Sanctions, hobbled economy hit Iran’s traditional carpet weavers hard

KASHAN, Iran — The historic Kashan bazaar in central Iran once sat on a major caravan route, its silk carpets known the world over. But for the weavers trying to sell their rugs under its ancient arches, their world has only unraveled since the collapse of Iran’s nuclear deal with world powers and wider tensions with the West.

Rug exports, which exceeded $2 billion two decades ago, have plummeted to less than $50 million in the last year in the Persian calendar that ended in March, according to government customs figures. With fewer tourists coming and difficulties rising in making international transactions, Iranian rugs are going unsold as some weavers work for as little as $4 a day.

“Americans were some of our best customers,” said Ali Faez, the owner of one dusty carpet shop at the bazaar. “Rugs are a luxury product and they were eager to buy it and they used to make very good purchases. Unfortunately, this has been cut — and the connection between the two countries for visitors to come and go has gone away.”

Kashan’s rug-weaving industry has been inscribed in UNESCO’s list of the world’s “intangible cultural heritage.” Many of the weavers are women, with the skills needed for the Farsi weaving style passed down from generation to generation, using materials like vine leaves and the skins of pomegranate fruit and walnuts to make the dyes for their threads. A single rug can take months to make.

For decades, Western tourists and others would pass through Iran, picking up rugs as gifts and to take back home. After the 1979 Islamic Revolution, the U.S. increased sanctions on Iran’s theocratic government over the U.S. Embassy siege, Tehran’s links to militant attacks and other issues.

But in 2000, the outgoing administration of former President Bill Clinton lifted a ban on the import of Iranian caviar, rugs and pistachios.

“Iran lives in a dangerous neighborhood,” then-Secretary of State Madeleine Albright said at the time. “We welcome efforts to make it less dangerous.”

By 2010, with concerns rising over Iran’s nuclear program, the U.S. again banned Iranian-made Persian rugs. But in 2015, Iran struck a nuclear deal with world powers which greatly reduced and drastically lowered the purity of Tehran’s stockpile of enriched uranium. The rug trade was allowed once again.

Three years later, in 2018, then-President Donald Trump unilaterally withdrew the U.S. from the nuclear deal. Since then, Iran began enriching uranium at near-weapons-grade levels and has been blamed for a series of attacks at sea and on land, including an unprecedented drone-and-missile attack targeting Israel last month.

For the carpet weavers, that’s meant their wares were once again banned under U.S. law.

“It started when Trump signed that paper,” Faez told The Associated Press, referring to the renewed sanctions. “He ruined everything.”

Abdullah Bahrami, the head of a national syndicate for handwoven rug producers, also blamed the collapse of the industry on the Trump sanctions. He put the value of exports to the U.S. as high as $80 million annually prior to the sanctions.

“The whole world used to know Iran by its rugs,” Bahrami told the state-run IRNA news agency in March.

Making things worse is what carpet sellers see as a drop in tourists to Kashan as well. High-value American and European tourism in Iran has largely stopped, the daily Shargh newspaper warned last year. Ezzatollah Zarghami, Iran’s minister of tourism, insisted in April that 6 million tourists visited the country over the last 12 months, though that likely includes religious pilgrims as well as Afghans and Iraqis with less spending money.

But even those tourists that do show up face the challenge of Iran’s financial system, where no major international credit card works.

“I had a Chinese customer the other week. He was struggling to somehow make the payment because he loved the rug and didn’t want to let go of it,” Faez said. “We have to pay a lot of commission to those who can transfer money and have bank accounts abroad. Sometimes they cancel their orders because they don’t have enough cash with them.”

The collapse of the rial currency has left many Iranians also unable to purchase the handwoven rugs. Wages in the industry are low, leading to a growing number of Afghan migrants working in workshops around Kashan as well.

Designer Javad Amorzesh, one of just a few of Kashan’s old-school artists, said his orders have fallen from 10 a year to just two. He has laid off staff and now works alone in a cramped space.

“Inflation rose every hour. People were hit repeatedly by inflation,” he said. “I used to have four to five assistants in a big workshop.”

Offering a bitter laugh alone in his workshop, he added, “We’ve been left isolated.”

Yellen says threats to democracy risk US economic growth

WASHINGTON — Treasury Secretary Janet Yellen argues that a fractured democracy can have destructive effects on the economy — an indirect jab at Donald Trump.

