How would WTO brace Donald Trump?

The World Trade Organization (WTO) held the last of its 2024 meetings this week, and for anyone rooting for the institution to conclude long-discussed agreements just ahead of its 30th anniversary, the results were a little hard to watch. Here’s a recap of what came out of gatherings of the WTO’s General Council and its Dispute Settlement Body.

Here’s a recap of what came out of gatherings of the WTO’s General Council and its Dispute Settlement Body:

·        Dispute settlement reform was unresolved and there was a pledge to continue talking next year

·        On the second fisheries agreement, India and Indonesia were granted more time to air their concerns. “Fish 2” was at the decision stage but was demoted to a “discussion” item

·        India, South Africa and Turkey blocked a deal known as Investment Facilitation for Development. That left it short of the needed consensus, even though 126 members backed its incorporation into WTO bylaws

·        Progress was made on two administrative issues: picking dates for the next ministerial conference (March 26-29, 2026, in Cameroon) and approval of WTO Secretariat pension reforms

Newly re-appointed Director General Ngozi Okonjo-Iweala tried to maintain a positive outlook, saying she hopes members return in the new year with a “spirit of compromise, ready to do deals.”

For an organization that needs everyone to agree, that’s going to be a challenge when US President-elect Donald Trump takes office January 20, 2025. His threatened tariffs and “America First” trade agenda run counter to the mission of the Geneva based WTO.

Trump promised 60% duties on Chinese imports and at least 10% for the rest of the world. In November, he threatened to impose further 10% tariffs on Beijing and 25% on Mexico and Canada if they fail to stop the flow of fentanyl and undocumented migrants to the US.

All of that violates the commitments that more than 160 nations make to join the WTO, said Bill Reinsch, a Commerce Department official during the Clinton administration and now a senior adviser at the Center for Strategic and International Studies.

Trump is known to dislike multilateral institutions, having withdrawn the US from a trade deal for the Indo-Pacific, the Paris Climate Agreement and the World Health Organization in his first term.

He could quit the WTO, too. Or he could stay in it, heap more scorn on the rules-based international order and ignore other countries complaining about Washington’s protectionism.

In Trump’s first term, US Trade Representative Robert Lighthizer watched the WTO’s appellate body grind to a standstill by preventing the appointment of new judges as terms expired, leaving it short of the number needed to function.

This week Biden administration delegates blocked a move by 130 WTO member countries that called for a restart of the process to fill vacancies on the appellate body — the 82nd time that that proposal failed.

The outlook for the WTO to free itself of paralysis under the incoming Trump administration isn’t favorable. 

Jamieson Greer, Trump’s nominee for USTR, was a close adviser to Lighthizer. His views on WTO relevancy are unclear, but he did say in testimony in May that “efforts to hold China accountable under WTO dispute mechanisms were largely unfruitful.”

The WTO also irked some Trump allies by accelerating the process this year of approving Okonjo-Iweala for another four-year term at its helm.

That was “almost certainly designed to prevent the incoming Trump administration from having a say in the matter,” said Dennis Shea, Trump’s ambassador to the WTO in his first term.

“The WTO already has diminished reputation in the United States,” he said. “This unprecedented action only diminishes it further.”

According to a Geneva-based trade source, Trump’s name wasn’t mentioned during this week’s General Council session.

Courtesy: Bloomberg

Trump tariffs could impact US tanker trades

US President-elect, Donald Trump, has threatened to slap 25% tariffs on neighbours, Canada and Mexico, until such time as the flow of drugs and migrants stops. Since Canada to the north and Mexico to the south both supply large volumes of crude oil to US markets, there are far-reaching implications for the North American energy market.

Analysis by London shipbroker, Gibson, notes that Canada’s exports to the US of more than four million barrels of heavy crude a day move mostly through pipelines and would therefore be difficult to redirect.

About three quarters of the Canadian crude goes to the midcontinent region of the US, Gibson said, where refineries are geared up for these heavy grades. There is no ready alternative source of crude oil and refiners would have few options but to pay the tariff and pass the cost on to consumers, or cut refinery runs.

