Swine influenza FAQ

http://www.who.int/csr/disease/swineflu/faq/en/index.html#what

What is swine influenza?

Swine influenza, or “swine flu”, is a highly contagious acute respiratory disease of pigs, caused by one of several swine influenza A viruses. Morbidity tends to be high and mortality low (1-4%).

The virus is spread among pigs by aerosols, direct and indirect contact, and asymptomatic carrier pigs. Outbreaks in pigs occur year round, with an increased incidence in the autumn and winter in temperate zones. Many countries routinely vaccinate swine populations against swine influenza.

Swine influenza viruses are most commonly of the H1N1 subtype, but other subtypes are also circulating in pigs (e.g., H1N2, H3N1, H3N2). Pigs can also be infected with avian influenza viruses and human seasonal influenza viruses as well as swine influenza viruses. The H3N2 swine virus was thought to have been originally introduced into pigs by humans. Sometimes pigs can be infected with more than one virus type at a time, which can allow the genes from these viruses to mix. This can result in an influenza virus containing genes from a number of sources, called a "reassortant" virus. Although swine influenza viruses are normally species specific and only infect pigs, they do sometimes cross the species barrier to cause disease in humans.

What are the implications for human health?

Outbreaks and sporadic human infection with swine influenza have been occasionally reported. Generally clinical symptoms are similar to seasonal influenza but reported clinical presentation ranges broadly from asymptomatic infection to severe pneumonia resulting in death.

Since typical clinical presentation of swine influenza infection in humans resembles seasonal influenza and other acute upper respiratory tract infections, most of the cases have been detected by chance through seasonal influenza surveillance. Mild or asymptomatic cases may have escaped from recognition; therefore the true extent of this disease among humans is unknown.

Where have human cases occurred?

Since the implementation of IHR(2005)1 in 2007, WHO has been notified of swine influenza cases from the United States and Spain.

How do people become infected?

Humans usually contract swine influenza from infected pigs, however, some cases lack contact history with pigs or environments where pigs have been located. Human-to-human transmission has occurred in some instances but was limited to close contacts and closed groups of people.

Is it safe to eat pork and pork products?

Yes. Swine influenza has not been shown to be transmissible to people through eating properly handled and prepared pork (pig meat) or other products derived from pigs. The swine influenza virus is killed by cooking temperatures of 160°F/70°C, corresponding to the general guidance for the preparation of pork and other meat.

Which countries have been affected by outbreaks in pigs?

Swine influenza is not notifiable to international animal health authorities (OIE, www.oie.int), therefore its international distribution in animals is not well known. The disease is considered endemic in the United States. Outbreaks in pigs are also known to have occurred in North America, South America, Europe (including the UK, Sweden, and Italy), Africa (Kenya), and in parts of eastern Asia including China and Japan.

What about the pandemic risk?

It is likely that most people, especially those who do not have regular contact with pigs, do not have immunity to swine influenza viruses that can prevent the virus infection. If a swine virus establishes efficient human-to human transmission, it can cause an influenza pandemic. The impact of a pandemic caused by such a virus is difficult to predict: it depends on virulence of the virus, existing immunity among people, cross protection by antibodies acquired from seasonal influenza infection and host factors.

Is there a human vaccine to protect against swine influenza?

There are no vaccines that contain the current swine influenza virus causing illness in humans. It is not known whether current human seasonal influenza vaccines can provide any protection. Influenza viruses change very quickly. It is important to develop a vaccine against the currently circulating virus strain for it to provide maximum protection to the vaccinated people. This is why WHO needs access to as many viruses as possible in order to select the most appropriate candidate vaccine virus.

What medicines are available for treatment?

There are two classes of such medicines, 1) adamantanes (amantadine and remantadine), and 2) inhibitors of influenza neuraminidase (oseltamivir and zanamivir). Most of the previously reported swine influenza cases recovered fully from the disease without requiring medical attention and without antiviral medicines.

Some influenza viruses develop resistance to the antiviral medicines, limiting the effectiveness of treatment.

The viruses obtained from the recent human cases with swine influenza in the United States are sensitive to oselatmivir and zanamivir but resistant to amantadine and remantadine.

Information is insufficient to make recommendations on the use of the antivirals in treatment of swine influenza virus infection.

Clinicians should make decisions based on the clinical and epidemiological assessment and harms and benefits of the treatment of the patient2. For the ongoing outbreak of the swine influenza infection in the United States and Mexico, national and local authorities are recommending use oseltamivir or zanamivir for treatment of the disease based on the virus’s susceptibility profile.

What should I do if I am in regular contact with pigs?

Even though there is no clear indication that the current human cases with swine influenza infection are related to recent or ongoing influenza-like disease events in pigs, it would be advisable to minimize contact with sick pigs and report such animals to relevant animal health authorities.

Most people are infected through prolonged, close contact with infected pigs. Good hygiene practices are essential in all contact with animals and are especially important during slaughter and post-slaughter handling to prevent exposure to disease agents. Sick animals or animals that died from disease should not be undergoing slaughtering procedures. Follow further advice from relevant national authorities.

Swine influenza has not been shown to be transmissible to people through eating properly handled and prepared pork (pig meat) or other products derived from pigs. The swine influenza virus is killed by cooking temperatures of 160°F/70°C corresponding to the general guidance for the preparation of pork and other meat.

How can I protect myself from getting swine influenza from infected people?

In the past, human infection with swine influenza was generally mild but is known to have caused severe illness such as pneumonia For the current outbreaks in the United States and Mexico however, the clinical pictures have been different. None of the confirmed cases in the United States have had the severe form of the disease and the patients recovered from illness without requiring medical care. In Mexico, some patients reportedly had the severe form of the disease.

To protect yourself, practice general preventive measures for influenza:

Avoid close contact with people who appear unwell and who have fever and cough.

Wash your hands with soap and water frequently and thoroughly.

Practice good health habits including adequate sleep, eating nutritious food, and keeping physically active.

If there is an ill person at home:

Try to provide the ill person a separate section in the house. If this is not possible, keep the patient at least 1 meter in distance from others.

Cover mouth and nose when caring for the ill person. Masks can be bought commercially or made using the readily available materials as long as they are disposed of or cleaned properly.

Wash your hands with soap and water thoroughly after each contact with the ill person.

Try to improve the air flow in the area where the ill person stays. Use doors and windows to take advantage of breezes.

Keep the environment clean with readily available household cleaning agents.

If you are living in a country where swine influenza has caused disease in humans, follow additional advice from national and local health authorities.

What should I do if I think I have swine influenza?

If you feel unwell, have high fever, cough and/or sore throat:

Stay at home and keep away from work, school or crowds as much as possible.

Rest and take plenty of fluids.

Cover your mouth and nose with disposable tissues when coughing and sneezing and dispose of the used tissues properly.

Wash your hands with soap and water frequently and thoroughly, especially after coughing or sneezing.

Inform family and friends about your illness and seek help for household chores that require contact with other people such as shopping.

If you need medical attention:

Contact your doctor or healthcare provider before travelling to see them and report your symptoms.

Explain why you think you have swine influenza (for example, if you have recently travelled to a country where there is a swine influenza outbreak in humans). Follow the advice given to you for care.

If it is not possible to contact your healthcare provider in advance, communicate your suspicion of having swine influenza immediately upon arrival at the healthcare facility.

Take care to cover your nose and mouth during travel.

Understanding Swine Flu’s World Spread: Questions and Answers

By John Lauerman

http://www.bloomberg.com/apps/news?pid=20601087&sid=aLdy2aZer5fM&refer=home

April 30 (Bloomberg) -- Swine flu has sickened at least 257 people in 11 countries, including Mexico, the U.S., New Zealand, Canada and the U.K., according to the World Health Organization.

The organization raised its six-tier pandemic alert to 5 and said the world’s first influenza pandemic since 1968 may soon be declared. Hundreds of more cases are suspected, as health officials around the world check to see whether infections have occurred in their countries and ready measures to prevent its spread.

Here are answers to some frequently asked questions about swine flu.

The information is drawn from the data released by the World Health Organization in Geneva and the U.S. Centers for Disease Control and Prevention in Atlanta.

Q: What is swine flu?

