G20 communique agreed apart from climate issue: EU officials

Delegates attend the official dinner at the Elbphilharmonie Concert Hall during the G20 summit in Hamburg, Germany July 7, 2017. REUTERS/Kay Nietfeld

By Paul Carrel and Noah Barkin

HAMBURG (Reuters) – World leaders meeting for a summit in Germany have agreed every aspect of a joint statement apart from the section on climate where the United States is pushing for a reference to fossil fuels, European Union officials said on Saturday.

The officials said aides had worked until 2 a.m. to finalize a communique for the Group of 20, overcoming differences on trade after U.S. officials agreed to language on fighting protectionism.

“The outcome is good. We have a communique. There is one issue left, which is on climate, but I am hopeful we can find a compromise,” said one EU official, speaking on condition of anonymity. “We have all the fundamentals.

“We have a G20 communique, not a G19 communique,” he added.

The section that needs to be resolved by the leaders relates to the U.S. insistence that there be a reference to fossil fuels, the official said.

With the final statement almost nailed down, the summit marked a diplomatic success for Chancellor Angela Merkel as she finessed differences with U.S. President Donald Trump, who arrived at the two-day summit isolated on a host of issues.

Trump, who on Friday found chemistry in his first face-to-face meeting with Russian President Vladimir Putin, congratulated Merkel for her stewardship of the summit.

“You have been amazing and you have done a fantastic job. Thank you very much chancellor,” he said.

Trump and Putin on Friday discussed alleged Russian meddling in the U.S. election but agreed to focus on future ties rather than dwell on the past, a result that was sharply criticized by leading Democrats in Congress.

For Merkel, the summit is an opportunity to show off her diplomatic skills ahead of a federal election in September, when she is seeking a fourth term in office.

She treated the leaders to a concert at Hamburg’s Elbphilharmonie on Friday night, where they listened to Beethoven while their aides began their all night slog to work out a consensus on trade that had eluded the leaders.

Trade policy has become more contentious since Trump entered the White House promising an “America First” approach.

The trade section in the statement the aides thrashed out read: “We will keep markets open noting the importance of reciprocal and mutually advantageous trade and investment frameworks and the principle of non-discrimination, and continue to fight protectionism including all unfair trade practices and recognize the role of legitimate trade defense instruments in this regard.”

CLIMATE CLASH

Climate change policy proved a sticking point, with the United States pressing for inclusion of wording about which other countries had reservations.

That passage read: “… the United States of America will endeavor to work closely with other partners to help their access to and use of fossil fuels more cleanly and efficiently …”

The climate section took note of Trump’s decision last month to withdraw the United States from the landmark Paris climate accord aimed at combating climate change, and reaffirmed the commitment of the other 19 members to the agreement.

Merkel chose to host the summit in Hamburg, the port city where she was born, to send a signal about Germany’s openness to the world, including its tolerance of peaceful protests.

As the leaders met on Saturday, police helicopters hovered overhead. Overnight, police clashed with anti-capitalist protesters seeking to disrupt the summit.

In the early morning, heavily armed police commandos moved in after activists had spent much of Friday attempting to wrest control of the streets from more than 15,000 police, setting fires, looting and building barricades.

The summit is being held only a few hundred meters from one of Germany’s most potent symbols of left-wing resistance, a former theater called the “Rote Flora” which was taken over by anti-capitalist squatters nearly three decades ago.

Police said 200 officers had been injured, 134 protesters temporarily detained and another 100 taken into custody.

(Writing by Paul Carrel; Editing by Noah Barkin and Janet Lawrence)

Qatar again rejects four Arab states’ accusations

A painting depicting Qatar’s Emir Sheikh Tamim Bin Hamad Al-Thani is seen as people gather to watch players from Spain's national team in Mall of Qatar in Doha, Qatar July 5, 2017. Picture taken July 5, 2017. REUTERS/Naseem Zeitoon

CAIRO (Reuters) – Qatar dismissed as “baseless” on Friday renewed accusations that it meddles in other countries’ affairs and finances terrorism, in its first public response to a statement from four Arab states locked in a diplomatic dispute with the tiny emirate.