If Trump were to proceed with the tariffs, Canadian oil producers would have few options for other markets, Gibson said.

The Trans Mountain Expansion (TMX) pipeline, opened in May, has doubled Canadian seaborne exports but spare capacity is limited.

About 175,000 barrels a day of TMX crude that currently goes to the US west coast could be redirected to Asia but these barrels would have to be replaced with supplies from Latin America or the Middle East, driving up ton-mile demand.

For Mexico, the situation is less complex, Gibson said. All of that country’s exports move by sea and European and Asian refiners could take up more Mexican oil if US demand fell.

This would boost ton-mile demand and could generate more business for larger tankers on long hauls. However, Gibson warned that vessels currently ballasting from east of Suez Canal to the US Gulf might well ship these cargoes, lessening the impact.

The shipbroker concludes that it is difficult to see the tariffs being enacted in their present form because they would raise costs for US consumers.

The broker notes that the President-elect has used tariffs as a negotiating ploy in the past.

Canadian Prime Minister Justin Trudeau dined with Trump at his Mar a Lago estate on Friday evening. The two men were said to have had a productive meeting and an ‘excellent conversation’.

Courtesy: Seatrade Maritimes News

Implications of US energy dominance

President-elect Donald Trump is set to create a National Energy Council that he says will establish American “energy dominance” around the world as he seeks to boost US oil and gas drilling and move away from President Joe Biden’s focus on climate change.

The energy council — to be led by North Dakota Gov. Doug Burgum, Trump’s choice to head the Interior Department — will be key in Trump’s pledge to “drill, drill, drill” and sell more oil and other energy sources to allies in Europe and around the globe.

The new council will be granted sweeping authority over federal agencies involved in energy permitting, production, generation, distribution, regulation and transportation, with a mandate to cut bureaucratic red tape, enhance private sector investments and focus on innovation instead of “totally unnecessary regulation,” Trump said.

But the president-elect’s energy wishes are likely to run into real-world limits. For one, U. oil production under Biden is already at record levels. The federal government cannot force companies to drill for more oil, and production increases could lower prices and reduce profits.

A call for energy dominance — a term Trump also used in his first term as president — “is an opportunity, not a requirement,’' for the oil industry to move forward on drilling projects under terms that are likely to be more favorable to industry than those offered by Biden, said energy analyst Kevin Book.

Whether Trump achieves energy dominance — however he defines it — “comes down to decisions by private companies, based on how they see supply-demand balances in the global marketplace,’' said Book, managing partner at ClearView Energy Partners, a Washington research firm. Don’t expect an immediate influx of new oil rigs dotting the national landscape, he said.

Trump’s bid to boost oil supplies — and lower U.S. prices — is complicated by his threat this week to impose 25% import tariffs on Canada and Mexico, two of the largest sources of US oil imports. The oil industry warned the tariffs could raise prices and even harm national security.

“Canada and Mexico are our top energy trading partners, and maintaining the free flow of energy products across our borders is critical for North American energy security and US consumers,” said Scott Lauermann, speaking for the American Petroleum Institute, the oil industry’s top lobbying group.

American Fuel & Petrochemical Manufacturers, which represents U.S. refineries, also opposes potential tariffs, saying in a statement that “American refiners depend on crude oil from Canada and Mexico to produce the affordable, reliable fuels consumers count on every day.”

Scott Segal, a former Bush administration official, said the idea of centering energy decisions at the White House follows an example set by Biden, who named a trio of White House advisers to lead on climate policy. Segal, a partner at the law and policy law firm Bracewell, called Burgum “a steady hand on the tiller” with experience in fossil fuels and renewables.

And unlike Biden’s climate advisers — Gina McCarthy, John Podesta and Ali Zaidi — Burgum will probably take his White House post as a Senate-confirmed Cabinet member, Segal said.

Dustin Meyer, senior vice president of policy, economics and regulatory affairs at the American Petroleum Institute, called the new energy council “a good thing” for the US economy and trade. “Conceptually it makes a lot of sense to have as much coordination as possible,” he said.

