Tag Archives: United States

Trump says was ‘psyched to terminate NAFTA’ but reconsidered

A truck heads towards the United States at the Lacolle border crossing in Lacolle, Quebec, Canada April 26, 2017. REUTERS/Christinne Muschi

By Jeff Mason and David Lawder

WASHINGTON (Reuters) – President Donald Trump told Reuters on Thursday that he was “psyched” to terminate the NAFTA trade deal with Canada and Mexico, but changed his mind after their leaders asked for it to be renegotiated instead.

Trump said in an interview with Reuters that he will not hesitate to change course again and pull the plug on the North American Free Trade Agreement if the negotiations become “unserious.”

His comments came at the end of a long 24 hours during which Ottawa and Mexico City were whipsawed over the Trump administration’s intentions over the 23-year-old trade pact.

“You know I was really ready and psyched to terminate NAFTA,” Trump said.

He decided that it would be better to terminate the trade deal after hearing about Wisconsin farmers’ struggles with new Canadian dairy rules that were shutting out their milk protein exports.

“You saw that, you wrote about it,” Trump said. “And I said I’ve had it. I’ve had it.”

But after administration officials said a withdrawal order was being prepared, Trump said he received phone calls from Mexican President Enrique Pena Nieto and Canadian Prime Minister Justin Trudeau asking to renegotiate the pact.

“I’m not looking to hurt Canada and I’m not looking to hurt Mexico. They’re two countries I really like,” Trump said. “So they asked to renegotiate, and I said yes.”

News of the possible U.S. pullout from NAFTA rattled financial markets on Wednesday. Relative calm returned on Thursday after Trump’s comments, and the Mexican peso strengthened 0.86 percent against the U.S. dollar, while the Canadian dollar was flat versus the greenback.

Mexico, Canada and the United States form one of the world’s biggest trading blocs, and trade disruptions among them could adversely affect farm, automotive, energy and other sectors in all three countries. NAFTA removed most trade and tariff barriers between the neighbors, but Trump and other critics have blamed it for deep U.S. job cuts.

Trump campaigned for president last year on a pledge to pull out of NAFTA if he could not renegotiate better terms. The United States went from running a small goods trade surplus with Mexico in the early 1990s to a $63-billion deficit in 2016.

Asked by Reuters what would make NAFTA a fair deal, Trump said: “Open markets. Open borders for trade” and “Fairness, no government subsidies so that it makes it impossible for our people to compete.”

He added that if the NAFTA negotiations “become unserious, I will terminate.”

As Trump spoke, a new trade irritant between the United States and Canada emerged, as Boeing Co asked the U.S. Commerce Department to investigate alleged price dumping and unfair Canadian government subsidies for Bombardier Inc’s new Canadian-made CSeries jetliners.

‘GET TO WORK’

Trudeau told a news conference in Saskatchewan he had urged Trump not to withdraw from the trade pact and warned that doing so “would cause a lot of short- and medium-term pain.”

“That’s not something that either one of us would want, so we agreed that we could sit down and get to work on looking at ways to improve NAFTA,” Trudeau said.

Canada sends 75 percent of its exports to the United States. On Tuesday, Trump said he did not fear a trade war with Canada, a day after his administration moved to impose tariffs on Canadian lumber.

In Mexico City, Mexican Foreign Minister Luis Videgaray said Pena Nieto had called Trump on Wednesday and spoken with him for about 20 minutes in a conversation focused exclusively on the looming talks over NAFTA’s “renegotiation and modernization.”

Trump has accused Mexico of luring away American factories and jobs with cheap labor and other advantages enabled by NAFTA. During the presidential campaign he accused Mexico of sending rapists and criminals into the United States, and as president plans a U.S.-Mexico border wall.

One of Trump’s first major acts after becoming president in January was to pull out of the 12-nation Trans-Pacific Partnership, negotiated by his Democratic predecessor Barack Obama.

Several agriculture lobby groups in Washington were told U.S Agriculture Secretary Sonny Perdue, confirmed by the Senate on Monday, met with Trump on Wednesday evening to dissuade him from withdrawing from NAFTA.

American Soybean Association President Ron Moore said, “When you’re talking about $3 billion in soybean exports a year, any threats to withdraw from agreements and walk away from markets makes farmers extremely nervous.”

Formal NAFTA talks likely will not get started until August. The U.S. Trade Representative’s office must first send Congress a notice that starts a 90-day consultation period preceding any negotiations.

