tv Counting the Cost 2018 Ep 26 Al Jazeera July 3, 2018 8:32am-9:01am +03
hello i'm hasn't seeker this is counting the cost on al-jazeera your weekly look at the world of business and economics the european union is trying to change a look at the efforts to reform it. also this week illegal logging activists accuse timber companies of endangering the world's second largest rainforest in the democratic republic of congo plus nafta and one of the world's worst digital divides a look at the economic challenges ahead for mexico. or the european union makes up one fifth of the world's economy part of its success is that each citizen see themselves as better off economically within the bloc than
outside but that perception is being challenge the e.u. turned sixty last year and for some it may be showing its age this week's e.u. summit in brussels reform was tabled as a necessary adjustment to meet the new challenges french president emanuel mccraw is one of those driving the reforms he says now is a golden opportunity to make changes to ensure the future success of the bloc he is pushing for a more financially flexible you but divisions have been growing as well over the blocs policy on refugees on the opening day a breakthrough of sorts was achieved under the deal to block will boost funding to address the issue which has threatened the very solidarity of the bloc largely has more. if it's being framed as a solution to the migration crisis i think it's the biggest exaggeration you could possibly imagine what what he sees in terms is a sort of political fix to stop the block from falling apart and take the pressure
in particular of the german chancellor angela merkel whose political career was in the balance because of this a lot of what they've agreed in this communique is exactly what is expected and it's all about keeping people out more support for the libyan coast guard for example strengthening the borders with turkey these sorts of things the surprise package which was dreamt up by emmanuel macron the french president with this idea of what they call holding centers potentially in italy and greece the two countries that most of the refugees come through actually what it is in terms is a win for the hardliners no overall idea of what a common european asylum policy looks like but what it does is appease italy and take all the pressure of angela merkel we're joining us now from london is john spring for deputy director at the center for european reform thanks very much for being with us so is there a problem in the way this whole issue of migration is being framed in europe
particularly in economic terms because you know we get it we get all these figures about how germany for example its population is getting older and there is a labor shortage and there is an argument there that it actually needs more people in need more migrants. i think that's absolutely right and one of the big advantages of loss of having a lot of migrants coming into your economy is that it also just helps you fiscally if you've got an aging population and a shrinking working age population and you don't have the tax base to be able to pay for all of the health care and pensions and so forth that the zero people need so bringing in more people will definitely helps what's really important though is that those people are quickly integrated into the labor market into society so that they find jobs quickly and they they start becoming productive helpful members of society yeah this goes back to this this whole issue of europe's rich subsidizing europe's poor i mean how do you find how do you find some sort of common ground on
that i think that germany is is very unwilling to have the kind of transfer union as it's called that a country like italy or most countries have whereby because you raise more taxes from rich people that money gets also money transform transferred in the form of public services and welfare expenditure to poor people germany really does not want that to happen on the on the europeans scale and. the merkel has tried very hard with a negotiations with macron to stop that from happening and part of the reason for that is it's not just germany it's also a group of countries led by the netherlands which are calling themselves the new hanseatic league who are breathing down anger merkel's neck and saying look we don't want germany to sign up to that kind of transfer union. there's also of course the issue of tariffs looking at to its own set of measures to protect it's
still an alum indian industry and that's of course couple coming off to the u.s. imposed tariffs on their metals industry what impact is that likely to have because we've heard enough economists saying that trade was around there are no winners in in trade wars so i mean is this is a case of that they were faced with little choice and the current set of terrace which the trump administration has imposed is not going to be an economic disaster if the european union you know we're talking about tariffs on some basic metals. and the e.u. is not an absolutely huge supplier of these missiles to the us the problem is if the trade war escalates and the us imposes tariffs on cars where the e.u. has a very big us and sends a lot of costs to the us and it's quite vulnerable to that. i mean it's difficult to say how the e.u.