Still, “market dynamics will always be the key’’ for any potential increase in energy production, Meyer said.

Jonathan Elkind, a senior research scholar at Columbia University’s Center on Global Energy Policy, called energy dominance a “deliberately vague concept,” but said, “It’s hard to see how (Trump) can push more oil into an already saturated market.”

Trump has promised to bring gasoline prices below US$2 a gallon, but experts call that highly unlikely, since crude oil prices would need to drop dramatically to achieve that goal. Gas prices averaged US$3.07 nationally as of Wednesday, down from US$3.25 a year ago.

Elkind and other experts said they hope the new energy council will move beyond oil to focus on renewable energy such as wind, solar and geothermal power, as well as nuclear. None of those energy resources produces greenhouse gas emissions that contribute to climate change.

“Failure to focus on climate change as an existential threat to our planet is a huge concern and translates to a very significant loss of American property and American lives,’' said Elkind, a former assistant energy secretary in the Obama administration. He cited federal statistics showing two dozen weather disasters this year that caused more than US$1 billion in damage each. A total of 418 people were killed.

Trump has played down risks from climate change and pledged to rescind unspent money in the Inflation Reduction Act, Biden’s landmark climate and health care bill. He also said he will stop offshore wind development when he returns to the White House in January.

Even so, his Nov. 15 announcement of the energy council says he will “expand ALL forms of energy production to grow our Economy and create good-paying jobs.”

That includes renewables, said Safak Yucel, associate professor at Georgetown University’s McDonough School of Business.

“The mandate for the energy council is US dominance globally, but what’s more American than American solar and American wind?’' he asked. A report from Ernst & Young last year showed that solar was the cheapest source of new-build electricity in many markets.

Trump, in his statement, said he wants to dramatically increase baseload power to lower electricity costs, avoid brownouts and “WIN the battle for AI superiority.”

In comments to reporters before he was named to the energy post, Burgum cited a similar goal, noting increased demand for electricity from artificial intelligence, commonly known as AI, and fast-growing data centers. “The AI battle affects everything from defense to health care to education to productivity as a country, ″ Burgum said.

While Trump mocks the climate law as the “green new scam,” he is unlikely to repeal it, Yucel and other experts said. One reason: Most of its investments and jobs are in Republican congressional districts. GOP members of Congress have urged House Speaker Mike Johnson to retain the law, which passed with only Democratic votes.

“A lot of Southern states are telling Trump, ‘We actually like renewables,’” Yucel said, noting that Republican-led states have added thousands of jobs in recent years in wind, solar and battery power.

If renewables make economic sense, he added, “they’ll continue.’'

 Courtesy: Associated Press

Mexico to have first female president

Claudia Sheinbaum, a Nobel Prize-winning climate scientist, will become Mexico's first female president after winning a landslide election victory and promising to continue the work of her mentor and outgoing leader Andres Manuel Lopez Obrador.

According to Reuters, Sheinbaum, 61, secured between 58.3% and 60.7% of votes, according to the INE electoral institute's rapid sample count released late Sunday night, the most support won by a candidate in a Mexican presidential election since the end of one-party rule in 2000.

Accepting her victory, Sheinbaum thanked Lopez Obrador, calling him "an exceptional, unique man who has transformed Mexico for the better."

Lopez Obrador doubled the minimum wage, reduced poverty and oversaw a strengthening peso and low levels of unemployment - successes that made him incredibly popular and helped Sheinbaum to victory. Analysts believe Sheinbaum will find it difficult to follow in his footsteps.

"We made history!" Sheinbaum told a crowd early Monday morning in the Zocalo square in the heart of Mexico City.

Her victory is a major step for Mexico, a country known for its macho culture and home to the world's second biggest Roman Catholic population, which for years pushed more traditional values and roles for women.

"It's a historic moment, especially for women," said Arlyn Rivera, a 24-year-old student, as she celebrated Sheinbaum's victory in the Zocalo plaza. "Mexican politics deserves more than what we have had in recent years."

