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US reimposes oil sanctions on Venezuela

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The United States has decided to reimpose sanctions on Venezuelan oil, arguing that the government of Venezuelan leader Nicolás Maduro ‘has failed to live up to its commitment to hold free and fair presidential elections this year’.

According to the Financial Times (FT), the move amounts to an admission by the Joe Biden administration that the sanctions waiver granted six months ago ‘failed to persuade Maduro to run a truly competitive race’.

Faced with the risk that new sanctions against Venezuela could push up oil prices in a US election year, Washington will allow US oil major Chevron to continue its joint venture with Caracas’ state oil company PDVSA, which has been steadily increasing production.

US accuses Maduro of reneging on deal

In October, Maduro and the US-backed opposition coalition signed an electoral agreement in Barbados. The main opposition candidate, María Corina Machado, was prevented from running, her replacement was not allowed to register and some of her campaign team were detained.

“We found that while the Venezuelan authorities have fulfilled some important commitments, they have fallen short in other areas,” a senior US administration official said, citing “continued harassment and repression of opposition figures and civil society.

The US administration official added that Maduro had agreed to ‘certain aspects’ of the Barbados agreement, such as setting an election date, updating voter rolls and initiating a process to allow international election observation.

Maduro: We will not close the doors to dialogue

In another gesture of cooperation, Washington and Caracas completed a prisoner swap in December that freed 10 Americans from a Venezuelan jail in exchange for the release of Colombian businessman and Maduro ally Alex Saab, whom US prosecutors accused of transferring $350 million from Venezuela to US accounts.

Maduro said on Monday that he would “never close the door to dialogue” with the United States, adding that his negotiators had met with Washington’s representatives in Mexico last week.

“I told the negotiators to give the following message to President Biden: ‘If you want it, I want it. If you don’t want it, I don’t want it’,” he said.

In response to the reimposition of sanctions, the president of the Venezuelan Congress, Jorge Rodríguez, accused Washington of reneging on the trade agreement reached with Caracas. “We keep our word and we will never accept ultimatums. We will see who keeps their word and who does not, and whether they fulfil their commitments,” Rodríguez said.

US energy companies will be able to apply to the US Treasury for special licences

According to recent reports, Shell and Trinidad’s national gas company have signed an agreement to export Venezuelan offshore gas through the Caribbean island, while Spain’s Repsol and France’s Maurel & Prom have also signed deals. These were covered by separate US sanctions licences. US officials declined to say whether those licences would continue, citing commercial confidentiality.

US companies investing in oil and gas in Venezuela that are not covered by existing licences have until 31 May to cease operations. According to a statement from the US State Department on Wednesday, the US Treasury’s Office of Foreign Assets Control “will consider requests for special licences to continue operations after the deadline on a case-by-case basis”.

Venezuelan Oil Minister Pedro Tellechea told reporters that the sanctions would not harm the country’s economy and that foreign companies could apply to the US Treasury for individual licences.

AMERICA

Trump and Biden neck-and-neck in key battleground states

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US President Joe Biden and Republican rival Donald Trump are running neck-and-neck in the November presidential election, according to a new Reuters/Ipsos poll.

Forty per cent of registered voters in the eight-day survey, which ended on Tuesday, said they would vote for Democrat Biden if the election were held today, while the same proportion chose former US president Trump. This is little changed from Biden’s 1-point lead in the Reuters/Ipsos poll conducted on 29-30 April.

According to the poll, which has a margin of error of about 2 percentage points among registered voters, many voters remain undecided nearly six months before the November 5 election.

Twenty per cent of registered voters surveyed said they had not chosen a candidate, were leaning towards third party options or might not vote at all.

Thirteen per cent said they would vote for Robert Kennedy Jr, who entered the race as an independent, if he appeared on the ballot with Trump and Biden. In the previous poll, conducted in April, Kennedy had 8% support.

While the ongoing lawsuits against him challenge Trump, Biden faces difficulties because of his age and his stance on the Gaza war.