should respond on the one hand if they just said ok trump imposed tariffs on us and we're not going to respond and then it may well just involved in trying to go further particularly if the trade balance between the e.u. and the us does not improve but on the other hand you know if they do escalate the trade war then it might become a kind of fight to the death and we might see some severe restrictions on transatlantic trade which which won't help anyone and so is it typical economists on the one hand and on the other argument but i think the e.u. is essentially has got no easy options in john's break for good to speak with you thank you. now an iconic motorcycle brand versus donald trump the u.s. president's trade spat with the e.u. has forced holly davidson to shift gear new e.u. tariffs will raise the average cost per bite by about two thousand dollars so it's moving some production outside the u.s.
and with that decision holly became the poster child for the breakdown in u.s. trade relations with the e.u. rob reynolds has more from washington. the growing global trade war is claiming some of its first victims in the u.s. motorcycle maker harley davidson announced it was moving some of its production overseas to avoid steep tariffs imposed by the european union. the e.u. action came after president donald trump slapped tariffs on european steel and aluminum harley davidson says it sold forty thousand motorcycles in europe last year it's not yet clear how many workers will lose their jobs trump tweeted surprised that harley davidson of all companies would be the first to wave the white flag asked about the wisconsin based manufacturers decision white house spokesperson sarah sanders defended trump's trade policies the european union is attempting to punish u.s.
workers with unfair and discriminatory trade policies and president trump will continue to push for free fair and reciprocal trade and hopes that the e.u. will join us in the meanwhile soybean farmers in the midwest are dreading the prospect of china taxing their product in retaliation for trump's tariffs on chinese goods so would be futures are already at their lowest in nearly a decade export twenty five percent of your products any time your stock start talking training go she says going to be a big impact on your business. tariffs have gone into effect on u.s. cranberries peanut butter orange juice and levi's jeans also in a blow to european liquor aficionados and american distillers bourbon whiskey has become costlier from lisbon to warsaw thanks to you retaliatory terrorists twenty five percent price increase is going to put us really expensive compared to other products that are already available in europe made by either european producers or
indian or even japanese producers the kentucky distillers association urged trade negotiators to quote sit down over a glass of our signature spirit and resolve their differences. also to come on counting the cost ticket to ride a u.k. court grants a temporary license to operate in london or criticizes what it calls the company's gung ho behavior. of first there's a europe wide shortfall of carbon dioxide why does that matter well c o two is the gas that's used to put the fears into beer and soft drinks it also helps extend the shelf life of meat and other packaged foods it was reported last week as the worst supply situation to hit the european carbon dioxide business in decades adding the u.k. is the hardest hit country a kuwait saudi arabia and the united arab emirates are teaming up to offer
financial aid to neighboring behind concerns of the growing about the state of the train's economy it's located off the coast of saudi arabia but unlike its neighbor it has limited oil supplies and worries about the country's large public debt which now stands at eight hundred nine percent of gross domestic product have been gathering pace the cost of insuring that debt against a default has also been flashing a clear warning signal it's of the highest since records began but most worryingly behind has relatively low levels of foreign exchange reserves so there have been fears around its future ability to pay for essential imports a demand for wood in europe and elsewhere is causing a rainforest in africa to shrink at an alarming rate environmental campaigners are accusing the largest timber company in the democratic republic of congo of illegally cutting down millions of trees paul chodas jan reports. in the heart of
africa the congo basin is home to the world's second largest rain forest but a new investigation accuses timber companies of endangering its existence second in size to the amazon the congolese rain forest to some two million square kilometers it covers six countries including the democratic republic of congo where it's shrinking the fastest the nonprofit global witness says the d.r. she's biggest timber company north to timber is illegally harvesting trees at nearly ninety percent of its sites with impunity north timber which is portuguese owned denies congolese subsidiary sort of force is breaching its contract it says the accusations have no basis it acknowledges some management plans may not be in place but that it's talking with the ministry of environment about them global witness is also accusing importers such as portugal and friends of failing to take action researchers are trying to learn about the forced unique ecosystem before it's too late. these forests are under pressure from humans so we scientists want
