Trump to visit Asia in November, North Korea in spotlight

U.S. President Donald Trump departs aboard Air Force One to return to Washington from Indianapolis International Airport in Indianapolis, Indiana, U.S. September 27, 2017. REUTERS/Jonathan Ernst

By Steve Holland

WASHINGTON (Reuters) – Donald Trump will travel to Asia in November for the first time since becoming president, stopping in Japan, South Korea, China, Vietnam and the Philippines on a trip expected to be dominated by the North Korea nuclear threat.

Joined by his wife Melania, Trump will travel Nov. 3-14. His visit will include attending two major summits, the Asia-Pacific Economic Cooperation forum in Vietnam and the Association of Southeast Asian Nations conclave in the Philippines.

Trump’s attendance at the Manila summit had been in doubt until recent days, with officials saying he was reluctant to show support for Philippine President Rodrigo Duterte, who has been responsible for a number of anti-American outbursts.

A U.S. official said Asian leaders who met Trump at the United Nations General Assembly in New York last week helped persuade him to attend in unity with key Asian allies.

An Asian diplomat welcomed Trump’s decision to visit Manila “because that reassures the region that Asia policy is not just about North Korea, it’s about Southeast Asia as well.”

The diplomat said Trump’s decision to withdraw from the Trans Pacific Partnership trade deal early this year had raised questions about the administration’s commitment to the region. But visits by senior officials, including the secretaries of state, defense and commerce, and Trump’s planned trip, showed Washington intended to remain engaged.

Philippine Foreign Secretary Alan Peter Cayetano said Duterte was looking forward to meeting Trump, adding that the relationship between the two countries was so resilient that ties would always recover, regardless of disagreements.

Trump, who has been locked in an increasingly bitter war of words with North Korean leader Kim Jong Un, will have the opportunity to bolster allied resolve for what he calls the “complete denuclearization” of Pyongyang.

He has denounced Kim as a “rocket man” on a suicide mission for test launches of ballistic missiles and for nuclear weapon tests. He has warned North Korea would face total devastation if it threatens the United States. Kim has blasted Trump as “mentally deranged.”

“The president’s engagements will strengthen the international resolve to confront the North Korean threat and ensure the complete, verifiable, and irreversible denuclearization of the Korean Peninsula,” the White House said in announcing the trip.

Trump’s visit to China will reciprocate a trip to the United States made in April by Chinese President Xi Jinping. Trump has applied heavy pressure on China to rein in North Korea. While his efforts have had limited success thus far, he went out of his way to thank Xi on Tuesday for his efforts.

“I applaud China for breaking off all banking relationships with North Korea – something that people would have thought unthinkable even two months ago. I want to thank President Xi,” Trump said at a news conference with Spanish Prime Minister Mariano Rajoy.

Speaking in Beijing, U.S. Secretary of State Rex Tillerson told China’s top diplomat State Councilor Yang Jiechi that the two presidents had established a “very regular and close working relationship”.

Yang described Trump’s visit as of great importance to the bilateral relationship. “Let us concentrate on cooperation and properly manage our differences in a spirit of mutual respect and mutual benefit,” he said to Tillerson.

At the same time, Trump’s national security team is conducting a broad review of U.S. strategy toward China in search of ways to counter Chinese trade practices and open up market access, a senior administration official said.

The United States also considers Chinese entities behind the theft of intellectual property and cyber attacks and wants to find ways to address these concerns, the official said.

There was no definite timetable for concluding the review.

“We’re looking at all of it,” the official said.

(Reporting by Steve Holland, additional reporting by David Brunnstrom in WASHINGTON, Phil Stewart in BEIJING and Martin Petty in MANILA; Editing by Andrew Hay and Richard Pullin)

New Yorkers to greet Trump’s first visit home with protests

U.S. President Donald Trump gestures to the media after Palestinian President Mahmoud Abbas left the White House in Washington, U.S., May 3, 2017. REUTERS/Yuri Gripas

By Dave Graham and David Ljunggren

MEXICO CITY/OTTAWA (Reuters) – From launching a data-mining drive aiming to find supply-chain pressure points to sending officials to mobilize allies in key U.S. states, Mexico and Canada are bolstering their defenses of a regional trade pact President Donald Trump vows to rewrite.