A: Influenza is a virus that infects people, birds, pigs and other animals such as ferrets. Swine flu, or swine influenza, is a form of the virus that normally infects pigs. There are many forms of flu, and the different varieties have the ability to exchange genes with one another. The form of flu that originated in Mexico is a genetic mixture of viruses that have been seen in pigs, birds and people. It’s being called a swine flu because the overall structure of the virus is of the type that affects pigs, said Keiji Fukuda, a WHO official.

Q: How do people catch swine flu?

A: Studies are ongoing about how this particular swine flu is transmitted. Flu is generally transmitted through the respiratory tract. Droplets of infected body fluids may carry flu when people cough or sneeze. Studies indicate that masks called N95 respirators, when properly used, filter germs from the breath and hamper the spread of flu. Neither contact with pigs nor eating pork has been linked to the spread of the flu, Fukuda said.

Q: What are the symptoms of swine flu?

A: About one to four days usually elapse between the time a person is infected and the onset of symptoms. Influenza normally causes symptoms such as coughing, sneezing, headaches and body aches, fever, chills, and sometimes vomiting and diarrhea. Swine flu causes the same symptoms, and may be difficult to distinguish from other strains of flu and respiratory illnesses. Severe cases of flu that lead to death are normally seen in very young and very old people whose immune systems are too weak to fight off the virus. Adults with severe illness may also have difficulty breathing, dizziness, confusion, or severe vomiting and diarrhea.

Q: Is there a vaccine against the swine flu that’s now spreading?

A: Flu vaccines generally contain a dead or weakened form of a circulating virus. The vaccine prepares the body’s immune system to fend off a true infection. For the vaccine to work, it must match the circulating, “wild-type” virus relatively closely. There is no vaccine currently that exactly matches the swine flu. The seasonal flu vaccine isn’t effective against swine flu, said Richard Besser, acting head of the CDC. Vaccine makers have contacted the World Health Organization about obtaining samples of the virus needed to make a vaccine. Making flu vaccine can take three to six months. No decision has been made to order a vaccine against swine flu, Besser said.

Q: How can I tell if my child is sick?

A: Children who are breathing abnormally fast or slowly may have respiratory illness. Bluish skin indicates a need for quick attention. Children who are abnormally sluggish and sleepy, irritable, or have fever or rash may also need attention.

Q: Have there been outbreaks of swine flu before?

A: Yes. Health officials said in 1976 that an outbreak of swine flu in people might lead to a pandemic. Widespread vaccination was carried out in the U.S. before experts determined that the virus was not dangerous enough to cause a pandemic. Swine flu occasionally infects people in the U.S. without causing large outbreaks. From 2005 through January 2009, there were 12 reported swine flu cases in the U.S. None of them caused deaths.

Q: Why are health officials concerned about the outbreak of swine flu?

A: When flu viruses mix genes with one another, they can take on new forms. New flu viruses are harder for the human immune system to defend against. With little or no opposition from the immune resistance, the virus can grow quickly and invade many tissues and organs. They may also set off a harmful immune overreaction in the body, called a “cytokine storm,” that may be lethal in itself. The swine flu virus from Mexico may have the ability to spread quickly and kill people, possibly causing a worldwide pandemic, according to the WHO. Researchers are conducting studies to determine how easily the virus spreads in people and how dangerous it is.

Q: What’s a flu pandemic?

A: A flu pandemic occurs when a new influenza virus spreads quickly and few people have immunity. While influenza viruses were only discovered about a century ago, researchers believe flu pandemics hit about two or three times each century. Some pandemics kill a few million people globally. The most severe flu pandemic on record was the 1918 Spanish Flu. Researchers estimate it killed about 50 million people around the world.

Q: Are there any similarities between the swine flu and earlier pandemic viruses?

A: Flu viruses are classified by two proteins on their surface, called H for hemagglutinin and N for neuraminidase. The swine flu found in Mexico and the 1918 Spanish Flu viruses are of the H1N1 subtype. Both viruses appear to have originated in animals. Researchers believe the Spanish Flu spread to people from birds. The two viruses are not identical, and there are still many genetic differences between them that researchers are studying.

Q: Do all H1N1 viruses cause pandemics?

A: No. H1N1 descendants of the Spanish Flu virus continue to circulate in people and sometimes cause outbreaks of seasonal flu.

Q: Are there drugs that treat swine flu?

A: Yes. Roche Holding AG’s Tamiflu and GlaxoSmithKline Plc’s Relenza both react against swine flu. The U.S. Department of Homeland Security has released 25 percent of its stockpile of Tamiflu and Relenza, according to Secretary Janet Napolitano. Flu viruses sometimes develop resistance to antiviral drugs. The human form of H1N1 seasonal flu that’s currently circulating is resistant to Roche’s Tamiflu (not Relenza). If the two viruses were to exchange genes, the swine flu might become resistant, too. The drugs should be administered within the first 48 hours of the onset of symptoms, according to the CDC. Tamiflu and Relenza may also help prevent swine flu in people who have been exposed to someone who was sick.

Q: How else can I protect myself from swine flu?

A: Personal hygiene measures, such as avoiding people who are coughing or sneezing and frequent hand-washing, may prevent flu infection. Those who aren’t health professionals should avoid contact with sick people. People who get sick with flu symptoms should stay home. Studies have suggested that closing schools, theaters, and canceling gatherings in the early stages of a pandemic can limit its spread. Such measures would likely take place if health officials determine that the virus is spreading quickly enough and is deadly enough to cause a pandemic.

To contact the reporter on this story: John Lauerman in Boston at jlauerman@bloomberg.net;

Last Updated: April 30, 2009 14:42 EDT

Democratic Policing Essential to Protect Individual Liberties

http://newsblaze.com/story/20090429060645tsop.nb/topstory.html

Washington

Police officials are often the first contact a person has with a country's legal system. The American Bar Association's Rule of Law Initiative (ABA ROLI) helps train law enforcement officials around the world so that the first citizen-police encounter is a positive one.

ABA ROLI is a nonprofit program that implements legal reform programs in more than 40 countries. It has more than 400 professional staff working in the United States and abroad, including a cadre of short- and long-term expatriate volunteers who, since the program's inception in 2007, have contributed more than $200 million in donated legal assistance.

ABA ROLI "fully recognizes the direct link between democratization efforts and the ability of states to protect [their] citizens and maintain order while protecting individual liberties and civil and political rights," said Mary Greer, senior adviser to ABA ROLI's Criminal Law Reform Program.

"We work with training academies, whether they're prosecutors, police academies, or, to some extent, judicial academies," Greer said. "Often our work with police is in the context of a changing criminal-procedure-code environment," she told America.gov.

Changing a country's criminal procedures to conform to international standards means a shift in roles and responsibilities, Greer explained.

In former Soviet Union countries, she said, police and prosecutors ruled supreme under the old system. Now, judges, not police, issue search warrants and approve arrest warrants.

ABA ROLI's goals when conducting training overseas are to insure that international standards of fairness and transparency are met. "Fair trial standards," Greer said, "start with investigations that are conducted by people with the expertise as well as the knowledge of human rights - whether [those] human rights are victim's rights or the accused or witnesses."

PROMOTING A RULE-OF-LAW CULTURE AMONG POLICE

One of ABA ROLI's most recent programs is a comprehensive review and reform of the Panamanian police curriculum and training methods. Begun in February, the goal of the yearlong effort is to help Panamanian police trainers in promoting a rule-of-law culture among Panamanian police.

Michael McCullough, director of ABA's Latin America and the Caribbean ROLI program, told America.gov that a 2006 survey conducted by the Inter-American Development Bank concluded that 46 percent of Panamanians believed the criminal justice system fails to punish criminals.

"A lot of citizen confidence is going to be based on their perceptions of the police," McCullough said.

"Police in many cases are the first contact that a citizen has with the legal system - and sometimes the only direct contact," he said. "

So to a large extent, the impressions that citizens have of the legal system will result from their impressions of the police. We think it is very important for the police to be highly professional, ethical and competent in the performance of their duties."

Especially important is that the police understand how to conduct effective investigations, he said.

"If [police] don't effectively gather the proper evidence and follow the chain of custody and comply with the constitutional guarantees, the prosecutor's hands will be tied at trial," McCullough said.

The ABA ROLI program in Panama, which is funded in part by the U.S. government, is part of a larger agreement between the governments of Panama and the United States to reform Panama's justice sector, McCullough said.

INTERNATIONAL RAMIFICATIONS

A properly trained police force enhances the international community's efforts to control transnational crime, Greer said.

