Day: December 9, 2017

The U.S. economy posted another impressive month, adding 228,000 jobs in November. The unemployment rate, now at a 17-year low, remains unchanged at 4.1 percent. But even as more Americans returned to the workforce, job recruiters say the job market is changing and both employers and employees need to be prepared. Mil Arcega reports.
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The wildfire that roared through the orchards of California’s Ventura County destroyed much of the region’s avocado crop not just with flames, but also with fierce Santa Ana winds and a thick blanket of ash.

With the so-called Thomas Fire just 10 percent contained by Friday afternoon, after blackening more than 132,000 acres across Ventura County and destroying some 400 homes and other structures, it is too soon to know the extent of the damage to the upcoming avocado harvest.

But experts say even the mostly family-owned orchards spared by the epic conflagration may have suffered devastating losses to their crops from the hot, dry Santa Ana winds that blow out of the California desert, knocking avocados from the trees with gusts up to 80 miles per hour. (129 kilometers per hour)

The fruit cannot be sold for human consumption once it is on the ground because of food safety regulations.

“A lot of that fruit everybody was looking forward to harvesting next year is laying on the ground,” said John Krist, chief executive of the Ventura County Farm Bureau.

​Vulnerable to the wind

Avocados are the rare produce trees planted in hillside groves because of their shallow roots, said Ben Faber, a University of California farm adviser in Ventura. The fruit, typically harvested in February or March, is full-sized and heavy by December, held by a long stem.

Those factors make avocados, already growing away from their natural environment in Central and South America, more vulnerable to the whipping winds than the lemon orchards dotting the flatlands of Ventura, Faber said.

Lemons are also a lighter fruit with a shorter, sturdier stem. Ventura County is California’s largest growing region for both lemons and avocados. The state produces about 90 percent of the nation’s avocado crop and 80 percent of its lemons.

Delayed impact

Some avocado trees that do not appear to have been scorched could also reveal damage later, collapsing from internal heat damage. Fruit that did not burn or get blown off the branches may be sunburned by the loss of canopy.

Both lemon and avocado crops are also likely to suffer further from the thick coating of ash left by the Thomas Fire, which interferes with the natural enemy insects that hunt the pests feeding on the fruit trees. Those enemy insects are known to growers as “bio-controls.”

“When you get all this ash, they can’t do their jobs,” Faber said of the enemy insects. “That’s going to cause a disruption to the bio controls that’s going to go on for a year or more. So the impact of the fires is not all immediate.”

Unlike grapes at wineries in California’s Napa Valley wine-growing region hit by wildfires in October, however, avocados and lemons will not be affected by smoke from the fires because of their thick skins.

Experts said at the time that the delicate grapes, if exposed to sustained heavy smoke, could be vulnerable to “smoke taint,” which can alter their taste and aroma.

Prices not likely to rise

Consumers are not expected to see an impact on avocado prices because Ventura County is only a small piece of the worldwide production chain dominated by Mexico and South America, the farm bureau’s Krist said.

Avocado prices have been higher in most U.S. markets during the second half of 2017, according to the Hass Avocado Board, in part because of a poor harvest last year in the United States and Mexico.

The wildfire news didn’t have a major effect on the stock price of the Limoneira Company, the nation’s largest avocado grower, as shares closed essentially unchanged on Friday.
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NAFTA trade negotiators convene in Washington next week for a limited round of talks unlikely to move the needle on major sticking points, but aimed at demonstrating some progress toward closing easier chapters.

Last month’s round of negotiations to update the North American Free Trade Agreement in Mexico City failed to resolve major differences, as Canada and Mexico pushed back on what they saw as unreasonable U.S. demands on automotive content rules, dispute settlement and a five-year sunset clause.

U.S. Trade Representative Robert Lighthizer said that the United States wanted to see “meaningful progress” before year’s end.

The “intersessional” meetings in a Washington hotel come with lower expectations and without trade ministers from the three countries, who are due to attend a World Trade Organization meeting in Buenos Aires.

Some lobbyists and trade experts said that chapters with the best chances of showing progress were among those that Canada and Mexico had agreed to create or update in the Trans-Pacific Partnership trade deal: digital trade, food safety, state-owned enterprises and telecommunications.

NAFTA negotiators have not closed any chapters since completing talks on competition policy and small-medium enterprises in late September. Talks have since been dominated by U.S. demands, such as for half of all North American automotive content to be produced in the United States.