Yellen delivered an address Friday in Arizona, using economic data to paint a picture of how disregard for America’s democratic processes and institutions can cause economic stagnation for decades.

Yellen, taking a rare step toward to the political arena, never mentioned Trump, the presumptive Republican presidential nominee, by name in her speech for the McCain Institute’s Sedona Forum, but she hinted at the former president’s potential impact if he regains the White House.

Her remarks serve as a sort of warning for business leaders who may overlook Trump’s disregard for modern democratic norms because they prefer the former president’s vision of achieving growth by slashing taxes and stripping away regulations.

Yellen acknowledged that democracy “doesn’t seem like typical terrain for a treasury secretary,” but she added that “democracy is critical to building and sustaining a strong economy.”

“The argument made by authoritarians and their defenders that chipping away at democracy is a fair or even necessary trade for economic gains is deeply flawed,” she said. “Undercutting democracy undercuts a foundation of sustainable and inclusive growth.” She pointed to a study suggesting that democratization increases gross domestic product per capita by around 20% in the long run.

Yellen cited the insurrection on January 6, 2021, as a day when democracy came under threat as “rioters, spurred on by a lie, stormed the Capitol.” Trump, who made false claims that the 2020 election was stolen from him, has been charged with conspiring to overturn the election, among four criminal cases he is facing. He denies any wrongdoing.

And though Yellen didn’t specifically cite Trump’s comments, he again undermined the tradition of a peaceful transfer of power this week when he refused to commit to accepting this year’s presidential results in an interview with the Milwaukee Journal-Sentinel.

Farther from home, Yellen cited other global threats to democracy such as Russia’s invasion of Ukraine.

Trump and those associated with him say they want to centralize the government’s powers within the Oval Office, such that he might subject people or companies that cross him to investigations, lawsuits and other penalties. That approach could undermine the rule of law that has enabled America’s market-based economy to thrive.

In her speech, Yellen pointed to China as a cautionary example and warned that its future growth is “far from certain.” She said the absence of some democratic pillars will “continue to pose challenges as China navigates the transition to an advanced economy.”

Yellen’s speech comes when there is speculation that if Trump regains the White House he may put political pressure on the Federal Reserve to lower its benchmark interest rate, which stands at a two-decade high of roughly 5.3%. Fed Chair Jerome Powell this week said gaining confidence to lower rates “will take longer than previously expected.”

“As chair of the Federal Reserve, I insisted on the Fed’s independence and transparency because I believe it matters for financial stability and economic growth,” Yellen said in her speech. “Recent research has been consistent with my belief: It has shown that greater central bank independence is associated with greater price stability, which contributes significantly to long-term growth.”

A representative from the Trump campaign did not respond to an Associated Press request for comment.

Other leading economists and academics are challenging the right’s claims to the mantles of economic growth and liberty.

The Nobel Prize-winning economist Joseph Stiglitz, a friend of Yellen’s, last month published a book entitled The Road to Freedom. Stiglitz, in an interview, said Trump has preyed on people’s economic insecurities after decades of inequality and the erosion of the middle class.

“The economic state is what creates the fertile field for these demagogues,” Stiglitz said. “If they were feeling their incomes were going up rather than down, I don’t think they would find Trump attractive.”

In a paper released this week, Vanessa Williamson, a senior fellow at the Urban-Brookings Tax Policy Center, said that businesses should be more concerned about the rule of law and democratic values.

She argued that there need to be stronger nonpartisan business associations and that CEOs and executives need to be fully aware of how a move away from democracy could hurt their bottom lines.

There is “indisputable evidence of the economic costs of democratic decline,” she said. “These costs include stagnation, policy instability, cronyism, brain drain, and violence.”

In deals to end protests, some colleges invite discussion of their investments

new york — Anti-war demonstrations ceased this week at a small number of U.S. universities after school leaders struck deals with pro-Palestinian protesters, fending off possible disruptions of final exams and graduation ceremonies.

The agreements at schools including Brown, Northwestern and Rutgers universities stand out amid the chaotic scenes and 2,400-plus arrests on 46 campuses nationwide since April 17. Tent encampments and building takeovers have disrupted classes at some schools, including Columbia University and the University of California-Los Angeles.

