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EO 59 streamlines approval process for flagship projects

PHILIPPINE STAR/EDD GUMBAN

By Kyle Aristophere T. Atienza, Reporter

THE GOVERNMENT has issued an executive order (EO) streamlining the process for bringing over 180 big-ticket infrastructure projects to operational status faster.

In EO No. 59 dated April 30, President Ferdinand R. Marcos, Jr. said all such projects with complete submissions are deemed approved if not acted upon by the prescribed period.

He said no other national or local permit or clearance may be required for flagship projects except for the environmental compliance certificate or certificate of non-coverage from the Department of Environment and Natural Resources; building or occupancy permit issued by a municipal official; excavation permit from the local government unit (LGU), and clearances from  the National Commission for Culture and Arts, Metropolitan Manila Development Authority, Department of Public Works and Highways, and the Bases Conversion and Development Authority as applicable.

The order also cited “other requirements as mandated by the Constitution and existing laws.”

Should a government agency or LGU fail to act on an application or request for renewal of any requirement related to the implementation of flagship projects, the validity of the document “shall be deemed extended.”

“To be clear, the executive order continues to recognize the applicability of other laws which ensure social welfare and environment protection. As such, requirements for the resettlement of affected informal settler families in infrastructure projects subsist under Urban Development and Housing Act,” according to Terry L. Ridon, convenor of InfraWatch PH.

“The executive order also does not dispense with the free prior informed consent requirements for areas considered ancestral domain by indigenous peoples under the Indigenous Peoples Rights Act,” he said in a chat message.

The order covers all government instrumentalities including National Government agencies, government-owned or -controlled corporations, and LGUs.

It tasked agencies involved in the implementation of flagship infrastructure projects to review their citizens’ charters “to remove redundant and burdensome procedures and requirements” and ensure the accessibility of the revised procedures.

The National Economic and Development Authority (NEDA) Board has approved 185 flagship infrastructure projects, with the government seeking to spend the equivalent of 5%-6% of gross domestic product on infrastructure.

Last month, Mr. Marcos issued a similar order to speed up the implementation of national railway projects, which have been struggling with right-of-way issues.

Citing the Anti-Red Tape Act of 2007, Mr. Marcos said in the April 30 order that the number of signatories in any document related to flagship infrastructure projects be limited to three signatures. He also ordered agencies to adopt a system for online submission and acceptance of applications.

The President also cited the Electronic Commerce Act, which promotes the universal use of electronic transactions in the government, and ordered agencies to accept electronic copies of documentary requirements and recognize digital signatures.

The order directed all National Government agencies and encouraged LGUs to offer digital payment options, through partnerships with public and private payment system providers regulated by the central bank.

It tasked all national agencies and LGUs to set up within their offices a one-stop shop for flagship infrastructure projects which may not duplicate existing centers with similar objectives.

The order directed all National Government agencies to automate and computerize their databases and asked LGUs to adopt platforms designed for them by the Department of Information and Communications Technology to expedite permitting.

The NEDA Board Committee on Infrastructure, in coordination with the Anti-Red Tape Authority and Interior and Local Government department, will oversee the order’s implementation.

Meanwhile, Mr. Marcos issued an administrative order creating an inter-agency coordinating council that will consolidate the master list of all government-owned land.

“To ensure the efficient and effective allocation and utilization of land resources for the country’s national development goals, it is necessary to consolidate a comprehensive list of all government lands,” he said in Administrative Order No. 21.

The council will be co-chaired by the Department of Environment and Natural Resources and the Department of Human Settlements and Urban Development. The Department of Agriculture will serve as vice chair.

Members of the council include the Office of the Executive Secretary, Department of Interior and Local Government, Office of the Solicitor General, Department of Justice, Land Registration Authority, Commission on Higher Education, and the Department of Information and Communications.

The DENR-Land Management Bureau will serve as the Secretariat of the Coordinating Council.

Climate to push more Asians to emigrate — ADB

A man walks through a mud-covered cornfield in Tuguegarao after heavy flooding due to Typhoon Ulysses, Nov. 19, 2020. — PHILIPPINE STAR/MICHAEL VARCAS

MORE citizens of Asia-Pacific countries are expected to emigrate, forced out by the increasing vulnerability of many countries to climate change, the Asian Development Bank (ADB) said.

