2025-05-20 20:51

WASHINGTON, May 19 (Reuters) - The U.S. Transportation Department is expected to declare that fuel economy rules issued under then President Joe Biden exceeded the government's legal authority by including electric vehicles in setting the rules, automaker officials said Monday. Transportation Secretary Sean Duffy said the department's National Highway Traffic Safety Administration on Friday submitted its interpretive rule, "Resetting the Corporate Average Fuel Economy Program" to the White House for review. Sign up here. The prior administration had "illegally used CAFE standards as a backdoor electric vehicle mandate – driving the price of cars up," he said in a statement. Removing EVs from the calculations for credits and the regulatory mandates could result in lower overall fuel economy requirements. NHTSA in June said it would hike CAFE requirements to about 50.4 miles per gallon (4.67 liters per 100 km) by 2031 from 39.1 mpg currently for light-duty vehicles. Last year, 120 Republican lawmakers said NHTSA exceeded its authority by adopting fuel economy standards "that effectively mandate EVs while at the same time force the internal combustion engine out of the market." The lawmakers said the agency "accounted for EVs in its regulatory baseline and factored that baseline into its determination of the maximum achievable CAFE standards." House Republicans last week proposed killing the EV tax credit and repealing fuel efficiency rules designed to prod automakers into building more zero-emission vehicles as part of a broad-based tax reform bill. Federal law requires NHTSA to set CAFE standards at the maximum feasible level. The Environmental Protection Agency said it was beginning the effort to reverse the Biden administration's parallel vehicle emissions rules that would force automakers to build a rising number of EVs , opens new tab but has not begun any effort to rescind California's legal authority for its 2035 EV rules. EPA is also reconsidering rules awarding credits for "start-stop" technology, which is in around half of new vehicles. NHTSA said last year the rule would reduce gasoline consumption by 64 billion gallons and cut emissions by 659 million metric tons. https://www.reuters.com/world/us/us-expected-declare-biden-fuel-economy-rules-exceeded-legal-authority-2025-05-19/

2025-05-20 20:46

BOGOTA, May 20 (Reuters) - If a planned fiscal consolidation in Colombia fails to stabilize public debt and comply with fiscal rules, it could lead to a ratings downgrade for the Andean nation, a top Moody's analyst said on Tuesday. Colombia's economy is seen growing 2.5% this year, Renzo Merino, a sovereign risk analyst at the ratings agency, said at an event hosted by Moody's in Bogota. Sign up here. Colombia holds a Baa2 rating from Moody's, and in June of last year, the ratings agency lowered its outlook for the country to "negative" from "stable" on economic conditions that complicate fiscal management. "The main risk we observe is that, relative to other countries, there has been an important fiscal deterioration, and Colombia's credit policy may have weakened, which may lead to a slightly lower outlook," said Merino. He said that, once Colombia publishes its medium-term fiscal framework in June, Moody's will re-evaluate Colombia's sovereign rating. "It's important that the government be transparent and publishes credible estimates, while also showing where adjustments will be made," he said. Colombia's current rating from Moody's is two rungs higher than those from Fitch and S&P. "The problem for Colombia is that, in relative terms, it spends much more than what it brings in," Merino said, adding spending cuts already carried out had not been enough. With presidential elections set to take place next year, a key issue will be whether the incoming administration can reverse a deterioration of public finances, Merino said. Colombia's finance ministry targets a fiscal deficit of 5.1% of gross domestic product (GDP), which analysts view as unlikely to be met. The deterioration in Colombia's public finances has been a key factor in the central bank slowing the pace of cuts to the benchmark interest rate. In April, the central bank reduced the rate by 25 basis points to 9.25%. Pressure on the country's treasury means limited margin to operate and the government being forced to take on high-cost debt, Merino said. https://www.reuters.com/world/americas/colombia-public-debt-puts-sovereign-rating-risk-moodys-analyst-says-2025-05-20/

2025-05-20 20:41

BUENOS AIRES, May 20 (Reuters) - Argentina's government on Tuesday approved a $2.5 billion lithium mining project by Anglo-Australian giant Rio Tinto (RIO.L) , opens new tab, (RIO.AX) , opens new tab, marking the first mining project under a new investment incentive regime. The approval of Rio Tinto's Rincon project, located in the northern Salta province, under the RIGI incentive scheme was announced by the country's mining and energy coordination secretary Daniel Gonzalez at a conference in the capital Buenos Aires. Sign up here. Argentina's mining sector has expressed concerns over delays in approvals for seven projects submitted to the government since the RIGI program was launched nine months ago. "We are grateful because there was strong anxiety over what was happening with the mining RIGIs," the head of Argentina's CAEM mining chamber, Roberto Cacciola, told the conference. "This was major news." President Javier Milei's libertarian government is looking to boost the South American country's mining sector to bring in much-needed foreign currency and maintain economic stability as the country faces painful inflation levels. Argentina is the world's No. 4 lithium supplier and together with Chile and Bolivia forms the so-called "lithium triangle" that holds the world's largest reserves of the white metal used in electronics, electric vehicles and other key technologies. The South American nation also exports gold and silver and has major copper projects in the pipeline, though none are currently producing. Other firms that applied for mining projects under the RIGI program include China's Ganfeng (002460.SZ) , opens new tab, Canada's McEwen Copper and South Korea's Posco (005490.KS) , opens new tab. Five of the projects are for lithium, while the remaining two are for gold and copper, respectively. However, only Rio Tinto's project was approved as of Tuesday, despite a rule that a decision must be made in a maximum of 45 working days. Industry sources said the government likely did not intend to cause delays, but it was facing complex approval processes involving various state departments and some companies may have rushed to apply at too early a stage to meet the criteria. Reuters contacted several state agencies, but they did not immediately respond to requests for comment. The RIGI framework is intended to provide tax and customs benefits, access to international arbitration in case of disputes and long-term stability plans. Argentina exported $4.8 billion of minerals last year, largely gold, followed by shipments of silver and lithium. https://www.reuters.com/markets/commodities/argentina-approves-25-bln-rio-tinto-lithium-mining-project-2025-05-20/