For example, an ABA ROLI training program for police officers in Ukraine has made extradition requests by the United States proceed more smoothly, she said. Likewise, cases involving the trafficking of women from Moldova to Ukraine were facilitated by ABA ROLI training regarding legal issues between jurisdictions.

"So much more crime is global," Greer said. "Terrorism, money laundering, cybercrime are truly global crimes."

"You really have to work even harder ... at trying to devise a regional strategy within country-specific priorities," she said.

More information about ABA ROLI ( http://www.abanet.org/rol/ ) is available on the ABA Web site.

(This is a product of the Bureau of International Information Programs, U.S. Department of State. Web site: http://www.america.gov/)

Panama to signal Obama's Agenda

APRIL 26, 2009, 8:53 P.M. ET

Panama to Signal Obama's Agenda
http://online.wsj.com/article/SB124079102550957773.html

By GREG HITT

WASHINGTON -- President Barack Obama has signaled in recent days a more positive stance toward free trade than he did on the campaign trail, pleasing business groups but courting a backlash among trade-skeptical Democrats in Congress.

An early test of just how much Mr. Obama will push trade in addition to the other issues on his agenda -- like health care, climate change and financial regulation -- will be whether he prods Congress soon to ratify a free-trade agreement with Panama negotiated under the Bush administration.

The White House's newly confirmed trade representative, Ron Kirk, indicated that was under consideration in a speech last week, saying "we believe there is strong bipartisan support for the pending free-trade agreement with Panama." Mr. Kirk also mentioned possibly moving forward with other stalled Bush-era pacts with Colombia and South Korea.

That came a few days after Obama aides suggested the president wouldn't seek to reopen the North American Free Trade Agreement to address concerns about labor and environmental protections.

Mr. Obama had, as a candidate, pledged to renegotiate the deal. And it followed a decision by the Obama administration not to label China a currency manipulator, though Mr. Obama himself had done just that during the campaign. Critics of China say Beijing keeps the value of the yuan artificially low to give their exporters a leg up in the world economy.

After Mr. Obama and congressional Democrats talked tough on trade during the 2008 campaign, business leaders worried about new protectionism out of Washington. Now, some say they are more encouraged.

"If the president could just move the Panama agreement, it would send a signal to the world that we're open for business," Jim Owens, chairman and chief executive of Caterpillar Inc., said in remarks at the Council on Foreign Relations the same day as Mr. Kirk's speech.

But trade skepticism and populist economic sentiments still run high on Capitol Hill. Those sentiments derailed the trade agenda in the final years of the Bush presidency and helped fuel Democratic gains at the polls in the last two elections.

Rep. Mike Michaud (D., Maine) issued a statement after Mr. Kirk's speech denouncing the talk of acting on Panama as "absolutely outrageous and a serious mistake."

Mr. Michaud, a strong critic of U.S. trade policy, suggested Mr. Obama risks alienating voters who are worried about trade and globalization, and dividing Democrats on Capitol Hill. "You're just courting trouble," he said in an interview.

That came as other leaders in Congress have stepped up their campaign for Mr. Obama to stick more closely to his trade promises.

"I am disappointed that the Treasury Department did not cite China as a currency manipulator," Ohio Democratic Sen. Sherrod Brown told a Washington audience last week.

He called on Mr. Obama to convene a blue-ribbon commission to "help create a new path on trade." He added, "The basic premise of redirecting U.S. trade policy is that we must see evidence that our trade model is working before we pass new trade agreements -- whether with Panama, Colombia or South Korea," he said.

Already this year, Mr. Obama has had some small tussles with Congress on trade. Lawmakers tucked into the stimulus legislation a "Buy American" provision requiring preferences for domestic suppliers on government contracts. That has stirred tensions with trade partners, prompting the administration to vow to water down the rules.

Congress attached to a separate spending bill a provision that killed a program that allowed Mexican trucks to transport cargo into the U.S. Mexico responded with tariffs on a list of American exports. The White House has said it was working to resolve the dispute.

The next big test for trade is Panama. Mr. Kirk said last week that the deal wasn't ready yet for a congressional vote, saying, "I'm working to resolve some labor and other issues before we ask Congress to consider it."

Deborah Mesloh, spokeswoman for Mr. Kirk, said the administration is ready to work with Congress to address concerns on the trade agenda.

greg.hitt@wsj.com

Dalai Lama discusses global economy at UC Santa Barbara

'This crisis is good,' Tibetan leader says, because it reminds people that money has limitations.

He also speaks about arcane aspects of Buddhist history and philosophy.

By Louis Sahagun April 25, 2009

http://www.latimes.com/news/local/la-me-dalai25-2009apr25,0,7264017.story

Reporting from Santa Barbara

The Dalai Lama, in a ringing denunciation, declared Friday that the ailing global economy is the result of "too much greed, and lies and hypocrisy.

"These are some of the factors behind the global crisis," he said at a news conference at UC Santa Barbara. "Those people who feel that money is the most important thing in life, when economic crisis hits, learn that it is only one way to be happy. There is also family, friends and peace of mind."

Therefore, this crisis is good," he added with a laugh, "because it reminds people who only want to see money grow and grow that there are limitations."The Dalai Lama's remarks followed the first of two sold-out public lectures in the university events center Friday on "the nature of mind."

That discourse, delivered from an ornate wooden couch with ocher robes draped over his bony shoulders and with his legs folded beneath him, drew an audience of 4,800 people.Tickets, which had sold out within two hours, ranged in price from $20 to $40. Scalpers fetched up to $600 per ticket, university officials said.

In his characteristic self-effacing manner, the 74-year-old leader of Tibet's government-in-exile began by apologizing for a serious cold that had him frequently pausing to clear his throat or blow his nose.

Midway through the talk, he began speaking for up to 15 minutes at a stretch in Tibetan about arcane aspects of Buddhist history and philosophy, leaving his assistant to translate for fans.Advanced students of Buddhist philosophy leaned forward in their seats, hanging on every word.

Many others, however, began fidgeting or heading off to the restrooms. Some people snoozed.Joyce Tapper, 74, of Van Nuys took it all in stride."It's amazing that he pushes ahead despite little things like a cold and big things like the condition of his homeland," she said. "Just being in the room with him lifted me to a higher place, even if I didn't get it.

"Then there was Melanie Strickland, 48, a substitute teacher from the Joshua Tree area. Moments after the Dalai Lama left the stage, she was reciting large portions of the teachings -- nearly verbatim -- over her cellphone to a friend.

"The key is to rise above thoughts of pain and anger," she told her friend, "and focus on the here and now between those thoughts. See?"It was the Dalai Lama's fourth visit to this prosperous seaside community, which prepared for his appearance with four weeks of social gatherings, public talks by local scholars and Buddhist-oriented art exhibits, including an elaborate sand mandala under construction by 10 monks. On Friday night, the California-based Global Institute for Tibetan Medicine hosted a reception in honor of Gyalo Thondup, older brother of the Dalai Lama.

UC Santa Barbara became a leading center of Buddhist and Tibetan studies after the Dalai Lama's first visit there in 1984. He was invited to return this week by Jose Cabezon, the first occupant of the university's XIV Dalai Lama chair in Tibetan studies.

The invitation was made "quite a while ago because the Dalai Lama books his appearances about seven years in advance," Cabezon said.

"Finally, our number came up and he flew here direct from his headquarters in India.""We are institution unusual in its support and admiration for the Dalai Lama," said Eva Haller, a longtime trustee of the UC Santa Barbara Foundation. "He knows that, and feels at home here."

U.S. to push on Doha, Bush trade deals: Kirk

By Doug PalmerReuters

http://www.washingtonpost.com/wp-dyn/content/article/2009/04/23/AR2009042302610.html

Thursday, April 23, 2009; 1:30 PM

WASHINGTON (Reuters) - The Obama administration is committed to concluding long-running world trade talks and wants to move forward on trade deals with Panama, Colombia and South Korea negotiated by former President George W. Bush, U.S. Trade Representative Ron Kirk said on Thursday.

"Now is the time to revive global trade, and to lay the groundwork for an even more robust, more open trading system in future decades," Kirk said in what was billed as his first major policy speech since taking office last month.

"To get our economy back on track, we need to increase exports," Kirk said at the Georgetown University law school.

But with many Americans doubtful of the benefits of trade, it was also time to "take a new approach," Kirk said.