A USTR spokeswoman said the notice would not be sent until the Senate confirmed Trump’s nominee for trade representative, Robert Lighthizer.

(Additional reporting by Stephen J. Adler, Jeff Mason, Steve Holland, Susan Heavey and Mohammad Zargham in Washington, Veronica Gomez and David Alire Garcia in Mexico City, David Ljunggren in Ottawa, and P.J. Huffstutter and Mark Weinraub; Writing by David Lawer and Will Dunham; Editing by Nick Zieminski and Clarence Fernandez)

Exclusive: Trump says ‘major, major’ conflict with North Korea possible, but seeks diplomacy

U.S. President Donald Trump looks out a window of the Oval Office following an interview with Reuters at the White House in Washington, U.S., April 27, 2017. REUTERS/Carlos Barria

By Stephen J. Adler, Steve Holland and Jeff Mason

WASHINGTON (Reuters) – U.S. President Donald Trump said on Thursday a major conflict with North Korea is possible in the standoff over its nuclear and missile programs, but he would prefer a diplomatic outcome to the dispute.

“There is a chance that we could end up having a major, major conflict with North Korea. Absolutely,” Trump told Reuters in an Oval Office interview ahead of his 100th day in office on Saturday.

Nonetheless, Trump said he wanted to peacefully resolve a crisis that has bedeviled multiple U.S. presidents, a path that he and his administration are emphasizing by preparing a variety of new economic sanctions while not taking the military option off the table.

“We’d love to solve things diplomatically but it’s very difficult,” he said.

In other highlights of the 42-minute interview, Trump was cool to speaking again with Taiwan’s president after an earlier telephone call with her angered China.

He also said he wants South Korea to pay the cost of the U.S. THAAD anti-missile defense system, which he estimated at $1 billion, and intends to renegotiate or terminate a U.S. free trade pact with South Korea because of a deep trade deficit with Seoul.

Asked when he would announce his intention to renegotiate the pact, Trump said: “Very soon. I’m announcing it now.”

Trump also said he was considering adding stops to Israel and Saudi Arabia to a Europe trip next month, emphasizing that he wanted to see an Israeli-Palestinian peace. He complained that Saudi Arabia was not paying its fair share for U.S. defense.

Asked about the fight against Islamic State, Trump said the militant group had to be defeated.

“I have to say, there is an end. And it has to be humiliation,” he said, when asked about what the endgame was for defeating Islamist violent extremism.

XI ‘TRYING VERY HARD’

Trump said North Korea was his biggest global challenge. He lavished praise on Chinese President Xi Jinping for Chinese assistance in trying to rein in Pyongyang. The two leaders met in Florida earlier this month.

“I believe he is trying very hard. He certainly doesn’t want to see turmoil and death. He doesn’t want to see it. He is a good man. He is a very good man and I got to know him very well.

“With that being said, he loves China and he loves the people of China. I know he would like to be able to do something, perhaps it’s possible that he can’t,” Trump said.

Trump spoke just a day after he and his top national security advisers briefed U.S. lawmakers on the North Korean threat and one day before Secretary of State Rex Tillerson will press the United Nations Security Council on sanctions to further isolate Pyongyang over its nuclear and missile programs.

The Trump administration on Wednesday declared North Korea “an urgent national security threat and top foreign policy priority.” It said it was focusing on economic and diplomatic pressure, including Chinese cooperation in containing its defiant neighbor and ally, and remained open to negotiations.

U.S. officials said military strikes remained an option but played down the prospect, though the administration has sent an aircraft carrier and a nuclear-powered submarine to the region in a show of force.

Any direct U.S. military action would run the risk of massive North Korean retaliation and huge casualties in Japan and South Korea and among U.S. forces in both countries.

‘I HOPE HE’S RATIONAL’

Trump, asked if he considered North Korean leader Kim Jong Un to be rational, said he was operating from the assumption that he is rational. He noted that Kim had taken over his country at an early age.

“He’s 27 years old. His father dies, took over a regime. So say what you want but that is not easy, especially at that age.

“I’m not giving him credit or not giving him credit, I’m just saying that’s a very hard thing to do. As to whether or not he’s rational, I have no opinion on it. I hope he’s rational,” he said.

Trump, sipping a Coke delivered by an aide after the president ordered it by pressing a button on his desk, rebuffed an overture from Taiwan President Tsai Ing-wen, who told Reuters a direct phone call with Trump could take place again after their first conversation in early December angered Beijing.

