Day: January 23, 2018

ILO: Global Unemployment Rate Stabilizing

By Uponbiz | | No Comments | Business

The global unemployment rate is stabilizing after years in a slump due to a faltering economy, the International Labor Organization reports in “World Employment and Social Outlook: Trends 2018.”

However, unemployment — which the ILO says stands at more than 192 million people globally — is expected remain persistently high in many parts of the world.

The ILO reports that unemployment in wealthier countries is expected to drop to 5.5 percent this year, the lowest rate since 2007.

The labor situation has improved in emerging and developing economies, as well. However, the report warns that employment growth in these countries will not keep pace with the increased numbers of people entering the labor market.

ILO Director-General Guy Ryder expressed concern that low-quality employment is on the rise. He says nearly 1.4 billion people are in vulnerable jobs, meaning they work in difficult conditions for low wages with little security, and that three out of four workers in developing countries are holding down such jobs.

“Very much more effort needs to be made to improve the quality of jobs,” he said. “Despite the uptick in economic and employment growth, which is welcome, working conditions are failing to improve for a very large share of the global workforce. In addition, the projected employment growth in the service sector can be expected to make only a limited contribution to the improvement of job quality.” 

The report notes that working poverty — defined as having income below the poverty line — is falling in emerging countries, but in developing nations, progress in this area is too slow to keep up with the expanding labor force. It says the number of people living in extreme poverty — at less than $3 a day — is expected to remain at more than 114 million for the coming years.

The report’s authors say the gender gap remains wide, with women more likely to have lower-quality jobs and lower salaries than men.
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NAFTA’s Fate Uncertain Ahead of Montreal Round of Talks

By Uponbiz | | No Comments | Business

The NAFTA trade agreement’s future hangs in the balance this week as negotiators from the United States, Canada and Mexico try to settle major differences over revamping a pact that President Donald Trump has threatened to abandon.

Senior officials from the three nations will meet in Montreal for a week starting on Tuesday in the sixth and penultimate round of talks to modernize the 1994 North American Free Trade Agreement.

Trump, who entered office last year pledging to undo what he described as disastrous trade deals, has portrayed NAFTA as grossly unfair to the United States and its workers.

Canada and Mexico, which initially dismissed most of Washington’s demands as unworkable, now say there is room to maneuver. But that still may not be enough to satisfy Trump and impatient U.S. officials.

U.S. threats to walk away from NAFTA, which underpins much of the more than $1 trillion in annual trilateral trade among the three nations, have put markets on edge. The talks are supposed to wrap up by the end of March to avoid clashing with Mexico’s general elections in July.

Trump, who blames NAFTA for killing off hundreds of thousands of U.S. manufacturing jobs and says it has led to a large U.S. trade deficit with Mexico, tweeted last Thursday that “NAFTA is a bad joke!”

Over the last 10 days the Republican president has generated confusion by indicating that he might extend the deadline for talks while saying that walking away from the table would be the best idea.

A council advising Canadian Foreign Minister Chrystia Freeland on NAFTA has concluded that Washington is most likely to announce that it wants out of the pact. It met with Freeland, who says a positive result is still quite possible, last week.

“There is still a shred of optimism, but I have to say the consensus around the room … felt like it’s not if, it’s when he’s going to pull the plug,” Rona Ambrose, a council member and former Canadian minister, told CTV television.

Canadian Trade Minister Francois-Philippe Champagne stressed that Ottawa will not compromise its economic interests.

“Canada will not accept proposals that would be harmful to our economy and to Canadians,” he said in a speech in Montreal on Monday.

Nevertheless, a large majority of economists polled by Reuters are betting the treaty will be renegotiated successfully with only marginal changes.

Freeland met Mexican Economy Minister Ildefonso Guajardo in Toronto on Monday to iron out details of the negotiations, and they agreed it will be critical to tackle some of the most complicated issues, Mexico’s Economy Ministry said in a statement.

Cautious Optimism

Canada and Mexico initially said they would not even discuss U.S. demands to set minimum levels of North American content for the auto sector, a clause that would terminate the deal if it is not renegotiated every five years, and to end the so-called Chapter 19 dispute mechanism.

Sources close to the talks say Canada and Mexico will now be more flexible on the auto content and dispute resolution issues.

