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Unveiling the turmoil, upheaval, and discussions surrounding Thailand’s trade agreement

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Jonathan Head

South East Asia correspondent in Bangkok

Getty Images Coloured cargo containers at a port.Getty Images

Export-driven economies like Thailand have been scrambling for a trade deal to avoid President Trump’s steep tariffs

When US President Donald Trump made his dramatic tariff announcement on 2 April, nowhere was the shock greater than in South East Asia, a region whose entire world view and economic model is built on exports.

The levies went as high as 49% on some countries, hitting a range of industries from electronics exporters in Thailand and Vietnam to chip makers in Malaysia and clothing factories in Cambodia.

“I remember waking up in the morning. It was quite early, and seeing him standing there on the White House lawn with his board. I thought: ‘Did I see that right? 36%? How could it be?” says Richard Han, whose father founded Hana Microelectronics, one of Thailand’s biggest contract manufacturers.

Thailand, which was facing a 36% levy, now has a deal, like most of its neighbours, to reduce the tariffs to 19%.

The negotiations went down to the wire, finalised just two days before the deadline Trump had set – 1 August. It has been a fraught process getting there, and there is still very little detail about exactly what has been agreed.

BBC/ Lulu Luo A grey-haired Richard Han is smiling as he talks to the BBC. He is wearing a white shirt.  BBC/ Lulu Luo

Richard Han says the 36% levy on Thailand was a “shock”

The 10 countries in Asean, as the South East Asian regional bloc is known, exported $477bn (£360bn) worth of goods to the United States in 2024. Vietnam is by far the most exposed economy, its exports to the US totalling $137bn, making up about 30% of its GDP.

No surprise then that the Vietnamese government was first off the block to negotiate with the US, and the first in the region to do a deal to cut the punishing 46% rate Trump had imposed on them.

According to the US president, the deal cuts the tariffs to 20%, while he claims Vietnam will now impose no tariffs at all on any imports from the US. Tellingly, the Vietnamese leadership has said nothing about the deal.

There are no details, no written or signed documents, and some reports suggest Vietnam does not agree with Trump’s numbers. But they set the bar for other countries in the region.

Indonesia and the Philippines followed with deals reducing their tariffs to 19%, although neither country depends much on exports to the US.

Thailand does export a lot to the US. Last year they earned it more than $63bn, about one-fifth of its total exports. Thailand too should have been at the head of the queue in Washington, pleading for a reduction in the 36% tariff Trump had designated for it.

Getty Images Thailand's acting Prime minister Phumtham Wechayachai surroundeed by mics as reporters as ask him questions. He is wearing a balck suit.   Getty Images

Thailand’s acting Prime Minister Phumtham Wechayachai took office after the last PM stepped down over a political scandal

But Thailand is not Vietnam, a one-party communist state where critical decisions can be made quickly by a few leaders, with little need to worry about the opinions of businesses or the public.

Rather, like South Korea and Japan, whose deals came after much wrangling despite them being staunch American allies, Thailand too has to contend with domestic politics and public opinion. Thailand also has a weak and fractious coalition government, beholden to a range of vested interests.

Worse still, decisions it took which were entirely unrelated to trade angered the US side.

In February it sent 40 Uyghur asylum-seekers who had been stuck in Thailand for more than a decade back to China, defying warnings by the US Secretary of State Marco Rubio. One Thai trade official told the BBC the US negotiators were still bringing up the Uyghurs as a grievance at tariff talks in May.

Then a regional army commander filed a lèse-majesté complaint against a US academic, resulting in him being jailed and then forced to leave Thailand. So, far from being at the front, Thailand found itself at the back of the queue.

The other difficulty facing the Thai trade team was what the US was asking for in return for cutting the tariff rate, in particular access to Thailand’s agricultural market, which is heavily protected.

Food is big business in Thailand. CP Group, one of the world’s agribusiness giants, is the biggest company in the country. This US demand was painful for Thailand.

“Vietnam opened a Pandora’s box,” says another Thai trade official. “By offering zero percent tariffs on all US imports, they make it hard for those of us who can’t easily open up all sectors to US competition.”

BBC/ Lulu Luo Two pigs with their snouts touching as they look up at the camera.BBC/ Lulu Luo

Zero tariffs on US pork imports would be a blow for Thailand’s pig farms

Three hours’ drive from Bangkok, in Nakhon Nayok, Worawut Siripun keeps 12,000 pigs – an important business in Thailand; Thais eat a lot of pork. He is active in the Thai Swine Raisers Association, and has been lobbying against eliminating tariffs on US pork.