In the joint statement issued late on Thursday, Saudi Arabia, the United Arab Emirates, Bahrain and Egypt said Doha’s refusal to accept their demands to end the diplomatic standoff was proof of its links to terrorist groups.

The four also said their 13 demands were now void and that they would enact new measures against Qatar, without specifying what these would be.

“The State of Qatar’s position on terrorism is consistent and known for its rejection and condemnation of all forms of terrorism, whatever the causes and motives,” the state news agency said, quoting a senior foreign ministry source.

Qatar remains ready to “cooperate and review all claims that do not contradict the sovereignty of the State of Qatar,” it added.

The four Arab states have cut diplomatic and transport ties with Qatar, which they also accuse of allying with their regional arch-foe Iran. Doha also denies that accusation.

Their original 13 demands presented to Qatar included shutting down the pan-Arab al-Jazeera TV channel and closing a Turkish military base in Doha.

Qatari officials have repeatedly said the demands were so strict that they suspected the four countries never seriously intended to negotiate them, and were instead seeing to hobble Doha’s sovereignty.

(Reporting by Ali Abdelaty, writing by Reem Shamseddine; Editing by Gareth Jones)

Russia and China tell North Korea, U.S. and South Korea to embrace de-escalation plan

Russian President Vladimir Putin (R) and his Chinese counterpart Xi Jinping walk past honour guards during a meeting at the Kremlin in Moscow, Russia July 4, 2017. Sputnik/Mikhail Klimentyev/Kremlin via REUTERS

MOSCOW (Reuters) – Russia and China joined diplomatic forces on Tuesday and called on North Korea, South Korea and the United States to sign up to a Chinese de-escalation plan designed to defuse tensions around Pyongyang’s missile program.

The plan would see North Korea suspend its ballistic missile program and the United States and South Korea simultaneously call a moratorium on large-scale missile exercises, both moves aimed at paving the way for multilateral talks.

The initiative was set out in a joint statement from the Russian and Chinese foreign ministries issued shortly after President Vladimir Putin and Chinese President Xi Jinping held wide-ranging talks in the Kremlin.

“The situation in the region affects the national interests of both countries,” the joint statement said. “Russia and China will work in close coordination to advance a solution to the complex problem of the Korean Peninsula in every possible way.”

North Korea said on Tuesday it had successfully test-fired an intercontinental ballistic missile (ICBM) for the first time, which flew a trajectory that experts said could allow a weapon to hit the U.S. state of Alaska.

Russia and China both share a land border with North Korea and have been involved in past efforts to try to calm tensions between Pyongyang and the West.

Moscow and Beijing used the same joint declaration to call on Washington to immediately halt deployment of its THAAD anti-missile system in South Korea, a move Washington says is necessitated by the North Korean missile threat.

The statement said Washington was using North Korea as a pretext to expand its military infrastructure in Asia and risked upsetting the strategic balance of power in the area.

“The deployment … of THAAD will cause serious harm to the strategic security interests of regional states, including Russia and China,” the statement said.

“Russia and China oppose the deployment of such systems and call on the relevant countries to immediately halt and cancel the process of deployment.”

(Reporting by Denis Dyomkin/Vladimir Soldatkin/Dmitry Solovyov; Editing by Andrew Osborn)

Trump calls for firm response to North Korea, targets Seoul on trade

U.S. President Donald Trump (L) welcomes South Korean President Moon Jae-in at the White House in Washington, U.S., June 30, 2017. REUTERS/Jim Bourg

By David Brunnstrom and Lisa Lambert

WASHINGTON (Reuters) – U.S. President Donald Trump called for a determined response to North Korea after talks with South Korea’s President Moon Jae-in on Friday where he stressed the importance of their alliance but took aim at Seoul over trade and sharing the cost of defense.

Trump said the United States was renegotiating what he characterized as a “rough” trade deal with South Korea agreed to five years ago by his predecessor, Barack Obama, and reiterated that an era of “strategic patience” over North Korea’s nuclear and ballistic missile programs had ended.

“Together we are facing the threat of the reckless and brutal regime in North Korea,” Trump said as he stood alongside Moon in the White House Rose Garden. “The nuclear and ballistic missile programs of that regime require a determined response.”