That meant rigorous U.S. enforcement of trade agreements to ensure countries honor commitments to open their markets and ensuring U.S. workers who lose their jobs because of trade know the government will "have their backs," he said.

The United States also must help small and medium-sized companies export more, Kirk said, noting that 97 percent of American exporters have fewer than 500 workers.

President Barack Obama tapped into strong anti-trade sentiment during last year's election by criticizing the North American Free Trade Agreement and opposing trade deals the Bush administration negotiated with Colombia and South Korea.

But with U.S. exports plummeting along with the rest of global trade, Obama has joined other world leaders in warning against the danger of protectionism.

LABOR PROTECTIONS

In meetings with leaders of Canada and Mexico, Obama has said he wants to add stronger labor and environmental protections to NAFTA without unraveling the pact.

Kirk said the Obama administration believed there was strong bipartisan support in Congress for a Panama trade deal left over from the Bush administration and was looking for new solutions to concerns that have blocked the pacts with Colombia and South Korea.

Opponents of those deals say pursuing the pacts would cause a split among Democrats that could damage Obama's ability to accomplish other legislative goals.

"This is absolutely outrageous and a serious mistake," said Rep. Mike Michaud, a leader of a group of 54 lawmakers, most of them Democrats, in the House of Representative who have called for major changes in U.S. policy.

The White House, if it submits the agreements to Congress, will likely have to rely heavily on Republican votes to get them approved, especially in the House.

Kirk, who also promised to bring more transparency to U.S. trade policy, did not take questions after the speech. Aides told reporters he was scheduled to meet with Georgetown students and already had a news conference on Monday.

The United States also wants a successful conclusion to the long-running Doha round of world trade talks, "and in coming weeks we will have more to say about how we think Doha can finally move forward," Kirk said.
(Reporting by Doug Palmer; editing by David Storey)

Tax Haven Questions Could Trip Up Panama Trade Pact

APRIL 22, 2009, 1:15 P.M. ET

http://online.wsj.com/article/BT-CO-20090422-713050.html

By Martin Vaughan Of DOW JONES NEWSWIRES

WASHINGTON (Dow Jones)--Questions about Panama's status as a tax haven have raised a new hurdle for U.S. approval of a free trade deal between the U.S. and the Central American nation.

The U.S.-Panama trade pact was signed in June 2007, but the deal has been stalled along with separate bilateral trade pacts with Colombia and South Korea.

The latter two trade deals are ensnared in controversial human rights and market access disputes. But the White House said earlier this year in a "trade policy agenda" document that it hoped to send the Panama deal to Congress for consideration "relatively quickly."

Democratic lawmakers and Obama administration officials now say Panama must take steps to increase transparency and information exchange with U.S. authorities on tax issues, before the free trade agreement can advance.

"I would say with respect to Panama that there are also some important issues that need to be worked through having to do with cooperation in resisting tax evasion," White House National Economic Council Director Larry Summers said at an April 18 press conference at the Summit of the Americas.

The Treasury Dept. launched talks with Panama towards a tax information exchange agreement in 2002, but the talks have made little progress.

U.S. business lobbyists who back the U.S.-Panama trade deal have been pushing for a vote prior to Congress' August recess. But the demands from the Obama administration on tax transparency seem to make that timetable unlikely.

Panama holds presidential and parliamentary elections May 3, and it is doubtful whether the Treasury Dept. would be able to conclude a tax information exchange agreement with the lame-duck administration of outgoing President Martin Torrijos.

The Organization for Economic Cooperation and Development on April 2 listed Panama as one of 30 tax haven jurisdictions that have committed to international standards on bank secrecy, but have "not yet substantially implemented" those standards.

Panama is also mentioned in legislation introduced by Sen. Carl Levin, D-Mich., with sanctions for tax haven jurisdictions.

Panamanian officials did not immediately respond to inquiries for this article.

In a March letter to the OECD, Panama said that while it is not a tax haven, it is taking steps to strengthen its "legal and regulatory framework, thus helping our international financial center to not by unduly utilized by citizens of other States to evade or defraud their respective tax authorities."

But the letter from Minister of Commerce and Industry Gisela A. de Porras said Panama will insist on protecting fundamental privacy, and will respond only to "individual requests provided with a specific rationale and justification."

Automatic exchange of information will thus not be considered, the letter said.

It is only in recent days that U.S. politicians have linked progress on tax and bank secrecy issues to approval of the trade deal, however. Opponents of the Panama pact - led by fair-trade activist group Public Citizen's Global Trade Watch - have long sought to bring attention to Panama's history as a tax haven.

Their efforts have been helped by a flurry of media interest in global tax evasion, as U.S. and European authorities have ramped up pressure on such jurisdictions as Switzerland, Liechtenstein, and Bermuda to relax secrecy laws.

House Ways and Means Committee Democrats have long been pressing Panama to make changes in its labor laws, as a prerequisite for allowing the free trade deal to advance.

Rep. Sander Levin, D-Mich., raised the tax haven issues in connection with the free trade deal during a March address to a Washington trade group.

By Martin Vaughan, Dow Jones Newswires; 202-862-9244; martin.vaughan@dowjones.com

Rainforest clash in Panama signals larger debate

http://www.cnn.com/2009/WORLD/americas/04/21/panama.deforestation/

KUNA YALA, Panama (CNN) -- Hunched over a campfire in eastern Panama, Embera tribesman Raul Mezua chanted a song his grandfather taught him when he was a boy.

The words are memorized, passed down from an aging generation to a new group of tribal youths.

"The song means a lot to me," Mezua told CNN, the fire's dying embers splashing a red glow across his face. "But I don't know what it means."

It's not just the song but their language and culture that Mezua and his tribe fear losing as deforestation from logging and cattle ranching threatens the rainforest that is part of their identity.

But recent trends could usher in a welcome reversal for Mezua and his tribe. Rural workers are migrating toward cities in search of jobs, and forests are re-emerging where now abandoned farms and cattle ranches once flourished, according to a 2009 report from the U.N. Food and Agriculture Organization.

Such "secondary" forests in the tropics can rapidly grow in areas once cleared for logging and cattle ranching if left alone, said Joseph Wright, senior scientist at the Smithsonian Tropical Research Institute in Panama. "After about 20 years (of being left alone) the forest will be about 60 feet tall," he said. Watch Mezua sing a traditional tribal song »

Deforestation and re-growth in Panama may reflect a snapshot of a bigger picture involving rainforests throughout Central America. With more than three-quarters of people across the region now living in urban centers, the United Nations expects rural farming and population growth -- the usual culprits behind deforestation -- to dwindle.

Some call forest re-growth a victory in the climate crisis. Trees consume carbon dioxide, a greenhouse gas that traps heat within the Earth's atmosphere. "Biology is the only way we can remove carbon dioxide out of the atmosphere," Wright said. "There's no way to do it faster than to let tropical forests re-grow on abandoned land."

Others say threats to primary forest, or original jungle, is the real issue and that its loss can cause irreparable damage to the surrounding ecosystem.

"Places in Colombia, places in Central America, places in Mexico, places in many of the Andean countries are the last bunkers, the last bastions of hundreds of unique species in each place," Lider Sucre, director of Panama's Museum of Biodiversity, told CNN.

"If you replant 10 times as much forest but you lose these last large pockets, you lose a huge amount of biodiversity forever and ever."

The value of primary and secondary forests is a debate heating up within the environmental community as new woodlands begin to wrap themselves around barbed-wire fences that still dot cattle-driven landscapes across Panama.

We have to make that distinction, that fundamental difference, between re-growth and the original forest," Sucre said. "Re-growth is only a shadow in terms of the diversity of life within it."

In places like Panama's Kuna Yala, a semi-autonomous tribal region and the country's largest tract of rainforest, new growth can bridge gaps between the remaining pockets of pristine old growth forest.

"Because of its size, because of the health of the entire ecosystem, it has an extraordinary potential to serve as a kind of a Noah's Ark -- a place that can safeguard biodiversity and the full complement of species," Sucre said.

Recently, a scientific expedition unearthed 10 new amphibious species on both sides of Panama's mountainous border with Colombia, according to Conservation International, an environmental advocacy group based in Washington.

At least 25 percent of the area is being deforested, putting the rich biodiversity in jeopardy, the group said. Across the region, the United Nations says tropical rainforest land is still being lost at an alarming pace.