“US farmers produce on a much bigger scale than us, and their costs are lower. So, the price of their pork will be lower, and domestic farmers won’t be able to survive.”

Access to the agricultural market was also a sticking point in negotiations with Japan, which sought to protect its rice farmers, and continues to be one of the main hurdles with India.

In Thailand, it is presumed that agribusiness giants like CP have also been lobbying against US demands to open up other sectors like poultry and corn. There have been fractious meetings between the trade team and cabinet ministers after every round of tariff talks in Washington, the BBC understands.

BBC/ Lulu Luo Worawut Siripun in a navy blue t shirt standing in his farmBBC/ Lulu Luo

Worawut Siripun says he cannot compete with US farmers who produce a lot more

But on the other side are Thailand’s manufacturers, who represent a much larger contribution to GDP than agriculture. They badly needed a deal.

“If we get 36% then it’s going to be terrible for us,” said Suparp Suwanpimolkul, deputy managing director of SK Polymer, before the deal was announced. The company makes a bewildering array of components from rubber and synthetic materials, for washing machines, fridges, air conditioners.

“I guarantee you would find at least one of our products in your home,” he said.

SK Polymer was founded by Suparp and his two brothers in 1991. Its story is the story of modern Thailand, originating from their father’s small family business, but riding the explosive growth of global trade which has been the foundation of Thailand’s economy.

They are an integral part of a complex supply chain, where their products join other components from multiple countries to make consumer, industrial or medical goods for export. About 20% of the company’s income comes from the US, but the number is much higher when products which contain its components are included. The Trump tariffs have thrown a spanner in the works.

“We have small margins,” said Suparp. He said they could still manage with tariffs up to 20% or even 25% by cutting costs. When he spoke to the BBC, before the deal was announced, he said the uncertainty was the biggest challenge: “Please – to our government, just get the deal, so we can plan our business.”

BBC/ Lulu Luo A woman in overalls with her head covered and wearing a mask is cutting rubber in a factory in Thailand.BBC/ Lulu Luo

A worker at SK Polymer, which makes rubber products for export to the US

A 20% levy is also palatable for electronics manufacturers, a big industry in Thailand.

“If all of us in this region end up with around 20% our buyers won’t seek alternative suppliers – it will just be a tax, like VAT, for US consumers,” says Richard Han, CEO of Hana Microelectronics. The company makes the basic components that go into everything in our digital lives: printed circuit boards, integrated circuits, RFID tags for pricing.

Mr Han says only about 12% of his products go to the US directly, but like SK Polymer the proportion that goes indirectly, as part of other manufactured goods, is much higher. But it is not just the tariff number that worries him.

His concern is trans-shipment, the US charge that China is avoiding tariffs by routing its production through South East Asia. Already Vietnam, according to President Trump, will pay 40% – double the new tariff rate – on goods the US judges to be trans-shipped.

Both Thailand and Vietnam saw foreign investment increase significantly after tariffs were imposed on China in the first Trump term, and their exports to the US rose as well. Some of that was Chinese companies moving production; some was products using a lot more Chinese-made components. And they are not just from China.

At another electronics manufacturer, SVI, robots glided up and down the assembly line bringing hundreds of tiny components to assemble circuit boards in machines that cost hundreds of thousands of dollars. A quick look at the labels showed the components came from Malaysia, the Philippines, Taiwan and China.

SVI makes security cameras, bespoke amplifiers, medical equipment, to whatever specification their customers, who are mainly in Scandinavia, want. Thailand’s vital manufacturing sector is part of an immensely complex global supply chain which is almost impossible to rearrange to meet the US president’s demands.

Under WTO rules a product is considered local if at least 40% of its value is added in the local manufacturing process, or if it has been “substantially transformed” into a new product, the way an iPhone becomes something different once it has been assembled.

BBC/ Lulu Luo A worker in overalls at an electronics factory between rows of machinesBBC/ Lulu Luo

Electronics manufacturer SVI is one of many Thai companies that sits at the heart of a complex global supply chain

The Trump administration pays no heed to WTO rules, and it is not clear what will be counted as trans-shipped, but Mr Han fears this could prove a bigger problem for Thai companies than the standard tariff rate if the US insists on more local components, or fewer from China.

“South East Asia relies very heavily on China,” he explains. “China, by far, has the largest supply chain for electronics and many other industries, and they are the cheapest.

“We could buy materials from another part of the world. It would be a lot more expensive. But it would be virtually impossible for Thailand or Vietnam or the Philippines or Malaysia to get a very high threshold, say 50-60%, made within that country. And if that is the condition to get the US certificate of origin, then nobody’s going to get the certificate of origin.”

