Trump Signals US Is Likely To Exit Paris Climate Deal

June 1, 2017

Washington, Jun 1: President Donald Trump is still undecided but leaning toward withdrawing the United States from the landmark Paris climate agreement, White House officials said Wednesday, a move that would honor a campaign vow but risk rupturing global alliances and disappointing both environmentalists and corporate titans.donald

Although officials warned that Trump's thinking could shift before he announces his decision Thursday, a U.S. exit from the climate pact could have severe ramifications internationally. It could raise doubts about the commitment of the world's largest economy to curbing global warming and make it more difficult to hold other nations to their environmental commitments.

All but two countries - Nicaragua and Syria - signed onto the 2015 accord, which was a signature diplomatic achievement for President Barack Obama.

The Paris agreement has long divided the Trump administration, with the president taking much of the spring to make up his mind amid an intense campaign by both sides to influence his decision.

Secretary of State Rex Tillerson and Ivanka Trump, the president's daughter and adviser, are among those who have urged him to stay in the deal. White House chief strategist Stephen Bannon and Environmental Protection Agency Administrator Scott Pruitt have pushed for a withdrawal, which wouldn't actually be finalized until near the end of Trump's term.

Although the White House signaled that Trump was likely to announce an exit from the Paris accord, it made no public announcement Wednesday. Trump tweeted that he would announce his decision Thursday at 3 p.m. in the White House Rose Garden. The president has a history of changing his mind at the last minute, as he did in deciding not to pull out of the North American Free Trade Agreement after aides had suggested he would.

All day, senior administration officials cautioned that Trump had not yet made a final decision on the climate pact - and the president himself seemed eager to maintain the suspense.

"You're going to find out very soon," Trump told reporters Wednesday, in response to questions during a brief Oval Office appearance with Vietnamese Prime Minister Nguyen Xuan Phuc.

Asked whether he had been hearing from CEOs trying to persuade him, Trump said, "I'm hearing from a lot of people, both ways." More than 190 nations agreed to the accord in December 2015 in Paris, and 147 have since formally ratified or otherwise joined it, including the United States - representing more than 80 percent of the world's greenhouse gas emissions.

The United States is the world's second-largest emitter of greenhouse gases. Under the Paris agreement, the United States promised to reduce its emissions 26 percent to 28 percent below their 2005 levels by 2025. As of 2015, emissions were 12 percent lower, according to the U.S. Energy Information Administration.

Hard-line conservatives have sought to convince Trump that meeting this target would be harmful to the bottom lines of U.S. businesses and would jeopardize manufacturing jobs, especially in the Midwest and other regions where Trump found deep support in last year's election.

They also have argued that staying in the Paris agreement could be used as a legal tool by environmental groups seeking to fight Trump's environmental policies.

In addition, a group of 22 Republican senators - including Senate Majority Leader Mitch McConnell, R-Ky., - wrote to Trump urging "a clean break" from the Paris agreement.

But Tillerson and other internationalists have argued that it would be beneficial to the United States to remain part of negotiations and meetings surrounding the agreement as a matter of leverage and influence.

A broad range of outsiders have lobbied Trump to remain part of the global pact, from former vice president Al Gore to Pope Francis. The administration's debate has triggered an outpouring of lobbying from corporate America as well, as Apple, ExxonMobil and other major companies have strongly supported the accord.

During Trump's maiden foreign trip last week, a number of European leaders sought to persuade Trump of the magnitude of the climate change crisis and the importance of American leadership to address it.

Gary Cohn, the National Economic Council director, told reporters last week that Trump "wants to do the right thing for the environment. He cares about the environment. But he also cares very much about creating jobs for American workers." He added, "If those things collide, growing our economy is going to win. The president ran on growing our economy."

As a candidate, Trump railed against the Paris accord and pledged to scrap it, as part of his "America First" agenda to promote economic nationalism and disentangle the United States from international agreements that he considers harmful.

Trump also said he thought climate change was a "hoax." Asked by a reporter Wednesday whether he still believes so, the president said only, "Thank you, everybody."

News reports Wednesday that Trump was expected to withdraw from the Paris accord sparked swift and strong reactions.

Elon Musk, the chief executive of Tesla and a member of a White House manufacturing jobs advisory board, tweeted that if Trump does exit, he would have "no choice" but to end his affiliations with the administration.

Mitt Romney, the 2012 Republican presidential nominee and one of Trump's finalists for secretary of state, tweeted, "Affirmation of the #ParisAgreement is not only about the climate: It is also about America remaining the global leader."

Sen. Michael Bennet, D-Colo., said leaving the Paris agreement would amount to an "abdication" of American values.

"This would be yet another example of President Trump's 'Putting America Last' agenda - last in innovation, last in science, and last in international leadership," Bennet said in a statement.

Others cheered the notion that Trump might soon kill the climate agreement that had been an Obama legacy item.

"President Trump's decision sends a strong message to the environmentalist movement: no longer will the United States be strong armed by their scare tactics intended to harm our economy and inhibit economic growth," David McIntosh, president of the Club for Growth, a conservative political action group, said in a statement.

