Author Archives: Reuters News Agency

As Arab Gulf starts opening to Israel, Palestinians face a reckoning

By Rami Ayyub

JERUSALEM (Reuters) – Israel’s rapprochement with Gulf Arab states has left the Palestinians feeling abandoned by traditional allies and clutching an old playbook in a rapidly changing Middle East, analysts and critics say.

As the United Arab Emirates and Bahrain prepare to sign normalization accords with Israel at a White House ceremony on Tuesday, Palestinian leaders face calls to overhaul their strategy to avoid becoming marginalized in a region where Israel and most Sunni Arab regimes share a fear of Iran.

The Palestinian approach to securing freedom from Israeli occupation has for years relied on a longstanding pan-Arab position that called for Israeli withdrawal from the occupied West Bank and Gaza and Israel’s acceptance of Palestinian statehood, in return for normal relations with Arab countries.

But the Palestinians last week failed to persuade the Arab League to condemn nations breaking ranks.

Tuesday’s ceremony, hosted by U.S. President Donald Trump, will be “a black day in the history of Arab nations”, Palestinian Prime Minister Mohammad Shtayyeh said on Monday.

Shtayyeh said the Palestinians are now discussing whether to “adjust Palestine’s relationship with the Arab League.”

But critics say the proposed move is too little too late, with President Mahmoud Abbas facing mounting criticism for their increasingly isolated position.

“There is very little indication that the (Palestinian) leadership is contemplating a break from its approach,” Tareq Baconi, an analyst with the International Crisis Group, told Reuters.

The Palestinians’ strategy centers on holding Israel to account in international legal tribunals, and trying to break the United States’ dominance over the Israeli-Palestinian peace process, Baconi said.

“Arab and European support in that strategy is crucial, but it is questionable that the Palestinians will be able to secure either to the level required to ensure a just peace.”

TWO-STATE SOLUTION

Despite signs of shifting Arab support, Saeb Erekat, Secretary General of the Palestine Liberation Organization (PLO), said the underlying Palestinian strategy for achieving a state in the West Bank, East Jerusalem and Gaza would not change.

“To stay on the grounds of international law, international legality, to seek peace based on ending Israeli occupation and a two-state solution … we cannot depart from these squares,” he told Reuters.

While conceding difficulties faced by a Palestinian leadership under Israeli occupation, analysts nevertheless say Abbas does have some options.

After years of in-fighting between the two main Palestinian factions, Abbas’s Fatah and Islamist Hamas, long-overdue elections would refresh the president and parliament’s mandate and boost their leverage abroad by increasing their legitimacy at home, analysts say.

“We need to … rebuild the PLO’s institutions from the ground up and cement relations between Palestinians here and in the diaspora,” Gaza analyst Talal Okal said.

Over six million diaspora Palestinians, he said, “can influence the communities they live in so the Palestinian cause has a place on the agendas of their host governments.”

TRUMP BOYCOTT

One area where Abbas has widespread public support – 70% in recent polls – is his two-year boycott of the Trump administration, which he accuses of pro-Israel bias over its recognition of Jerusalem as Israel’s capital and endorsement of Israel’s West Bank settlements.

Frustrated by the Palestinians’ refusal to take part in Trump-led talks, the White House has sought to bypass Abbas and his team, apparently hoping they will see the deals with the UAE and Bahrain as incentives to return to negotiations.

For more than two years Trump’s son-in-law Jared Kushner has tried sidestepping Abbas to appeal to Palestinians directly, telling Al-Quds newspaper in 2018: “The world has moved forward while you have been left behind. Don’t allow your grandfather’s conflict to determine your children’s future.”

That has had little apparent success. And the Palestinian leadership at first engaged with the Trump administration. Until, said Erekat, they concluded that “these people want to dictate a solution, not negotiate a solution … they’re the ones who are departing from international law.”

Dennis Ross, who served as a Middle East adviser under Republican and Democratic administrations, had cautionary words for both sides.