For the moment very few of these details have been revealed. Despite President Trump claiming he has got zero percent tariffs for US goods coming into the Philippines and Indonesia, both those countries have said this is not correct, and that much still needs to be negotiated.

For the Thai government, having started so late, and struggled to meet US demands, just getting a deal will have been a relief.

They will worry about how to make the deal work later, as the details are worked out, which typically takes years. And in that, they are far from alone – rich and developing economies alike are scrambling to keep up with Trump’s mercurial tariff policy.

“At some point this has to stop. Surely it has to stop?” Mr Han says. “The trouble is, we don’t know what the rules of the game are going to be, so we’re all milling around, just waiting to find out how to play the new game.”

Hybridization of Renewables: The Collaboration of Wind and Solar Energy

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The intersection between technological evolution and regulatory changes opens the door to solutions that have been considered for years in the renewable sector. This is the case in countries such as Spain, one of the first to combine the potential of wind and solar energy to optimize the capacity of the electricity grid. This is known as the hybridization of installations. What does it consist of? Basically, it involves wind farms and photovoltaic plants operating in a coordinated manner at the same location. Thus, the contribution of green power at the same point of connection to the electricity system will not be so conditioned by whether the wind is blowing or the sun is shining. And not only that, synergies reduce the environmental footprint of infrastructures and optimize the use of power grids.

Maximizing connection capacity has been a longstanding goal for renewable facility operators, especially for wind farms. By integrating complementary solar plants alongside wind installations, operators can significantly boost energy delivery without costly upgrades or grid saturation risks. Power grids are costly infrastructures, so trying to make the most of them makes sense.

 


 

Making the most of renewable infrastructure

Modern electricity systems are usually entirely secure, as with the Spanish system. In practice, they are designed to avoid blackouts or incidents due to grid congestion, making it possible to deliver more energy than initially planned to the authorized connection points.

Wind farms rarely reach their maximum authorized power when they are connected to the grid to deliver the energy generated. Even in times of high wind, when the wind turbines are operating at their maximum rated power, it is infrequent that the maximum authorized connection capacity is reached because there are always some losses in the transmission lines or due to the wind turbines’ own consumption. In addition, when there is less wind, part or all of the injectable capacity at a given point in the grid remains unused.

Given this untapped potential, the novel concept of hybridizing installations arose to take advantage of unused capacity at the connection points, without jeopardizing the safety of the electricity system.




A regulatory push for hybridization

Technological capacity alone is insufficient without strong legislative support, but substantial progress is being made on that front too. Spain took a pioneering step in 2020 by enacting a law (RD 1183/2020) that explicitly allows for hybridization projects of existing generation facilities using the same connection point and access capacity already granted.

This legal framework provides the necessary coverage for hybridization and streamlines the administrative procedures for such projects. The regulation introduces an abbreviated process for hybridizing installations with existing facilities with authorized grid connections, cutting processing times in half.

Main advantages of hybridization

As can be seen, the hybridization of renewable installations has several advantages, which can be summarized in the following points:

  • It favors the construction of new renewable facilities and, consequently, compliance with international commitments to decarbonize the electricity system.
  • Increases the penetration of renewables in the system by making better use of the grid’s capacity to absorb the energy generated in these facilities.
  • It takes advantage of existing infrastructures, such as substations, power lines, accesses, etc., which reduces the environmental footprint and investment costs.
  • By using complementary sources, electricity generation is more constant in a hybridized facility, which is positive for the balance of the power system. It also increases the capacity factor – the time in which a facility generates power – relative to the previous non-hybridized facility.
  • Connection and start-up times are accelerated by speeding up the authorization procedure for new installations that hybridize with pre-existing ones.

Towards renewable (and smart) energy

The regulations permit the hybridization of different renewable technologies, but the prevailing scenario involves a new solar photovoltaic plant being combined with an existing wind farm. Spain is witnessing numerous projects adopting this approach, set to become operational in the coming months. ACCIONA Energía, a prominent renewable energy company in the country, has already identified hybridization projects totaling over 2,000 MW, with capacities ranging from 7 MW to 50 MW.

Initially, the idea was to complement wind generation using new photovoltaic plants, filling the capacity gaps not utilized by wind farms. However, advancements in energy management have led to a shift toward “smart operation.” In specific hybrid installations, an automated control system decides the energy contribution from the solar plant and wind farm based on factors like scheduled maintenance, grid requirements, and market prices.

Estimates from advanced studies on hybridization in Spain indicate that the combined energy output from a wind farm and a solar plant can increase by an average of over 189% compared to the wind farm’s standalone generation, sharing the same connection point. Approximately 5% of the total energy generated cannot be injected into the grid due to connection point limitations, while the rest is successfully fed into the system.