Trump has blamed the North American Free Trade Agreement (NAFTA) for the loss of millions of manufacturing jobs and has threatened to tear it up if he fails to get a better deal.

Fearing the massive disruptions a U.S. pullout could cause, the United States’ neighbors and two biggest export markets have focused on sectors most exposed to a breakdown in free trade and with the political clout to influence Washington.

That encompasses many of the states that swept Trump to power in November and senior politicians such as Vice President Mike Pence, a former Indiana governor or Wisconsin representative and House Speaker Paul Ryan.

Prominent CEOs on Trump’s business councils are also key targets, according to people familiar with the lobbying push.

Mexico, for example, has picked out the governors of Texas, Arizona and Indiana as potential allies.

Decision makers in Michigan, North Carolina, Minnesota, Illinois, Tennessee, Wisconsin, Ohio, Florida, Pennsylvania, Nebraska, California and New Mexico are also on Mexico’s priority list, according to people involved in talks.

Mexican and U.S. officials and executives have had “hundreds” of meetings since Trump took office, said Moises Kalach, foreign trade chief of the Mexican private sector team leading the defense of NAFTA. (Graphic:http://tmsnrt.rs/2oYClp2)

Canada has drawn up a list of 11 U.S. states, largely overlapping with Mexico’s targets, that stand to lose the most if the trade pact enacted in 1994 unravels.

To identify potential allies among U.S. companies and industries, Mexican business lobby Consejo Coordinador Empresarial (CCE) recruited IQOM, a consultancy led by former NAFTA negotiators Herminio Blanco and Jaime Zabludovsky.

In one case, the analysis found that in Indiana, one type of engine made up about a fifth of the state’s $5 billion exports to Mexico. Kalach’s team identified one local supplier of the product and put it touch with its main Mexican client.

“We said: talk to the governor, talk to the members of congress, talk to your ex-governor, Vice President Pence, and explain that if this goes wrong, the company is done,” Kalach said. He declined to reveal the name of the company and Reuters could not immediately verify its identity.

Trump rattled the two nations last week when his administration said he was considering an executive order to withdraw from the trade pact, which has been in force since 1994. He later said he would try to renegotiate the deal first and Kalach said the lobbying effort deserved much credit for Trump’s u-turn.

“There was huge mobilization,” he said. “I can tell you the phone did not stop ringing in (Commerce Secretary Wilbur) Ross’s office. It did not stop ringing in (National Economic Council Director) Gary Cohn’s office, in the office of (White House Chief of Staff Reince) Priebus. The visits to the White House from pro-NAFTA allies did not stop all afternoon.”

Among those calling the White House and other senior administration officials were U.S. Chamber of Commerce chief Tom Donohue, officials from the Business Roundtable and CEOs from both lobbies, according to people familiar with the discussions.

PRIME TARGET

Mexico has been the prime target of NAFTA critics, who blame it for lost manufacturing jobs and widening U.S. trade deficits. Canada had managed to keep a lower profile, concentrating on seeking U.S. allies in case of an open conflict.

That changed in late April when the Trump administration attacked Ottawa over support for dairy farmers and slapped preliminary duties on softwood lumber imports.

Despite an apparently weaker position – Canada and Mexico jointly absorb about a third of U.S. exports, but rely on U.S. demand for three quarters of their own – the two have managed to even up the odds in the past by exploiting certain weak spots.

When Washington clashed with Ottawa in 2013 over meat-labeling rules, Canada retaliated by targeting exports from the states of key U.S. legislators. A similar policy is again under consideration.

