March 28, 2024

Obama Bid for Trade Pact With Europe Stirs Hope

Experts cited tough economic times on both sides of the Atlantic and a perceived need among European leaders for a cause to unify their frayed union as major reasons that an agreement might be reached now, where past efforts have failed. But an even greater consideration, they said, was the growing economic might of China.

“There will be an agreement in the end,” said Claudia Schmucker, head of the globalization and world economy program at the German Council on Foreign Relations. “This will be the first time in 20 years where something can happen.”

Proponents hope that a comprehensive trade agreement will not only raise economic growth, but also lower prices for European and American consumers and give new impetus to a relationship that has lacked forward momentum almost since the end of the cold war. Talks could begin in late May or early June.

Negotiations are not expected to be easy, with entrenched interests, especially in protected sectors of the agriculture industry, fighting to maintain their subsidies and preferences. European consumers have rejected the kinds of genetically modified crops that are commonplace in the United States but are known across the Atlantic as Frankenfoods.

Nevertheless, Mr. Obama’s announcement was applauded by leading politicians and business groups in Europe, especially here in Germany, and so far the news has not provoked the instant union opposition in the United States that free-trade talks with underdeveloped, low-wage countries do.

Trade experts agreed that several new factors had converged to make an agreement more likely. The economic stagnation on both sides of the Atlantic has heightened the awareness that a prod to growth is needed. In a Democratic administration, free-trade agreements are much easier to reach with higher-wage, unionized countries like those in Europe that do not spook trade unions. And the cross-pollination between American and European companies, as in the auto sector, also is expected to blunt opposition from labor groups.

But China may present the single most compelling factor. There is an increasing awareness that to deal with the challenge of China’s rapidly growing economy, Europe and the United States will have to learn to cooperate better.

“In every trade negotiation that I know of between Europe and the U.S., China is on their minds in terms of how can we use trade negotiations to better compete,” said Jeffrey J. Schott, a senior fellow working on international trade policy at the Peterson Institute for International Economics in Washington.

While trade deals often take years to negotiate, a senior Obama administration official said that a pact is possible in as little as 18 months — before the terms of the current European commissioners end. Even so, trade experts with experience from previous rounds say they are acutely aware of how often negotiations begin with optimism and grand plans and end with intractable fights between vested interests.

Karel De Gucht, the European Union’s trade commissioner, said completing a trade pact could take two years. In an interview, he said that a deal “will have a worldwide impact.” The talks were “about our place, and by our place I mean the United States and Europe, within a decade on the world economic scene,” Mr. De Gucht said.

Mr. Obama devoted a single sentence to the topic in his State of the Union address, but that was what proponents of a trade deal had been hoping for. His statement set the stage for talks to remove tariff barriers and regulatory hurdles between the United States and the European Union, which are already each other’s largest trading partners.

In his speech on Tuesday, Mr. Obama called the initiative the Transatlantic Trade and Investment Partnership, but the idea is an old one, much discussed during the Clinton administration under the name Tafta, something like a sequel to the Nafta deal.

Mr. Obama’s reference to talks about a possible free-trade pact with the European Union was a late addition to his State of the Union address, according to a senior administration official, because a working group of the United States and the European Union had sent recommendations to Washington only on Tuesday that the two sides were close enough on various issues to pursue talks toward a comprehensive free-trade agreement, rather than a more limited one.

Nicholas Kulish reported from Berlin, and Jackie Calmes from Washington. James Kanter contributed reporting from Brussels, Jack Ewing from Frankfurt, and Brian Knowlton from Washington.

Article source: http://www.nytimes.com/2013/02/14/world/europe/obama-bid-for-trade-pact-with-europe-stirs-hope.html?partner=rss&emc=rss

The Lede Blog: Vignettes of Black Friday

With promotions, discounts and doorbusters already well under way on Thanksgiving Day itself, many big-box retailers are making Black Friday stretch longer than ever. The Lede is checking out the mood of American consumers in occasional vignettes Thursday and Friday as the economically critical holiday shopping season kicks off.

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Article source: http://thelede.blogs.nytimes.com/2012/11/22/coverage-of-black-friday/?partner=rss&emc=rss

G.M. Declares Chevy Volt Safe

The automaker held a conference call with reporters to address growing concern that the plug-in electric Volt — a centerpiece of G.M.’s turnaround — could catch fire after a severe accident.

Two senior G.M. officials, North American chief Mark Reuss and Mary Barra, head of global product development, both stressed that no Volts have caught fire immediately after an accident.

“We don’t think that there is an immediate fire risk,” said Mrs. Barra. “This is a post-crash activity.”

The National Highway Traffic Safety Association on Friday opened a formal defect investigation into the Volt after two vehicles caught fire as part of testing by regulators.

In June, a fire occurred at a storage facility in Wisconsin three weeks after the Volt was crash-tested. G.M. attributed the fire to a failure to deactivate the lithium-ion battery in the vehicle.