Although wind farm hybridization with photovoltaic plants currently dominates, researchers are exploring other technological options to find the optimal combination for each scenario, including various generation sources and complementary technologies like energy storage.

Andy Jassy passionately defends Amazon’s AI strategy in 8-minute speech during earnings call

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Amazon’s stock price had already been dropping in after-hours trading on Thursday despite better-than-expected results when Morgan Stanley analyst Brian Nowak prefaced his questions on an earnings call with a disclaimer that made it clear this wasn’t going to be a “Congrats on the quarter, guys” type of analyst—CEO interaction.

“I have two [questions] for you on AWS; they’re a little tough but I’m going to throw them at you,” Nowak told Amazon CEO Andy Jassy. “There is a Wall Street finance person narrative right now that AWS is falling behind in Gen AI with concerns about share loss to peers. What is your rebuttal to that and talk to us about your and the team’s most important focal points just to ensure that AWS stays on the knife’s edge of innovation versus hyperscaler peers?”

Nowak also pressed Jassy on why it wouldn’t be fair to assume that AWS’ revenue growth shouldn’t accelerate in the back half of the year given all of AWS’ generative AI offerings and widespread demand from companies of all sizes to cash in on this transformational technology.

Jassy responded by stressing that this is the early stages of a technological transformation that will extend far into the future. While some of the top frontier model providers do use AWS in some capacity, non-AI AWS customers that are rushing to build generative and agentic AI services using AWS are “quite early, and many of them are just smaller in terms of usage relative to some of those top heavy applications I mentioned earlier.” That is bound to change.

So if you follow Jassy’s thinking, as more enterprises figure out what they want to build and how they want to build it, they’re going to start having different needs. For the largest model makers, like Open AI or Anthropic, Jassy foresees their costs shifting from a mix between training their models and the cost associated with “inference,” or the customer-facing part where the model spits out a prediction, answer or action, to mostly inference expenses. And Jassy maintains AWS is positioned well for this transition because of the low-cost AI chip line Trainium.

“It’s about 30% and 40% better price performance than the other GPU providers out there right now, and we’re already working on our third version,” he said.

For others, who want to use another company’s model to create their own generative AI applications, Jassy argued that Amazon Bedrock, which offers models from a wide selection of companies, has become a go-to destination and “is growing very substantially.”

Jassy continued on the this-is-just-the-first-inning thread, by noting that companies are just starting to think about deploying AI agents and that, with its recent agentic AI announcements, AWS will be well-positioned to capitalize.

The Amazon CEO, and former AWS chief, added that AWS cloud leadership position also provides some lock-in as AI “inference” becomes just another component of a company’s cloud services stack.

“[P]eople are going to actually want to run those [AI] applications close to where their other applications are running, where their data is,” Jassy said. “There’s just so many more applications and data running in AWS than anywhere else.”

As for Nowak’s question about the possibility of AWS’ growth rate accelerating in the back half of the year, Jassy wouldn’t directly answer it but stressed his optimism, in part stemming from more AWS starting to deploy more AI products at sale that should continue to ramp in coming quarters.

Earlier in the call, Jassy had defended AWS’ 18% revenue growth rate in light of Microsoft reporting 34% annual revenue growth for its Azure cloud unit and Alphabet recently reporting 32% quarterly growth for Google Cloud. Azure generates around 2/3 the revenue that AWS does, while Google Cloud registers less than half the annual revenue of Amazon’s cloud behemoth.

“You look at the business, it’s a $123 billion annual revenue run rate business and it’s still early,” he said. “How often do you have an opportunity that’s $123 billion in annual revenue run rate where you say it’s still early? It’s a very unusual opportunity that we’ve very bullish about.”

President Dina Boluarte strongly criticizes court’s decision to suspend Peru’s amnesty law | Human Rights News

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President Dina Boluarte has blasted the Inter-American Court of Human Rights for its opposition to a recently passed bill that would grant amnesty to soldiers, police officers and other security personnel involved in Peru’s internal conflict from 1985 to 2000.

On Thursday, Boluarte asserted that the international court had overstepped its authority by seeking the law’s suspension.

“We are not anyone’s colony,” she said, posting a snippet of her speech to social media.

“And we will not allow the intervention of the Inter-American Court that intends to suspend a bill that seeks justice for members of our armed forces, our National Police and the self-defence committees that fought, risking their lives, against the insanity of terrorism.”

Since passing Peru’s Congress in July, the amnesty law has been awaiting Boluarte’s approval. She can either sign it into law, allow it to take effect automatically or send it back to Congress for revisions.