China considers neighboring Taiwan to be a renegade province.

“My problem is that I have established a very good personal relationship with President Xi,” said Trump. “I really feel that he is doing everything in his power to help us with a big situation. So I wouldn’t want to be causing difficulty right now for him.

“So I would certainly want to speak to him first.”

Trump also said he hoped to avoid a potential government shutdown amid a dispute between congressional Republicans and Democrats over a spending deal with a Saturday deadline looming.

But he said if a shutdown takes place, it will be the Democrats’ fault for trying to add money to the legislation to “bail out Puerto Rico” and other items.

He also defended the one-page tax plan he unveiled on Wednesday from criticism that it would increase the U.S. deficit, saying better trade deals and economic growth would offset the costs.

“We will do trade deals that are going to make up for a tremendous amount of the deficit. We are going to be doing trade deals that are going to be much better trade deals,” Trump said.

(Editing by Ross Colvin)

Frugal U.S. consumers seen holding back first-quarter GDP

People shop at The Grove mall in Los Angeles November 26, 2013. REUTERS/Lucy Nicholson

By Lucia Mutikani

WASHINGTON (Reuters) – The U.S. economy likely hit a soft patch in the first quarter as an unseasonably warm winter and rising inflation weighed on consumer spending, in a potential setback to President Donald Trump’s promise to boost growth.

Reduced business investment in inventories and government spending cuts also crimped gross domestic product growth. A Reuters survey of economists conducted last week forecast GDP rising at a 1.2 percent annual rate, but many economists lowered their estimates after the government on Thursday released advance reports on the goods trade deficit and inventories in March.

The Atlanta Federal Reserve is forecasting the economy growing at only a 0.2 percent rate in the first quarter, which would be the weakest performance in three years.

The economy grew at a 2.1 percent pace in the fourth quarter. The government will publish its advance first-quarter GDP estimate on Friday at 8:30 a.m. The expected sluggish first-quarter growth pace, however, is not a true picture of the economy’s health.

The labor market is near full employment and consumer confidence is near multi-year highs, suggesting that the mostly weather-induced slowdown in consumer spending is probably temporary. First-quarter GDP tends to underperform because of difficulties with the calculation of data that the government has acknowledged and is working to rectify.

“The weakness is not a reflection of the underlying health of the economy, part of it is residual seasonality,” said Ryan Sweet, a senior economist at Moody’s Analytics in West Chester, Pennsylvania. “It has become more understood over the past few years, that’s why people often discount first-quarter GDP.”

Even without the seasonal quirk and temporary restraints, economists say it would be difficult for Trump to fulfill his pledge to raise annual GDP growth to 4 percent, without increases in productivity.

Trump is targeting infrastructure spending, tax cuts and deregulation to achieve his goal of faster economic growth.

On Wednesday, the Trump administration proposed a tax plan that includes cutting the corporate income tax rate to 15 percent from 35 percent, but offered no details.

ANEMIC CONSUMER SPENDING

Economists estimate that growth in consumer spending, which accounts for more than two-thirds of U.S. economic activity, braked to below a 1.0 percent rate in the first quarter. That would be the slowest pace in nearly four years and follows the fourth quarter’s robust 3.5 percent growth rate.

The expected weakness in consumer spending is blamed on a mild winter, which undermined demand for heating and utilities production. Higher inflation, which saw the consumer price index averaging 2.5 percent in the first quarter, also hurt spending.

Government delays issuing income tax refunds to combat fraud also weighed on consumer spending. Economists said Federal Reserve officials were likely to view both the anemic consumer spending and GDP growth as temporary when they meet next week. The Fed is not expected to raise interest rates.

“The good news is that the Fed in recent years has distanced itself from the GDP numbers,” said Lou Crandall, chief economist at Wrightson ICAP in Jersey City, New Jersey. “A weak first-quarter GDP print should not affect the policy debate.”

After contributing to GDP growth for two straight quarters, inventory investment was likely a drag in the first quarter. JPMorgan is forecasting inventories chopping off one percentage point from GDP growth. Trade was likely neutral after being a huge drag in the fourth quarter.

But some good news is expected. Business investment likely rose further, with spending on equipment seen accelerating thanks to rising gas and oil well drilling as oil prices continue their recovery from multi-year lows.

Investment in home building is also expected to have gained momentum in the first quarter.