When respondents were not given the option of voting for a third candidate or saying they were not sure who they would vote for, both candidates were tied at 46 per cent among registered voters; 8 per cent of respondents declined to answer the question.

Among registered voters who say they are “absolutely certain” they will vote in November, Biden leads by a slim 3-point margin.

In the 2020 presidential election, when Biden defeated Trump, only two-thirds of voters went to the polls.

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Pro-Palestinian protesters demonstrate inside CUNY Graduate Center in Manhattan

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In the US, pro-Palestinian protesters briefly occupied the lobby of the CUNY Graduate Center in Manhattan on Tuesday night, nearly two weeks after a massive police crackdown at the City College of New York (CUNY) and other campuses.

Students demonstrated for several hours in the lobby, hanging banners and calling the centre’s library the “Aqsa University Library”.

Aqsa University, the oldest public university in Gaza, was demolished during the Israeli occupation.

Outside the Graduate Centre, a group of protesters waved Palestinian flags in the rain in support of their friends. Dozens of police lined the street outside the building, but did not enter.

Students participating in the demonstration called on the administration to negotiate divestment from “Israeli arms, technology and surveillance companies”.

At 10.30 p.m. US time, the students emerged from the Graduate Centre and declared victory, telling protesters on the street that after negotiations, the CUNY administration had agreed to take their demands to the entire student body.

The protesters then evacuated the library and staff immediately began cleaning it.

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US announces new tariffs on China

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US President Joe Biden has slapped new tariffs on cheap electric vehicles, batteries, solar equipment and other products imported from China.

“President Biden’s economic plan supports investment and creates good jobs in key sectors vital to America’s economic future and national security,” the White House said in a statement.

Claiming that China’s “unfair trade practices” in technology transfer, intellectual property and innovation threaten American companies and workers, Washington said Beijing was also flooding global markets with “artificially low-priced exports”.

In this context, the White House announced that Joe Biden had directed the US Trade Representative to increase tariffs on $18 billion of Chinese imports under Section 301 of the 1974 Trade Act in order to “protect American workers and businesses” in “response to China’s unfair trade practices” and to “remedy the resulting injury”.

Arguing that American workers and businesses can outperform anyone else “as long as there is fair competition”, the White House claimed that the Chinese government has long resorted to “unfair, non-market practices”.

“China’s forced technology transfers and intellectual property theft have created unacceptable risks to America’s supply chains and economic security by allowing it to control 70, 80 and even 90 per cent of global production of critical inputs needed for our technologies, infrastructure, energy and health care,” the statement said.

It also noted that these “non-market policies and practices” have contributed to China’s growing overcapacity and export surges that “threaten to significantly harm” American workers, businesses and communities.

“The actions taken today against China’s unfair trade practices are carefully targeted at strategic sectors where the United States, under President Biden, has made historic investments to create and sustain good-paying jobs, unlike recent Republican proposals in Congress that would threaten jobs and raise costs across all sectors,” the Biden administration said, also criticising Republican proposals.

The new tariffs announced by the White House are as follows:

– From 25 per cent to 100 per cent in 2024 for electric vehicles;

– Tariffs on lithium-ion batteries for electric vehicles from 7.5 per cent to 25 per cent in 2024;

– For semiconductors, from 25 per cent to 50 per cent by 2025;

– For solar cells from 25% to 50% in 2024;

– 0% to 50% in 2024 for certain medical products such as syringes and needles;

– Tariffs on certain steel and aluminium products from 0-7.5% to 25% in 2024.

National Economic Council Director Lael Brainard told reporters that they were designed to ensure that US green technology and manufacturing industries “are not undermined by a flood of unfairly low-priced exports from China in areas such as electric vehicle batteries, critical medical devices, steel and aluminium semiconductors, and solar energy”.

According to Axios, Biden administration officials said they do not know how or if Beijing will retaliate, but they expect Beijing to speak publicly and raise its voice.

“I hope we don’t see a significant response from China, but that’s always a possibility,” Treasury Secretary Janet Yellen told Bloomberg.

White House officials argue that the tariffs will not increase US inflation because the amount of goods they target is too small.

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