Despite the tough rhetoric, it remains unclear how Trump will find a way forward on North Korea, which is working to develop a nuclear-tipped missile capable of hitting the United States.

U.S. Defense Secretary Jim Mattis has warned the consequences of any military solution would be “tragic on an unbelievable scale.” Trump had pinned his hopes on persuading China, North Korea’s neighbor and main trading partner, to do more to rein in Pyongyang, although he has lately grown frustrated that Beijing has not taken stronger action.

Trump called on regional powers to implement sanctions and demand North Korea “choose a better path and do it quickly.”

Moon, who warned of a “stern response” to any provocations, urged Pyongyang to return promptly to talks.

“Our two leaders will employ both sanctions and dialogue in a phased and comprehensive approach,” Moon said of South Korea and the United States.

Trump and Moon have said they are open to renewed dialogue with North Korea but only under circumstances that would lead to Pyongyang giving up its weapons programs.

Moon told an event at the Center for Strategic and International Studies think tank that moves by North Korea that could create conditions for dialogue could include a freeze on its nuclear and missile tests, or the release of three Americans it is holding in the country.

To be successful, talks would have to involve North Korean leader Kim Jong Un and have as their ultimate aim the complete dismantling of North Korea’s nuclear program, he added.

Trump sought to woo China since a summit with Chinese President Xi Jinping in April but the honeymoon period appears to be over. On Thursday, the United States targeted a Chinese bank and sanctioned Chinese individuals and a firm for dealing with North Korea and approved a $1.42 billion arms deal with Taiwan – decisions that angered Beijing.

STEEL AND AUTOS

South Korea is a long-standing American ally but Trump has spoken harshly about U.S. trade imbalances and threatened to tear up the bilateral trade pact.

“We will do more to remove barriers to reciprocal trade and market access,” Trump said, adding that the two leaders had talked about the thorny trade areas of steel and autos.

Trump said he was encouraged by Moon’s assurances that he would seek a level playing field for American workers and businesses, particularly automakers.

A joint statement said the two sides had agreed to work together to reduce over supply of basic materials such as steel and non-tariff barriers. It also said Trump had accepted an invitation from Moon to visit South Korea this year.

Bonnie Glaser, senior adviser for Asia at the Center for Strategic and International Studies think tank, said it was unwise for Trump to air the trade issue so publicly.

“Public complaints by Trump about unfair trade and inadequate defense spending provide opportunities for China and North Korea to drive a wedge between the allies,” she said.

Trump also emphasized the need to ensure equitable sharing of costs for defense, returning to a theme he raised during his campaign and brought up with other allies, including NATO countries and Japan.

A senior U.S. official said in a briefing before the president’s meeting with Moon that South Korea was in many respects a “model ally,” given its spending of 2.7 percent of GDP on defense and Moon’s plan to grow capabilities.

“We shouldn’t view South Korea as somehow laggard on that front,” the official said on condition of anonymity.

The U.S. goods trade deficit with South Korea has more than doubled since the U.S.-Korea free trade pact known as KORUS took effect in 2012. The agreement was forecast to boost U.S. exports by $10 billion a year, but in 2016 they were $3 billion lower than in 2011.

At the start of Friday’s talks, U.S. Commerce Secretary Wilbur Ross said the largest component of the deficit was automotive trade and many non-tariff barriers to U.S. auto exports to South Korea remained.

“I think the way to address it is to deal product by product with what we can do to change the export side and what we can do to reduce the bad imports side,” he said.

Ross said later on Friday that some progress had been made in the talks.

The current pact was agreed to despite protests by supporters of Moon, who was then in opposition. But analysts have suggested that given the need to preserve a unified front in the face of a hostile North Korea, there could be compromise on both sides to resolve issues.

(Additional reporting by Fatima Bhojani, Roberta Rampton, Tim Ahmann, David Chance, David Lawder and Eric Beech; Editing by Bill Trott and Andrew Hay)

U.S. worries Russia could step up North Korea support to fill China void

U.S. Ambassador to the United Nations Nikki Haley testifies to the House Appropriations State, Foreign Operations and Related Programs Subcommittee on the budget for the U.N. in Washington, D.C., U.S., June 27, 2017. REUTERS/Joshua Roberts

By Michelle Nichols

UNITED NATIONS (Reuters) – As the United States pressures China to enforce United Nations sanctions on its ally North Korea, Washington is concerned that Russia could provide support to Pyongyang and fill any vacuum left by Beijing, U.S. Ambassador to the United Nations Nikki Haley said on Tuesday.