“Up to 4% of the active Philippine labor force worked abroad in 2023. Some scenarios predict that these numbers could potentially increase as climate change worsens,” the ADB said in a blog.

International mobility in the Asia-Pacific has intensified in recent years given the region’s vulnerability to climate-related disasters.

“In Asia and the Pacific, international mobility is already particularly pronounced, with many workers migrating temporarily to Middle Eastern countries as construction workers or domestic helpers,” the ADB said.

Remittances from these migrants can “cushion income shocks” for their families back home, especially from risks like climate change impacts.

“In East Asia, and in the Pacific, these financial flows from overseas amounted to as much as ten times the annual overseas development assistance over the past decade, making them a critical component of risk-coping,” the ADB said.

However, increased emigration due to climate risks has pushed governments of host countries to impose stricter migration rules.

“By tightening border controls and increasing the selectivity of migrants, one important strategy for coping with disasters is being severely curtailed,” the ADB said.

The bank also noted that poverty in vulnerable regions rose by 13% amid restrictions in international migration.

At the same time, disasters also impact job opportunities back home for workers rendered incapable of emigrating, the bank said.

“When floods affect rural areas, regions reliant on agricultural production can no longer absorb workers who are unable to migrate due to the ban, creating a double burden for affected communities,” it said.

Source and host countries must enter into bilateral agreements to protect migrant rights, the ADB said.

It cited a 2013 labor agreement between the Philippines and Saudi Arabia guaranteeing protections for Filipino migrant workers.

“In addition to ensuring the safety of their citizens living abroad, governments should also create safe pathways for people forced to migrate due to climate change,” ADB said.

The bank also pushed for efforts to reduce transaction costs for post-disaster remittances, which are deemed crucial “for smoothing income shocks caused by disasters.” — Beatriz Marie D. Cruz

EMS planning $800-M Batangas plant making consumer products for EU

EMS.COM.PH

CONTRACT manufacturer EMS Group said it is expecting investors to put up $800 million for a plant in Batangas that will manufacture electronic products for the European consumer market.

“This is already 95% sure, and it will happen in the second half,” EMS Group Chairman and Chief Executive Officer Ferdinand A. Ferrer told reporters on the sidelines of a plant tour on Friday.

Once operational, the plant will support 5,000 to 6,000 direct jobs.

“Bringing that company to the Philippines will open up other opportunities for other products that we can also manufacture here,” Mr. Ferrer said.

“Because of the technology that they will bring here, we will now be able to go to our other wishlist customers that we could have brought here four years ago,” he added.

The site selected in an economic zone in Batangas.

Mr. Ferrer did not disclose further details about the investor other than to say it has operations in another ASEAN country.

“This will complete their ecosystem here… Eventually, the majority of their operations will be here, and of course they will still have a European counterpart,” he added.

EMS is also expecting the entry of multinationals from Japan and the US which will be pulling out their operations from China.
“We are looking at a total package of investment of around $800 million. It’s for semiconductors. Part of that $800 million is already here, quietly. It’s already running, and the full-rate production will happen probably in 2026, as they are still testing the waters in the Philippines,” said Mr. Ferrer.

The two investments are expected to operate in a Philippine Economic Zone Authority-operated economic zone in Batangas and to generate up to 3,000 jobs.

Meanwhile, Mr. Ferrer said that the government and the private sector are working on a lab-scale wafer fabrication hub that will help train more engineers in wafer fabrication.

“Once we have a lab-scale wafer fab on the 6-inch and 8-inch wafer levels, maybe we can attract other designers to have (their products) designed here, and hopefully that will help grow our wafer fab industry,” he added.

Expected to cost P500 million, he said that the funding for the lab-scale hub will be sourced from official development assistance or through support from the US CHIPS and Science Act.

He said that full-size wafer fab plants usually cost $20–50 billion.

“This is a private sector-led project together with the government. Hopefully the government can help encourage other governments to support the lab-scale wafer fab,” he said.

“The good news is that our administration is on the radar of a lot of governments now,” he added.

He said that the lab-scale wafer fab will demonstrate the Philippines’ potential in wafer fabs to eventually attract more investments.