While the Gulf deals served notice that Palestinians “don’t have a veto on normalization as regional dynamics shift” the Israelis, he said, “cannot wish the Palestinians away — and standing pat also means increasing the risk of one state for two peoples.”

(Additional reporting by Nidal al-Mughrabi in Gaza, Ali Sawafta in Ramallah, Adel Abu Nemeh in Jericho and Matt Spetalnick in Washington; Editing by Stephen Farrell, William Maclean)

U.S. median income hit record high before coronavirus hit, Census says

By Susan Heavey

WASHINGTON (Reuters) – U.S. median household income hit a record high in 2019 and the poverty rate fell, according to a government survey released on Tuesday that offered a snapshot of the economy before millions of American jobs were destroyed by the coronavirus pandemic.

The U.S. Census Bureau said real median household income jumped 6.8% from $64,324 in 2018 to $68,703 last year – the highest since the agency began tracking the data in 1967.

It also said the nation’s poverty rate fell last year to 10.5%, a 1.3-percentage-point drop. Another measure of poverty that adjusts for government aid programs for low-income Americans showed a drop to 11.7% last year from 12.8% in 2018.

At the same time, however, the number of people without health insurance for at least part of the year hit 29.6 million, up one million from the year before. The number of uninsured children also grew.

The report offered a look back at the state of the economy before the novel coronavirus outbreak hit the United States early this year, shuttering many businesses as the country sought to contain the pandemic.

Since then, more than 6.5 million people in the United States have contracted the highly contagious virus and more than 194,000 have died. Vast swaths of the economy were devastated and 22 million Americans were thrown out of work.

While activity is now rebounding, economists warn that the recovery may be uneven as federal stimulus money runs out with no signs of replenishment from Washington. A potential second wave of COVID-19 infections this autumn and winter as people move back indoors also looms large.

President Donald Trump, who had staked his re-election on economic gains before the outbreak, has downplayed impact of the virus and the risk of another wave, as he has urged states to fully re-open. He has also repeatedly touted gains on Wall Street – a narrow gauge of economic performance – and pledged to rebuild the economy if he wins a second term.

His Democratic rival in the Nov. 3 election, former Vice President Joe Biden, has said the gains since COVID-19 emerged have been uneven and have left many segments of the working population still reeling.

“Those at the top see things going up. But those in the middle and below see things getting worse. And we have leaders who bear false witness, want us to believe that our country isn’t gone off track,” Biden said on Monday.

A Reuters/Ispos poll in late August showed American’s support for Trump’s handling of the economy has slipped.

The income and poverty data for 2019, the last year of the economic expansion following the 2007-2009 Great Recession, “do not reflect the impacts of the COVID-19 pandemic or the current recession,” Census’ Social, Economic and Housing Statistics Division chief David Waddington told reporters on a conference call.

Census officials and private economists cautioned that the COVID-19 outbreak impacted data collection as the agency suspended in-person interviews earlier this year.

(Reporting by Susan Heavey and Tim Ahmann; additional reporting by James Oliphant; Editing by Chizu Nomiyama, Jonathan Oatis and Marguerita Choy)

After UAE and Bahrain deals, is Saudi Arabia softening its stance on Israel?

By Marwa Rashad and Aziz El Yaakoubi

RIYADH/DUBAI (Reuters) – When one of Saudi Arabia’s leading clerics called this month for Muslims to avoid “passionate emotions and fiery enthusiasm” towards Jews, it was a marked change in tone for someone who has shed tears preaching about Palestine in the past.

The sermon by Abdulrahman al-Sudais, imam of the Grand Mosque in Mecca, broadcast on Saudi state television on Sept. 5, came three weeks after the United Arab Emirates agreed a historic deal to normalize relations with Israel and days before the Gulf state of Bahrain, a close Saudi ally, followed suit.