“I’m concerned that Russia may backfill North Korea,” Haley told U.S. lawmakers in Washington. “We don’t have proof of that, but we are watching that carefully.”

While Washington has urged countries to downgrade ties with Pyongyang over its nuclear and ballistic missile programs, a cross-border ferry service was launched in May between North Korea and neighboring Russia. Russian President Vladimir Putin has said the world should talk to, rather than threaten, North Korea.

“We just need to keep the pressure on China, we need to keep our eyes on Russia, and we need to continue to let the North Korea regime know we are not looking for regime change … we just want them to stop the nuclear activity,” Haley said.

The U.N. Security Council first imposed sanctions on North Korea in 2006 over its ballistic missile and nuclear programs and has ratcheted up the measures in response to five nuclear tests and two long-range missile launches. The government in Pyongyang is threatening a sixth nuclear test.

The Trump administration has been pressing China aggressively to rein in its reclusive neighbor, warning that all options are on the table if Pyongyang persists with its nuclear and missile development programs.

Beijing has repeatedly said its influence on North Korea is limited and that it is doing all it can, but U.S. President Donald Trump last week said China’s efforts had failed.

The United States has struggled to slow North Korea’s programs, which have become a security priority given Pyongyang’s vow to develop a nuclear-tipped missile capable of hitting the U.S. mainland.

“The pressure on China can’t stop,” Haley said. “We have to have China doing what they’re supposed to. At the same time all other countries need to make sure they’re enforcing the sanctions that the Security Council has already put in place.”

Trump, increasingly frustrated with China over its inaction on North Korea and bilateral trade issues, is now considering possible trade actions against Beijing, senior administration officials told Reuters.

The United States also plans to place China on its global list of worst offenders in human trafficking and forced labor, sources said, a step that could aggravate tensions with Beijing.

(Additional reporting by Patricia Zengerle, editing by G Crosse)

U.S. urges bigger Chinese role to combat global terrorism

China's President Xi Jinping waits to greet Brazil's Foreign Minister Aloysio Nunes (not seen), Russia's Foreign Minister Sergey Lavrov (not seen), South Africa's Foreign Minister Maite Nkoana-Mashabane (not seen) and Indian Minister of External Affairs Vijay Kumar Singh (not seen) as he meets with foreign affairs officials from the BRICS countries at the Great Hall of the PeopleÕs Fujian Room in Beijing on June 19, 2017. REUTERS/Nicolas Asfouri/Pool

By David Brunnstrom

WASHINGTON (Reuters) – The United States wants China to become more involved in supporting the global fight against terrorism and efforts to defeat Islamic State, including in Iraq, a senior U.S. official said on Monday ahead of high-level security talks with Beijing.

Susan Thornton, the U.S. acting assistant secretary of state for East Asia, said that China has taken only a limited role in counter-terrorism efforts, although it appeared to be becoming more interested.

“We would like to see them step up and take more responsibility,” Thornton told reporters as Washington and China’s diplomatic and defense chiefs prepared for a meeting in the U.S. capital on Wednesday.

“They have a lot of interests, for example in Iraq, and we think they should be doing to more to contribute to the efforts of the international coalition to defeat ISIS (Islamic State),” she said.

Thornton said Beijing, which is not a member of the 68-member coalition, was increasingly affected by terrorism, as was seen by the recent killing of two Chinese nationals in Pakistan.

Beijing has sent out “early feelers” about getting more involved, Thornton said.

“We’d like to have a good discussion with them about what more we think they can do, certainly in the way of providing resources to governments that are battling against terrorism and trying to help with capacity-building for governments and security forces in various places,” she added.

Chinese Foreign Ministry spokesman Geng Shuang told a regular press briefing in Beijing on Tuesday that China and the United States were both victims of terrorism.

“Cooperation is in the interests of both sides,” he said, without elaborating.