Asked about logistics issues, he said that the industry is still facing a 15-20% increase in logistics costs since the pandemic amid conflict in the Red Sea and the war in Ukraine. — Justine Irish D. Tabile

Incentive package being readied for EV makers, buyers, PUV operators

MICHAEL FOUSERT-UNSPLASH

By Justine Irish D. Tabile, Reporter

THE Department of Trade and Industry (DTI) is preparing a “comprehensive” package of incentives for electric vehicle (EV) manufacturers, vehicle buyers, and public utility vehicle (PUV) operators.

Undersecretary for Competitiveness and Innovation Rafaelita M. Aldaba said the DTI hopes to present a draft to President Ferdinand R. Marcos, Jr. within the year.

“These are still under discussion within DTI, but the next plan is to discuss them with other agencies like the Department of Finance,” Ms. Aldaba told reporters on the sidelines of a German-Philippine Chamber of Commerce and Industry forum.

“This time around, in the case of the EV sector, what we are proposing is a more comprehensive package of incentives that would provide fiscal and non-fiscal support to both the demand and supply sides, to both the manufacturers as well as to the consumers,” she added.

The proposed incentive package will be a CARS (Comprehensive Automotive Resurgence Strategy)-like program with a focus on domestic production of e-PUVs, Ms. Aldaba said.

“We would like to replicate it in the EV industry. But the focus would actually be on e-PUVs. And we see this, the focus on the commercial EV market, as an opportunity because, with the new EV technology, it would require fewer and simpler parts,” she said.

“Hence, it would be easier for the Philippines to develop and export its own vehicle model” as the process becomes simpler, she added.

The DTI is also proposing a consumer subsidy program that aims to stimulate demand for EVs. The subsidy program is being planned around P500,000 per PUV, P10,000 per two-wheeler, and P20,000 per three-wheeler.

“For the battery manufacturers, we’re looking at giving out support of something like 50% off the capital expenditure, excluding land, and a maximum of P3 billion (subsidy) per 2-gigawatt plant. We’re targeting five plants,” Ms. Aldaba said.

“You might think that this is a very ambitious program. I’m presenting this because I also want to hear feedback from all of you and because we still want to further refine this program before piloting it,” she added.

The proposed EV incentive scheme is expected to result in the manufacture of around 4 million EVs in the next 10 years, which will be mostly eTrikes, ePUVs, and eBuses.

The fiscal and non-fiscal support to consumers under the incentive scheme includes purchase subsidies in the form of direct financial rebates or discounts, tax credits, value-added tax exemption or reduction, and fuel cost savings through special electricity rates for EV charging.

The scheme also proposes incentives to homeowners who install EV charging infrastructure at their residences, trade-in bonuses, and subsidies for EV renters.

Spending, remittances to fuel PHL growth, with climate seen as drag on economy

THE Philippine economy is expected to grow stronger this year on the back of household spending and remittances, but climate-related disasters may temper any momentum, the Organisation for Economic Co-operation and Development (OECD) said.

In an economic outlook, the OECD said an export boom in information technology-business process outsourcing (IT-BPO) and a recovery in tourism will also be major growth drivers.

“In 2024, the (Philippines) will continue its rapid economic recovery, driven by a robust household consumption, and an improved global growth outlook,” according to the report.

“Other key drivers supporting economic growth momentum in the near term include sustained remittance inflows, fast-growing exports in the IT-BPO sector and steady expansion of the tourism sector.”

The OECD noted that Emerging Asia economies, including the Association of Southeast Asian Nations (ASEAN) countries and China and India, will be resilient throughout the year. However, growth risks include external headwinds, extreme weather, and elevated levels of debt.

“Economic growth in the region this year will be driven by robust domestic and regional demand and a continued recovery of the service sector, particularly tourism. However, the region still faces challenges such as weak external demand,” the OECD said.

Continued recovery in the region’s manufacturing activity is also expected to benefit high-technology exporters in ASEAN amid higher-for-longer interest rates, OECD said.

“The anticipated end of monetary tightening by OECD economies in the second half of the year should help boost investments adding fuel to a global trade rebound.”

Potential rate cuts could also boost high-tech automotive sectors and digital services in the Philippines, Thailand, Indonesia, Malaysia, and Singapore. 

Improved factory activity would also mean more foreign direct investment especially in ASEAN’s semiconductor and automotive manufacturing industries, the report said.

“ASEAN’s role as a manufacturing hub is expected to strengthen over the medium and long term as it continues to attract global investment despite reshoring trends elsewhere,” OECD said.

