US govt shutdown halts EU free trade talks
Negotiations on a sweeping free trade pact between the United States
and the European Union have been postponed because of a partial
government shutdown in America.
US officials had been due in Brussels next week to discuss the deal
aimed at boosting bilateral ties. US President Barack Obama earlier
cancelled his trip to Asia because of the shutdown.
The US government closed non-essential operations on Tuesday after
Congress failed to agree to a new budget. Since then, hundreds of
thousands of government employees have not been working or been paid.
On Friday, US Trade Representative Michael Froman informed the EU
that financial and staffing constraints made it impossible to send a
full negotiating team to Brussels. But he stressed that Washington would
continue working with the EU on drawing up the deal, but would have to
wait until the shutdown was over.
Reacting to the US announcement, European Trade Commissioner Karel De
Gucht said the delay was unfortunate. “But let me underline that it in
no way distracts us from our overall aim of achieving an ambitious trade
and investment deal,” he added.
Meanwhile, the White House said that Obama would miss two summits in
Asia, including the Asia-Pacific Economic Co-operation (APEC) meeting in
Indonesia. It said the decision was made due to the “difficulty in
moving forward with foreign travel in the face of a shutdown”.
Obama called Indonesian President Susilo Bambang Yudhoyono on Friday
and expressed his regret over the cancellation, Indonesian Presidential
Spokesman for Foreign Affairs Teuku Faizasyah told the BBC.
The visit had not been rescheduled, the spokesman added.
Secretary of State John Kerry will attend the APEC gathering and the
East Asia summit in Brunei in
Obama's place, the White House said. President Obama had been due to
begin a four-nation Asian trip on Saturday, heading to Bali and Brunei
before travelling on to Malaysia and the Philippines.
The US government partially shut down operations on Tuesday after
Republicans, who control the House of Representatives, refused to
approve a budget, saying they would only do so if Obama's healthcare
reform law was delayed or stripped of funding.
Obama and the Democrats have refused, noting the law was passed in
2010, subsequently approved by the Supreme Court, and was a central
issue in the 2012 election which Obama won comfortably.
On Friday, Democrats and Republicans appeared no closer to finding a
way out of the impasse.
Republican House Speaker John Boehner insisted Obama and Democratic
Senate leaders open negotiations on the shutdown.. “All we're asking for
is to sit down and have a discussion,” he said. “This isn't some d---
game.”
Obama later said he was happy to hold talks with the Republicans,
“but we can't do it with a gun held to the head of the American people”.
“This shutdown could be over today,” he said. “We know there are the
votes for it in the House of Representatives. If Speaker Boehner will
simply allow the vote to take place, we can end this shutdown.”
The US also faces running out of money and defaulting on its debt if
there is no agreement to raise government borrowing limits later this
month.
Christine Lagarde, Managing Director of the International Monetary
Fund (IMF), warned earlier that a failure to raise the US debt ceiling
would be a far worse threat to the global economy than the current
shutdown.
She said it was “mission critical” that the US agreed to a new debt
limit. Lagarde's comments were echoed by the US Treasury. It said a debt
default could lead to a financial crisis as bad as 2008 or worse.
Meanwhile, the impact of the shutdown was being felt across the
country. The National Transportation Safety Board did not send
investigators to a deadly church bus crash in Tennessee that killed
eight people and injured 14 others. The Labour Department also postponed
the release of the highly anticipated September jobs report.
With Tropical Storm Karen bearing down on the Gulf states, the
website of the National Oceanic and Atmospheric Administration (NOAA),
carried a message saying: “Due to the Federal Government shutdown,
NOAA.gov and most associated websites are unavailable.”
-BBC
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