Deals included commitments by universities to review their investments in Israel or hear calls to stop doing business with the longtime U.S. ally. Many protester demands have zeroed in on links to the Israeli military as the war grinds on in Gaza.

The agreements to even discuss divestment mark a major shift on an issue that has been controversial for years, with opponents of a long-running campaign to boycott Israel saying it veers into antisemitism. But while the colleges have made concessions around amnesty for protesters and funding for Middle Eastern studies, they have made no promises about changing their investments.

“I think for some universities, it might be just a delaying tactic” to calm the protests, said Ralph Young, a history professor who studies American dissent at Temple University in Philadelphia. “The end of the semester is happening now. And maybe by the time the next semester begins, there is a cease-fire in Gaza.”

Some university boards may never vote on divesting from Israel, which can be a complicated process, Young said. And some state schools have said they lack the authority to do so.

But Young said dialogue is a better tactic than arrests.

Talking “at least gives the protesters the feeling that they’re getting somewhere,” he said. “Whether they are getting somewhere or not is another question.”

Israel has called the protests antisemitic; its critics say the country uses such allegations to silence opposition. Although some protesters were caught on camera making antisemitic remarks or violent threats, protest organizers — some of whom are Jewish — have called it a peaceful movement to defend Palestinian rights and protest the war.

Administrators at the University of California at Riverside announced an agreement Friday with protesters to close their campus encampment. The deal included the formation of a task force to explore removing Riverside’s endowment from the broader UC system’s management and investing those funds “in a manner that will be financially and ethically sound for the university with consideration to the companies involved in arms manufacturing and delivery.”

The announcement marked an apparent split with the policy of the 10-campus UC system, which last week said it opposes “calls for boycott against and divestment from Israel.”

Demonstrators at Rutgers — where finals were paused because of the protests on its New Brunswick, New Jersey, campus — similarly packed up their tents Thursday afternoon. The state university agreed to establish an Arab Cultural Center and to not retaliate against any students involved in the camp.

Protesters at Brown in Rhode Island agreed to dismantle their encampment on Tuesday. School officials said students could present arguments for divesting Brown’s endowment from companies contributing to and profiting from the war in Gaza.

In addition, Brown President Christina Paxson will ask an advisory committee to make a recommendation on divestment by September 30, which will be put before the school’s governing corporation for a vote in October.

Northwestern’s Deering Meadow in suburban Chicago also fell silent after an agreement Monday. The deal curbed protest activity in return for reestablishing an advisory committee on university investments and other commitments.

The arrangement drew dissent from both sides. Some pro-Palestinian protesters condemned it as a failure to stick to their original demands, while some supporters of Israel said it represented cowardly capitulation.

Seven of 18 members subsequently resigned from a university committee that advises the administration on addressing antisemitism, Islamophobia and expressions of hatred on campus, saying they couldn’t continue to serve “with antisemitism so present at Northwestern in public view for the past week.”

Michael Simon, the executive director of an organization for Jewish students, Northwestern Hillel, said he resigned after concluding that the committee could not achieve its goals.

Faculty at Pomona College in California voted in favor of divesting from companies they said are funding Israel’s war in Gaza, a group of faculty and students said Friday.

The vote Thursday is not binding on the liberal arts school of nearly 1,800 students east of Los Angeles. But supporters said they hoped it would encourage the board to stop investing in these companies and start disclosing where it makes its investments.

Meanwhile, arrests of demonstrators continued elsewhere.

About a dozen protesters who refused police orders to leave an encampment at New York University were arrested early Friday, and about 30 more left voluntarily, NYU spokesperson John Beckman said. The school asked city police to intervene, he added.

NYPD officers also cleared an encampment at The New School in Greenwich Village at the request of school administrators. No arrests were announced.

Another 132 protesters were arrested when police broke up an encampment at the State University of New York at New Paltz starting late Thursday, authorities said.

And nine were arrested at the University of Tennessee, including seven students who Chancellor Donde Plowman said would also be sanctioned under the school’s code of conduct.

The movement began April 17 at Columbia, where student protesters built an encampment to call for an end to the Israel-Hamas war.

Over 34,000 Palestinians have been killed in the conflict in the Gaza Strip, according to the Health Ministry there. Israel launched its offensive after October 7, when Hamas militants entered Israel and killed about 1,200 people, mostly civilians, and took roughly 250 hostages.

