incredible leverage if he threatens that anyone doing business with Iran will be cut off from the United States.

For the Europeans, a Trump withdrawal would also constitute dispiriting proof that trying to appease the mercurial American president is an exercise for naught.

The three EU members of the deal — Britain, France and Germany — were insistent from the start that the deal could not be re-opened. After all, it was the U.S. that brokered the agreement in 2015 and rallied the world behind it. But all that was under President Barack Obama, whose global legacy Trump has worked to chip away at since taking office.

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News Network
June 12,2020

Washington, Jun 12: US President Donald Trump is considering suspending a number of employment visas including the H-1B, most sought-after among Indian IT professionals, in view of the massive unemployment in America due to the coronavirus pandemic, according to a media report.

The proposed suspension could extend into the government’s new fiscal year beginning October 1, when many new visas are issued, The Wall Street Journal reported on Thursday, quoting unnamed administration officials.

“That could bar any new H-1B holder outside the country from coming to work until the suspension is lifted, though visa holders already in the country are unlikely to be affected,” the daily reported.

H-1B is the most coveted foreign work visas for technology professionals from India.

Such a decision by the Trump administration is likely to have an adverse impact on thousands of Indian IT professionals. Already a large number of Indians on the H-1B visas have lost their jobs and are headed back home during the coronavirus pandemic.

The White House, however, said that no final decision has been made and the administration is considering various proposals.

“The administration is currently evaluating a wide range of options, formulated by career experts, to protect American workers and job seekers especially disadvantaged and underserved citizens — but no decisions of any kind have been made,” White House spokesman Hogan Gidley said in a statement.

In addition to the H-1B visas, the suspension could apply to the H-2B visa for short-term seasonal workers, the J-1 visa for short-term workers including camp counselors and au pairs and the L-1 visa for internal company transfers, the financial daily reported.

Meanwhile, the US Chambers of Commerce CEO Thomas Donohue on Thursday wrote a letter to Trump, expressing concern over his reported move on temporary work visas.

“As the economy rebounds, American businesses will need assurances that they can meet all their workforce needs. To that end, it is crucial that they have access to talent both domestically and from around the world,” Donohue wrote in a letter to Trump.

According to The Hill newspaper, Donohue said that American businesses need L-1 visa holders, who have a work visa valid for a relatively short amount of time, for necessary expertise.

He noted the importance of H-1B visa holders, who have a work visa valid for multiple years, for various industries, including technology, accounting and manufacturers, the newspaper said.

“Policies that would, for example, impose wide-ranging bans on the entry of nonimmigrant workers or impose burdensome new regulatory requirements on businesses that employ foreign nationals would undermine that access to talent and in the process, undercut our economy’s ability to grow and create jobs,” Donohue added.

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Agencies
February 10,2020

New Delhi, Feb 10: The government is set to privatise Central Electronics Ltd, a CPSE under the Department of Science and Technology, by selling its 100% stake with management control and has invited the Expression of Interest for the same by March 16.

The selected bidder will be required to lock in its shares for a period of three years during which it cannot undertake the sale of its stake in CEL, the PIM (Preliminary Information Memorandum) said.

"The government of India has 'in-principle' decided to disinvest 100 per cent of its equity shareholding in CEL (which is equivalent to 100 per cent of the total paid up equity share capital of CEL) through Strategic Disinvestment with transfer of management control (Strategic Disinvestment or Transaction)," DIPAM, the Disinvestment Department, said.

The process for the transaction has been divided into two stages, namely, Stage I and Stage II.

After BPCL and Air India, this is yet another CPSE which government is slated to privatise if it gets offers from bidders.

The government has set a challenging target of Rs 2.1 lakh crore disinvestment proceeds from CPSE sell-offs and IPOs, OFSs (Offer for sale) in the next fiscal and it going out all guns blazing to meet that target after revising this fiscal target of Rs 1.05 lakh crore to Rs 65,000 crore.

The Interested Bidders (which can also include employees of CEL) must have a minimum net worth of Rs 50 crore as on March 2019. DIPAM has released complete invitation Preliminary Information Memorandum (PIM) of CEL. Resurgent India Limited is the advisor to the Transaction.

CEL is a pioneer in the country in the field of Solar Photovoltaic (SPV) with the distinction of having developed India's first Solar cell in 1977 and first Solar panel in 1978 as well as commissioning India's first solar plant in 1992.

More recently, it has developed and manufactured the first crystalline flexible solar panel especially for use on the passenger train roofs in 2015.

Its solar products have been qualified to International Standards IEC 61215/61730. CEL is further working on development of a range of new and upgraded products for signaling and telecommunication in the railway sector.

In the SWOT analysis of the CPSE, DIPAM has stated under weakness that "the company has weak financial loss due to past losses, high manufacturing cost and non payment of dues by state nodal agencies affecting the financial position of the company".

The CPSE has adequate land for expansion, the SWOT analysis said adding "the CPSE faces threat of dumping of solar cells at very low rates which makes solar PV manufacturing industry unviable".

Entry of new players in the market for solar products and railway signalling systems also is cited as a threat.

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News Network
January 27,2020

Jan 27: Bidders for Air India Ltd. will need to absorb $3.26 billion of its debt, as Prime Minister Narendra Modi’s administration tries once again to sell the national carrier.

The entire company will be sold but effective control needs to stay with Indian nationals, according to preliminary terms published Monday. Bids are invited by March 17 with Ernst & Young LLP India as transaction adviser.

Air India, which started in 1932 as a mail carrier before winning commercial popularity, saw its fortunes fade with the emergence of cutthroat low-cost competition. The state-run airline has been unprofitable for over a decade and is saddled with more than $8 billion in debt.

Indian regulations allow a foreign airline to buy as much as 49% of a local carrier, while overseas investors other than airlines can buy an entire carrier. The government didn’t find a single bidder when it tried to sell Air India in 2018.

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