However, recovery in merchandise trade remains weak in the Philippines, Malaysia, Indonesia, and Thailand, it said.

Emerging Asia should remain wary of climate disasters, which are expected to “hinder sustainable development.”

The report emphasized the need to bolster institutional capacity, increase funding, and expand disaster risk financing options.

Governments should also push for disaster risk education, a responsive health system, private sector involvement, and more resilient infrastructure.

Climate change could weigh on the Philippines’ growth potential, the OECD said, leading to “significant social, economic, and environmental costs.”

“Both exposure and vulnerability are being exacerbated by an increasing number of urban poor communities in hazard-prone areas, linked to rapid and unplanned urbanization,” the OECD said. — Beatriz Marie D. Cruz

Industry official warns ban on ore exports will hurt miners

BW FILE PHOTO

AN Indonesia-style ban on ore exports will not work for the Philippines, which has fewer reserves of nickel that are also of lower quality, a mining executive said.

“An ore export ban will be detrimental to the industry, which is still reeling from the decade-long policy roadblocks,” Chamber of Mines of the Philippines Chairman Michael T. Toledo told BusinessWorld, referring to the uncertainty created by industry shutdowns to inspect miners for environmental compliance, as well as the non-issuance of mining permits as the government sought to arrive at an appropriate way to tax miners.

“Our nickel resources — mostly the limonite type — are also far smaller and with lower ore grades on average compared to Indonesia,” he added in an e-mail.

Indonesia banned nickel ore exports in 2020, propelling the Philippines to the top spot in nickel exports by 2022.

Indonesia cited the need to process more ore domestically to capture greater value-added from its natural resources.

The ban was imposed by Indonesia’s outgoing president, Joko Widodo. It is uncertain whether his successor will continue the policy.

Mr. Toledo said efforts to make Philippine mining more attractive to investors will hinge on improving the stability of power supply and making it less expensive.

The Philippines’ industrial electricity rates are the second highest in the region, making it less attractive for potential mining investors to set up shop in the country, he added.

“Power is a critical production input,” he said. “High energy costs and unstable power supply put the Philippines at a disadvantage vis-à-vis other mining jurisdictions.”

The unreliability of the energy supply as well as high production costs affect the profitability of domestic mining firms, scaring off potential investments, he said.

Mr. Toledo said the government should consider providing incentives for renewable energy developers to expand power generation.

“Developers of renewable energy facilities, including hybrid and cogeneration systems using both renewable energy sources and conventional energy… should continue to be encouraged with fiscal and non-fiscal incentives,” he said. — Kenneth Christiane L. Basilio

Charting a resilient future: A business imperative for the Philippines

(First of two parts)

IN BRIEF:

• Climate resilience is becoming an existential necessity in the Philippines due to the country’s vulnerability to climatic upheavals.

• Top government and private officials are stressing the need for resilience against climate impacts and the development of specific insurance products for climate change-related disasters.

• Philippine corporations are carrying out in-depth climate risk evaluations, which are aligned with global sustainability reporting standards.

In an era where climate change reshapes global economies, resilience transitions from a mere buzzword to a fundamental business strategy. For the Philippines, a nation perennially at the crossroads of climatic upheavals, this transition is not just strategic — it’s existential. The imperative for climate resilience is underscored by scientific projections, economic analyses, and policy shifts that beckon Philippine businesses toward sustainability and resilience.

This article discusses the importance of informed action, strategic foresight, and collaboration in building climate resilience. It highlights the pivotal role of business leadership in promoting sustainability and resilience as key drivers of economic growth and competitive advantage in the Philippines.

The second part of this series will focus on practical strategies and success stories, providing a roadmap for businesses to effectively manage climate risk with agility and insight.

Understanding climate resilience

At its core, climate resilience involves the capacity of businesses to adapt, survive, and thrive in the face of climate-induced disruptions. This notion gains prominence against the backdrop of the Philippines’ acute vulnerability to climate risks, highlighted by its ranking on Germanwatch’s most recent Global Climate Risk Index, an annual report that analyzes the effects of weather-related loss events.

Germanwatch is a non-profit organization that monitors global climate policies and human rights issues. Moreover, a recent publication from the Swiss Re Institute, a leading wholesale provider of reinsurance, highlights the economic impact of climate change, identifying the Philippines as the country most economically exposed to weather-related perils like floods and tropical cyclones.