Biden: All jailed journalists should be released

WASHINGTON — U.S. President Joe Biden has called for the release of all imprisoned journalists — including three American reporters — who have been jailed over their work, in a Friday statement commemorating World Press Freedom Day.

“Journalism should not be a crime anywhere on Earth,” Biden said in the statement. “On World Press Freedom Day, the United States calls for the immediate and unconditional release of all journalists who have been put behind bars for simply doing their jobs. And we call for the protection of journalists everywhere, including during military operations.”

At the end of 2023, 320 journalists were jailed for their work around the world, according to the Committee to Protect Journalists.

That total includes three American journalists: Evan Gershkovich and Alsu Kurmasheva in Russia, and Austin Tice in Syria.

Gershkovich, a Russian correspondent for The Wall Street Journal, has been jailed since March 2023 on espionage charges that he, his employer and the U.S. government vehemently deny. The State Department has also declared him wrongfully detained.

“We’re so proud of him. I can’t believe he’s holding up so well. And he works so, so hard to be able to keep his spirits up,” Gershkovich’s sister Danielle said at a Friday in Washington Friday commemorating World Press Freedom Day.

Danielle said her family manages to stay in touch with Evan through letters.

“I get a letter from him — it’s like Christmas morning. And I hear his voice in my head when I’m reading it. And it just feels like I get to chat to my brother. It’s a lifeline to my parents and I,” she said at the event, which was held at The Washington Post headquarters.

Since his jailing, Russian authorities have not publicly revealed any evidence to substantiate the spying accusations against Gershkovich, who was accredited by Russia’s Foreign Ministry to work in the country. The reporter will be held in pretrial detention until at least June.

Meanwhile, Kurmasheva, a Prague-based editor at VOA’s sister outlet Radio Free Europe/Radio Liberty, has been jailed for more than six months and is also set to be held in pretrial detention until at least June.

The dual U.S.-Russian national traveled to Russia in May 2023 for a family emergency. Her passports were confiscated when she tried to leave the country in June 2023. She was waiting for them to be returned when she was arrested in October 2023.

Kurmasheva stands accused of failing to self-register as a so-called “foreign agent” and spreading what Moscow views as false information about the Russia military. The journalist and her employer reject the charges against her.

“She’s the mom of two wonderful young women who had to grow up awfully quickly over the last six months that she’s been in prison,” RFE/RL President Stephen Capus said at the event.

In a prerecorded video message, Kurmasheva’s 15-year-old daughter Bibi called for her mother’s immediate release.

“My mom, Alsu, has been behind bars in Russia for six months now, because she is a journalist,” she said. “My sister and I are so proud of her, and we miss her so, so much. She needs to be freed immediately so she can come home to us. Free Alsu.”

Press freedom groups have criticized the State Department for not yet declaring Kurmasheva wrongfully detained, which would open additional resources to help secure her release.

Russia’s Washington embassy did not immediately reply to VOA’s email requesting comment.

This year’s World Press Freedom Day takes place against a backdrop that experts say is concerning for journalists around the world.

“Media freedom is under siege,” U.N. Secretary-General Antonio Guterres said Friday in a statement. “Without facts, we cannot fight mis- and dis-information. Without accountability, we will not have strong policies in place. Without press freedom, we won’t have any freedom. A free press is not a choice, but a necessity.”

In particular, the ongoing war between Israel and Hamas has led to the deadliest period for journalists since the Committee to Protect Journalists, or CPJ, began gathering data in 1992. As of Friday, at least 97 journalists have been killed since the war began, including 92 Palestinians, two Israelis, and three Lebanese, according to CPJ.

“Journalists are civilians, so they need to be protected as any civilian is during a war zone. They shouldn’t be targeted,” CPJ chief Jodie Ginsberg said at the event on Friday.

New York-based CPJ has accused Israel of targeting journalists, which the Israeli government has denied.

About half of the world’s population is set to vote in national elections in 2024, which has press freedom experts concerned about the safety of reporters and potentially harmful effects for press freedom.

“This year is going to be really indicative not just of the future of a free press, but the future of democracy, because how we treat our media in the run-up to these elections is a litmus test for how the other freedoms that we enjoy, and the other democratic rights we enjoy, are likely to be treated afterwards,” Ginsberg said.