More than 7 million hectares of forests were destroyed globally each year between 2000 and 2005, the U.N. says

Slightly less than one-fifth of the world's carbon dioxide emissions stems from the effects of deforestation in poor countries, the U.N. said -- a figure comparable to the total output of the United States and China.

For indigenous tribes -- who rely on the rainforest for everything from medicine and food to homes and artwork -- the reality behind the figures is staggering. "The rainforest is something we depend on," Kuna tribesman Toniel Edman said, standing beside a thatched hut made from rainforest wood.

"The problem is actually with the farmers and ranchers," Edman said. "They invade our land and deforest it for their own gain." But here, cattle is king. "We don't have another way to support ourselves," rancher Oriel Gonzalez said, overlooking cow pastures where rainforest once dominated.

"We go looking for work elsewhere but there isn't any. We don't know how to do anything else." He added that loans for raising cows are just easier to come by than financing for crops or other livestock. "It's partly tradition. The banker is used to lending money for cattle -- that's what he's always done," said Wright, the Smithsonian scientist.

Wright noted that for lenders, there is inherently less risk with raising cattle. "We have droughts. We have plagues of microbes. Plagues of insects. You can have a 100 percent loss with a row crop," he said. "That just never happens with cattle. You can always get the cattle to market and sell them."

For lawmakers, striking a balance between preservation and the "need for people to grow the land" comes with "difficulties," Panama President Martin Torrijos told CNN.

Torrijos highlighted his country's recent successes in combating deforestation; Panama recorded drops in rainforest loss during the 2000 to 2005 period, the U.N. reported. But he also recognized a brewing conflict between indigenous tribes and the ranchers, farmers and loggers who encroach on tribal land. "Every now and then, issues occur and we deal with it," Torrijos said.

Part of the problem is "unclear ownership of the land," said U.N. Forestry Officer Merilio Morell. "By law, the indigenous own the comarca (tribal district). But exercising ownership is not easy," he said. "They cannot patrol ever single meter of land ... and the borders aren't marked."

Scientists say efforts to promote carbon trading -- a process intended to get companies that exceed their allowed CO2 emissions to buy credits from groups that pollute less -- could provide the mechanism needed to slow deforestation.

Earlier this month, delegates from donor and developing countries around the world met outside Panama City to address carbon trading amid the fallout from a global recession. Environmental consequences from the economic crunch are still uncertain.

But U.N. projections show a growing global demand for rainforest products like fuel and timber.

That demand could thwart the resurgence of the rainforest.

Rainforest clash in Panama signals larger debate

http://www.cnn.com/2009/WORLD/americas/04/21/panama.deforestation/

KUNA YALA, Panama (CNN) -- Hunched over a campfire in eastern Panama, Embera tribesman Raul Mezua chanted a song his grandfather taught him when he was a boy.
The words are memorized, passed down from an aging generation to a new group of tribal youths.
"The song means a lot to me," Mezua told CNN, the fire's dying embers splashing a red glow across his face. "But I don't know what it means."
It's not just the song but their language and culture that Mezua and his tribe fear losing as deforestation from logging and cattle ranching threatens the rainforest that is part of their identity.
But recent trends could usher in a welcome reversal for Mezua and his tribe. Rural workers are migrating toward cities in search of jobs, and forests are re-emerging where now abandoned farms and cattle ranches once flourished, according to a 2009 report from the U.N. Food and Agriculture Organization.
Such "secondary" forests in the tropics can rapidly grow in areas once cleared for logging and cattle ranching if left alone, said Joseph Wright, senior scientist at the Smithsonian Tropical Research Institute in Panama. "After about 20 years (of being left alone) the forest will be about 60 feet tall," he said. Watch Mezua sing a traditional tribal song »
Deforestation and re-growth in Panama may reflect a snapshot of a bigger picture involving rainforests throughout Central America. With more than three-quarters of people across the region now living in urban centers, the United Nations expects rural farming and population growth -- the usual culprits behind deforestation -- to dwindle.

White House Signals Movement On Pending Trade Agreements, by Leroy Baker, Tax-News.com, New York

Last updated 8 hours ago Tuesday, April 21, 2009

www. tax-news.com

The Obama administration has indicated that it wants to progress long-stalled free trade agreements with Colombia and Panama.

Following meetings with Latin American government leaders at the Summit of the Americas in Trinidad and Tobago last weekend, US Trade Representative Ron Kirk revealed that the US government is keen to begin negotiations with key lawmakers in a bid to secure Congressional approval for the trade agreements.

Both agreements were signed during the last term of the George W. Bush administration, but Congress needs to pass the relevant enabling law to allow the texts to be fully ratified.

However, senior House and Senate Democrats, who want stronger labor rights written into the agreements, have been able to block their progress. But with the administration and Congress now singing from the same hymn sheet, Kirk is optimistic that the agreements can be ratified sooner rather than later.

This will depend, of course, on Colombia and Panama, which have been criticised for stifling trade union activism, also agreeing to any changes to the agreements, but, after his return from the Caribbean, Kirk told reporters that both his meeting with Colombian representatives and the summit in general had been "very productive" for the US. He went on to add that the administration would consult with Congress "early and often" on the agreements.

The US National Foreign Trade Council, which represents a broad base of American multinationals, welcomed the administration's announcement, describing Columbia as a "critically important" economic partner for the US.

"We applaud the administration for sending a positive signal that a dialogue between the United States and Colombia is already underway," said NFTC President Bill Reinsch. "Colombia has long been an important friend to and ally of the United States. With both countries working together toward a resolution of remaining concerns that stand in the way of approval of the FTA, we believe that progress can be made toward the ratification of the agreement."

"Colombia has already proven its commitment to and diligence in working to prevent and stop crimes against trade unionists and all other members of Colombian society," added NFTC Vice President for Regional Trade Initiatives Chuck Dittrich.

"The Colombian Government has worked tirelessly to reduce the overall level of violence in the country, and has made significant strides in strengthening democratic institutions to restore and maintain the rule of law in a country once described as a failed state."

Under the US/Colombia trade agreement, first signed in November 2006, over 80% of US exports of consumer and industrial products to Colombia would become duty-free immediately, with remaining tariffs phased out over 10 years.

Key US exports would gain immediate duty-free access to Colombia. Colombia has also agreed to allow trade in remanufactured goods, and will join the WTO Information Technology Agreement.

The US/Panama agreement, signed in December 2006, will eliminate nearly 90% of Panama’s tariffs on industrial goods immediately, with remaining tariffs phased out over 10 years.

On April 20, Senators Max Baucus and Chuck Grassley, Chairman and Ranking Member respectively of the Senate Finance Committee, urged President Obama to resolve outstanding issues blocking the path towards Congressional approval of the other currently-stalled free trade agreement, that with South Korea.

"We have long supported a bilateral trade agreement with Korea, and we strongly believe an agreement would provide tremendous benefits to American workers, farmers, and ranchers.

Korea is already our seventh largest trading partner, our fifth largest agriculture export market, and our eighth largest market for goods exports," the Senators wrote in a letter to the President.
However, they warned that there is "further work to be done" if Congress is to support the agreement.

"In particular, Korea has yet to ensure US beef exporters full access to its market in accordance with international standards. Korea’s long history of non-tariff barriers to its autos sector also raises serious concerns with some regarding the agreement," the Senators wrote.

"Postponing addressing such issues will not make them easier to resolve," they added.

Free Trade Returns to the Table

By Joseph J. Schatz, CQ Staff

The Obama administration and trade advocates in Congress are trying to put a series of long-delayed trade pacts back on the front burner, despite widespread skepticism on Capitol Hill about the benefits of expanded international commerce.

On the heels of the Summit of the Americas in Trinidad and Tobago, U.S. Trade Representative Ron Kirk said Monday that a delegation from Panama will visit Washington this week to try to resolve disputes over the U.S.-Panama trade deal. Kirk added that President Obama hopes to clear remaining obstacles to a separate pact with Colombia.

Ultimately, Obama — who met with Colombian President Alvaro Uribe during the summit — believes that “a resolution of the Colombia trade agreement would be a good thing for both economies,” Kirk said.

Meanwhile, the chairman and ranking member of the Senate Finance Committee — Max Baucus , D-Mont., and Charles E. Grassley , R-Iowa — wrote Obama on Monday asking him to “begin the hard work of winning broad approval” of a trade pact with South Korea, which is stalled due to resistance from U.S. automakers and concerns over restrictions on the Asian nation’s beef imports.