Less rhetoric, more substance

“The intersessional could be a chance to turn the temperature down,” said Max Baucus, a former U.S. senator who chairs Farmers for Free Trade, a coalition of U.S. farm sector groups. “This should be a round for the worker bees, with less rhetoric and more concrete negotiations.”

A senior Canadian government source said no progress would be made on the most contentious issues at the Washington talks.

Separately, Canada’s chief negotiator, Steve Verheul, said the U.S. “extreme proposals” were proving very hard to deal with.

“We will not accept U.S. proposals that would fundamentally weaken the benefits of NAFTA for Canada and undermine the competitiveness of the North American market in relation to the rest of the world,” Verheul told Canadian lawmakers this week.

The Washington meetings follow stepped-up lobbying efforts by NAFTA backers in the United States to warn against the dangers of withdrawing from the nearly 24-year-old trade pact.

Top Detroit auto executives met with Vice President Mike Pence, and pro-trade Republican senators met with President Donald Trump.

Moises Kalach, the head of Mexico’s CCE business lobby and a government consultant, said that the United States would need to back off from some of its “extreme” positions for compromises to be made.

“We’re ready to dance. The question is whether the American government is willing to do so,” Kalach told Reuters.
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Britons who voted for Brexit in the hope of slashing immigration seem set for disappointment. In the farming and food industries at least, any exodus of Polish and Romanian workers may simply be followed by arrivals of Ukrainians and Filipinos.

From dairy farms to abattoirs, employers say not enough Britons have an appetite for milking cows before dawn or disemboweling pig carcasses — jobs often performed by workers from the poorer, eastern member states of the European Union.

With unemployment at a four-decade low of 4.3 percent, even Brexit supporters acknowledge the industries will need some migrant workers after Britain leaves the EU in 2019, ending the automatic right of the bloc’s citizens to work in the country.

Employers praise eastern European staff for their skills and work ethic.

“They are a massively valuable part of our work force and a massively valuable part of the food industry overall,” said Adam Couch, chief executive of Cranswick plc, a meat processing group founded by pig farmers.

Food and drink is the largest U.K. manufacturing sector, with a turnover of 110 billion pounds ($147 billion) in 2015, government figures show. Much of it depends heavily on staff from elsewhere in the EU, mainly the post-communist east.

For example, the British Meat Processors Association says 63 percent of workers in the sector come from other EU countries, and in some plants it can be as high as 80 percent.

The proportion has risen partly due to increased demand for more labor-intensive products such as boneless meat.

Association members have found it impossible to recruit the additional employees needed from Britain, the BMPA says.

Pro-Brexit campaigners say Britain needs to reduce its reliance on EU workers.

“Our sights should be firmly set on raising the skill level of our own domestic workers, employing domestic whenever we possibly can and automating,” said Owen Paterson, a member of parliament for the ruling Conservatives.

But Paterson, who as a former Environment Secretary was responsible for U.K. agricultural policy from 2012-14, added: “Where there is a clear shortage and no technological solution, by all means bring in labor but the good news is we wouldn’t be limited to the EU. We will have the whole world to choose from.”

‘Money for a month’

On the meat production line, Romanian Dumidru Voicu explained the attractions of working at Cranswick’s plant in Milton Keynes, a town northwest of London.

“I just want to do something with my life, save some money and make my own business. The money for a week here is the money for a month in Romania,” said Voicu, who arrived in the country about the time that Britons voted to leave the EU in June last year.

An estimated 27,000 permanent staff from elsewhere in the EU worked in British agriculture last year, House of Commons staff noted in a briefing paper for members of parliament. This figure is swollen at times by around 75,000 seasonal workers.

A further 116,000 EU citizens worked in food manufacturing.

The Food and Drink Federation predicts the sector, which employs about 400,000 people, needs to recruit another 140,000 by 2024.

The government, which wants to reduce immigration sharply, has yet to announce its post-Brexit policy but farm minister George Eustice has recognized employers’ concerns. “Leaving the EU and establishing controlled migration does not mean closing off all immigration,” he told parliament in earlier this year.

However, a government document leaked in September showed that restrictions for all but the highest-skilled EU workers were under consideration.

Such a possibility alarms farm employers. “Without EU labor there will be no British pig industry as we know it,” said Zoe Davies, chief executive of the National Pig Association.

British farmers have relied on foreign labor for a long time, at least around harvest time. A Seasonal Agricultural Workers Scheme was introduced shortly after World War II.