But the bill has prompted international outcry, not least because it is seen to shield security forces from accountability for the atrocities that unfolded during Peru’s war.

The legislation would also offer “humanitarian” amnesty to perpetrators over age 70 who have been convicted of wartime crimes.

People carry fake coffins representing their relatives who died amid political violence, on July 28, 2025 [Martin Mejia/AP Photo]

Some 70,000 people were killed in the internal conflict, the majority of them from rural and Indigenous communities.

Soldiers and police officers were ostensibly tasked with combatting armed uprisings from rebel groups like the Shining Path and the Tupac Amaru Revolutionary Movement. But the conflict became infamous for its human rights abuses and massacres of civilians with no ties to any rebel group.

Francisco Ochoa was 14 years old when residents in his Andean village, Accomarca, were slaughtered by soldiers. He told Al Jazeera earlier this week that he and other survivors felt “outraged and betrayed” by the new amnesty law.

International organisations have likewise denounced the law as a step backwards for Peruvian society.

Nine human rights experts with the United Nations signed a statement on July 17 expressing “alarm” at the bill’s passage through Congress. They called on the government of Peru to veto the bill.

“The proposed legislation would prevent the criminal prosecution and condemnation of individuals who committed gross human rights violations during Peru’s internal armed conflict,” they said.

“It would put the State in clear breach of its obligations under international law.”

A week later, on July 24, the president of the Inter-American Court of Human Rights, Nancy Hernandez Lopez, ordered Peru to “immediately suspend the processing” of the bill. She ruled that the legislation violated previous rulings against such amnesty laws in the country.

“If it is not suspended, the competent authorities refrain from enforcing this law,” she said.

She noted that a session would be convened with survivors, Peruvian officials and members of the Inter-American Commission on Human Rights (IACHR).

In previous rulings, the Inter-American Court has found that amnesty laws and statutes of limitations are unlawful in the case of serious human rights violations like forced disappearances and extrajudicial executions.

It also declared that age is not a disqualifying factor for suspects accused of grave human rights abuses. Such exemptions, the court said, are only acceptable under international law for lesser or nonviolent offences.

The National Human Rights Coordinator, a coalition of humanitarian groups in Peru, estimates that the country’s latest amnesty law could overturn 156 convictions and disrupt more than 600 ongoing investigations.

A previous amnesty law implemented in 1995, under then-President Alberto Fujimori, was later repealed.

Still, President Boluarte on Thursday sought to frame her government’s actions as in line with international human rights standards.

“We are defenders of human rights, of citizens,” she wrote on social media, while emphasising that her government was “free”, “sovereign” and “autonomous”, apparent jabs at the Inter-American Court’s decision.

Legal battle intensifies over termination rights for US music rights, as creator organizations submit amicus brief

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A coalition of music creator advocacy organizations has filed an amicus brief in a landmark US copyright case that could significantly expand protections for songwriters and recording artists worldwide.

The brief was filed by Music Artists Coalition (MAC) in the Fifth Circuit Court of Appeals case Vetter v. Resnik, which centers on whether U.S. copyright termination rights apply globally or are limited to domestic markets.

MAC’s collaborators on the filing are Black Music Action Coalition (BMAC), Artist Rights Alliance (ARA), Songwriters of North America (SONA), and Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA).

The full amicus brief can be read here.

Global Reach for Termination Rights

At the heart of the case is a 1963 agreement in which songwriter Cyril Vetter assigned worldwide rights to his song Double Shot (Of My Baby’s Love) to Windsong Music Publishers.

Decades later, with Windsong now owned by Resnik Music Group, Vetter invoked his statutory right to terminate the copyright agreement and reclaim his work.

(Under the US copyright act, authors can ‘take back’ their copyright from a publisher after a set period. For works written in 1978 or later, that term is 35 years; for works from before 1978, it’s 56 years.)

Resnik’s lawyers claim this action pertains only to the U.S. market. However, the US District Court for the Middle District of Louisiana ruled that Vetter’s termination actually recaptured worldwide rights – concluding that termination under US law applies globally, or at least in all countries that participate in the Berne Convention.

“This case could set a crucial precedent for creators in today’s global marketplace.”

Susan Genco, MAC/The Azoff Company

“This case could set a crucial precedent for creators in today’s global marketplace,” Susan Genco, MAC board member, and co-founder said today (July 31).

“MAC exists to ensure songwriters have a voice and are represented in a case like this. When artists sign away worldwide rights early in their careers for little money, meaningful termination should let them recapture worldwide rights, not just domestic.”