(Reporting by Lucia Mutikani; Editing by Andrea Ricci)

U.S. Republican leaders hunt for votes for healthcare bill

U.S. House Speaker Paul Ryan speaks about healthcare at his weekly press briefing on Capitol Hill in Washington, U.S, April 27, 2017. REUTERS/Yuri Gripas

By Susan Cornwell

WASHINGTON (Reuters) – House Republicans were making headway in efforts to build support for a reworked plan to overhaul the U.S. healthcare system, but have not decided when to vote, House Speaker Paul Ryan said on Thursday.

Ryan spoke as Republican leaders scoured the U.S. Capitol in search of centrist Republican backing for the amended measure after it gained the approval on Wednesday of a group of hard-right Republican conservatives who had helped to sink the original version last month.

“We’re making very good progress,” Ryan told reporters at a news conference, saying the changes endorsed by conservative Freedom Caucus Republicans on Wednesday would also appeal to moderate Republicans.

The House could vote as early as this week on the legislation, aides said, meaning it could pass the House in time for President Donald Trump’s 100th day in office on Saturday.

It remained unclear whether the amended bill could attract the 216 votes needed to pass the House, given the united Democratic opposition. Its future is further clouded in the Senate.

“We’re going to go when we have the votes,” Ryan said.

Republicans in Congress have made repealing and replacing the Affordable Care Act, commonly known as Obamacare, a central campaign promise for seven years. Republican President Donald Trump made it a top campaign promise.

But House Republicans are not keen to repeat last month’s debacle, when their leaders acquiesced to Trump’s demand for a floor vote on the bill, only to unceremoniously yank the measure after determining it could not pass.

The Republican healthcare bill would replace Obamacare’s income-based tax credit with an age-based credit, roll back an expansion of the Medicaid government health insurance program for the poor and repeal most Obamacare taxes.

The nonpartisan Congressional Budget Office had estimated 24 million fewer people would have insurance under the original version.

The new amendment that has won over a number of conservatives, drafted by Representative Tom MacArthur, would allow states to seek federal waivers to opt out of some of the law’s provisions. That includes the highly popular provision mandating that insurers charge those with pre-existing conditions the same as healthy consumers, and that insurers cover so-called essential health benefits, such as maternity care.

Some centrists say the changes do not address their worries that the bill would hurt poor Americans in the Medicaid program. Others, including Republican Representative Dan Donovan of New York, said the loosening of protections for people with pre-existing medical conditions was a major problem.

“It’s going to cost people with pre-existing conditions even more money to have coverage … It’s something that we shouldn’t be doing,” Donovan said on CNN.

House Democrats on Thursday threatened to oppose a short-term government funding bill if the Republicans try to bring the healthcare bill to the floor this week.

Ryan brushed off this threat, even though Republicans are expected to need some Democratic votes to pass the funding bill.

House Democratic Leader Nancy Pelosi told reporters that Trump was making Republicans “walk the plank” on a healthcare bill that was “wildly unpopular.”

Ryan dismissed the idea that some Republican lawmakers’ House seats were at risk if they vote for the healthcare bill. “I think people’s seats are at risk if we don’t do what we said we would do” and repeal Obamacare, he said.

(Reporting by Susan Cornwell and Susan Heavey; Additional reporting by Amanda Becker and Will Dunham; Editing by Jeffrey Benkoe)

Berkeley braces for unrest despite Ann Coulter cancelation

Ann Coulter speaks to the Conservative Political Action conference in Washington. REUTERS/Jonathan Ernst

BERKELEY, Calif. (Reuters) – Police at the University of California at Berkeley braced for potential clashes between militant left-wing and right-wing activists on Thursday, despite conservative commentator Ann Coulter dropping plans to address students at the campus.

Coulter, one of America’s best-known and most provocative pundits on the political right, said on Wednesday that she no longer intended to defy university officials by addressing UC Berkeley students on campus this week.

But Coulter left open the possibility of paying a visit to her supporters at the school, long a bastion of liberal student activism and a center of the Free Speech Movement protests of the 1960s.

UC Berkeley officials said classes would be held as scheduled.

But campus police Captain Alex Yao told a news conference late on Wednesday that his department would maintain “a highly visible presence” on Thursday, pointing to continued threats of violent protests.

“Many of the individuals and organizations which planned to protest Ann Coulter’s appearance or support it still intend to come to campus,” university spokesman Dan Mogul of told Reuters.