All three trade deals were negotiated by George W. Bush ’s administration but have faced opposition in the Democratic-controlled House and Senate over the past two years. During his Senate confirmation process this year, Kirk told senators wary of mounting job losses — and public opinion polls showing declining support for free trade — that his office would undertake a comprehensive review of each trade deal.

At the same time, the United States has faced pressure from abroad not to appear overly protectionist in the midst of a global economic downturn, a posture many economists fear could slow a recovery.

But hammering out adjustments or side agreements that would win majority support in the House for any of the deals would be difficult. Labor unions, environmental groups and consumer advocates oppose all three agreements for varying reasons, including the effect of trade on American workers. And perhaps even more significantly, it’s unclear what it would take to satisfy Democratic leaders in Congress.

Lori Wallach, director of Public Citizen’s Global Trade Watch program, which is critical of recent trade agreements, argued that Kirk was trying to “create a sense of momentum on something that is highly contested and not decided . . . and has a huge political liability domestically.”

Trade critics contend that the North American Free Trade Agreement (NAFTA) resulted in U.S. job losses and complain that the three pending pacts were written in the NAFTA mold. Kirk, however, said concerns about NAFTA “can be addressed without having to reopen the agreement.” Some labor groups have called for a renegotiation of the pact, a move Obama also suggested during his presidential campaign.

Most Likely to Succeed?

The Panama deal has the fewest political problems of the three, in part due to its small size in terms of overall trade flows. But Sander M. Levin , D-Mich., chairman of the House Ways and Means Subcommittee on Trade, said in March that Panama has not yet met sufficient labor standards. He also raised concerns about the country’s reputation for banking secrecy and as a tax haven.

Kirk said he “will be working with the Panamanians to identify and resolve all of those issues.”

While declining to give a timeline, he said Panama’s own political situation may yield a “discrete” window to push the trade deal through — an apparent reference to the nation’s coming May presidential elections.

Concerns about violence against labor unions in Colombia have stymied movement on that deal, despite support from Democrats such as House Majority Leader Steny H. Hoyer of Maryland.

In a conference call with reporters Monday, Kirk said that while progress has been made toward addressing those concerns, there are “a number of issues that need to be resolved.”

But the fact that the Obama administration is talking about moving forward on the Colombia deal was cause for optimism among trade advocates eager for any sign of progress on their agenda.

“We applaud the administration for sending a positive signal that a dialogue between the United States and Colombia is already underway,” Bill Reinsch, president of the National Foreign Trade Council, said in a statement. “With both countries working together toward a resolution of remaining concerns that stand in the way of approval of the FTA, we believe that progress can be made toward the ratification of the agreement.”

On the U.S.-South Korea deal, Grassley and Baucus cast their comments in the context of North Korea’s widely condemned missile launch on April 5, adding that the trade deal would “anchor our economic presence in Asia.”

Baucus and Grassley acknowledged disputes over the entry of U.S. beef into South Korea — a key issue for the Montana chairman — and the fact that the trade deal would give South Korean auto companies wide access to the U.S. market despite ongoing concerns that the Asian country restricts imports of American cars.

Nonetheless, the two senators pressed Obama to keep negotiations moving.

“The issues are complex, and they may not be easy to resolve,” Baucus and Grassley said. “Yet their very complexity, as well as their potential rewards, demands we begin our work without delay and persist as long as necessary.”

In a conference call with reporters Monday, Kirk said that while progress has been made toward addressing those concerns, there are “a number of issues that need to be resolved.”

But the fact that the Obama administration is talking about moving forward on the Colombia deal was cause for optimism among trade advocates eager for any sign of progress on their agenda.

“We applaud the administration for sending a positive signal that a dialogue between the United States and Colombia is already underway,” Bill Reinsch, president of the National Foreign Trade Council, said in a statement. “With both countries working together toward a resolution of remaining concerns that stand in the way of approval of the FTA, we believe that progress can be made toward the ratification of the agreement.”

On the U.S.-South Korea deal, Grassley and Baucus cast their comments in the context of North Korea’s widely condemned missile launch on April 5, adding that the trade deal would “anchor our economic presence in Asia.”

Baucus and Grassley acknowledged disputes over the entry of U.S. beef into South Korea — a key issue for the Montana chairman — and the fact that the trade deal would give South Korean auto companies wide access to the U.S. market despite ongoing concerns that the Asian country restricts imports of American cars.

Nonetheless, the two senators pressed Obama to keep negotiations moving.

“The issues are complex, and they may not be easy to resolve,” Baucus and Grassley said. “Yet their very complexity, as well as their potential rewards, demands we begin our work without delay and persist as long as necessary.”

U.S. Trade Representative Ron Kirk reports progress on deals with Panama, Colombia

03:00 PM CDT on Monday, April 20, 2009

By TODD J. GILLMAN / The Dallas Morning News
tgillman@dallasnews.com

http://www.dallasnews.com/sharedcontent/dws/news/politics

/national/stories/042109dnnatkirk.f418b574.html

WASHINGTON – U.S. Trade Representative Ron Kirk reported progress today on pending trade deals with Panama and Colombia.

The former Dallas mayor accompanied President Barack Obama to the Summit of the Americas this weekend in Trinidad and Tobago, where he met privately with Panama's president, Martin Torrijos, and Colombia's president, Álvaro Uribe, to discuss separate free-trade deals long stalled in Congress.

Both countries are eager to finalize the deals, and Kirk said he's working "in good faith" to do so.
"It was a very productive summit for the U.S., and and it was something that I personally enjoyed," Kirk told reporters today in a conference call before attending the first meeting of the Obama Cabinet.

On Panama, Kirk said he's focused mainly on beefing up labor rules, and to a lesser degree addressing concerns in Congress about Panama's tax laws. Panama holds a presidential election next month, and Kirk said that may provide a "window to move more forcefully."

As for Colombia, Kirk noted that Uribe puts a high priority on the deal. And, although some Republicans fear the Obama team isn't as eager to finalize the deal, Kirk indicated the administration is interested in finalizing the deal, too. Democrats and U.S. unions cite concerns about violence targeting labor activists in Colombia.

"It was a very, very good, productive meeting," Kirk said, "My own personal thought as a mayor and as a lawyer is that when you've got two willing partners, that's a pretty good recipe for getting a deal done."

Kirk was careful in describing discussions pertaining to the North American Free Trade Agreement.

During the campaign last year, Obama told Midwest voters he would renegotiate the deal that is widely blamed for job losses. As president, Obama has softened that stance, which angered Mexico and Canada, though he continues to call for new labor and environmental safeguards.

Kirk said all three NAFTA partners are seeking "opportunities to strengthen" the deal, but Obama's goals "can be addressed without having to reopen the agreement."

"At an appropriate time I will be meeting with our colleagues to try to put a little form to that," he said.

At the summit, Obama's interactions with two leaders who are most antagonistic toward the United States – Venezuelan strongman Hugo Chavez and Bolivian leader Evo Morales – were closely watched.

Kirk said he personally had only passing contact with those leaders, devoting much of his time getting to know trade ministers from Latin America with whom he'll work in coming years.

"I'd like to think I'm a reasonably pleasant fellow," Kirk joked, though "it was a good substantive dialogue as well."

Obama Vows to Listen to US Neighbors

President Barack Obama speaks with Chile's President Michelle Bachelet during UNASUR countries meeting at Summit of the Americas, 18 Apr 2009

By VOA News

http://www.voanews.com/english/2009-04-18-voa17.cfm

18 April 2009

President Barack Obama is vowing to listen and learn during a Summit of the Americas, where he hopes to forge new partnerships among Western Hemisphere nations.Mr. Obama made the comments Saturday, the second day of the three-day summit in Trinidad and Tobago.

Just before a separate meeting with South American leaders, Mr. Obama told reporters he looked forward to productive meetings to determine how the region can work together more effectively.Before cameras were ushered out of the room, Venezuelan President Hugo Chavez, an old U.S. adversary, walked over to President Obama, handed him a book and shook his hand.

Reporters in the room say the book was entitled "The Open Veins of Latin America," and is about Latin America's exploitation by foreign powers.On Friday, Mr. Chavez and Mr. Obama shook hands and Mr. Chavez is reported to have told the U.S. president "I want to be your friend.