Then on Thursday, a Volt battery pack caught fire after being intentionally damaged a week earlier by federal regulators, the N.H.T.S.A. said. The agency also recorded a temporary temperature increase in another battery pack one day after it was damaged, and a third pack emitted smoke and sparks after a similar test.

G.M., which has sold 5,329 Volts to American consumers since late 2010, has since been deluged with media scrutiny of the safety of the vehicle, which runs on electric power and is equipped with small motor that can recharge the battery while driving.

Mr. Reuss said in the conference call that the Volt is a “safe vehicle,” but said the automaker would offer free loaners to any owner until the safety issue is resolved.

“We are contacting all Volt owners to assure them and reassure them that our cars are safe to drive,” Mr. Reuss said.

He declined to provide more details on how long the loan program would last. “Our customers’ peace of mind is the most important thing,” he said.

The N.H.T.S.A. has said its tests have not raised safety concerns about the batteries in other electric cars, such as the Nissan Leaf.

In addition, the agency has so far said there is no evidence of fire problems in real-world crashes involving the Volt.

“However, the agency is concerned that damage to the Volt’s batteries as part of the three tests that are explicitly designed to replicate real-world crash scenarios have resulted in fire,” the agency said.

G.M. has sent its own personnel to the site of any accident involving a Volt, Mrs. Barra said. None of the crashes have caused a fire in the immediate aftermath of the incident.

However, Mrs. Barra said that the bigger concern is what happens to the batteries in the days and weeks following an accident.

She said that the lithium-ion batteries should be “de-powered” by trained service personnel to reduce the chances of a fire while the vehicle is stored.

“When electrical energy is left in a battery, it’s similar to having gasoline in a tank of a car that has been damaged,” she said.

G.M. said it is working with federal regulators on further tests of the Volt and will step up efforts to train workers at its dealerships on post-crash safety protocol.

The company has no plans to discontinue selling the Volt, Mr. Reuss said. However, the automaker will not begin shipping Volts to international markets until it can fully alert its dealers to post-crash safety measures.

Article source: http://feeds.nytimes.com/click.phdo?i=5396b700a2430230765a51214f4b6fe5

U.S. Markets Edge Ahead on Greek Optimism

Stocks on Wall Street rose in early trading after encouraging signs about Europe’s debt crisis overshadowed a dismal report about spending by American consumers.

Greece’s parliament was debating an austerity package that must pass for that nation to receive a second bailout and avoid defaulting on its debt. European markets rose Monday after French banks agreed to let Greece repay some of its debt more slowly.

Earlier Monday, the Commerce Department said that American consumer spending was unchanged in May, the weakest pace in 20 months, another sign that the economic recovery slowed this spring.

The Dow Jones industrial average was up 78 points, or 0.7, percent, at 12,012. The Standard Poor’s 500-stock index was up 7 points, or 0.6 percent, at 1,276. The Nasdaq composite index rose 19, or 0.8 percent, at 2,672.

Investors are hopeful that Greece will get another financial lifeline to see it through the next couple of years even if some lawmakers from the governing Socialist Party fail to back the measures in a vote this week. The expectation was that votes from other parties will see the government home.

That has eased concerns over what impact a Greek default would have on Europe’s financial system. Many analysts say a default could trigger mass panic in the markets, akin to what happened in the aftermath of the 2008 collapse of investment bank Lehman Brothers.

Ahead of the vote, the French government on Monday said banks had agreed to roll over a significant amount of their holdings in Greek debt.

France’s president, Nicolas Sarkozy, said the plan being worked out between French government officials and bankers would involve reinvesting debt held by French banks in new securities over 30 years. The hope was that would ease the pressure on Greece to constantly find money to pay off investors.

French bondholders hold about 15 billion euros in Greek government debt.

European leaders are trying to get the private sector to take part in Continental efforts to help Greece avoid default. Finance ministers from the 17 euro zone countries are scheduled to meet Sunday and confirm Greece’s next batch of bailout funds — provided the Greek Parliament has backed the austerity measures.

Stocks in Europe were mixed to start the week, while the euro edged 0.4 percent higher to $1.4244.

The FTSE 100 index of leading British shares was up 0.2 percent at 5,709, while Germany’s DAX was 0.2 percent lower, to 7,108. The CAC 40 in France was 0.1 percent higher at 3,789.

Earlier in Asia, Japan’s Nikkei 225 fell 1 percent to close at 9,578.31, while South Korea’s Kospi lost 1 percent to 2,070.29.

Hong Kong’s Hang Seng fell 0.6 percent to 22,041.77, but shares in mainland rose. China’s Shanghai Composite Index gained 0.4 percent to 2,758.23 while the smaller Shenzhen Composite Index added 1.1 percent to 1,148.63.

In the oil markets, prices continued to fall following last week’s surprise decision by oil-consuming countries to release 60 million barrels of crude over 30 days. Benchmark oil for August delivery was down $1.12 to $90.04 a barrel.