In addition, new research by international journal Nature, the economic commitment of climate change, suggests that the world economy is committed to an income reduction of 19% within the next 26 years due to climate change, regardless of future emission choices.

This damage outweighs the mitigation costs required to limit global warming to 2°C by sixfold over this near-term time frame. The World Economic Forum also states that by 2050, climate change will cause an additional 14.5 million deaths and $12.5 trillion in economic losses worldwide. Healthcare systems will see an additional $1.1 trillion burden due to climate-induced effects, with floods, droughts, and heat waves identified as leading causes of climate-related mortality and economic losses, and the rise and spread of climate-sensitive diseases like malaria and dengue.

The Philippines typically experiences a significant 3% loss in GDP due to weather events, highlighting the urgency for adaptation measures to mitigate economic losses. The Swiss Re report, Changing climates: The heat is (still) on emphasizes the importance of accurately pricing climate change risk to catalyze necessary investments in adapting and resilience-building efforts.

THE WARMING WORLD AND ITS IMPLICATIONS
The Philippine economy, with its significant reliance on agriculture, tourism, and real estate, is particularly susceptible to climate-induced hazards. Flooding and droughts threaten agricultural productivity and asset values, and extreme heat elevates energy demand and costs. Furthermore, typhoons and storm surges can devastate tourism assets, a crucial income source for many communities.

With scientists warning of intensified, extreme weather events in a warming world, the cost to the economy can only go up. The insurance industry, grappling with losses from natural catastrophes, echoes this concern, highlighting a burgeoning coverage gap and the escalating cost of insurance in the Philippines.

LOCAL PERSPECTIVES
The urgency for climate resilience is echoed in the corridors of power, with President Ferdinand R. Marcos, Jr. elucidating the stark reality of the country’s economic exposure to climate risk. In March 2024, the President emphasized the need for the economy to be resilient against climate impacts, suggesting that without these challenges, the country’s economic strength would be more apparent. He made these remarks to highlight the importance of understanding and mitigating climate risks for economic development.

During the APEC CEO Summit in November 2022, the President also underscored the necessity of resilient infrastructure to combat climate threats, further underlining his commitment to climate resilience as a foundational element for the nation’s growth.

In addition, the Finance Secretary has expressed the need for developing insurance products specifically designed to address climate change-related natural disasters. This underscores his recognition of the increasing importance of adaptive measures in the financial sector to mitigate the economic impacts of climate-related events.

REGULATORY LANDSCAPES AND STRATEGIC IMPERATIVES
The Securities and Exchange Commission’s mandate for publicly listed companies (PLCs) to disclose climate hazard exposures and risk mitigation strategies illustrates a pivotal shift toward transparency and accountability in climate risk management. Aligned with global sustainability reporting standards, this regulatory evolution underscores the importance of integrating climate considerations into corporate governance and strategic planning.

Similarly, the mandate of the Bangko Sentral ng Pilipinas on environmental and social risk management and climate stress testing for banks systemically integrates climate resilience in the financial sector, influencing corporate strategies across the board.

CORPORATE LEADERSHIP IN ACTION
Many PLC and non-PLCs are proactively bolstering their defenses against climate change, with key industry leaders conducting in-depth climate risk evaluations in line with Task Force on Climate-Related Financial Disclosures (TCFD) guidelines. These comprehensive assessments deploy sophisticated climate models to gauge the potential severity and occurrence rate of climate-related threats, aiming to assess how these factors might impact corporate assets.

This forward-thinking approach demonstrates a broader commitment to sustainability and risk management, safeguarding stakeholder interests and ensuring long-term corporate value, which goes beyond standard regulatory requirements.

To continue this discussion, the next article will explore how leading Philippine companies are leveraging their proactive sustainability strategies to improve their market position and drive long-term value.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the author and do not necessarily represent the views of SGV & Co.

 

Bonar A. Laureto is an assurance principal and part of the Climate Change and Sustainability Services team of SGV & Co.

Fake videos of Modi’s aides trigger political showdown in India election

INDIAN PRIME MINISTER NARENDRA MODI — PHILLIPINES GOVERNMENT VIA PICRYL.COM

BENGALURU/LUCKNOW — Manipulated videos are taking center stage as campaigning heats up in India’s election, with fake clips involving two top aides of Prime Minister Narendra Modi triggering police investigations and the arrest of some workers of his rival Congress party.