Discussions about press freedom tend to center on the negative, but Clayton Weimers, the head of the U.S. office of Reporters Without Borders, or RSF, said it’s also important to recognize governments that are defending press freedom.

“World Press Freedom Day should be a celebration of the values of the free press,” Weimers said.

RSF on Friday released its annual press freedom index, which ranks 180 countries and territories in terms of media freedom. Norway and Denmark topped the list this year.

“There’s no freedom without press freedom,” Weimers said. “It’s the freedom on which all the others are based.”

Russian troops enter base housing US military in Niger, US official says

WASHINGTON — Russian military personnel have entered an air base in Niger that is hosting U.S. troops, a senior U.S. defense official told Reuters, a move that follows a decision by Niger’s junta to expel U.S. forces.

The military officers ruling the West African nation have told the U.S. to withdraw its nearly 1,000 military personnel from the country, which until a coup last year had been a key partner for Washington’s fight against insurgents who have killed thousands of people and displaced millions more.

A senior U.S. defense official, speaking on condition of anonymity, said Russian forces were not mingling with U.S. troops but were using a separate hangar at Airbase 101, which is next to Diori Hamani International Airport in Niamey, Niger’s capital.

The move by Russia’s military, which Reuters was the first to report, puts U.S. and Russian troops in close proximity at a time when the nations’ military and diplomatic rivalry is increasingly acrimonious over the conflict in Ukraine.

It also raises questions about the fate of U.S. installations in the country following a withdrawal. “(The situation) is not great but in the short-term manageable,” the official said.

Asked about the Reuters report, U.S. Defense Secretary Lloyd Austin played down any risk to American troops or the chance that Russian troops might get close to U.S. military hardware.

“The Russians are in a separate compound and don’t have access to U.S. forces or access to our equipment,” Austin told a press conference in Honolulu.

“I’m always focused on the safety and protection of our troops … But right now, I don’t see a significant issue here in terms of our force protection.”

The Nigerien and Russian embassies in Washington did not immediately respond to a request for comment.

The U.S. and its allies have been forced to move troops out of a number of African countries following coups that brought to power groups eager to distance themselves from Western governments. In addition to the impending departure from Niger, U.S. troops have also left Chad in recent days, while French forces have been kicked out of Mali and Burkina Faso.

At the same time, Russia is seeking to strengthen relations with African nations, pitching Moscow as a friendly country with no colonial baggage in the continent.

Mali, for example, has in recent years become one of Russia’s closest African allies, with the Wagner Group mercenary force deploying there to fight jihadist insurgents.

Russia has described relations with the United States as “below zero” because of U.S. military and financial aid for Ukraine in its effort to defend against invading Russian forces.

The U.S. official said Nigerien authorities had told President Joe Biden’s administration that about 60 Russian military personnel would be in Niger, but the official could not verify that number.

After the coup, the U.S. military moved some of its forces in Niger from Airbase 101 to Airbase 201 in the city of Agadez.

It was not immediately clear what U.S. military equipment remained at Airbase 101.

The United States built Airbase 201 in central Niger at a cost of more than $100 million. Since 2018 it has been used to target Islamic State and al Qaeda affiliate Jama’at Nusrat al-Islam wal Muslimeen (JNIM) fighters with armed drones.

Washington is concerned about Islamic militants in the Sahel region, who may be able to expand without the presence of U.S. forces and intelligence capabilities.

Niger’s move to ask for the removal of U.S. troops came after a meeting in Niamey in mid-March, when senior U.S. officials raised concerns including the expected arrival of Russia forces and reports of Iran seeking raw materials in the country, including uranium.

While the U.S. message to Nigerien officials was not an ultimatum, the official said, it was made clear U.S. forces could not be on a base with Russian forces.

“They did not take that well,” the official said.

A two-star U.S. general has been sent to Niger to try to arrange a professional and responsible withdrawal.

While no decisions have been taken on the future of U.S. troops in Niger, the official said the plan was for them to return to U.S. Africa Command’s home bases, located in Germany.

У ГУР повідомили, коли можуть розпочатися «змістовні переговори» про мир із Росією

Європу представник ГУР Вадим Скібіцький називає найбільшим невизначеним фактором війни. Якщо сусіди України не знайдуть способу подальшого збільшення оборонного виробництва, щоб допомогти Україні, вони теж зрештою опиняться під прицілом Росії.