Indeed, social media feeds of militant left-wing and right-wing activists remained abuzz with vows to proceed with demonstrations and counter-demonstrations over the Coulter-Berkeley controversy.

In February, protesters opposed to an appearance by Milo Yiannopoulos, then a senior editor for the conservative Breitbart news website, set fires, broke windows and clashed with police on campus, prompting cancellation of his speech.

And in March and again in April, opposing groups from the far-right and far-left skirmished violently near campus.

All three incidents were cited on Wednesday in an open letter from UC Berkeley Chancellor Nicholas Dirks explaining the school’s position.

University officials said the Berkeley College Republicans erred by inviting Coulter without notifying campus officials in advance, as is required of all student groups, and by failing to submit to a “security assessment” to determine a suitable time and place for the event.

UC Berkeley officials denied that Coulter was unwelcome because of her politics.

After initially barring her from speaking on campus on Thursday, university officials proposed moving her appearance to next Tuesday. Coulter said she could not make it then and accused the school of trying to limit her audience by choosing a date that fell in a study week ahead of final exams.

Coulter then insisted publicly that she would go through with her speech on Thursday, over the university’s objections. But she said she changed her mind after student organizers withdrew their invitation, though they vowed to press ahead with a lawsuit filed on Tuesday accusing UC Berkeley of suppressing freedom of speech.

(Reporting by Lisa Fernandez in Berkeley; Additional reporting by Mark Hosenball in Washington and Jonathan Allen in New York; Writing and additional reporting by Steve Gorman in Los Angeles; Editing by Simon Cameron-Moore)

U.S. core capital goods orders, shipments increase in March

FILE PHOTO - Honda Motor Co's Acura NSX luxury sports car is seen in assemble line at the company's Performance Manufacturing Center in Marysville, Ohio, U.S., November 11, 2016. REUTERS/Maki Shiraki/File Photo

WASHINGTON (Reuters) – New orders for key U.S.-made capital goods rose less than expected in March, but a second straight monthly increase in shipments suggested business investment accelerated in the first quarter amid a recovering energy sector.

The Commerce Department said on Thursday non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, increased 0.2 percent last month after an upwardly revised 0.1 percent gain in February.

Shipments of these so-called core capital goods rose 0.4 percent after jumping 1.1 percent in February. Core capital goods shipments are used to calculate equipment spending in the government’s gross domestic product measurement.

Economists polled by Reuters had forecast core capital goods orders rising 0.5 percent last month after a previously reported 0.1 percent dip. March’s modest increase suggests some loss of momentum in the manufacturing sector after recent strong growth.

Manufacturing, which accounts for about 12 percent of the U.S. economy, is being underpinned by the energy sector revival.

Energy services firm Baker Hughes said last Friday that U.S. oil rigs totaled 688 in the week ending April 21, the most in two years. U.S. drillers have added oil rigs for 14 straight weeks and shale production in May was set for its biggest monthly increase in more than two years.

Business spending on equipment is expected to have accelerated from the fourth-quarter’s annualized 1.9 percent growth pace and will likely be one of the few bright spots when the government publishes its advance first-quarter GDP estimate on Friday.

Manufacturing could get a lift from President Donald Trump’s proposed tax plan, announced on Wednesday, that includes cutting the corporate income tax rate to 15 percent from 35 percent.

Last month, orders for machinery slipped 0.2 percent, but shipments increased 0.7 percent. Orders for primary metals rose in March as did shipments of these products. Electrical equipment, appliances and components orders and shipments also increased last month.

There were, however, declines in orders for fabricated metal products and computers and electronic products.

Last month overall orders for durable goods, items ranging from toasters to aircraft that are meant to last three years or more, increased 0.7 percent after surging 2.3 percent in February. Civilian aircraft orders increased 7.0 percent.

(Reporting by Lucia Mutikani; Editing by Andrea Ricci)

Israel seeks U.S. backing to avert permanent Iran foothold in Syria

By Matt Spetalnick and Mark Hosenball

WASHINGTON (Reuters) – Israel is seeking an “understanding” with the Trump administration that Iran must not be allowed to establish a permanent military foothold in Syria, Israel’s intelligence minister told Reuters on Wednesday.

In an interview, visiting Intelligence Minister Yisrael Katz said he was also using his meetings with White House officials and key lawmakers to press for further U.S. sanctions on Iran and the Iranian-backed Lebanese militia Hezbollah, which is supporting Syrian President Bashar al-Assad.