Mexico is taking a leaf out of a 2011 trucking dispute to identify U.S. interests that are most exposed, such as $2.3 billion of yellow corn exports.

Mexico is also targeting members of Trump advisory bodies, the Strategic and Policy Forum and the Manufacturing Council, led by Blackstone Group LP’s Stephen Schwarzman and Dow Chemical Co boss Andrew Liveris respectively.

Senior Trump administration officials and Republican lawmakers in charge of trade, agriculture and finance committees also feature among top lobbying targets.

Canada has spread the task of lobbying the United States among ministries, official say, and is particularly keen to avoid disruption to the highly-integrated auto industry.

A core component of Mexico’s strategy is to argue the three nations have a common interest in fending off Asian competition and exploring scope to source more content regionally.

The defenders of NAFTA also say that it supports millions of jobs in the United States, and point out that U.S. trade shortfalls with Canada and Mexico have declined over the past decade even as the deficit with China continued to climb.

Part of IQOM’s mission is to identify sectors where NAFTA rules of origin could be modified to increase regional content.

For example, U.S., Canadian and Mexican officials are debating how the NAFTA region can reduce auto parts imports from China, Japan, South Korea or Germany, Mexican officials say.

“The key thing is to see how we can get a win-win on the products most used in our countries, and to develop common manufacturing platforms that allow us just to buy between ourselves the biggest amount of inputs we need,” said Luis Aguirre, vice-president of Mexican industry group Concamin.

Graphic: Trade battles – http://tmsnrt.rs/2pAdPcp

(Additional reporting by Michael O’Boyle Alexandra Alper, Ana Isabel Martinez, Ginger Gibson and Adriana Barrera; Editing by Tomasz Janowski)

Israel, White House discussing Trump visit: Israeli official

U.S. President Donald Trump talks to the media next to Secretary of Agriculture Sonny Perdue during a roundtable discussion with farmers at the White House in Washington, U.S. April 25, 2017. REUTERS/Yuri Gripas

JERUSALEM (Reuters) – Israel and the White House are in preliminary discussions about a visit to Israel by U.S. President Donald Trump as early as next month, an Israeli government official said on Wednesday.

A Trump visit would mark an early personal engagement by the new Republican president in efforts to resolve the intractable Israeli-Palestinian conflict.

Israeli Prime Minister Benjamin Netanyahu met Trump in the White House in February, one of the first foreign leaders to do so after the wealthy businessman took office in January, and has spoken of positive change in U.S. Middle East policy after years of friction with Trump’s Democratic predecessor, Barack Obama.

“There are preliminary contacts between the (Israeli) Foreign Ministry and the White House and there is a 70 percent chance that a (Trump) presidential visit will happen,” the Israeli official said, speaking on condition of anonymity because a trip had not been finalised.

Trump has said he intends to pursue efforts to achieve Israeli-Palestinian peace. The last round of talks between the two adversaries collapsed in 2014. Palestinian President Mahmoud Abbas is due to see Trump in Washington on May 3.

Praising U.S. policy since Trump entered the White House, Netanyahu has cited in particular a U.S. missile strike in Syria on April 6 in retaliation for what Washington charged was a Syrian government chemical weapons attack in a rebel-held area that killed scores of civilians. Damascus denied responsibility.

Netanyahu had an often tense relationship with Obama over the 2015 U.S.-backed Iran nuclear deal and Israeli settlement building on occupied land that Palestinians want for a state.

His vision for a two-state resolution of the Israeli-Palestinian conflict unfulfilled, Obama came to Israel twice in his eight years as president – in 2013 and last September for the funeral of Israeli elder statesman Shimon Peres.

Trump, who appeared to surprise Netanyahu at their White House meeting by urging him to curb settlements, is due to make his first overseas visit as president, to Europe in May.

A senior U.S. administration official said last week a stop in Saudi Arabia might be added.

(Writing by Ori Lewis; editing by Jeffrey Heller and Mark Heinrich)