In what has been dubbed as India’s first artificial intelligence (AI) election, Mr. Modi said last week fake voices were being used to purportedly show leaders making “statements that we have never even thought of,” calling it a conspiracy “to create tension in society.”

Indian police — already investigating the spread of fake videos showing Bollywood actors criticizing Mr. Modi — are now investigating a doctored online clip that showed federal home minister Amit Shah saying the ruling Bharatiya Janata Party will stop certain social guarantees for minorities, a subject sensitive for millions of voters.

Mr. Shah retorted on X, posting his “original” and the edited “fake” speech and alleging — without providing any evidence — that the main opposition Congress was behind the video it created to mislead the public. The minister said “directions have been issued to the police to address this issue.”

Indian police arrested at least nine people, including six members of Congress’ social media teams, in the states of Assam, Gujarat, Telangana and New Delhi last week for circulating the fake video, according to police statements.

Five of the Congress workers were released on bail, but the most high-profile arrest made by the cyber crime unit of New Delhi police came on Friday, when they detained a Congress national social media coordinator, Arun Reddy, for sharing the video. New Delhi is one region where Mr. Shah’s ministry directly controls police. Mr. Reddy has been sent into three-day custody.

The arrest has sparked protests from Congress workers with many posting on X using the #ReleaseArunReddy tag. Congress lawmaker Manickam Tagore said the arrest was an example of “authoritarian misuse of power by the regime.”

Congress’ head of social media, Supriya Shrinate, did not respond to messages and an email seeking comment.

MISINFORMATION
India’s election from April 19 to June 1 will be the world’s largest democratic event.

With nearly a billion voters and more than 800 million internet users, tackling the spread of misinformation is a high stakes job. It involves round-the-clock monitoring by police and election officials who often issue take down orders to Facebook and X as investigations start.

In India’s most populous state of Uttar Pradesh, more than 500 people keep tabs on online content, flagging controversial posts and coordinating with social media companies for their removal when needed, police chief Prashant Kumar told Reuters on Saturday.

Another fake video that sparked a storm last week showed Yogi Adityanath, the state’s chief minister, criticizing Mr. Modi for not doing enough for families of those who died in a 2019 militant attack. Though fact checkers said the video was created using different parts of an original clip, state police called it an “AI generated, deepfake.”

Using internet address tracking, state police arrested a man named Shyam Gupta on May 2 who had shared the fake video post on X a day earlier, receiving over 3,000 views and 11 likes.

The police have accused Mr. Gupta of forgery and promoting enmity under Indian law provisions that can carry a jail term of up to seven years if convicted. Reuters could not reach him as he is currently serving a 14-day custody period.

“This person is not a tech guy. Had he been tech savvy, arresting him quickly would not have been possible,” said police officer Kumar. — Reuters

France’s Emmanuel Macron set to press visiting Xi on trade, Ukraine

FRENCH PRESIDENT EMMANUEL MACRON — COMMONS.WIKIMEDIA.ORG

PARIS — China’s President Xi Jinping was headed to Paris on Sunday for a rare visit, with his French counterpart Emmanuel Macron set to press him to reduce trade imbalances and try to convince him to use his influence on Russia over the war in Ukraine.

Neither aim will be easily fulfilled during Mr. Xi’s two-day stay in France, where he arrives at a time of growing trade tensions between Europe and China.

France is backing a European Union (EU) probe into Chinese electric vehicle exports and in January Beijing opened an investigation into imports of brandy — which is mostly made in France — a move widely seen as tit-for-tat retaliation amid a growing set of EU probes.

“We must continue to push Chinese authorities to give us more guarantees on trade issues,” an Elysee advisor said ahead of Mr. Xi’s visit, his first trip to Europe in five years.

Mr. Xi was due to arrive at around 4 p.m. (1400 GMT). His official meetings will include joint talks with Macron and European Commission chief Ursula von der Leyen.

Divisions within European Union’s 27 members — and in particular between France and Germany — undermine their ability to influence China. German Chancellor Olaf Scholz will not join Mr. Macron and Mr. Xi in Paris due to prior commitments, sources said.

“Leverage flies out the window if European leaders are sending different messages to Xi,” said Noah Barkin, a senior adviser at the Rhodium Group and close follower of EU-China relations.