"President Obama on Friday called for a new beginning in relations between the United States and Cuba - a country not represented at the summit. Cuban President Raul Castro has said Havana is prepared to discuss any issue with Washington.

The United States has lifted restrictions on travel and money transfers by Cuban-Americans to the island, but not the trade embargo. The head of the Organization of American States, Jose Miguel Insulza, says he will ask his group to re-admit Cuba at the next OAS General Assembly meeting this June in Honduras.

Cuba was suspended from the OAS in 1962 after the organization said Cuba's Communist government was incompatible with the OAS charter.

Besides Cuba, Mr. Obama announced a U.S. initiative to boost lending and spur economic growth and recovery in the Americas. He also proposed a hemispheric partnership to tackle energy and climate challenges.

Some information for this report was provided by AP.

Canadian Prime Minister Warns Protectionism Greatest Threat to Global Economy

Saturday, April 18, 2009

By Major Garrett

PORT-OF-SPAIN, Trinidad and Tobago — Protectionism is the biggest threat to the global economy, Canadian Prime Minister Stephen Harper told FOX News on Friday, adding that the fifth Summit of the Americas should focus on free trade, not a potential thaw in relations between the United States and the communist island nation of Cuba.

Canada is "obviously worried about" moves to erect trade barriers worldwide, Harper told FOX News.

"The biggest threat to the economy right now is an increase in protectionism. Governments are doing all kinds of things to mitigate the effects," he said. Increased protectionism would mean "recession or worse for a very long time."

Canada, the top U.S. trading partner, recently implemented free trade pacts with Costa Rica and Chile and Harper-negotiated deals with Colombia and Peru are now before Parliament. In contrary moves, 17 of the G-20 nations have enacted dozens of protectionist measures since November.

The U.S. is trying to tamp down a trade war with Mexico, its third largest trading partner, sparked by a congressionally mandated ban on Mexican trucks moving goods into the the country. Mexico has slapped $2.4 billion in tariffs on U.S. goods in retaliation. The two nations could not end the impasse during President Obama's 20-hour summit in Mexico with President Felipe Calderon.

We think it is very important, very important for the health of the hemisphere that we continue to bolster moves towards liberalized market economies and we need trade to do that," Harper told FOX News in an exclusive interview hours before the Summit of the Americas began Friday.

"Obviously we're worried about regimes that preach against trade, that preach protectionism. We're worried about the growth of that in the hemisphere. And it is important that countries and the United States, that we get out there and support governments — some of the ones I've mentioned — that are prepared to work with us on a liberalized trade agenda."

Harper demurred when asked if the U.S. should use the summit as a platform to defend free trade and announce additional moves to approve a pending free trade deal with Colombia or a possible breakthrough in trade talks with Panama.

"I'm obviously not here to tell the Obama administration how to run the policy of the United States," Harper said, before launching into a stout defense of Colombia and its democratic progress.

"Colombia is a country that's made a great deal of progress on the democratic front, on the human rights front and on the economic front. And Colombia is a real friend to us in this hemisphere, and I think it's really essential that we support our friends that push forward economic relations with a friendly country in this neighborhood. I think if you don't support your friends you're going to find you don't have many friends."

The U.S. trade pact with Colombia was originally negotiated in 2006 and was re-negotiated in 2007 to address Democratic concerns in Congress about worker rights. Still, the trade pact languishes and there's been no signal from the Obama White House that it's a legislative or economic priority.

Dan Restrepo, a senior Obama adviser on Western Hemisphere affairs, said free trade with Panama and Columbia is "part of the matrix" of regional economic policies the president will outline here. He hinted at a deal with Panama may be in the offing, but the stalemate on Colombia continues.

"On Panama, we're engaged with the Panamanian government and working through some issues that remain and hope to make some progress quite soon," Restrepo told FOX News. "On Columbia, there are an outstanding set of issues. We're finding ways to engage with Colombia to work on those issues."

As for improved relations between the U.S. and Cuba, Harper said Obama had taken important steps to lift restrictions on family travel and remittances to the island and it was time for the Castro regime, led by Fidel Castro's brother, Raoul, to reciprocate. Harper said he knows leftist governments at the summit — namely Venezuela and Nicaragua — will try to push Cuba onto the summit agenda, but such moves ought to be resisted.

"I think it's important to hemispheric relations generally, but we certainly hope it doesn't dominate the summit," Harper said. "There are much more important issues to discuss than Cuban-American relations."

IDB Lends $500M To Support Panama's Banking Industry

DOW JONES NEWSWIRES

http://online.wsj.com/article/BT-CO-20090416-713794.html

The Inter-American Development Bank, or IDB, Thursday said it approved a $500 million loan to strengthen the liquidity of Panama's banking system.

The loan will be channeled through Banco Nacional de Panama, a state-owned institution that also acts as a commercial and development bank, the Washington-based multilateral lender said in a press release.

"The funds are expected to partially offset a shortfall in dollar-denominated lending to the productive sector triggered by the current global financial crisis," the IDB said.

Banco Nacional de Panama will act as an intermediary to provide working capital and foreign-trade financing to the industrial sector, the IDB added.

The loan, which expires in five years and has a three-year grace period, will pay a spread of 4 percentage points over the 6-month London interbank offered rate.

The loan is part of a $6 billion program recently created by the IDB to help governments respond to the needs of commercial banks that may face difficulties in accessing foreign and inter-bank credit lines due to the global credit crunch.

The IDB noted that Panama has a solid economy that grew at an average 8.8% between 2004 and 2008, far outpacing the 5.5% regional average.

By Diana Delgado, Dow Jones Newswires; 571-6107044 ext 11320; diana.delgado@dowjones.com

2009 Quality of Life Index

http://www.internationalliving.com/Internal-Components/Further-Resources/qofl2009

By the staff of International Living

For the fourth year running, France comes first in our annual Quality of Life Index.

In your IL magazine every month, we consider the countries around the world where you could live cheaper, pay less tax, enjoy better weather, take advantage of opportunities in emerging markets…places where you could start a new life, start a business, retire…

Then, once a year, every January, we take a different perspective. We consider not only those places that offer particular and timely opportunities for the would-be expatriate…but nearly every nation on earth. This year, our survey looks at 194 countries.

To produce this annual Index we consider, for each of these countries, nine categories: Cost of Living, Culture and Leisure, Economy, Environment, Freedom, Health, Infrastructure, Safety and Risk, and Climate. This involves a lot of number crunching from “official” sources, including government websites, the World Health Organization, and The Economist, to name but a few.

Once the data is collected, we also take into account what our editors from all over the world have to say about our findings. These correspondents and colleagues are working and living in these countries themselves and give us a more realistic view of our official findings.

This year, as with the past three years, all our number-crunching, rating, and ranking landed France at the top of our Index. France scores high marks across the board…from its health care (84 points) to its infrastructure (90 points) to its safety rating (100 points). But the main appeal of living in France is arguably its lifestyle (its scores 85 points in our Culture and Leisure category).

France’s sensual allure leaves nobody untouched. Spend even a few months here and you will never again regard life in quite the same way.

As our European editor, Steenie Harvey said of her first visit to this country: “It was love at first sight. I can’t get enough of its culture, fashion, stunning architecture, and intoxicating history. As for the food and wine—well, even thinking about it makes me salivate.”

The French believe that every day is a pleasure to be slowly savored—and lingering at the dinner table for three hours in conversation isn’t considered abnormal. Family, friends, and good food are all vitally important to the French—and so is having enough time to appreciate them all.
The unsurpassed quality of life the French enjoy doesn’t have to cost astronomical amounts. Even in Paris, you can enjoy tasty two-course lunches for around $10—if you know where to go.

Tourists rarely investigate supermarkets. So here are some prices from a common French supermarket—taken in September, 2008.

· A half pound of Camembert cheese: $2.45

· A half pound of garlic sausage: $1.60

· Around a quarter pound of paté de campagne: $0.87

· 12 croissants: $2.97

· Bottle of Grenache Gris rosé wine: $4.12

· Hubert de Claminger Champagne brut: $16.98

In this current economic climate, you’re probably worried about how far your dollars will stretch if you buy property here. You may be surprised to learn that there is plenty of French property that doesn’t come with a ridiculous price tag.

Whether you dream of a city pied-à-terre...or a rambling farmhouse among the sunflowers...or a village house wrapped in wisteria-hung memories of long ago, France is more than affordable. In fact, Americans are at an advantage with a favorable exchange rate. Today, a euro is worth $1.31. Six months ago, a 100,000-euro house for sale in France would have cost you $159,000.