2025-05-20 19:11

BUENOS AIRES, May 20 (Reuters) - Argentina posted a trade surplus of $204 million in April, after registering $6.66 billion in exports and $6.46 billion in imports in the month, the government's statistics office published on Tuesday. The data landed far below the $1 billion surplus forecast from analysts polled by Reuters. April still marked the seventeenth-consecutive positive monthly trade balance, with exports exceeding the value of imports, for the South American economy. Sign up here. https://www.reuters.com/world/americas/argentina-posts-204-mln-trade-surplus-april-far-below-expectations-2025-05-20/

2025-05-20 19:01

China among nations to reject chicken cargos in transit amid bird flu outbreak Brazilian meat processors to deal with additional logistics costs Some chicken cargos in transit may be redirected, meat lobby says SAO PAULO, May 20 (Reuters) - Countries, including China, will not accept chicken consignments in transit from Brazil following confirmation of the country's first bird flu outbreak, Brazilian meat lobby ABPA, which represents large food processors, said on Tuesday. ABPA president Ricardo Santin told Reuters in an interview that rejection of cargoes may vary according to the date of shipment before outbreak's confirmation, ranging from 14 to 28 days at the discretion of the destination countries' official veterinary services. Sign up here. The situation puts meat processors including BRF SA (BRFS3.SA) , opens new tab and JBS SA (JBSS3.SA) , opens new tab in a tight spot, as they deal with additional logistics costs and uncertainty related to the extent of ongoing trade embargos triggered by the health emergency. Brazil accounts for 39% of the global chicken trade, Santin said, citing fresh trade data. Easing restrictions for cargos in transit is a possibility, Santin said, particularly if the cargo comes from a region far from the outbreak in the town of Montenegro, in Rio Grande do Sul state. "But that will require negotiations," Santin said. Mexico and Chile are among countries which would also reject cargoes under existing health protocols related to bird flu outbreaks, he added. It is not possible to calculate losses stemming from export restrictions in force after confirmation of the first bird flu outbreak on a Brazilian commercial chicken farm, Santin said. That is because the scope and duration of trade bans may vary according to health protocols and negotiations with importing nations, Santin said. China, for example, enforced a nationwide ban on Brazil's chicken imports for about three weeks after a case of Newcastle disease - also found in Rio Grande do Sul - last year, Santin said. Later, China narrowed the scope of the ban to a statewide restriction that currently remains in place. Brazil's government asked China to restrict its bird-flu-related embargo on chicken imports to products just from the town of Montenegro, local media reported on Tuesday. The agriculture ministry confirmed a request made earlier this month to China to revise existing trade protocols, suggesting implementation of regional rather than countrywide export bans in the event of health emergencies, though denied asking anything specific related to the current bird flu outbreak. In total, some 20 countries imposed chicken trade bans on Brazil under existing health protocols, the Agriculture Ministry said on Monday. Unlike China, other major importers like Japan, the United Arab Emirates and Saudi Arabia are less strict and enforce regional bans under the existing health emergency protocols. Santin said it is up to the exporting companies to deal with returned cargoes, adding they also have the possibility of redirecting some consignments. https://www.reuters.com/business/healthcare-pharmaceuticals/brazil-chicken-exporters-brace-cargo-rejections-amid-bird-flu-outbreak-2025-05-20/

2025-05-20 18:00

May 20 (Reuters) - High uncertainty over the Trump administration's trade and other policies could slow the economy significantly as households and businesses put spending and investment decisions on hold while they wait for more clarity, St. Louis Federal Reserve Bank president Alberto Musalem said on Monday. "To the extent that the economy requires capital expenditure to continue to occur, that it requires hiring to continue to occur, and if all those decisions have been somewhat paused because of the uncertainty, it would affect the economic outlook I would expect," Musalem said in Minneapolis. "I don't want to give a precise number estimate, but I would say it tends to be a pretty meaningful impact." Sign up here. https://www.reuters.com/world/us/feds-musalem-policy-uncertainty-has-meaningful-impact-economic-outlook-2025-05-20/