Wednesday’s talks will involve U.S. Secretary of State Rex Tillerson, Secretary of Defense Jim Mattis as well as China’s top diplomat, State Councilor Yang Jiechi, and General Fang Fenghui, chief of state of the People’s Liberation Army.

The State Department says they will focus on ways to step up pressure on North Korea to give up its nuclear and missile programs, but also cover areas such as counter-terrorism and territorial rivalries in the strategic South China Sea.

The United States has been at odds with China over the latter’s building and fortifying of islands in the disputed waterway.

Thornton said now that there were moves towards agreeing a code of conduct over the South China Sea, Washington would like to see a freeze on all such construction activity.

She reiterated a call on China to fully implement U.N. sanctions on North Korea and, while praising Beijing for imposing a ban on North Korean coal imports, added: “We would like to see China do more.”

(Reporting by David Brunnstrom; Additional reporting by David Alexander in Washington and Christian Shepherd in Beijing; Editing by Paul Simao and Nick Macfie)

U.S. Senate’s Iran sanctions are breach of nuclear deal: senior Iranian official

FILE PHOTO: Iran's national flags are seen on a square in Tehran February 10, 2012, a day before the anniversary of the Islamic Revolution. REUTERS/Morteza Nikoubazl/File Photo

ANKARA (Reuters) – The U.S. Senate’s decision to impose new sanctions on Iran is an “unquestionable” violation of a nuclear deal reached in 2015 between Tehran and six major powers including the United States, Iranian media quoted a senior Iranian official as saying.

The Senate approved on Thursday the sanctions on Iran over its ballistic missile program and other activities not related to the international nuclear agreement.

“The U.S. Senate’s move is unquestionably in breach of both the spirit and the letter of the nuclear deal,” Ali Akbar Velayati, a senior adviser to Supreme Leader Ayatollah Ali Khamenei, was reported by media as saying on Friday.

“The Iranian committee tasked with monitoring the accord will certainly examine the congressional move and come up with a decent response.”

The U.S. legislation still must pass the House of Representatives and be signed by President Donald Trump to become law.

Trump has in the past called the nuclear agreement between Tehran and the major powers “the worst deal ever negotiated”. Under the deal, Iran agreed to curb its nuclear program in return for the lifting of nuclear-related sanctions.

The United States and its regional ally Saudi Arabia accuse Iran of subverting regional security. Iran also accuses its arch foes, Washington and Riyadh, for promoting Islamist militancy in the region.

“America is trying to cover up the repeated defeats it has suffered from Iran in Iraq and Syria,” Velayati said.

(Writing by Parisa Hafezi; Editing by Gareth Jones and Pritha Sarkar)

U.S., Turkey discuss Qatar row, Syria on phone call: sources

FILE PHOTO: A view shows buildings in Doha, Qatar, June 9, 2017. REUTERS/Naseem Zeitoon

ANKARA (Reuters) – U.S. Secretary of State Rex Tillerson and Turkish counterpart Mevlut Cavusoglu discussed developments in Syria and in the row between Qatar and its fellow Arab states on a phone call late on Saturday, Turkish foreign ministry sources said.

The call, held at Tillerson’s request, came after Tillerson on Friday urged Saudi Arabia and other Gulf states to ease their blockade of Qatar, saying it was causing unintended humanitarian consequences and affecting the U.S.-led fight against Islamic State.

No further details of the call were immediately available.

Referring to Tillerson’s comments on the blockade, Turkish President Tayyip Erdogan said in a speech at a Ramadan fast-breaking dinner in Istanbul on Friday: “I say it should be lifted completely”.

Saudi Arabia, the United Arab Emirates (UAE), Bahrain and Egypt severed relations with Qatar on Monday, accusing it of supporting Islamist militants and their adversary Iran – allegations Qatar says are baseless. Several countries followed suit.

Erdogan vowed to keep supporting Qatar after his rapid approval of legislation on deploying Turkish troops there. On Saturday, he told Bahrain’s foreign minister that the dispute should be resolved by the end of the holy month of Ramadan.

Erdogan on Thursday also approved an accord between Turkey and Qatar on military training cooperation. Both bills were drawn up before the dispute between Qatar and others erupted. Turkey has also pledged to provide food and water supplies to Qatar.