Today, the same house would cost you $132,000. That’s a 17% drop in six months—which means now is a good time to buy.

There are many parts of the country where habitable homes in storybook settings cost less than $100,000. We recently found farmhouses in a famous French wine-growing region selling for just $53,000. We also came across a lovely town an hour from Paris—where a two-bedroom apartment costs just $145,000.

Today, France is a buyer’s market. Owners are often willing to negotiate. In some cases, they’re dropping prices before it even gets to negotiation stage.

It’s true, some second-home owners are over-stretched. But unlike the property markets in the U.S., it’s unlikely you’ll ever witness the same property crash in France. Unlike in the U.S.,

France has never experienced a housing bubble—the property prices increased gradually, over many decades.

Even so, this is a good time to position yourself to take advantage of the situation. It’s certainly not a fire sale, but here are some recent price cuts:

In the Poitou-Charentes region, a four-bedroom stone farmhouse with outbuildings and a large garden. Price reduced from $201,000 to $186,000.

In the Dordogne (long one of rural France’s most expensive pockets), an immaculate two-bedroom stone house with lots of character and a nice garden. Price slashed from $304,000 to $230,000.

A renovated gem of a stone cottage in the heart of a Brittany village popular with tourist vacationers—reduced from $131,500 to $117,000.

But overall, the keyword is stability. France doesn’t experience unrealistic booms followed by an all-too-realistic bust. On the whole, it’s a mature market, not some highly-speculative “hot new destination” for gamblers.

Take Paris. Property prices for the city as a whole rose a healthy 8.7% in 2007, attracting as many investors as romantic dreamers. As a long-term investment, Paris property is low risk and has always appreciated steadily.

The fact is, nobody does quality of life quite like the French. And then there’s Paris—the most bewitching and beautiful city on earth. Stack it all up, and if quality of life is important to you, you’ll understand why we think France is the world’s best place to live.

Switzerland takes silver

Switzerland always scores high in our Index, and for the second year running this country comes in second place. Boasting a stable economy (it scores top marks in this category) and infrastructure that is renowned for its reliability and efficiency, Switzerland is also a beautiful country.

Who isn’t charmed by the thought of a cozy alpine chalet or an elegant apartment overlooking a mirror-calm lake? In fact, Mercer’s 2008 “Quality of Living” survey names Zurich as the world’s best city with Geneva coming in third position (www.mercer.com). Generally, the standard of living in this country is high, the crime rates are low, and the currency is one of the world’s strongest.

As always, the north European counties feature prominently in our top 10: Luxembourg comes in fourth place, Belgium sixth, Germany eighth, and Denmark 10th.

These countries score high marks in all categories and all boast excellent health care and infrastructure, little poverty, strong economies, and high levels of freedom.

The good life Down Under

Coming in fifth position this year is Australia. With its year-round sunshine and great big outdoors, Australia offers an active lifestyle. Plus, as an American, you still get value for your greenback. As we go to press, $1 buys you $1.52 Australian dollars. The cost of living is relatively low (Australia scores 57 points out of 100 in our Index), and the country has great infrastructure and health care…and it’s safe.

Another antipode outpost, and coming ninth in our Index this year, is New Zealand.

New Zealand is a stunning country and a great place to live, but it has its drawbacks—it’s a 12-hour flight from the States and, unless you are young and qualified in certain trades, there are restrictions on foreign residency. For more information on the rules for establishing residency in New Zealand, contact Malcolm Pacific, website: www.malcolmpacific.com

Countries on our radar in 2009

Italy (7th): Last year, our roving Europe editor, Steenie Harvey found a 752-square-foot house in a hill town in southern Italy that was ready to move into for $51,650. “This wasn’t a one-off,” Steenie says. “Properties to restore here started at just $15,000.” Steenie regularly scouts this country for property bargains. Watch out for more of her coverage this year.

Brazil (42nd): Our real estate expert Ronan McMahon and our Latin America editor Lee Harrison have traveled to Brazil on a number of occasions in the past year to bring you coverage of the amazing property deals you can find here. Just last month (see your December issue), Lee found beachfront properties in Brazil’s eastern point for just $32,500. Here you can read about the property bargains he found in the colonial town of Sao Luiz and the bustling city of Fortaleza.

Costa Rica (44th): With road improvements on the Costanera Highway underway and scheduled for completion in two to three years, we believe that property development in southern Costa Rica is on the move and now is a good time to buy here. Read more on this area in these pages in 2009.

Ecuador (49th): One of the cheapest places in the world to live and with one of the best climates, Ecuador has been on our radar for many years…and will be for many more to come. Just two months ago (see your November issue) we profiled a couple who live in the perfect retirement spot two hours north of Quito for less than $600 a month, including rent.

This month we profile Gary and Merri Scott who live in the same beautiful Andean village—Cotacachi. In your February issue, Lee Harrison tells you about some of the best property deals in Coastal Ecuador.

Of course, we can’t ignore the fall of the U.S. economy in 2008 (in the economy category of our Index the U.S. fell from 89 points last year to 57 this year). We asked our investment experts to give us their analyses on the current economic crisis.

www.qualityoflife2009.com.

US-Korea Free Trade Deal Sparks Controversy

By Sean Burton

http://www.politicalaffairs.net/article/articleview/8380/

4-11-09, 11:31 am

In April 2007, South Korea and the US reached a controversial free trade arrangement after fourteen months of negotiations. Unions and other organizations representing South Korean workers and farmers, supported by the local social democrats, consider the deal a threat to South Korean jobs, and their industries as a whole. Similar hostility was expressed last year in the massive dispute over US beef imports, directly related to the South Korean government's desire to improve its trade standing with the US.

This particular agreement, the KORUS FTA, would be the first between the US and a major East Asian economy, and the largest overall since NAFTA was signed in 1992. This is by far South Korea's largest free trade deal. All that remains is for both countries to ratify the agreement.

South Korea's government has moved significantly to the right since April 2007, and is keen to implement KORUS FTA. But the parliament has had to postpone the ratification, fearing more large-scale anti‑government protests. Meanwhile, disputes in the US Congress initially delayed the ratification. With the onset of the global economic crisis and the election of Barack Obama, further delays were inevitable. Still, a report to Congress early in March stated that the government would no longer delay the ratification of FTAs with Korea, Panama, and Colombia.

But the future of the agreement is uncertain. Ron Kirk, the U.S. trade representative‑designate, told the U.S. Senate Finance Committee that the present agreement with Seoul "simply isn't fair, and if we don't get that right we'll be prepared to step away from that." The Obama administration has already begun taking steps, however limited, to "protect American jobs."

This FTA is likely perceived as a potential threat to those policies. Even Obama himself has said the deal is flawed. Naturally, Kirk's statements have worried the leaders of South Korea.

The first reaction from the presidential office here was that Kirk simply couldn't represent the official position of the U.S. government. The phrasing of that announcement indicates a great deal of hurt, as though saying, "We have been great friends for so long! How could you do this to us!?" Supporters of the FTA claim that the deal shouldn't be abandoned "just because a new administration has stepped in". That is a weak argument. What is the point of a new administration if it does not reevaluate widely despised policies of the preceding one?

The biggest concern seems to be the auto industry. Instead of talking about defending American jobs in hard times, KORUS FTA supporters talk only about how U.S. auto producers are "losing their competitive edge" against "better" Korean manufacturers. In other words, jobs do not matter, only profitability. If the companies aren't doing well, they say close up shop. A Chosun Ilbo newspaper editorial also argued that a renegotiation could spark more large protests akin to the beef import demonstrations last year. And so it should! The "delicate" balance achieved in trade negotiations does not change the fact that it's still a raw deal for South Koreans.

The Korea Herald reported recently that Kirk offered more "positive" statements regarding the FTA. South Korean analysts claim that his earlier comments were a mere "formality" to show his loyalty to Obama. The FTA, they say, is in principle a good thing for the economy, but with a few "problems" to be worked out in dialogue. But where are the voices of the workers and farmers, the ones who will feel the impact of the deal? It is one thing for a newspaper or a member of parliament to say that certain groups in society strongly oppose the deal, but another to actually hear from these people.

Acting in the interests of big money, the South Korean government does not care that public opinion is largely against them, even if half a million people take to the streets in protest; that's what the police force is for.