Sudais, who in past sermons prayed for Palestinians to have victory over the “invader and aggressor” Jews, spoke about how the Prophet Mohammad was good to his Jewish neighbor and argued the best way to persuade Jews to convert to Islam was to “treat them well”.

While Saudi Arabia is not expected to follow the example of its Gulf allies any time soon, Sudais’ remarks could be a clue to how the kingdom approaches the sensitive subject of warming to Israel – a once inconceivable prospect. Appointed by the king, he is one of the country’s most influential figures, reflecting the views of its conservative religious establishment as well as the Royal Court.

The dramatic agreements with the UAE and Bahrain were a coup for Israel and U.S. President Donald Trump.  But the big diplomatic prize for an Israel deal would be Saudi Arabia, whose king is the Custodian of Islam’s holiest sites, and rules the world’s largest oil exporter.

Marc Owen Jones, an academic from the Institute of Arab and Islamic Studies at the University of Exeter, said the UAE and Bahrain’s normalization has allowed Saudi Arabia to test public opinion, but a formal deal with Israel would be a “large task” for the kingdom.

“Giving the Saudis a ‘nudge’ via an influential imam is obviously one step in trying to test the public reaction and to encourage the notion of normalization,” Jones added.

In Washington, a State Department official said the United States was encouraged by warming ties between Israel and Gulf Arab countries, viewed this trend as a positive development and “we are engaging to build on it.”

There was no immediate response to a request by Reuters for comment from the Saudi government’s media office.

Sudais’ plea to shun intense feelings is a far cry from his past when he wept dozens of times while praying for Jerusalem’s Al-Aqsa mosque – Islam’s third-holiest site.

The Sept. 5 sermon drew a mixed reaction, with some Saudis defending him as simply communicating the teachings of Islam. Others on Twitter, mostly Saudis abroad and apparently critical of the government, called it “the normalization sermon”.

Ali al-Suliman, one of several Saudis interviewed at one of Riyadh’s malls by Reuters TV, said in reaction to the Bahrain deal that normalization with Israel by other Gulf states or in the wider Middle East was hard to get used to, as “Israel is an occupying nation and drove Palestinians out of their homes”.

MUTUAL FEAR OF IRAN

Saudi Crown Prince Mohammed bin Salman, the kingdom’s de-facto ruler often referred to as MbS, has promised to promote interfaith dialogue as part of his domestic reform. The young prince previously stated that Israelis are entitled to live peacefully on their own land on condition of a peace agreement that assures stability for all sides.

Saudi Arabia and Israel’s mutual fear of Iran may be a key driver for the development of ties.

There have been other signs that Saudi Arabia, one of the most influential countries in the Middle East, is preparing its people to eventually warm to Israel.

A period drama, “Umm Haroun” that aired during Ramadan in April on Saudi-controlled MBC television, a time when viewership typically spikes, centered around the trials of a Jewish midwife.

The fictional series was about a multi-religious community in an unspecified Gulf Arab state in the 1930’s to 1950’s. The show drew criticism from the Palestinian Hamas group, saying it portrayed Jews in a sympathetic light.

At the time, MBC said that the show was the top-rated Gulf drama in Saudi Arabia in Ramadan. The show’s writers, both Bahraini, told Reuters it had no political message.

But experts and diplomats said it was another indication of shifting public discourse on Israel.

Earlier this year, Mohammed al-Aissa, a former Saudi minister and the general secretary of the Muslim World League, visited Auschwitz. In June, he took part in a conference organised by the American Jewish Committee, where he called for a world without “Islamophobia and anti-Semitism”.

“Certainly, MbS is intent on moderating state-sanctioned messages shared by the clerical establishment and part of that will likely work towards justifying any future deal with Israel, which would have seemed unthinkable before,” said Neil Quilliam, associate fellow with Chatham House.

ISOLATED PALESTINIANS

Normalization between the UAE, Bahrain and Israel, which will be signed at the White House on Tuesday, has further isolated the Palestinians.