France will also seek to make progress on opening the Chinese market to its agricultural exports and resolve issues around the French cosmetic industry’s concerns about intellectual property rights, officials said.

UKRAINE TALKS
France has been keen to nudge China into pressuring Moscow to halt operations in Ukraine, with little progress so far, apart from Mr. Xi’s decision to call Ukraine’s President Volodymyr Zelensky for the first time shortly after Mr. Macron visited Beijing last year.

“China being one of Russia’s main partners, our objective is to use the leverages it has on Moscow to change Russia’s calculations and help contribute to solving the conflict,” the same Elysee adviser said.

A French diplomatic source said: “If the Chinese seek to deepen the relationship with European partners, it is really important that they hear our point of view and start taking it seriously.”

On Tuesday, Mr. Macron will take Mr. Xi to the Pyrenees, mountains he holds especially dear as his maternal grandmother’s birthplace.

The gesture is meant as an echo of Mr. Xi’s decision to take Mr. Macron to share a tea ceremony in the former residence of Mr. Xi’s father in the city of Guangzhou.

“Macron is always in charm mode, he is trying to get foreign leaders on side by establishing a personal rapport with them,” Mr. Barkin said.

“But I hope that he isn’t under any illusions that bringing Xi to a place that is important to him from his childhood is going to bring Xi to tears and lead to compromises from Beijing.”

Mr. Xi will leave France on Tuesday afternoon to head to Russia-friendly Serbia and Hungary. — Reuters

North Korea’s UN ambassador says new sanctions monitoring groups likely to fail

WIKIPEDIA

SEOUL — Efforts led by the US and other Western countries to form new groups to monitor sanctions on North Korea will fail, the country’s United Nations (UN) envoy said on Sunday, according to state media KCNA.

Ambassador Kim Song made the comment in response to a joint statement the US and its allies issued this week calling to continue the work of a UN panel of experts monitoring longstanding sanctions against Pyongyang for its nuclear weapons and missile programs.

Earlier this year, Russia vetoed the annual renewal of the panel amid US-led accusations that North Korea has transferred weapons to Russia for use in its war in Ukraine.

“The hostile forces may set up the second and third expert panels in the future but they are all bound to meet self-destruction with the passage of time,” KCNA quotes Mr. Kim as saying in a statement.

Last month, US Ambassador to the United Nations Linda Thomas-Greenfield visited the Demilitarized Zone, a heavily fortified border between the two Koreas, which remain technically at war and urged Russia and China to stop rewarding North Korea for its bad behavior.

Her trip came after Russia rejected the annual renewal of the multinational panel of experts that has over the past 15 years monitored the implementation of UN sanctions aimed at curbing North Korea’s nuclear and missile programs. — Reuters

Hamas negotiators begin Gaza truce talks; CIA chief also present in Cairo

EMAD EL-BYED-UNSPLASH

CAIRO — Hamas negotiators began intensified talks on Saturday on a possible Gaza truce that would see the return to Israel of some hostages, a Hamas official told Reuters, with the Central Intelligence Agency (CIA) director present in Cairo.

The Hamas delegation arrived from the Palestinian Islamist movement’s political office in Qatar, which, along with Egypt, has tried to mediate a follow-up to a brief November ceasefire amid international dismay over the soaring death toll in Gaza and the plight of its 2.3 million inhabitants.

Taher Al-Nono, a Hamas official and advisor to Hamas chief Ismail Haniyeh, said meetings with Egyptian and Qatari mediators had begun and Hamas was addressing their proposals “with full seriousness and responsibility.”

However, he reiterated a demand that any deal should include an Israeli pullout from Gaza and an end to the war, conditions that Israel has previously rejected.

“Any agreement to be reached must include our national demands; the complete and permanent ending of the aggression, the full and complete withdrawal of the occupation from Gaza Strip, the return of the displaced to their homes without restriction and a real prisoner swap deal, in addition to the reconstruction and ending the blockade,” Nono told Reuters.

An Israeli official signaled Israel’s core position was unchanged, saying it would “under no circumstances” agree to end the war in a deal to free hostages.

The war began after Hamas stunned Israel with a cross-border raid on Oct. 7 in which 1,200 people were killed and 252 hostages taken, according to Israeli tallies.

More than 34,600 Palestinians have been killed — 32 of them in the most recent 24-hour period — and more than 77,000 have been wounded in Israel’s assault, according to Gaza’s health ministry. The bombardment has devastated much of the enclave.

