Exclusive: Huawei reviewing FedEx relationship, says packages 'diverted'

HONG KONG (Reuters) - Chinese telecoms equipment maker Huawei is reviewing its relationship with FedEx Corp after it claimed the U.S. package delivery company, without detailed explanation, diverted two parcels destined for Huawei addresses in Asia to the United States and attempted to reroute two others. Huawei told Reuters on Friday that FedEx diverted two packages sent from Japan and addressed to Huawei in China to the United States, and attempted to divert two more packages sent from Vietnam to Huawei offices elsewhere in Asia, all without authorization, providing images of FedEx tracking records. Reuters could not verify the authenticity of the records. Shown the images of the tracking records, FedEx declined to make any comment, saying company policy prevented it from disclosing customer information.

Huawei said the four packages only contained documents and “no technology,” which Reuters was unable to independently confirm. Huawei declined to elaborate on why it thought the packages were diverted. Reuters was given no evidence the incident was related to the U.S. government’s move to place Huawei and its affiliates on a trade blacklist in mid-May, effectively banning U.S. firms from doing business with them on security grounds.

“The recent experiences where important commercial documents sent via FedEx were not delivered to their destination, and instead were either diverted to, or were requested to be diverted to, FedEx in the United States, undermines our confidence,” Joe Kelly, a spokesman for Huawei, told Reuters. “We will now have to review our logistics and document delivery support requirements as a direct result of these incidents,” the spokesman said. Huawei acknowledged to Reuters that one package originating in Vietnam was received by Friday, and the other was on its way, according to FedEx tracking records provided by Huawei.

FedEx spokeswoman Maury Donahue told Reuters the packages were “misrouted in error” and that FedEx was not requested to divert them by any other party. “This is an isolated issue limited to a very small number of packages,” said FedEx, referring to the four parcels affected. “We are aware of all shipments at issue and are working directly with our customers to return the packages to their possession.” The U.S. Department of Commerce did not reply to a request for comment on whether the incident might be related to its move on May 16 to add Huawei to the so-called “Entity List,” preventing it buying certain items from U.S. companies without U.S. government approval.

https://www.reuters.com/article/us-huawei-tech-fedex-exclusive/exclusive-huawei-reviewing-fedex-relationship-says-packages-diverted-idUSKCN1SX1RZ

Canada takes a first step towards ratifying trade deal with U.S., Mexico

OTTAWA (Reuters) - Canada took a first step toward ratifying a new North American trade agreement on Monday just three days ahead of U.S. Vice President Mike Pence’s trip to Ottawa to discuss passage of the treaty. Foreign Minister Chrystia Freeland presented what is known as a “ways and means motion” to the House of Commons, which opens the way for the formal presentation of a bill.

The deal known as the USMCA, which would replace the 25-year-old North American Free Trade Agreement, has yet to be approved by legislatures of the three participating countries - Canada, Mexico and the United States. The United States struck deals on May 17 to lift tariffs on steel and aluminum imports from Canada and Mexico, removing a major obstacle to legislative approval. Pence is due to meet Canadian Prime Minister Justin Trudeau in Ottawa on Thursday. The United States is Canada’s top trading partner, taking in 75 percent of its goods exports. Reaching a new trade deal had been a priority for Trudeau’s Liberal government, and a national election is five months away.

Freeland said she had spoken over the weekend with U.S. Trade Representative Robert Lighthizer and less than two weeks ago with Mexico’s government about their ratification process. The administration of U.S. President Donald Trump, a Republican, negotiated the deal but some U.S. Democratic lawmakers demand stronger enforcement provisions for USMCA’s new labor and environmental standards. John Manley, a former Canadian Liberal foreign minister, said on Friday that Canada should pass the new treaty this summer. “To fail to pass it is going to be a signal to the U.S. Congress that it is still open for renegotiations,” Manley told Reuters. Some U.S. lawmakers have said passing the treaty would become more difficult after the congressional summer recess due to budget battles and increased campaigning ahead of the November 2020 presidential election.