Saudi Arabia, the birthplace of Islam, has not directly addressed Israel’s deals with the UAE and Bahrain, but said it remains committed to peace on the basis of the long-standing Arab Peace Initiative.

How, or whether, the kingdom would seek to exchange normalization for a deal on those terms remains unclear.

That initiative offers normalized ties in return for a statehood deal with the Palestinians and full Israeli withdrawal from territories captured in the 1967 Middle East war.

However, in another eye-catching gesture of goodwill, the kingdom has allowed Israel-UAE flights to use its airspace. Trump’s son-in-law and senior adviser, Jared Kushner, who has a close relationship with MbS, praised the move last week.

A diplomat in the Gulf said that for Saudi Arabia, the issue is more related to what he called its religious position as the leader of the Muslim world, and that a formal deal with Israel would take time and is unlikely to happen while King Salman is still in power.

“Any normalization by Saudi will open doors for Iran, Qatar and Turkey to call for internationalizing the two holy mosques,” he said, referring to periodic calls by critics of Riyadh to have Mecca and Medina placed under international supervision.

(Additional reporting by Davide Barbuscia, Alexander Cornwell in Dubai and Humeyra Pamuk in Washington; editing by Maha El Dahan, Michael Georgy and William Maclean)

Bipartisan U.S. lawmaker group to unveil $1.5 trillion COVID-19 aid bill

By David Morgan

WASHINGTON (Reuters) – A group of 50 Democratic and Republican members of Congress is due to unveil $1.5 trillion bipartisan coronavirus relief legislation on Tuesday, in an election year effort to break a month-long impasse in COVID-19 talks between the White House and top Democrats.

The Problem Solvers Caucus, which includes members of both parties in the House of Representatives, was set to outline the legislative package at an 11 a.m. (1500 GMT) press conference at the U.S. Capitol.

The group, which says it has been working to find common ground on coronavirus relief for the past six weeks, agreed on the measure just before House lawmakers returned to Washington from a summer recess on Monday.

“This is just a framework to hopefully get the negotiators back to the table,” U.S. Representative Josh Gottheimer, the group’s Democratic co-chairman, told CNBC.

The proposal includes another round of direct checks to Americans, $500 billion for state and local governments and jobless benefits, with spending lasting beyond next January’s presidential inauguration, a source familiar with the plan said.

With less than two months to go before the Nov. 3 election, there is growing anxiety among lawmakers about the inability of Congress and President Donald Trump’s White House to agree on a package to deliver relief to millions of Americans and an economy reeling from the coronavirus pandemic.

Talks between the White House, House Speaker Nancy Pelosi and Senate Democratic leader Chuck Schumer broke down in early August and the two sides remain nearly $900 billion apart. But Pelosi and U.S. Treasury Secretary Steven Mnuchin in recent days have both signaled a willingness to keep talking.

White House adviser Jared Kushner on Tuesday separately told CNBC he hoped a deal could be reached but that it might not happen until after the election.

Trump on Tuesday also cited the need for more funding but sought to cast blame on the House Democratic leader, telling Fox News in an interview: “We could use additional stimulus, but Nancy Pelosi won’t approve it because she thinks it’s bad for me in the election.”

Democrats, who control the House, passed their $3.4 trillion package in mid-May. They later said they would accept $2.2 trillion in spending, while the White House signaled a willingness to accept $1.3 trillion.

Republican congressional leaders have not participated in the discussions. The Republican-controlled Senate failed to pass a $300 billion coronavirus bill that Senate Democrats called inadequate. A slimmed-down version of an earlier $1 trillion Republican measure also failed.

(Reporting by David Morgan; additional reporting by by Susan Heavey; Editing Bernadette Baum and Steve Orlofsky)

Sally lumbers toward U.S. Gulf Coast, threatens ‘catastrophic rain’

By Jonathan Bachman and Jennifer Hiller

GULF SHORES, ALABAMA (Reuters) – Hurricane Sally made a slow-motion crawl towards the U.S. Gulf Coast on Tuesday, threatening historic floods and prolonged rainfall as officials in three states urged people to flee the coast.