“I want to achieve an understanding, an agreement between the U.S. and Israel … not to let Iran have permanent military forces in Syria, by air, by land, by sea,” Katz told Reuters, saying this should be part of any future international accord on ending Syria’s six-year-old civil war.

Katz, a member of Prime Minister Benjamin Netanyahu’s right-wing Likud party, insisted, however, that Israel was not asking Washington to commit more forces to Syria, but to “achieve this by talking to the Russians, by threatening Iran, by sanctions and other things.”

There was no immediate comment from the White House. Katz was due to meet President Donald Trump’s Middle East envoy, Jason Greenblatt.

For its part, Israel has stayed mostly on the sidelines in the Syrian conflict and has shown no sign of significantly altering that posture. It has carried out only occasional air strikes when its has felt threatened, including by the delivery of weapons to Hezbollah militants.

Israeli officials have estimated that Iran – Israel’s regional archfoe, but also that of Saudi Arabia and other Sunni Arab states – commands at least 25,000 fighters in Syria, including members of its own Revolutionary Guard, Shi’ite militants from Iraq and recruits from Afghanistan and Pakistan.

ALARMING PROVOCATIONS

Katz’s visit came just a week after Secretary of State Rex Tillerson accused Iran of “alarming ongoing provocations” to destabilize countries in the Middle East as the Trump administration launched a review of its policy toward Tehran.

Tillerson said the review would look not only at Tehran’s compliance with a 2015 nuclear deal, but also its behavior in the region.

Trump, who may visit Israel as early as next month, has adopted a tougher stance against Assad. He ordered cruise missile strikes on a Syrian air base this month after blaming Assad for a chemical weapons attack that killed at least 70 people, many of them children.

“It was important morally and strategically,” Katz said of the U.S. strikes. The Syrian government has denied it was behind the gas attack.

Israeli officials want Russia, which they see as holding the balance of power among Assad’s supporters, to use its influence to help rein in Iran’s activities in Syria.

Though Russia has shown no willingness to restrain Iran, Israeli officials say there are indications that Moscow may see any long-term Iranian military presence in Syria as potentially destabilizing.

Katz reiterated Israel’s vow to continue launching occasional air strikes in Syria against Hezbollah forces detected transporting rockets or other weapons toward the Lebanese border, which he described as a “red line.”

(Writing by Matt Spetalnick; Editing by John Walcott and Jonathan Oatis)

Trump seeks to shrink federal role in education with new order

U.S. President Donald Trump signs an executive order on education as he participates in a federalism event with Governors at the White House in Washington, DC, U.S. April 26, 2017. REUTERS/Carlos Barria

WASHINGTON (Reuters) – President Donald Trump on Wednesday ordered Education Secretary Betsy DeVos to review the U.S. government’s role in school policy, which supporters cheered as the first step in creating more local control in education and critics worried could lead to lower quality schools in poorer neighborhoods.

DeVos has 300 days “to review and, if necessary, modify and repeal regulations and guidance issued by the Department of Education with a clear mandate to identify places where D.C. has overstepped its legal authority,” said Rob Goad, a Department of Education official, according to a transcript of a White House call with reporters.

The second most powerful Republican in the House of Representatives, California’s Kevin McCarthy, said the federal government had in recent years exceeded its legal authority in creating regulations and guidance

“Different people in different states and communities will have different goals and ways of achieving those goals. That is something we should celebrate and enable, not try to stop,” he said in a statement.

The Democratic National Committee, though, said the order was politically motivated, with Trump wanting something to show in school policy in his first 100 days.

The head of the American Federation of Teachers union, Randi Weingarten, said the current education law, Every Student Succeeds Act, already reduces federal power over schools, especially when it comes to standards and teacher assessments.

“What the new law doesn’t do is abandon the requirement for the federal government to protect the civil rights of our students, even if those rights run counter to what states and districts want to do,” she said in a statement.

(Reporting by Lisa Lambert; Editing by Marguerita Choy)

Asylum-seekers fleeing U.S. may find cold comfort in Canada’s courts

FILE PHOTO: A woman who told police that she and her family were from Sudan is taken into custody by Royal Canadian Mounted Police (RCMP) officers after arriving by taxi and walking across the U.S.-Canada border into Hemmingford, Quebec, Canada on February 12, 2017. REUTERS/Christinne Muschi/File Photo

By Anna Mehler Paperny and Rod Nickel

TORONTO/WINNIPEG, Manitoba (Reuters) – Migrants who applied for asylum in the United States but then fled north, fearing they would be swept up in President Donald Trump’s immigration crackdown, may have miscalculated in viewing Canada as a safe haven.