https://www.reuters.com/article/us-usa-trade-canada/canada-takes-a-first-step-towards-ratifying-trade-deal-with-u-s-mexico-idUSKCN1SX1T3?il=0

Austrian parliament sacks Kurz as video sting crisis rolls on

VIENNA (Reuters) - Austrian conservative Chancellor Sebastian Kurz suffered the biggest setback of his meteoric career on Monday as parliament voted the 32-year-old’s government out of office in the wake of a video sting that blew up his coalition with the far right. The star among Europe’s conservatives, known for his hard line on immigration, looked unassailable just two weeks ago. But then the leader of the far-right Freedom Party (FPO) was caught in a video sting, prompting him to step down and leading Kurz to call off their alliance.

Kurz became the head of a caretaker government just days ago and hoped to use that position as a springboard to re-election, depicting himself as more of a victim of the current crisis than its enabler who brought the FPO into power. But the center-left opposition said he shared the blame, and the FPO backed it. “Kurz gambled away his chances and, Mr Chancellor, you bear full responsibility,” the Social Democrats’ (SPO) deputy parliamentary faction head Joerg Leichtfried said in a speech to lawmakers, minutes before his party submitted a motion of no-confidence against Kurz’s government. The first successful no-confidence motion against an Austrian government since the country regained its independence in 1955 was passed when lawmakers from the Social Democrats and FPO stood in support. Together they control a majority of seats in the assembly. Kurz’s party holds a third of the seats.

Austrian President Alexander Van der Bellen must now nominate a new chancellor to put together a caretaker government able to last until the next election, widely expected to be held in September. While he could in principle choose Kurz again, that is highly unlikely. An elder statesman, like a retired president or senior judge, is the more probable. Van der Bellen said he would formally relieve the government of its duties at 11:30 a.m. (0930 GMT) on Tuesday but ask ministers to stay on for “a small number of days” until a solution for a new provisional government were found. Vice Chancellor Hartwig Loeger would lead until then, he said.

Kurz had replaced outgoing FPO ministers with civil servants, arguing that even though he headed what was essentially a minority government, it represented stability in the wake of the video scandal and ahead of a parliamentary election widely expected to be held in September.

https://www.reuters.com/article/us-austria-politics/austrian-parliament-sacks-kurz-as-video-sting-crisis-rolls-on-idUSKCN1SX0S3

Shippers raise rates for cargo from U.S. to Venezuela: documents, sources

CARACAS (Reuters) - Two major shipping lines this month have raised their rates for transporting goods from the United States to Venezuela, according to three industry sources and two documents, as U.S. sanctions limit transit between the two nations. Washington on May 15 banned direct flights between the United States and Venezuela, citing safety concerns, as part of a broad package of sanctions meant to pressure Nicolas Maduro into resigning as president of the crisis-stricken country.

Citizens and social service organizations often depend on air and sea shipments for basic food and medicine in the hyperinflationary nation where a monthly minimum-wage salary barely pays for a single meal. Shipping lines Hamburg Sud and King Ocean Services have added a surcharge of $1,200 per container of cargo that leaves the United States for Venezuela after May 15, according to documents seen by Reuters. That service has in recent months been costing between $3,000 and $5,000, depending on the cargo, according to two sources at local ports. “Shipping companies have increased the cost of their services because of the risk involved in coming to Venezuela with sanctions,” said a local shipping industry source who asked not to be identified. Hamburg Sud and King Ocean Services did not respond to requests for comment.

In 2016, shipping lines were charging up to three times more to travel to Venezuela than to other South American countries, according to fee schedules seen by Reuters at the time. U.S. sanctions do not prevent shipping lines from delivering goods to Venezuela. Washington in April sanctioned four shipping companies and nine oil tankers it said were involved in oil shipments to Cuba.

https://www.reuters.com/article/us-venezuela-politics-shipping/shippers-raise-rates-for-cargo-from-u-s-to-venezuela-documents-sources-idUSKCN1SX1TD