While the meetings in Cairo were under way, Israeli forces said they had killed Aiman Zaarab, who they said had been a leader of Islamic Jihad forces in southern Gaza and taken part in the Oct. 7 attack.

HOPE GROWS FOR TRUCE DEAL
Before the talks began there had been some optimism.

“Things look better this time but whether an agreement is on hand would depend on whether Israel has offered what it takes for that to happen,” a Palestinian official with knowledge of the mediation efforts, who asked not to be named, told Reuters.

Washington — which, like other Western powers and Israel, brands Hamas a terrorist group — has urged it to enter a deal.

Progress has stumbled, however, over Hamas’ long-standing demand for a commitment to end the offensive. Israel insists that after any truce it would resume operations designed to disarm and dismantle the faction.

Hamas said on Friday it would come to Cairo in a “positive spirit” after studying the latest proposal, little of which has been made public.

Israel has given a preliminary nod to terms that one source said included the return of between 20 and 33 hostages in exchange for the release of hundreds of Palestinian prisoners and a truce of several weeks.

That would leave around 100 hostages in Gaza, some of whom Israel says have died in captivity. The source, who asked not to be identified by name or nationality, told Reuters their return may require an additional deal.

“That could entail a de facto, if not formal, end to the war – unless Israel somehow recovers them through force or generates enough military pressure to make Hamas relent,” the source said.

Egyptian sources said CIA Director William Burns arrived in Cairo on Friday. He has been involved in previous truce talks and Washington has signalled there may be progress this time.

The CIA declined to comment on Burns’ itinerary.

Cairo made a new push to revive talks late last month, alarmed by the prospect of an Israeli assault against Hamas in the southern Gaza city of Rafah, where more than 1 million Palestinians have taken shelter near the border with Egypt.

Such an Israeli operation could derail fragile humanitarian operations in Gaza and endanger many more lives, according to UN officials. Israel says it will not be deterred from taking Rafah eventually, and is working on a plan to evacuate civilians.

Saturday’s Cairo talks come as Qatar reviews its role as mediator, according to an official familiar with Doha’s thinking. Qatar may cease hosting the Hamas political office, said the official, who did not know if, in such a scenario, the Palestinian group’s delegates might also be asked to leave. — Reuters

Heavy rains in southern Brazil kill nearly 60 people, with over 70 still unaccounted for

SAO PAULO — Heavy rains in Brazil’s southernmost state of Rio Grande do Sul this week killed at least 55 people, local authorities said on Saturday evening, while dozens remain unaccounted for.

Rio Grande do Sul’s civil defense authority said 74 people were still missing and more than 69,000 had been displaced as storms in the last few days have affected nearly two thirds of the 497 cities in the state, which borders Uruguay and Argentina.

The local authority said it is now investigating whether another seven deaths were related to the storms, after earlier in the day it had reported a total of more than 55 deaths.

Floods destroyed roads and bridges in several regions of the state. The storm also triggered landslides and the partial collapse of a dam at a small hydroelectric power plant. A second dam in the city of Bento Goncalves is also at risk of collapsing, authorities said.

In Porto Alegre, the capital of Rio Grande do Sul, the Guaiba lake broke its banks, flooding streets.

Porto Alegre’s international airport has suspended all flights for an indefinite period.

State Governor Eduardo Leite told reporters on Saturday evening that Rio Grande do Sul would need a “Marshall Plan” to recover from the storms and its consequences, referring to a plan for Europe’s economic recovery after World War II.

Brazil’s President Luiz Inacio Lula da Silva, who had visited Rio Grande do Sul on Thursday, will travel back to the state on Sunday to follow the rescue efforts, his chief of communication Paulo Pimenta said on Saturday. 

Mr. Lula said on X that his government is in constant contact with state and cities’ authorities to support the region with whatever they need.

Rains are expected in the northern and northeastern regions of the state until Sunday, but the volume of precipitation has been declining, and should be well below the peak seen earlier in the week, according to the state meteorology authority.

Still, “rivers water levels should stay high for some days,” Mr. Leite said earlier on Saturday.

Rio Grande do Sul is at a geographical meeting point between tropical and polar atmospheres, which has created a weather pattern with periods of intense rains and others of drought.

Local scientists believe the pattern has been intensifying due to climate change. — Reuters

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