That is because their time in the United States could count against them when they apply for asylum in Canada, according to a Reuters review of Canadian federal court rulings on asylum seekers and interviews with refugee lawyers.

In 2016, 160 asylum cases came to the federal courts after being rejected by refugee tribunals. Of those, 33 had been rejected in part because the applicants had spent time in the United States, the Reuters review found.

Lawyers said there could be many more such cases among the thousands of applicants who were rejected by the tribunals in the same period but did not appeal to the federal courts.

The 2016 court rulings underscore the potentially precarious legal situation now facing many of the nearly 2,000 people who have crossed illegally into Canada since January.

Most of those border crossers had been living legally in the United States, including people awaiting the outcome of U.S. asylum applications, according to Canadian and U.S. government officials and Reuters interviews with dozens of migrants.

Trump’s tough talk on illegal immigration, however, spurred them northward to Canada, whose government they viewed as more welcoming to migrants. There, they have begun applying for asylum, citing continued fears of persecution or violence in their homelands, including Somalia and Eritrea.

But Canadian refugee tribunals are wary of “asylum-shopping” and look askance at people coming from one of the world’s richest countries to file claims, the refugee lawyers said. (For graphic on asylum process see http://tmsnrt.rs/2nyY8CJ)

“Abandoning a claim in the United States or coming to Canada after a negative decision in the United States, or failing to claim and remaining in the States for a long period of time – those are all big negatives. Big, big negatives,” said Toronto-based legal aid lawyer Anthony Navaneelan, who is representing applicants who came to Canada from the United States in recent months.

The Canadian government has not given a precise figure on how many of the border crossers were asylum seekers in the United States.

But it appears their fears may have been misplaced. Trump’s attorney general, Jeff Sessions, has said that anyone in the United States illegally is subject to deportation, but there is no evidence that asylum seekers with pending cases are considered illegal under the new administration.

“LACK OF SERIOUSNESS”

The asylum seekers will make their cases before Canada’s refugee tribunals, which rejected 5,000 cases last year. The tribunals’ decisions are not made public, so the reasons are not known. An Immigration and Refugee Board spokeswoman confirmed, however, that an applicant’s time in the United States can be a factor in a tribunal’s decision.

Rejected applicants can appeal to Canada’s federal courts, whose rulings are published. The federal courts upheld 19 of the 33 tribunal rejections they heard last year and recommended fresh tribunal hearings for the other 14 cases.

The judges believed those claimants had a good explanation for having been in the United States first. The outcomes of the new tribunal hearings are not known.

The federal court handles only a small portion of all applications rejected by the refugee tribunals. But overall, applicants who have spent time in the United States have a higher chance of being rejected, said multiple immigration lawyers, including two former refugee tribunal counsel, interviewed by Reuters.

Last year, a federal judge upheld a refugee tribunal rejection of Sri Lankan man who had abandoned a pending U.S. claim. The tribunal said the man’s decision demonstrated a “lack of seriousness” and was “inconsistent with the expected behavior” of someone who fears persecution in their own country.

A Chadian applicant lost his 2016 appeal because he did not claim asylum “at the first opportunity” in the United States.

The asylum-seekers who have crossed the U.S border since January are still going through the claim process and many have yet to go through tribunal hearings.

WELL-FOUNDED FEAR?

Canadian officials want refugee applicants to behave the way they think people fleeing for their lives would behave, said lawyer and researcher Hilary Evans Cameron. Living undocumented in the United States for years or abandoning a pending claim, as many people among this latest refugee influx have done, are not seen as consistent with that fear, she said.

Those with failed U.S. asylum claims must prove to Canadian tribunals that the U.S. courts were wrong in their assessment, that their circumstances have changed for the worse, or that they qualify in Canada, several lawyers said.

Crucially, all applicants must show that the often years-old fears that led them to leave their home countries for the United States still exist.

Canada grants asylum if applicants qualify under the United Nations’ definition of someone who has a well-founded fear of persecution based on certain criteria, such as race, religion, nationality or political affiliation.

A federal judge ruled in March that the deportation of a Honduran family, who had lived in the United States for more than three years, could go forward after immigration officials found the family no longer faced a risk in Honduras.