Sally could wallop the Alabama, Florida and Mississippi coasts on Tuesday night or early Wednesday with massive flash flooding and storm surges of up to 7 feet (2 meters) in some spots, the National Hurricane Center (NHC) said. Its languid pace recalls 2017’s Hurricane Harvey, which dumped several feet of rain over a period of days on the Houston area.

More than 2 feet of rain expected in some areas, creating “extreme life-threatening flash flooding likely through Wednesday,” an NHC forecaster said. While Sally’s winds decreased to 80 miles (140 km) per hour at 1 p.m.(1800 GMT), it was moving at a glacial pace of two miles per hour.

Sally will slow even more after landfall, causing Atlanta, Georgia to see as much as six inches (15 cm) of rain through Friday, said Jim Foerster, chief meteorologist at DTN, an energy, agriculture and weather data provider. “It’s going to be a catastrophic flooding event” for much of the southeastern U.S., Forester said, with Mobile, Alabama to the western part of the Florida panhandle taking the brunt of the storm.

Governors from Louisiana to Florida warned people to leave low-lying communities and Mobile County, Alabama Sheriff Sam Cochran warned residents of flood-prone areas that if they choose to ride out the storm, it will be “a couple of days or longer before you can get out.”

The causeway to Dauphin Island, Alabama, at the entrance to Mobile Bay was already flooded and impassable on Tuesday morning, the mayor said.

Coastal roads in Pascagoula, Mississippi, were flooding on Tuesday and some electrical wires were down, according to photos and social media posts from the police department, which asked people to respect road barricades and “refrain from joy riding.”

Nearly 11,000 homes are at risk of storm surge in the larger coastal cities in Alabama and Mississippi, according to estimates from property data and analytics firm CoreLogic.

Steady winds and bands of rain had started to arrive in Gulf Shores by Tuesday morning. Samantha Frederickson, who recently moved to Gulf Shores, Alabama, hit the beach early Tuesday to catch a view of the storm surf. “At the moment, we’re riding it out,” she said amid light rains and winds. “When it gets to the point we don’t feel comfortable, we’ll take off.”

President Donald Trump made emergency declarations for Alabama, Mississippi and Louisiana, which helps coordinate disaster relief.

At 1 p.m., storm was 60 miles (95 km) east of the mouth of the Mississippi River, the NHC said.

Ports, schools and businesses closed along the coast. The U.S. Coast Guard restricted travel on the lower Mississippi River from New Orleans to the Gulf, and closed the ports of Pascagoula and Gulfport, Mississippi, and Mobile, Alabama.

Energy companies buttoned up or halted oil refineries and pulled workers from offshore oil and gas production platforms. More than a quarter of U.S. offshore oil production was shut.

Sally is the 18th named storm in the Atlantic this year and will be the eighth tropical storm or hurricane to hit the United States – something “very rare if not a record” said Dan Kottlowski, senior meteorologist at AccuWeather, noting that accurate data on historic tropical storms can be elusive.

(Reporting by Jennifer Hiller in Houston and Jonathan Bachman in Gulf Shores, Alabama. Editing by Marguerita Choy, Jonathan Oatis and Timothy Gardner)

Spiking U.S. gun sales deluge FBI’s background check system, cause delays

By Brad Brooks

(Reuters) – A surge in people buying guns since the coronavirus pandemic began has flooded the FBI’s background check system, causing a spike in the number of delayed checks and allowing gun sales to proceed without them, FBI data disclosed on Tuesday showed.

Gun control advocacy group Everytown for Gun Safety obtained FBI data through a Freedom of Information Act request.

There has been a 54% increase in the number of background checks that were delayed past three days in the March through July period, as compared with the same time last year, the data shows.