It’s worth noting that, in addition to her role at MAC, Genco is co-President of The Azoff Company, whose Iconic Artists Group typically acquires rights from veteran US artists and songwriters.

On that score, don’t be surprised if this case increasingly sees companies who want to buy terminated US music rights on one side, and those who don’t want to give them up on the other!

Copyright Termination Rights Explained

As mentioned, copyright termination rights in the US allow creators to reclaim rights to their works 35 years after signing them away.

The MAC’s amicus brief argues that this provision recognizes that young artists often lack bargaining power and cannot foresee the future value of their creative output.

Congress established these rights, it says, to give creators a “second chance to control and benefit from [their] work”.

The coalition’s brief notes that in the current streaming economy, a song can achieve immediate global reach, generating revenue across international territories simultaneously.

“Yet, without worldwide termination, creators remain bound by agreements made when they lacked leverage and before their works’ global value could be understood, leaving them at a perpetual disadvantage,” it states.

Industry Opposition and Creator Response

According to the amicus brief, “major industry trade organizations” have filed briefs opposing the Louisiana district court’s pro-creator ruling.

These orgs are apparently arguing that expanding artists’ termination rights (from US-only to global) would “unsettle bedrock understanding of foreign exploitation rights” against which “tens of thousands of agreements respecting recorded music and music publishing copyrights have been drafted” in the music industry.

“Whose ‘bedrock understanding’ are they protecting? Certainly not the creators who signed those agreements as unknown artists for minimal compensation, only to watch their musical creations generate millions of dollars for others.”

MAC’s Amicus brief argues against industry reps suggesting ruling could undo ‘bedrock understanding’ of termination rights, affecting tens of thousands of agreements

MAC’s amicus brief questions “whose ‘bedrock understanding’ are they protecting? Certainly not the creators who signed those agreements as unknown artists for minimal compensation, only to watch their musical creations generate millions of dollars for others”.

Ron Gubitz, MAC Executive Director, said: “When industry heavyweights line up to defend the status quo and fight against expanded songwriter protections, artists need an advocate.

“That’s precisely why MAC exists – to champion the rights of music creators.

“This case could impact so many songwriters who have signed away rights before understanding their works’ true value. I’m grateful to our partners SAG-AFTRA, ARA, BMAC, and SONA to stand together with us in this filing.”


The Power Imbalance Argument

The MAC amicus brief argues that a power imbalance exists in the music industry.

It suggests that young, unknown artists “often” sign away all rights to their creative works in perpetuity for minimal upfront payments, typically lacking music industry knowledge, meaningful bargaining power, or skilled legal representation.

“The traditional industry practice routinely meant demanding all rights throughout the world in perpetuity in their standard agreements,” the brief states. “This practice compounds this imbalance. Artists, desperate for any recognition or income, believe that they have little choice but to sign these ‘standard terms.’”

The brief argues that the termination right represents “one of the few tools available to musicians to address a growing disparity between traditional grants of perpetual, worldwide rights and potentially lucrative global revenues.”

The filing also emphasizes how streaming platforms have made international exploitation the norm rather than the exception. Record labels and publishers can now instantaneously distribute a song worldwide, which can quickly generate revenue from almost every territory around the globe simultaneously.

“In this highly connected, worldwide, media environment, limiting the termination right solely to domestic exploitation would provide creators with only a fraction of the benefit they deserve,” the brief argues.

“It appears this fraction is also decreasing as other countries recorded music revenues grow.”

The brief cites the fundamental policy behind U.S. copyright law as stated in the Constitution: “To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries.”

The brief’s conclusion emphasizes: “This case presents a choice between two visions of U.S. copyright law.

“One vision treats the termination right as meaningful protection for creators in the global marketplace where creators have the opportunity to recapture their works’ value. The other treats these rights as domestic-only consolation prizes that leave creators excluded from much of their works’ earning potential.”

Music Business Worldwide

Palestinian organisations to face US sanctions

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The US says it is going to impose sanctions on the Palestinians’ self-governance organisation as well as the body that represents it on the international stage.

The sanctions affect both the Palestinian Authority (PA) which was established by the Oslo peace accords, and the Palestine Liberation Organisation (PLO) which was recognised after the same process as the official representative of the Palestinian people in return for it recognising Israel and renouncing violence.

The State Department said it would deny visas to PLO members and PA officials.

The timing and language of the statement suggest it is the Trump administration’s response to this week’s French-Saudi led conference at the United Nations held to rally support for a future two state solution.

The meeting came as France, the UK and Canada committed to recognising an independent, demilitarised Palestinian state later this year, in some cases subject to certain conditions.