A party that has fully joined the accord, as the United States has, cannot formally withdraw for three years after the agreement was entered into force in 2016 - and that is capped by an extra year-long waiting period. Under those rules, Trump could not complete a U.S. exit from the agreement until Nov. 4, 2020 - the day after the next presidential election.

European Commission President Jean-Claude Juncker said he tried to explain to Trump during their climate discussions last week that withdrawing from the pact was no simple task.

"Not everything in international agreements is 'fake news,' " Juncker said Wednesday. He added, "This notion, 'I am Trump, I am American, 'America First' and I'm going to get out of it' - that won't happen. We tried to explain that to Mr. Trump in Taormina in clear German sentences. It seems our attempt failed." Taormina is the Sicilian resort town where the Group of Seven leaders met last week.

Trump also could opt to withdraw from the more foundational U.N. Framework Convention on Climate Change, which laid the groundwork for the Paris deal and was signed by President George H.W. Bush and ratified by the Senate in the early 1990s.

But that is a more radical move, which would further withdraw the United States from all international climate change negotiations.

The Trump administration already has rolled back key Obama administration initiatives through executive action, including the EPA's Clean Power Plan, which was a key part of the U.S. promise through the Paris agreement. These policies have made it highly unlikely that the United States could honor its Paris pledge to sharply cut carbon dioxide emissions.

That leaves Trump with two clear choices: withdraw from the Paris agreement or revise the U.S. emissions targets downward to a more achievable level while remaining in the pact.

A downward revision would certainly prompt criticism from the international community, but not nearly so much as an abandonment. The Paris agreement is, after all, the first global accord on climate change action that has managed to unify both developed and developing nations behind a single framework to cut emissions.

Moreover, the accord is flexible in the sense that it does not mandate that any nation achieve any particular level of emissions cuts. Rather, every nation under the agreement pledges to do the best it can, and to participate in a process in which nations will regularly increase their ambitions over time.

The ultimate goal of the Paris agreement is to hold the warming of the planet to "well below" two degrees Celsius (3.6 degrees Fahrenheit) of warming above the temperatures found in the preindustrial times of the late 1800s. The Earth is already about one degree Celsius (1.8 degrees Fahrenheit) warmer than it was at that time, scientists have determined, and current and near future emissions seem quite likely to take the planet past 1.5 degrees Celsius (2.7 degrees Fahrenheit) in the coming decades.

Recent research has highlighted that above 2 degrees, major threats could ensue for Earth systems ranging from coral reefs to the planet's vast ice sheets.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
February 16,2020

Munich, Feb 16: Iran's foreign minister said Saturday that US President Donald Trump is receiving bad advice if he believes an American "maximum pressure" campaign against his country will cause the government in Tehran to collapse.

Foreign Minister Mohammad Javad Zarif told a group of top defense officials and diplomats at the Munich Security Conference that the information provided to the president has dissuaded Trump from accepting offers from other leaders to mediate between Washington and Tehran.

"President Trump has been convinced that we are about to collapse so he doesn't want to talk to a collapsing regime," Zarif said.

To support his argument, the Iranian minister cited Trump's decision to pull out unilaterally in 2018 from Iran's nuclear deal with the US and other world powers. Trump said the landmark 2015 accord didn't address Iran's ballistic missile program or regional activities and needed to be renegotiated.

Since then, the Trump administration's re-imposition of US sanctions in a campaign of so-called "maximum pressure" have taken a severe toll on the Iranian economy and sent Iran's currency plunging.

"I believe President Trump, unfortunately, does not have good advisers," Zarif said. "He's been wanting for Iran to collapse since he withdrew from the nuclear deal." Zarif also said the killing of Iranian Gen. Qassem Soleimani in a US drone strike in Iraq on January 3 was a miscalculation by Washington that has galvanized support for Iran instead of increasing pressure on the regime.

The Iran nuclear deal, known as the Joint Comprehensive Plan of Action or JCPOA, promised Iran economic incentives in exchange for curbs on its nuclear program. It was intended to prevent Tehran from developing a nuclear bomb, which Iran insists it does not want to do.

Since the US withdrawal, the deal's other signatories - Germany, France, Britain, Russia and China - have unsuccessfully struggled to come up with ways to offset the effects of the new American sanctions.

Washington has pressured the other countries - so far without success - to abandon the deal entirely US Secretary of State Mike Pompeo said at the Munich Security Conference earlier Saturday that while there may be disagreements on what to do with the JCPOA, "when I talk to my counterparts here in Europe, everybody gets it."

"Everyone understands that these are folks who continue to build out their nuclear program," Pompeo said. "So there's a common understanding about the threat; we have tactical differences on how to proceed."

In recent months, Iran has steadily violated the limitations the deal placed on the amount of enriched uranium and heavy water it can stockpile, the number and type of centrifuges it can operate, and the purity of the uranium it enriches.