More than 5% of the 5.86 million background checks conducted during those months this year were delayed past three business days, it showed.

More Americans are trying to buy guns than ever, according to FBI data. The bureau conducted 93% more background checks in that March through July period this year as compared with the same period the previous year, when it conducted 3.03 million checks.

Background checks may have become more difficult to complete as state law enforcement and other government agencies housing records may have been closed or slower in replying to FBI requests because of the pandemic’s impact on staffing, said Rob Wilcox, deputy director of policy at Everytown.

If an FBI background check takes longer than three business days, a gun dealer can sell the firearm to a buyer, under current regulations.

That worries groups like Everytown because it means thousands of people prohibited by law from owning guns – such as most convicted felons – may have obtained them as the FBI background check was delayed.

“They should have allocated the people and resources needed to conduct these background checks,” said Wilcox.

The FBI did not immediately respond to a request for comment. When asked in April about the spike in background checks caused by increased gun sales, the FBI said its system was “operational and will continue to process requests.”

U.S. gun sales have soared this year, sparked by fears of social unrest because of the pandemic, violence seen on the streets of American cities during protests for racial justice, and the turbulence over the presidential election.

(Reporting by Brad Brooks in Lubbock, Texas; Editing by Bill Tarrant and Timothy Gardner)

Scientists create gene-edited animals as ‘surrogate sires’ to boost food production

By Kate Kelland

LONDON (Reuters) – Scientists have created gene-edited pigs, goats and cattle to produce sperm with traits such as disease resistance and higher meat quality in what they say is a step towards genetically enhancing livestock to improve food production.

The animals, created for the first time by researchers in the United States and Britain using a gene-editing tool called CRISPR-Cas9, could be used as “surrogate sires,” essentially sterile blank slates that could then be transplanted with stem cells that produce the desired sperm, the scientists said.

The process could help farmers rear healthier, more productive animals using fewer resources such as feed, medicines and water, they said. It could also give breeders in remote regions of the world better access to genetic material of elite animals from elsewhere, allowing for “precision breeding”.

“With this technology, we can get better dissemination of desirable traits and improve the efficiency of food production,” said Jon Oatley, a reproductive biologist at Washington State University in the United States, who co-led the work.

He said this could have a major impact on addressing food insecurity around the world. “If we can tackle this genetically, then that means less water, less feed and fewer antibiotics we have to put into the animals.”

Yet gene-editing has long been a contentious subject, and the latest advance could face resistance from critics opposed to the genetic modification of animals, which they regard as dangerous tampering with nature.

The researchers stressed that the gene-editing process they used was designed only to bring about changes within an animal species that could occur naturally.

This research was a “proof of concept,” they said, and showed that the technique could work. Current regulations, however, mean that gene-edited surrogate sires could not be used in the food chain anywhere in the world, even though their offspring would not be gene-edited, the researchers added.

Oatley’s team used CRISPR-Cas9 to knock out a gene specific to male fertility in the animal embryos that would be raised to become the surrogate sires. The male animals were then born sterile, but began producing sperm after researchers transplanted stem cells from donor animals into their testes.

“This shows the world that this technology is real. It can be used,” said Bruce Whitelaw, an expert at the Roslin Institute at Britain’s Edinburgh University who worked on the team. “We now have to … work out how best to use it productively to help feed our growing population.”

(Reporting by Kate Kelland; Editing by Pravin Char)

Exclusive: AstraZeneca COVID-19 vaccine trial in U.S. on hold until at least midweek – sources

By Julie Steenhuysen and Marisa Taylor

CHICAGO (Reuters) – AstraZeneca’s COVID-19 vaccine trial remains on hold in the United States pending a U.S. investigation into a serious side effect in Britain even as other trials of the vaccine resume, sources familiar with the details told Reuters.

AstraZeneca on Saturday said it had restarted its trial in Britain after regulators completed their review of a serious side effect in one trial participant there.