to categorize the foreigner and the birds the only thought of this forest before it is destroyed. scientists say the congo rainforest is a source of food and water for tens of millions of people it's also home to six hundred types of trees and ten thousand animal species including endangered ones they say these trees produce oxygen and absorb carbon dioxide but their ability to reduce greenhouse gases and regulate the climate is decreasing. but example here for example the rainy season normally starts in mid august but now sometimes it begins in july and sometimes it's september and when it comes sometimes the water does not rise steadily and then they suddenly recede there's a disorder in the cycle so despite existing national international laws designed to protect rain forests global witness says companies like north timber and dangerous seventy five million hectares of rain forest in the d.r. see global witness demanding all those involved from governments importers and
buyers to stop being complicit in the destruction of the aussies tropical rain forests and the impact it's having on the planet's climate all jew carol in a campaign at global witness says that the government of d r c has not been implementing the laws in its books our report shows that around sixty percent of the timber noster timber is exporting and also timber is the biggest logging company and in the r.c. sixty percent of this timber is classified as endangered or vulnerable by the international union for the conservation of nature we actually believe that tropical timber or especially those which are threatened or endangered should be treated like ivory and there's basically no excuse no legitimacy to be cutting down these endangered species or go vote in this report. exposes a lot of a lot of illegality for not a temper not september has also been accused in the galleries for the past six years by other non-governmental organizations and so far the d r c has not done
anything to ensure that laws are parts of the first thing that really needs to happen is that the r.c. government must get serious and say if you breach the law there will be consequences. now one of the main issues in mexico's presidential campaign has been its underperforming economy mexico is traditionally seen as a commodities and manufacturing giant it has the largest proven silver reserves in the world and the tenth largest oil reserves but according to bloomberg some forty percent of the population still face entrenched poverty in terms of internet access mexico falls behind colombia brazil venezuela chile and argentina countries where between thirty and forty percent of the population is connected online and the most deprived areas are in rural communities john home has more. in. the mix can countryside decimated by poverty and empty but migration over decades you're more is one of the aging population of small scale farmers struggling to
compete with industrial scale operations in the world the mexico and the u.s. almost all that i know i produce grains but not money he says that many communities young have either left or turned to more lucrative ventures when then they're all they sell drugs they kidnap they live well for a few days and then they get killed just next to my house or there was head of a kidnapping. this man promises to change the presidential front runner and raise money well look as obrador has made the neglected mix can country side a campaign priority. he said he were focused government support from large industrial produces to smaller farms help them get quality seeds technological know how better access to loans and the guaranteed minimum price for their crops it's all part of
an ambitious plan for mexico to produce its own food. they're buying everything abroad that we could grow in mexico me that's going to start. in the past there were incredibly strong ties between mexicans and the land this is the birthplace of corn itself but it's a different country now daming with the urban population and the global market the question is if it's really possible or even worth the cost of resuscitating this sector. even lopez obrador team says the wholesale change he promises will be impossible one of been a straight. and agricultural economists who in general support the plan have questioned of price guarantees for individual farmers and in particular in forcing home grown food and carry a steep cost for authorities and consumers is because one thousand people are that
in consequence it's going to be very expensive for the government and mexican taxpayers that. promise them so seems split between those two banking on the ruling party which has given them just enough to survive and those like a year or more voting in the hope of change. well joining me now to talk more about this from i.h.s. market in london is carlos cod daniel thanks very much for being with us so just broadly speaking. how would you assess the current state of the mexican economy right now. well the other items made that were currently respect in the economy to continue growing these year at around two point two percent but the key question marks are related to the ongoing enough though the negotiations there's a a lot of uncertainty going on there at the moment mexico highly depends on the u.s. us it's been costumer in terms of exports eighty percent of make them exports go to
the u.s. that uncertainty was sort of the impact of the economy when you when you hear about mexico in the news these days a lot of it focuses on on the violence and the ongoing drug wars which is pushing so many. people to the border with the u.s. and the and that's has its own issues as well but how much of an impact is this having on on mexico as a whole and mexican society. yes i mean certainly last year we had a record levels in terms of the numbers of homi sites in the country the trend continues to go up so far this year everything has been driven by the fragmentations of the main drug cartels and this is an eight in. an impact on not only vote in intention but also on the security environment for companies that are operating in different parts of the country this is a big challenge for the next government will inherit it's going to be very