Iranian officials insist the moves are intended only to put pressure on the countries that remain part of the deal to provide economic help to Iran and that all the measures taken are fully reversible.

Zarif rejected Trump's suggestion of negotiating a new deal, saying the one negotiated during the Obama administration was the only vehicle for talks on Iran's nuclear program.

"There is no point in talking over something you already talked about. You don't buy a horse twice," he said.

"It's not about opening talks with the United States. It's about bringing the United States to the negotiating table that's already there," Zarif said.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
Agencies
May 17,2020

Washington, May 17: The overall number of global coronavirus cases has increased to over 4.6 million, while the death toll has surpassed 311,000, according to the Johns Hopkins University.

As of Sunday morning, the total number of cases stood at 4,634,068, while the death toll increased to 311,781, the University's Center for Systems Science and Engineering (CSSE) revealed in its latest update.

The US currently accounts for the world's highest number of cases and deaths at 1,467,796 and 88,754, respectively.

In terms of cases, Russia has the second highest number of infections at 272,043, followed by the UK (241,461), Brazil (233,142), Spain (230,698), Italy (224,760), France (179,630), Germany (175,752), Turkey (148,067) and Iran (118,392), the CSSE figures showed.

Meanwhile, the UK accounted for the second highest COVID-19 deaths worldwide at 34,546.

The other countries with over 10,000 deaths are Italy (31,763), Spain (27,563), France (27,532), and Brazil (15,662).

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
Agencies
July 3,2020

The dollar's dominance will slowly melt away over the coming year on weakening global demand and a sombre U.S. economic outlook, according to a Reuters poll of currency forecasters whose views depend on there being no second coronavirus shock.

Despite fears a surge in new Covid-19 cases would delay economies reopening and stymie a tentative recovery, world stocks have rallied - with the S&P 500 finishing higher in June, marking its biggest quarterly percentage gain since the height of the technology boom in 1998.

Caught between bets in favour of riskier investments, weak U.S. economic prospects as well as an easing in the thirst for dollars after the Federal Reserve flooded markets with liquidity, the greenback fell nearly 1.0 per cent last month. It was its worst monthly performance since December.

While there was a dire prognosis from the top U.S. medical expert on the coronavirus' spread, the June 25-July 1 poll of over 70 analysts showed weak dollar projections as Fed Chair Jerome Powell on Monday reiterated the economic outlook for the world's largest economy was uncertain.

"The dollar rises in two instances: when you see risk off or when there is a situation where the U.S. is leading the global recovery, and we don't think that's going to be the case anytime soon," said Gavin Friend, senior FX strategist at NAB Group in London.

"The U.S. is playing fast and loose with the virus, and chronologically they're behind the rest of the world."

Currency speculators, who had built up trades against the dollar to the highest in two years during May, increased their out-of-favour dollar bets further last week, the latest positioning data showed.

About 80 per cent of analysts, 53 of 66, said the likely path for the dollar over the next six months was to trade around current levels, alternating between slight gains and losses in a range. That suggests the greenback may be at a crucial crossroad as more currency strategists have turned bearish.

But more than 90 per cent, or 63 of 68, said a second shock from the pandemic would push the dollar higher. Five said it would push the U.S. currency lower.

Much will also depend on debt servicing and repayments by Asian, European and other international borrowers in U.S. dollars.

While an early shortage of dollars in March from the pandemic's first shock pushed the Fed to open currency swap lines with major central banks, international funding strains have eased significantly since. In recent weeks, usage of the facility has reduced dramatically.

That trend is expected to continue over the next six months with major central banks' usage of swap lines to "stay around current levels", according to 32 of 46 analysts. While 13 predicted a sharp drop, only one respondent said use of them would "rise sharply".

The dollar index, which measures the greenback's strength against six other major currencies, has slipped over 5 per cent since touching a more than three-year high in March.

When asked which currencies would perform better against the dollar by end-December, a touch over half of 49 respondents said major developed market ones, with the remaining almost split between commodity-linked and emerging market currencies.

"The dollar is so overvalued, and has been overvalued for a long time, it's time now for it to come back down again, as we head towards the (U.S.) election," added NAB's Friend.

Over the last quarter, the euro has staged a 1.8 per cent comeback after falling by a similar margin during the first three months of the year. For the month of June, the euro was up 1.2 per cent against the dollar.

The single currency was now expected to gain about 2.5 per cent to trade at $1.15 in a year from around $1.12 on Wednesday, slightly stronger than $1.14 predicted last month. While those findings are similar to what analysts have been predicting for nearly two years, there was a clear shift in their outlook for the euro, with the range of forecasts showing higher highs and higher lows from last month.

"In comparison to even a month or two ago, the outlook in Europe has improved significantly," said Lee Hardman, currency strategist at MUFG.

"I think that makes the euro look relatively more attractive and cheap against the likes of the dollar. We're not arguing strongly for the euro to surge higher, we're just saying, after the weakness we have seen in recent years, there is the potential for that weakness to start to reverse."

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.