This was the first indication that the U.S. trial will remain on hold until the U.S. Food and Drug Administration and a safety panel investigate the case.

Enrollment in the company’s global trials of the vaccine, which it is developing with researchers at Oxford University, was put on pause on Sept. 6.

Sources told Reuters that enrollment of new patients and other trial procedures for the pivotal U.S. trial were being rescheduled until at least midweek and that it was not clear how long it would take for the FDA to complete its probe.

Governments around the world are desperate for a vaccine to help end the pandemic, which has caused more than 900,000 deaths and global economic turmoil. The World Health Organization (WHO) had flagged AstraZeneca’s as the most promising. A prolonged delay in the U.S. trial could slow access to the vaccine in the United States.

The British adverse event involved a study patient thought to be suffering a rare spinal inflammatory disorder called transverse myelitis.

An AstraZeneca spokeswoman declined to comment on when the U.S. trial would resume. She said in an email the company “will continue to work with health authorities across the world, including the FDA, and be guided as to when other clinical trials can resume.”

The status of the South African and Indian trials remains unknown, but the trial in Brazil has also restarted. The company has not commented on timing of resumption in other parts of the world besides Britain.

FDA did not immediately respond to a request for comment.

(Reporting by Julie Steenhuysen and Marisa Taylor; Editing by Peter Henderson and Cynthia Osterman)

COVID-19 cases rise in Canada, schools to put pressure on testing system

By Allison Martell and Moira Warburton

TORONTO/VANCOUVER (Reuters) – Canada’s three biggest provinces are seeing a pick-up in new COVID-19 cases, as officials do little to slow the virus beyond urging people to be more careful, and doctors warn school reopenings will boost demand for testing.

The country reported no deaths for one day on Friday, an echo of earlier success in controlling the virus that may already be slipping away, even before the impact of school reopenings is clear.

Demand for tests is already up in some Ontario hot spots, and will rise further as more children return to school. Students with symptoms will generally have to isolate at home until they are well and have a negative test, so any backlogs will trap families at home.

McMaster University infectious disease expert Dr Zain Chagla said assessment centers need to stop testing asymptomatic people who have no known exposure to the virus, before labs become overwhelmed.

Canada’s 5 million school children average about eight upper respiratory tract infections a year, said Chagla. Even if that falls to two this year, some 27,000 will need to be tested on any given day.

Last week, Canada averaged 47,807 tests per day.

“It’s not minor, the actual demands that are going to be put on the system as part of children going back to school,” he said. “It’s going to be paramount that the turnaround time be relatively quick.”

Ontario Premier Doug Ford said he discussed testing with Canada’s Deputy Prime Minister Chrystia Freeland on Monday morning.

“All provinces, not just Ontario, are going to start ramping up for more testing,” he said.

Federal officials have said they are aiming for a “slow burn” of infection.

Dr. Irfan Dhalla, vice president of physician quality at Unity Health, which operates two hospitals in Toronto, has argued that the country should instead try to come as close as possible to eliminating the virus, following New Zealand and Canada’s own Atlantic provinces, with testing, tracing, isolation and support.

“It’s only a matter of time before we start seeing hospitalizations increase, and before we start seeing more people dying again,” said Dhalla.

Infections in Ontario, the most populous province, charged through the 300 mark on Monday, after dropping to below 100 a day in early August with the government blaming the spread on private social gatherings like weddings.

British Columbia, which imposed fresh curbs on nightclubs last week, reported its highest-ever case count of 139 on Sept. 10. Cases are also rising in Quebec, where classes resumed first.

Quebec teachers’ union Fédération autonome de l’enseignement (FAE) filed a lawsuit on Monday, seeking more information about a promised plan to ensure teachers and students have access to accelerated testing, and on the number of COVID-19 cases in schools.

“The government is currently giving the impression that it is improvising, while the virus doesn’t give second chances,” FAE president Sylvain Mallette said in a statement.