“The longer they’ve been away (from their country of origin), the more difficult it is to establish that they’re a refugee,” said Winnipeg refugee lawyer Ken Zaifman.

Graphic on asylum process http://tmsnrt.rs/2nyY8CJ

(Additional reporting by Julia Edwards Ainsley in Washington; Editing by Amran Abocar and Ross Colvin)

China welcomes U.S. saying it’s open to talks on North Korea

A military drill marking the 85th anniversary of the establishment of the Korean People's Army (KPA) is seen in this handout photo by North Korea's Korean Central News Agency (KCNA) made available on April 26, 2017. KCNA/Handout via REUTERS

By Michael Martina and Ju-min Park

BEIJING/SEOUL (Reuters) – China on Thursday welcomed an apparently softer tone by the United States on the North Korean nuclear and missile crisis but stressed its opposition to a U.S. missile defense system being deployed in South Korea.

China has long promoted dialogue to resolve the “Korean nuclear issue” as North Korea has repeatedly threatened to destroy the United States which in turn has warned that “all options are on the table” in ending North Korean provocations.

The Trump administration said on Wednesday it aimed to push North Korea into dismantling its nuclear and missile programs, which are in violation of U.N. Security Council resolutions, through tougher international sanctions and diplomatic pressure.

“The United States seeks stability and the peaceful denuclearization of the Korean peninsula. We remain open to negotiations toward that goal. However, we remain prepared to defend ourselves and our allies,” it said in a statement.

Asked about the U.S. comments, Chinese Foreign Ministry spokesman Geng Shuang said China had noted that many U.S. officials had recently made such remarks.

“We have noted these expressions, and have noted the message conveyed in these expressions hoping to resolve the Korean nuclear issue peacefully through dialogue and consultation,” he said.

“We believe this message is positive and should be affirmed.”

South Korea and the United States agreed on Thursday on “swift punitive measures” against North Korea in the event of further provocation. The South also said the deployment of a U.S. anti-missile defense system was moving ahead effectively a day after angry protests against the battery and fierce opposition from China.

South Korea on Wednesday moved parts of the Terminal High Altitude Area Defense (THAAD) system to its deployment site on a golf course about 250 km (155 miles) south of the capital, Seoul, signaling a faster installation of the system.

Several hundred South Korean villagers protested near the site, hurling water bottles at vehicles moving the parts in.

CHINA AGAIN DENOUNCES THAAD

The top U.S. Commander in the Pacific, Admiral Harry Harris, said on Wednesday the THAAD system would be operational “in coming days” bolstering the ability to defend the U.S. ally and the 28,500 U.S. troops stationed there.

A photograph taken of the site showed a THAAD interceptor on the back of a mobile launcher erected and pointed skywards on green lawn as a military transport helicopter hovered nearby.

China says the system’s advanced radar can penetrate deep into its territory and undermine its security. It is adamant in its opposition.

“The deployment of the THAAD anti-missile system in South Korea damages the regional strategic balance and stability. The Chinese side is resolutely opposed to this,” Defence Ministry spokesman Yang Yujun told reporters.

“China’s military will continue to carry out live-fire military exercises and test new military equipment in order to firmly safeguard national security and regional peace and stability.”

U.S. Secretary of State Rex Tillerson, Defense Secretary Jim Mattis and Director of National Intelligence Dan Coats described North Korea on Wednesday as “an urgent national security threat and top foreign policy priority”.

The U.S. signal of a willingness to exhaust non-military avenues came as the USS Carl Vinson aircraft carrier group approached Korean waters, where it will join the USS Michigan nuclear submarine.

North Korea, which conducted its biggest ever artillery exercise to mark the 85th anniversary of its military’s creation on Tuesday, says it needs to develop weapons to defend itself from U.S. aggression.

A North Korean official speaking on CNN said the country would not be influenced by outside events.

“As long as America continues its hostile acts of aggression, we will never stop nuclear and missile tests,” said Sok Chol Won, director of the North’s Institute of Human Rights at the Academy of Social Sciences.

Moon Jae-in, the front-runner in South Korea’s May 9 presidential election, has called for a delay in THAAD deployment, saying a decision should be made after gathering public opinion and more talks with Washington.

(Additional reporting by Phil Stewart in WASHINGTON and Ben Blanchard in BEIJING; Writing by Jack Kim and Nick Macfie; Editing by Robert Birsel)