“We have got areas we are going to fight for, obviously, but that doesn’t mean we can’t be creative, nimble, clever,” said one Canadian source familiar with Ottawa’s strategy.

“There can be very strong lines (in the sand) … it’s not to say you don’t talk around them. Sometimes you find creative ways without necessarily compromising,” said the source, who requested anonymity given the sensitivity of the situation.

In Mexico, some of the pessimism palpable in late December has given way to cautious optimism that progress towards a deal is possible in Montreal if the Trump administration is prepared to give ground on its toughest proposals.

Jaime Zabludovsky, one of the Mexican negotiators of the original NAFTA accord and an adviser to the private sector on the current talks, said the negotiations in Montreal would be a decisive test of the countries’ ability to make progress.

“I think we’re at a make-or-break moment,” he said in an interview.

One Mexican source familiar with the process said he expected further talks through March and mentioned the possibility that final discussions could, if necessary, be postponed until after the Mexican elections.
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Heat-not-burn Cigarette Alternative Faces US Scrutiny

By Uponsci | | No Comments | Science

A device that heats tobacco without burning it reduces some of the harmful chemicals in traditional cigarettes, but government scientists say it’s unclear if that translates into lower rates of disease for smokers who switch.

U.S. regulators published a mixed review Monday of the closely watched cigarette alternative from Philip Morris International. The company hopes to market the electronic device as the first “reduced-risk” tobacco product ever sanctioned by the U.S. government.

Philip Morris’ pen-like device, called iQOS, is already sold in more than 30 countries, including Canada, Japan and the United Kingdom. But Philip Morris and its U.S. partner, Altria, need the permission of the Food and Drug Administration to sell it in the U.S.

iQOS heats strips of Marlboro-branded tobacco but stops short of burning them, producing a tobacco vapor that includes nicotine. This is different from e-cigarettes, which don’t use tobacco at all but instead vaporize liquid usually containing nicotine. Nicotine is what makes cigarettes addictive.

Philip Morris believes its product is closer to the taste and experience of traditional cigarettes, making it more attractive to smokers and reducing their contact with tar and other toxic byproducts of burning cigarettes.

Company scientists will present their studies and marketing plan to a panel of FDA advisers this week. The panel’s recommendation, expected Thursday, is non-binding: The FDA will make the ultimate decision on the device later this year.

A green light from FDA would mark a major milestone in efforts by both the industry and government to provide less harmful tobacco products to smokers who can’t or won’t quit cigarettes. Despite decades of tax hikes, smoking bans and campaigns, about 15 percent of U.S. adults smoke.

The FDA review paints a mixed picture of the potential benefits of the iQOS “heat-not-burn” approach.

Levels of certain harmful chemicals were between 55 and 99 percent lower in the vapor produced by iQOS than in cigarette smoke. But animal and laboratory studies submitted by the company also suggested the chemicals could still be toxic and contribute to precancerous growths. A company study in mice could help clarify the cancer risk, but the FDA said the results would not be available until later this year.

FDA requirements

Under a 2009 law, the FDA gained authority to regulate a number of aspects of the tobacco industry. The same law allows the agency to scientifically review and permit sales of new products shown to be less dangerous than what’s currently available. But the FDA has not yet allowed any company to advertise a “reduced-risk” tobacco product.

To meet FDA requirements, a company must show that the product will improve the health of individual users and the overall population. Additionally, the product should not appeal to non-smokers or interfere with smokers looking to quit.

The FDA review said some non-smokers, including young people, would likely experiment with iQOS. Reviewers also questioned if smokers would completely switch to iQOS from cigarettes. In company studies, less than 20 percent of U.S. users switched completely to iQOS over six weeks.

Philip Morris and other global tobacco companies are diversifying their products beyond traditional cigarettes, making investments in e-cigarettes, heated tobacco products and chewable tobacco pouches, among other alternatives. While cigarettes remain enormously profitable, the global market continues to contract amid worldwide campaigns to discourage smoking.

The FDA itself has signaled its intention to begin pushing U.S. consumers away from traditional cigarettes toward alternative products. As part of the effort, FDA Commissioner Scott Gottlieb wants to drastically cut nicotine levels in traditional cigarettes to help smokers quit.
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