Prime Minister Justin Trudeau reiterated his message on Monday, asking people to remain vigilant: “The last thing anyone wants is to go into this fall and lock down, similar to this spring,” he said.

(Additional reporting by Mahad Arale in Toronto, Allison Lampert in Montreal and Steve Scherer in Ottawa; Editing by Andrea Ricci)

Trump EPA sides with farmers over refiners in biofuel waiver decision

By Stephanie Kelly

NEW YORK (Reuters) – The Trump administration said on Monday it rejected scores of requests from U.S. oil refiners for waivers that would have retroactively spared them from their obligation to blend biofuels like ethanol into their fuel, delivering a win for farmers and a blow to the oil industry just ahead of the November presidential election.

Reuters had reported last week that U.S. President Donald Trump, under the advice of his allies in the Midwest, ordered his Environmental Protection Agency to deny the waivers because they had become a lightning rod of controversy in the Farm Belt, an important political constituency.

“This decision follows President Trump’s promise to promote domestic biofuel production, support our nation’s farmers, and in turn strengthen our energy independence,” said EPA Administrator Andrew Wheeler in a statement announcing the agency was denying 54 applications that the Department of Energy had reviewed.

Refiners say the waivers are crucial for reducing regulatory costs for small fuel producers and keeping them in business, but the corn lobby argues the exemptions undermine demand for corn-based ethanol at a time farmers are already suffering from the impacts of a trade war with China.

CONTENTION LAW

Under the U.S. Renewable Fuel Standard, refiners must blend some 15 billion gallons of ethanol into their gasoline each year or buy tradable credits from those that do. Small refiners have also been able to seek an exemption if they can prove financial harm from the requirements.

The Trump administration has roughly quadrupled the number of exemptions given out to refiners in a trend that had angered the biofuel industry.

In January, an appeals court handling a case initiated by the biofuel industry cast a cloud of doubt over the EPA’s waiver program, ruling that waivers granted to small refineries after 2010 should only be approved as extensions. Most recipients of waivers in recent years have not continuously received them.

That triggered a wave of requests for retroactive relief by refiners seeking to comply with the court decision. Since March, 17 small refineries in 14 states submitted 68 petitions, Wheeler said in a memo. The Department of Energy, which advises EPA on the waiver requests, had transmitted its findings on 54 of the petitions.

“(T)hese small refineries did not demonstrate disproportionate economic hardship from compliance with the RFS program for those RFS compliance years,” Wheeler said.

It is unclear what will happen to refining facilities that had benefited from waivers in recent years that are non-compliant with the court’s ruling. But sources told Reuters the administration may seek to offer them another form of financial relief to compensate.

It was also not immediately clear how this would affect 28 pending waiver applications for 2019 and three pending applications for 2020.

The Trump administration’s decision on Monday is a major victory for biofuel advocates in the long-standing battle between the deep-pocketed Corn and Oil lobbies.

“This is outstanding news for biofuels producers, farmers, and RFS integrity,” said Iowa Renewable Fuels Association Executive Director Monte Shaw. “With gap year waivers denied, the number of refiners eligible to even apply for – let alone receive – an RFS exemption going forward is reduced to single digits.”

Some in the oil industry criticized the decision. “EPA has turned a blind eye to merchant refineries and their workers in key battleground states like Pennsylvania, Ohio and Texas,” said the Fueling American Jobs Coalition, a group that includes union workers and independent refiners.

Trump over the weekend also tweeted that he would allow states to permit fuel retailers to use their current pumps to sell gasoline with higher blends of ethanol, or E15, a move that could help lift ethanol sales.

“Today’s announcements will help provide more certainty to our biofuel producers, who have for too-long been yanked around by the EPA, and help increase access to E15, which drives up demand for corn and ethanol,” said Iowa Senator Joni Ernst.

(Reporting by Stephanie Kelly; Editing by Dan Grebler and Marguerita Choy)