The US castigated these moves, having privately warned of diplomatic consequences if those attending the UN conference made “anti-Israel” declarations.

In its sanctions announcement, the State Department accused the PA and PLO of taking actions to “internationalise its conflict with Israel such as through the International Criminal Court (ICC) and International Court of Justice (ICJ)”.

It also referred to a series of long-standing complaints by the US and Israel that the PLO and PA had continued “to support terrorism including incitement and glorification of violence (especially in textbooks), and providing payments and benefits in support of terrorism to Palestinian terrorists and their families”.

The Trump administration earlier this year lifted sanctions on violent Israeli settlers who have killed Palestinians in the occupied West Bank.

One leading Palestinian politician described the sanctions move as “revenge” by the US for the commitments to recognise Palestinian statehood by a growing number of countries.

The PA appeared to echo that sentiment in a statement released on Thursday.

“These campaigns have been escalating in response to the significant and successive achievements of Palestinian diplomacy,” it said.

“Particularly the recent recognitions of the State of Palestine by key countries, the successful United Nations conference in New York, and the historic declaration issued therein.”

Mustafa Barghouti, founder of the Palestinian National Initiative (PNI) which is part of the PLO, said the US was targeting the wrong side.

He told the BBC: “Trump’s administration, instead of punishing the criminals who are committing war crimes in Gaza and in the West Bank, which is Israel, is instead… punishing the victim, which is the Palestinian people.”

Israel welcomed the sanctions and thanked US Secretary of State Marco Rubio for imposing them.

“This important action by [President Trump] and his administration also exposes the moral distortion of certain countries that ran to recognise a virtual Palestinian state while turning a blind eye to its support for terror and incitement,” said foreign minister Gideon Sa’ar.

The PA has always rejected complaints around “salaries” saying the payments are stipends to the families of all Palestinian prisoners held under Israel’s military occupation, many of whom are not given any due process and are held in breach of the Fourth Geneva Convention.

Palestinians see all those detained by Israel and jailed by its military courts, which have a 99 per cent conviction rate, as political prisoners. French officials said last week the PA had expressed its willingness to end these payments in response to France’s commitment to recognise a Palestinian state.

This week’s UN conference further isolated the US in its support for the way Israel has continued the war in Gaza, which many countries criticised at the meeting.

The conference exposed a strategic vacuum being left by Washington that had traditionally led diplomatic efforts towards a viable longer-term peace between Israelis and Palestinians.

The travel ban on Palestinian officials may be meant as a more limited broadside than a full range of financial sanctions. It is already a complex and lengthy process for PA and PLO officials to obtain visas to travel to the US, requiring special exemptions which are rarely given.

It is not yet clear whether the move would affect any officials working for the Palestinian mission to the United Nations in New York. The current Palestinian ambassador to the UN and his deputy are both US citizens.

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Map shows location of 4.3-Magnitude Earthquake in Southern California

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Note: Map shows the area with a shake intensity of 4 or greater, which U.S.G.S. defines as “light,” though the earthquake may be felt outside the areas shown.  All times on the map are Pacific time. The New York Times

A light, 4.3-magnitude earthquake struck in Southern California on Thursday, according to the United States Geological Survey.

The temblor happened at 9:32 a.m. Pacific time about 4 miles west of Muscoy, Calif., data from the agency shows.

U.S.G.S. data earlier reported that the magnitude was 4.2.

As seismologists review available data, they may revise the earthquake’s reported magnitude. Additional information collected about the earthquake may also prompt U.S.G.S. scientists to update the shake-severity map.

Aftershocks in the region

An aftershock is usually a smaller earthquake that follows a larger one in the same general area. Aftershocks are typically minor adjustments along the portion of a fault that slipped at the time of the initial earthquake.

Quakes and aftershocks within 100 miles

Aftershocks can occur days, weeks or even years after the first earthquake. These events can be of equal or larger magnitude to the initial earthquake, and they can continue to affect already damaged locations.

When quakes and aftershocks occurred

Source: United States Geological Survey | Notes: Shaking categories are based on the Modified Mercalli Intensity scale. When aftershock data is available, the corresponding maps and charts include earthquakes within 100 miles and seven days of the initial quake. All times above are Pacific time. Shake data is as of Thursday, July 31 at 12:55 p.m. Eastern. Aftershocks data is as of Thursday, July 31 at 3:17 p.m. Eastern.

Maps: Daylight (urban areas); MapLibre (map rendering); Natural Earth (roads, labels, terrain); Protomaps (map tiles)

US inflation increases in June due to tariffs raising prices on certain goods

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US inflation warms up in June as tariffs boost some goods prices

US Appeals Court Debates Legality of Trump Tariffs | Latest Updates from the Courts

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Oral arguments over United States President Donald Trump’s power to impose tariffs have kicked off before a US appeals court after a lower court ruled he had exceeded his authority by imposing sweeping new levies on imported goods.