The government ended it in 2013 before Romanians and Bulgarians won the automatic right to work in Britain, arguing that there were now enough EU workers to fill farm vacancies.

With EU citizens to lose that right on Brexit, the National Farmers’ Union (NFU) wants the scheme — or something similar — reinstated. This may mean going back to the time when people from beyond eastern Europe filled farm jobs.

Michael Oakes, chairman of the dairy board at the NFU, says older colleagues remember when people from countries such as the Philippines worked on British farms.

“There are other countries in the world that would help to solve the problem but at the moment because they are not within the EU they are not necessarily able to come in and work.”

Filipinos already work on New Zealand farms but such an idea could prove politically difficult in Britain as the pro-Brexit side fought the referendum on promises to curb immigration.

Many of the 17 million Britons who voted to leave are likely to be unhappy if they find eastern Europeans simply replaced by non-EU workers such as Filipinos or Ukrainians.

“Perhaps we need to broaden out the opportunities but a lot of people voted for Brexit because of immigration reasons, so it is a tricky one for the government,” said Oakes.

Making sacrifices

Any new seasonal plan could still recruit in the EU, but might be forced to widen its scope to get the required numbers.

Net migration to the UK fell to 230,000 in the year to June, far from the government’s ambition of arrivals “in the tens of thousands”. Still, EU citizens accounted for three quarters of the 106,000 drop, the Office for National Statistics reported.

The figures present a mixed picture, with a net 20,000 Poles leaving the country in 2016 but 50,000 Romanians arriving.

But some eastern Europeans say they feel less welcome since the referendum and resent the negative attitude of some Britons.

“I was quite upset. Why do you have a problem with me if I am coming to take a job you don’t want and I am paying tax?” said Zoltan Peter, who came to England in 2009 to work on a dairy farm in western England, initially leaving his wife and baby daughter at home in Romania.

Peter now works as a regional manager for LKL, a firm which recruits workers to the dairy industry, but says the early years were not easy. “I didn’t catch my daughter starting to talk, but you sometimes you make sacrifices and eastern European people are making sacrifices,” he told Reuters.

A drop in sterling since the referendum has also made Britain less attractive for farm workers who earn at least 7.20 pounds an hour. That was worth 41 Polish zlotys before the vote but now it buys only 34.

Part of the answer may lie in a drive to recruit and train more British workers, despite Peter’s doubts.

Oakes said he needed people prepared to work long, unsocial hours often in cold, wet conditions. Milking on his farm starts at 4.30 a.m. and the day does not end until 8 p.m. “It is an early start or a late finish, and occasionally on bad days you might have to do both,” he said.
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The Maldives government signed a free trade agreement with China during a visit to Beijing by its leader, Abdulla Yameen, it said on Friday, despite criticism from the opposition over the speed at which the deal was concluded.

Under the deal – a document of more than 1,000 pages that the Maldives parliament signed off on last week after less than an hour of discussion – China and the archipelago nation will impose no tariffs on imports from each other.

Fisheries are the main export from the Maldives, an Indian Ocean country of 400,000 that also relies heavily on tourism.

“The free trade agreement between China and Maldives signed during the visit was a milestone in the development of China-Maldives economic and trade relations,” Yameen’s official website said in a joint communique.

The Maldives government also endorsed China’s proposed Maritime Silk Road business development project, part of its vast Belt and Road infrastructure project.

China’s state-run Xinhua news agency quoted Chinese President Xi Jinping as telling Yameen that the Belt and Road program matched up with the Maldives’ development strategies.

President Yameen’s government has had good relations with China since taking power in 2013. China has been striking deals with countries in Asia and Africa to improve its imports of key commodities and boost its diplomatic clout.

The main opposition Maldivian Democratic Party (MDP) said in a statement that the FTA contained technical details that should have been thoroughly reviewed and called for its implementation to be suspended until an independent feasibility study is conducted.

The government says the FTA will help diversify the $3.6 billion economy and boost fisheries exports, crucial since the European Union declined in 2014 to renew a tax concession on them. Fisheries account for 5 percent of Maldives’ economic output and earned the country $140 million in 2016.

The EU declined to extend the tax exemptions because the country has failed to comply with international conventions on freedom of religion, European diplomats in Colombo say.

Maldives law prohibits the practice by citizens of any religion other than Islam, while non-Muslims are barred from voting, gaining citizenship or holding public office.
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