Turkey has maintained good relations with Qatar as well as several of its Gulf Arab neighbors. Turkey and Qatar have both provided support for the Muslim Brotherhood in Egypt and backed rebels fighting to overthrow Syrian President Bashar al-Assad.

Turkey and fellow NATO member the United States have also been at loggerheads regarding U.S. support the Syrian Kurdish YPG militia in the fight against Islamic State in Syria. Turkey views the YPG as an extension of the Kurdistan Workers Party (PKK), which has waged a three-decade-long insurgency on its soil.

The United States said last week it had started supplying arms to the YPG for an assault on the Syrian town of Raqqa, deepening Turkey’s anger. The YPG’s role in the Raqqa campaign has strained ties between the United States and Turkey, which fears growing Kurdish ascendancy along its border.

(Reporting by Tulay Karadeniz; writing by Tuvan Gumrukcu; editing by Jason Neely)

Iran says Saudi supports militants on its turf after attacks

Iran's Foreign Minister Mohammad Javad Zarif smiles during the opening of the Oslo Forum at Losby Gods outside Oslo, Norway June 13, 2017. NTB Scanpix/Hakon Mosvold Larsen via REUTERS

OSLO (Reuters) – Iranian Foreign Minister Mohammad Javad Zarif on Tuesday said Saudi Arabia was supporting militants inside Iran, days after hardline Sunni group Islamic State claimed attacks in Tehran.

Relations between the two neighbors are at their most tense in years. Last week Riyadh, along with other Arab governments, severed ties with Qatar, citing its support of Iran as one of the main reasons for the move.

Two days later, the suicide bombings and shootings in Tehran killed 17 people. Iran repeated accusations that Saudi Arabia funds Islamic militants including Islamic State. Riyadh has denied involvement in the attacks.

“We have intelligence that Saudi Arabia is actively engaged in promoting terrorist groups on the eastern side of Iran, in Baluchistan,” Zarif told a news conference held on the sidelines of a conference on peace mediation in Oslo.

Baluchistan province is home to a Sunni population who form a minority in majority Shi’ite Iran.

Iran and Saudi Arabia accuse each other of subverting regional security and support opposite sides in conflicts including those in Syria, Yemen and Iraq.

“On the Western side, the same type of activity is being undertaken, again abusing the diplomatic hospitality of our other neighbor,” he said, without elaborating.

Iran also accuses the United States for Islamist militancy in the region.

(Reporting by Gwladys Fouche; Editing by Raissa Kasolowsky)

Saudi and Bahrain welcome Trump’s scolding of Qatar

FILE PHOTO: A view shows buildings in Doha, Qatar, June 9, 2017. REUTERS/Naseem Zeitoon

RIYADH (Reuters) – Saudi Arabia and Bahrain welcomed on Saturday U.S. President Donald Trump’s demand for Qatar to stop supporting terrorism, but did not respond to a U.S. Department of State call for them to ease pressure on the Gulf state.

After severing ties with Qatar on Monday, Saudi Arabia said it was committed to “decisive and swift action to cut off all funding sources for terrorism” in a statement carried by state news agency SPA, attributed to “an official source”.

And in a separate statement issued on Friday, the United Arab Emirates praised Trump’s “leadership in challenging Qatar’s troubling support for extremism”.

Trump accused Qatar of being a “high level” funder of terrorism on Friday, even as the Pentagon and U.S. Secretary of State Rex Tillerson cautioned against the military, commercial and humanitarian effects of a blockade imposed by Arab states and others.

A separate SPA report on Saturday acknowledged Tillerson’s call for Qatar to curtail support for terrorism, but did not mention his remarks that the crisis was hurting ordinary Qataris, impairing business dealings and harming the U.S. fight against the Islamic State militant group.

Saudi Arabia said its action followed the conclusions of last month’s Arab Islamic American Summit in Riyadh, where Trump delivered a speech about Islamic extremism.

Trump said he helped plan the move against Qatar, although a senior administration official told Reuters earlier this week that the U.S. had no indication from the Saudis or Emiratis during the visit that they would sever ties with Qatar.

(Reporting by Katie Paul; editing by Alexander Smith)