The appeals court judges on Thursday sharply questioned whether what Trump calls his “reciprocal” tariffs, announced in April, were justified by the president’s claim of emergency powers.

A panel of all the court’s active judges – eight appointed by Democratic presidents and three appointed by Republican presidents – is hearing arguments in two cases brought by five small US businesses and 12 Democratic-led US states.

The judges on the US Court of Appeals for the Federal Circuit in Washington, DC, pressed government lawyer Brett Shumate to explain how the International Emergency Economic Powers Act (IEEPA), a 1977 law historically used for sanctioning enemies or freezing their assets, gave Trump the power to impose tariffs.

Trump is the first president to use IEEPA to impose tariffs.

The judges frequently interrupted Shumate, peppering him with a flurry of challenges to his arguments.

“IEEPA doesn’t even say tariffs, doesn’t even mention them,” one of the judges said.

Shumate said the law allows for “extraordinary” authority in an emergency, including the ability to stop imports completely. He said IEEPA authorises tariffs because it allows a president to “regulate” imports in a crisis.

The states and businesses challenging the tariffs argued they are not permissible under IEEPA and the US Constitution grants Congress, and not the president, authority over tariffs and other taxes.

Neal Katyal, a lawyer for the businesses, said the government’s argument that the word “regulate” includes the power to tax would be a vast expansion of presidential power.

Tariffs are starting to build into a significant revenue source for the federal government as customs duties in June quadrupled to about $27bn, a record, and through June have topped $100bn for the current fiscal year, which ends on September 30. That income could be crucial to offset lost revenue from extended tax cuts in a Trump-supported bill that passed and became law this month.

“Tariffs are making America GREAT & RICH Again,” Trump wrote in a social media post on Thursday. “To all of my great lawyers who have fought so hard to save our Country, good luck in America’s big case today.”

But economists said the duties threaten to raise prices for US consumers and reduce corporate profits. Trump’s on-again, off-again tariff threats have roiled financial markets and disrupted US companies’ ability to manage supply chains, production, staffing and prices.

Dan Rayfield, the attorney general of Oregon, one of the states challenging the levies, said the tariffs are a “regressive tax” that is making household items more expensive.

Since Trump began imposing his wave of tariffs, companies ranging from carmaker Stellantis to American Airlines, temporarily suspended financial guidance for investors, which has since started again but has been revised down. Companies across multiple industries, including Procter and Gamble, the world’s largest consumer goods brand, announced this week that it would need to raise prices on a quarter of its goods.

The president has made tariffs a central instrument of his foreign policy, wielding them aggressively in his second term as leverage in trade negotiations and to push back against what he has called unfair practices.

Pressure outside trade

Trump has said the April tariffs, which he placed on most countries, are a response to persistent US trade imbalances and declining US manufacturing power. However, in recent weeks, he’s used them to increase pressure on nontrade issues.

He hit Brazil with 50 percent tariffs over the prosecution of former Brazilian President Jair Bolsonaro, a key Trump ally who is on trial for an alleged coup attempt after he lost the 2022 presidential election.

Trump also threatened Canada over its move to recognise a Palestinian state, saying a trade deal will now be “very hard”.

He said tariffs against China, Canada and Mexico were appropriate because those countries were not doing enough to stop fentanyl from crossing US  borders. The countries have denied that claim.

On May 28, a three-judge panel of the US Court of International Trade sided with the Democratic states and small businesses that are challenging Trump.

It said IEEPA, a law intended to address “unusual and extraordinary” threats during national emergencies, did not authorise tariffs related to longstanding trade deficits. The appeals court has allowed the tariffs to remain in place while it considers the administration’s appeal. The timing of the court’s decision is uncertain, and the losing side will likely appeal quickly to the US Supreme Court.

The case will have no impact on tariffs levied under more traditional legal authorities, such as duties on steel and aluminium. The president recently announced trade deals that set tariff rates on goods from the European Union and Japan after smaller trade agreements with Britain, Indonesia and Vietnam.

Trump’s Department of Justice has argued that limiting the president’s tariff authority could undermine ongoing trade negotiations while other Trump officials have said negotiations have continued with little change after the initial setback in court. Trump has set a deadline of Friday for higher tariffs on countries that don’t negotiate new trade deals.

There are at least seven other lawsuits challenging Trump’s invocation of IEEPA, including cases brought by other small businesses and California.