Austin: US sees no indications of intent to hurt US troops building Gaza pier

Washington — U.S. Defense Secretary Lloyd Austin said late Thursday he does not see signs that Hamas is going to attack U.S. forces who are building a pier off the coast of Gaza to deliver aid to the war-torn strip by sea.

“I don’t see any indications currently that there is an active intent to do that,” Austin told reporters at a press conference in Hawaii.

Austin stressed that the top commander of U.S. forces in the Middle East, CENTCOM chief Gen. Erik Kurilla, has put several security measures in place to keep the troops who are building the pier and helping with aid distribution safe.

“Our allies are also providing security in that area as well, and so it’s going to require that we continue to coordinate with them very closely to ensure that if anything happens that, you know, our troops are protected,” Austin said.

The new port is just southwest of Gaza City. Last week a mortar attack targeted the port site but officials said no one was hurt.

“This is an accident, a very serious accident waiting to happen,” Bradley Bowman, the senior director of the Center on Military and Political Power at the Foundation for Defense of Democracies, told VOA.

Bowman, who is also a U.S. Army veteran, said Thursday that efforts to feed those in desperate need are “laudable,” but security concerns since the inception of this U.S. mission appear to remain unanswered while some of the plans are still being developed.

“The kind of terrorists, the kind of person – I hesitate to use that term – that would … wage the October 7 terror attack, use human shields and hold innocent men, women and children as hostages, those are the very same people that will not hesitate to attack those trying to bring food and water to hungry and thirsty people,” Bowman said.

Crews from the USNS Roy P. Benavidez and several Army vessels started building the floating platform for the operation last week, according to a senior military official. Next will come construction of the causeway, which will be anchored to the shore by the Israel Defense Forces.

U.S. and Israeli officials have said they hope to complete construction and begin operations this month.

The senior military official told reporters the Pentagon expects deliveries to “begin at about 90 trucks a day … and then quickly increase to 150 trucks a day.”

Aid has been slow to get into Gaza because of long backups of vehicles at Israeli inspection points. The U.S. and other nations have been air-dropping food into Gaza, but each military plane only holds about one to three truckloads of food, a U.S. official told VOA.

Aid organizations have said several hundred truckloads of food are needed in Gaza each day.

Israel attacked Hamas in Gaza following Hamas’ October 7 terror attack on Israel, which killed 1,200 people and saw hundreds more taken hostage. In the nearly seven months since the attack, more than 34,000 Palestinians have been killed in Gaza, according to Gazan health officials.  

US remains committed to diplomacy despite North Korea’s nuclear escalation   

washington — The U.S. says it has been trying to engage North Korea by sending messages repeatedly despite Pyongyang’s apparent lack of interest in dialogue and its escalation of threats in the region.

“We have sent such messages in multiple ways – through third parties and directly, orally and in writing – and have included specific proposals on humanitarian cooperation and other topics for discussion,” a State Department spokesperson said.

“We have also emphasized our willingness to discuss practical steps both sides could take to address the security situation in the region,” the spokesperson continued via email to VOA’s Korean Service on April 26.

“To date, however, the DPRK has shown no indication it is interested in engaging. Instead, we have seen a marked increase in the scope and scale of DPRK provocations, which have only served to raise regional tensions and increase the risk of accidental or unintentional escalation,” the spokesperson added.

North Korea’s official name is the Democratic People’s Republic of Korea.

North Korea has been conducting multiple missile and rocket tests, including what it said was its first nuclear counterattack drills using “super-large” artillery rockets carrying mock nuclear warheads on April 22.

Pyongyang has also ramped up its cooperation with Russia, sending arms to support Moscow’s fight against Ukraine. Russia has been shipping refined petroleum to North Korea above the limit of 500,000 barrels annually set by the U.N. Security Council, White House national security spokesperson John Kirby said Thursday.

The North Korean mission to the U.N. did not respond to a VOA inquiry on its reaction to the U.S. description of its efforts made to resume talks.

Dialogue between the two has been deadlocked since October 2019 when working-level talks failed to reconcile differences over denuclearization and sanctions relief that became apparent a few months earlier at a summit in Hanoi.

Washington has maintained that it is open to renewed dialogue on Pyongyang’s nuclear program without preconditions.