difficult to resolve all that all when you look at the economic indicators actually exports in mexico went up last year foreign direct investment went up as well but it's an issue about mexico being able to reach its potential in terms of economic growth so obviously a reduction in terms of violence would make the operating environment more friendly and that could even speed up the amount of investment and economic progress but but having said that there are little certain things regarding nafta and the policies of the new storm in terms of the economy and that's going to impact the overall economic growth in the country in terms of the the inequalities in in mexico right now is why one of the things i was i was reading about was the seventy percent of mexicans have no access to a computer in twenty eight hundred there is this this great digital divide. in the countries between in the country between the cities and some of the rural areas how much of a factor is all of that in mexico's future economic growth there is
a big digital divide there is also a big divide between the north and south of the contrary the solve the usually southern states are being very poor with we can see. and know defense also in terms of security and the operating environment the current government it's trying to great special economic zones in the south of mexico to try to promote that economic growth the next one. it's very likely to continue with that and also there are talks about expanding those economic zones to the north of the country there's also a big issue in terms of youth unemployment and that is not only a few million issues related to drug related violence and many of the youth going into organised crime but also creating issues in terms of discontent specially in the south which is a part of mexico or usually have brought as an strikes for different reasons
against the government and where does mexico's currency the peso fit into all of this. because as that takes a hit there that has implications on inflation in the country as well yeah certainly the best so has been here very hard over the past year mostly related to the decisions you got enough every time that there was a conflict or or or the other situation in which there was no agreement or every time the u.s. administration criticized mexico's stance on trade the pay so usually weekend and that obviously had a big impact on inflation that the government. at the moment but also the one that will harriet the contrie will only have to deal with that in the future but also with trying to slow down overall inflation in the country last year inflation was around six percent the highest over the past sixteen years and that's what a lot silencer they will have to cope with over the next year carlos cardenas
thanks very much for being with us and finally taxi hailing app has won an appeal to continue operating in london for now license was revoked last september over the company's failures to report serious criminal offenses and conduct background checks on drivers for brennan has more. as a business is a global disruptor turning the traditional taxi profession upside down and provoking protests bans and restrictions as it does it the company is now valued at more than seventy billion dollars and after starting with just three hundred u.k. drivers in two thousand and twelve now has sixty thousand u.k. drivers forty five thousand of them in london but it's had a confrontational relationship with the london regulator t.f. out the company boss told elbridge admitted that previous correspondence for example with the regulator had been inaccurate incomplete and in adequate they
accepted that the reporting of crime for example was not what it should be that said the judge despite acknowledging a gung ho approach by the company in the past was willing to give it the benefit of the doubt and granted a fifteen month probationary license under the strict supervision of t f l who but insisted that since last year there have been wholesale change in the way it now conducts its business it was now transparent and open but has u.k. boss tom eldridge declined to be open with the media afterwards instead issuing just a brief written statement we are pleased with today's decision we will continue to work with t.f. l. to address their concerns and earn their trust while providing the best possible service for our customers with a body representing london's traditional black cabs is not happy at all they've admitted a catalogue of errors in their treatment c.f.l. as a regulator and basically the magistrate has said i will as long as you've apologized and everything's going to be good for merrill we can move forward i mean this
decision was an absolute disgrace and one former driver says c.f.l. now needs to prove itself to tear fell on new tackled over at the end of a five year license term why was cheerful not on top of this throughout the license terms that's the question we need to be asked now is that changed as well is it capable of managing who. is on probation will it now play fair or take t f l for a ride. and that is our show for this week get in touch with us by tweeting me at. and do use the hash tag j.c.t. see when you do or drop us an email counting the cost that al jazeera dot net is our address is more for you online as well as al-jazeera dot com slash c t c it'll take you straight to our page which has individual sports links an entire episode for you to catch up on. that is it for this edition of counting the cost and has a secret from the whole team here thanks for joining us the news on al-jazeera is next.
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