Article source: http://feeds.nytimes.com/click.phdo?i=5c117476dd1d757236360bf733464ce5

You’re the Boss: How Social Ventures Can Produce Profits

Laurie Loew donates 25 percent of her commissions.Courtesy Give Realty.Laurie Loew donates 25 percent of her commissions.
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Last decade, it was all about going green to differentiate your company in the hearts and minds of consumers. Today, it’s social entrepreneurship that’s the nice new thing that can make your company stand out.

The 2010 Edelman goodpurpose global study (PDF), found that 87 percent of American consumers expected businesses to consider societal interests at least as much as their own interests. And 62 percent said that it was no longer enough for corporations to give money to good causes; they needed to integrate those causes into their businesses.

Edelman cites declining trust that the government can solve our social issues as one explanation for this call to businesses and individuals to step up. In its March/April brief, TrendWatching suggests that practicing Random Acts of Kindness is a winning strategy for businesses. While this may seem like the kind of thing only big corporations can afford, there are many small businesses taking advantage of this cultural shift to differentiate their businesses and make a difference in their communities. (We  just published a small-business guide to starting your own social venture.)

Laurie Loew started Give Realty two and a half years ago. She was coming out of a divorce and got into real estate by accident. It was during the recession, there was a slump in home sales — you may have heard! — and she was struggling with how to set herself apart from all of the other struggling real estate agents in Austin, Tex. “One half of my brain was feeling sorry for myself because my ex-husband and I were fighting over money, “ said Ms. Loew. “Then I realized how fortunate I was compared to a lot of women going through divorce. I came up with the idea of giving 25 percent of my commissions to the charity of my clients’ choice. I thought the worst thing that could happen is a bunch of other Realtors would copy my idea and a bunch more money would go to charity.”

As of today,  Ms. Loew has given more than $112,000 to 40 different nonprofits. Three out of four clients come to her specifically because of her business model. The surprise bonus, she said, is the quality of clients she attracts. “I’m surrounded by the best clients — the ones who want to make the world a better place,” she said. “They value my time, the mission of Give Realty, and they are very, very special people.” For some extra feel-good public relations, she arranges check presentations with the charities and her clients, and she posts the resulting photographs on her Web site.

Neil Goldman, chief executive of Hotels for Hope, which is also based in Austin, doesn’t think his travel agency would have experienced the growth it has if not for his social business model. In April 2010, inspired by the buy-a-pair, give-a-pair model of Tom’s Shoes, Mr. Goldman asked his hotel chain partners to donate $1 for every room night he booked, which Hotels for Hope promised to match. Mr. Goldman says the company was still able to save clients an average of 24 percent off hotel “rack” rates. And in its first year, it donated almost $25,000 to five national and international charities. “Charity is atonement, giving money back to redeem ourselves,” Mr. Goldman said with a smile. He noted that Hotels for Hope has doubled its staff and that it was much easier for him to recruit talented, motivated employees since adopting the social enterprise model.

Tyler Merrick started an ad agency in Dallas, but the father of three young girls longed to do something more meaningful. Mr. Merrick decided to invest all of his savings in something he called Project 7, an organization that tries to offer help in seven areas of need. Project 7 sells bottled water, gum, mints and coffee with the promise that “when you buy, they give.” Sales proceeds from the products are tied directly to nonprofit partners that teach, feed and house those in need.

Coupled with simple, appealing packaging, the model has gotten the products on the shelves of Whole Foods, Wal-Mart and Caribou Coffee. Not bad for a company competing side-by-side with Coke, Pepsi and other leading packaged-good giants — and truly impressive for a company of five people that’s been in business two and a half years.

“We were up against Kraft, Hershey’s and Mars for gum and mints,” Mr. Merrick said of meeting with Wal-Mart’s buyers. “Wal-Mart is the biggest seller of gum and mints in the world. Getting one product on their register is like hitting the lottery. Wal-Mart told us their average customer makes $30,000 a year and this $1.28 pack of our gum gives these customers an easy way to give back. They gave us three products at their register to launch at their West Coast stores, which Project 7 began shipping in February.” Initial sales reports, he said, had the company’s mints and gum 50 percent ahead of Wal-Mart’s goals — with no merchandise support.

From that initial Wal-Mart order, Project 7, which publishes an annual report of its impact on its Web site (PDF), was able to buy 100,000 meals for families struggling in Southern California and planted 80,000 avocado and mango trees in Haiti. At its two-and-a-half-year mark, Project 7 is projecting profitability, something that often takes well financed packaged-good businesses five years to achieve.

MP Mueller is the founder of Door Number 3, a boutique advertising agency in Austin, Tex. Follow Door Number 3 on Facebook.

Article source: http://feeds.nytimes.com/click.phdo?i=1500c780b50ba6fc9288a482d9d0d2b4