Former U.S. officials suggested that the Biden administration provided the unusually detailed account of its efforts to engage Pyongyang in response to criticisms saying it has not done enough.

“The Biden team is quite sensitive to the attacks coming from ‘liberals,’ especially critics who claim the administration has not attached sufficient priority to North Korea and has not done enough to pursue diplomacy with Pyongyang,” said Evans Revere, a former State Department official with extensive experience negotiating with North Korea.

Revere added that some of these critics are arguing that Washington needs to change its approach, offer concessions and engage in arms control and threat reduction talks with North Korea. He said this explains not only the administration’s detailed description of its efforts at talks but its willingness to discuss “interim steps” toward denuclearization.

Two senior U.S. officials said in March that Washington is willing to consider such steps and discuss sanctions and confidence-building measures.

Robert Rapson, who served as charge d’affaires and deputy chief of mission at the U.S. Embassy in Seoul from 2018 to 2021, said the Biden administration may be trying to address China’s call for talks between Washington and Pyongyang.

“It’s possible Beijing may have laid out a quid pro quo for any support with North Korea by calling on the U.S. to up its efforts to engage with Pyongyang – hence the statement” from the State Department, said Rapson.

Secretary of State Antony Blinken said at a news conference in Beijing after talks with Chinese officials that he “encouraged” Beijing “to press Pyongyang to end its dangerous behavior and engage in dialogue.”

Joseph DeTrani, who served as the special envoy for six-party denuclearization talks with North Korea from 2003 to 2006, said, “The Biden administration wants to make it clear, for the record and as we approach the November presidential election, that the administration was proactive in its policy toward North Korea and they did everything possible” to have Pyongyang “return to negotiations.”

 

US tax service to audit wealthy more, fix disparity on lower-income Blacks

WASHINGTON — The Internal Revenue Service, the U.S. tax agency, said Thursday that it has taken steps to address a wide disparity in audit rates between Black taxpayers and other filers. And it said it is more closely examining the returns of larger numbers of wealthy people and major companies.

“We are overhauling compliance efforts to advance our commitment to fair, equitable, and effective tax administration and hold ourselves accountable to taxpayers we serve,” according to an annual update from the agency.

A study from January 2023 involving university researchers and the Treasury Department found that IRS data-driven algorithms selected Black taxpayers for auditing at up to 4.7 times the rate of non-Black taxpayers. The study said the IRS disproportionately audited people who claim the Earned Income Tax Credit, which is aimed at low- to moderate-income workers and families: While Black taxpayers accounted for 21% of the claims for that tax break, they were the focus of 43% of the audits concerning the credit.

“We have taken swift initial action to dramatically reduce the number of those audits. We have also made changes to the selection criteria for those audits,” IRS Commissioner Daniel Werfel said.

Werfel, who was sworn in a little more than a year ago, has testified before Congress about the issue and last September he wrote to the Senate Finance Committee that the IRS would make changes.

The discriminatory audits, he told reporters, “degrade trust in our tax system.”

Werfel and the IRS have tried over the past year to show how money from the Inflation Reduction Act, President Joe Biden’s big climate, health and tax law, has helped to modernize the agency and improve taxpayer services.

He also said that people making less than $400,000 per year would not be subject to more audits because of the new funding.

Noting the promise to keep audit rates for people making $400,000 per year and less at 2018 levels, he said on Thursday that “we haven’t in any way exceeded that rate.”

He added: “There is no new wave of audits coming for middle and low income” taxpayers — “that is not in our plans in any way, shape or form.”

The IRS is focusing the next year on using the funding boost to conduct higher rates of audits on suspected wealthy tax cheats after having collected hundreds of millions of back taxes this year.

Ensuring that people pay their taxes is one of the tax collection agency’s biggest challenges. The audit rate of millionaires fell by more than 70% from 2010 to 2019 and the rate on large corporations dropped by more than 50%.

The IRS plans to raise audit rates on companies with assets of more than $250 million to 22.6% in 2026, from an 8.8% rate in the tax year 2019. It also plans to increase audit rates by tenfold on large complex partnerships with assets of more than $10 million.

“While the IRS has accomplished a lot so far with IRA funding,” he said, “we need to do much more to make improvements and transform the IRS for the benefit of taxpayers.”