"We made history!" Sheinbaum told a crowd early Monday morning in the Zocalo square in the heart of Mexico City.

Her victory is a major step for Mexico, a country known for its macho culture and home to the world's second biggest Roman Catholic population, which for years pushed more traditional values and roles for women.

"It's a historic moment, especially for women," said Arlyn Rivera, a 24-year-old student, as she celebrated Sheinbaum's victory in the Zocalo plaza. "Mexican politics deserves more than what we have had in recent years."

 

 

Britain to join trans-Pacific trade pact

Britain on Sunday formally signed the treaty to join a major trans-Pacific trade pact, becoming the first country to take part since its inception in 2018 and opening the way for members to consider other applications including from China and Taiwan.

The signing was part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) commission meeting being held in New Zealand.

Ministers from member countries will meet later on Sunday to discuss a range of topics, including how to move forward with new applications and a review of the agreement itself.

Britain's Business and Trade Secretary, Kemi Badenoch said at the signing that her country was delighted to become the first new member of the CPTPP.

"This is a modern and ambitious agreement and our membership in this exciting, brilliant and forward looking bloc is proof that the UK's doors are open for business," Badenoch said.

The British government still needs to ratify the agreement.

The CPTPP is a landmark trade pact agreed in 2018 between 11 countries including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

Britain will become the 12th member of the pact that cuts trade barriers, as it looks to deepen ties in the Pacific after its exit from the European Union in 2020.

China, Taiwan, Ukraine, Costa Rica, Uruguay and Ecuador have also applied to join the CPTPP.

New Zealand Prime Minister Chris Hipkins said the road to bringing Britain into the agreement had been long and at times challenging, but having major economies inside the partnership would bring the Atlantic to the Indo-Pacific in a way that strengthened the rules-based trading system in the region.

 

 

Brazil attains status of largest corn exporter

United States corn export dominance is fading in an increasingly competitive global marketplace as Brazil, aided by a new supply agreement with China, is set to out ship the US for just the second time this season.

Meanwhile, Mexico, America's other top market, is preparing to limit imports of genetically modified corn that comprises more than 90% of every US harvest.

The eroding export market share spells trouble for the US$90 billion US corn industry as domestic demand for feeding livestock and producing ethanol has also cooled.

Plantings of America's most widely grown crop are likely to decline and farm incomes could suffer in the years ahead as a result, analysts said.

"When we look at US corn demand long term, we wonder where new demand is coming from," said Stephen Nicholson, global grains and oilseeds sector strategist with Rabobank, an agricultural lender.

"Brazil is likely taking a bigger share of the global market, ethanol has likely peaked and animal protein is likely not going to grow fast enough," he said.

Illinois farmer Richard Guebert is concerned. "We need a good export market for our corn. The seed technology in Brazil is getting better and better each and every year. They're not going away," he said.

Shrinking corn exports echo challenges faced by US soybeans a decade ago as Brazil ramped up production to feed soaring Chinese demand, eventually capturing the top supplier crown in 2013. The country now typically dominates the global soy export market for eight months of the year or more, undercutting US exports.

Brazilian corn exports are expected to flood the global marketplace beginning in July and into the US autumn harvest. The country harvests two corn crops from its tropical soils each year, unlike the US.

Despite the limited demand, US farmers expanded corn seeding this year to the largest in a decade, encouraged by lower seed and fertilizer costs and good planting weather, the government said last week. With a record Brazilian crop flooding the market, US corn farmers could see prices fall.

Still, Rabobank forecasts corn plantings will shrink to 88 million acres (356,123 square kilometers) in the next three years from more than 94 million currently, Nicholson said.

China expanded its list of approved Brazilian corn exporting facilities late last year, jumpstarting shipments from Brazil. Before that, the bulk of China's corn imports had come from the US and Ukraine.

"Brazil has the ability to ramp that planting area up to meet Chinese demand in a way that the United States doesn't," said Matthew Roberts, senior grain analyst with consultancy Terrain.

Through mid-June, US corn exports to China for shipment ahead of the next harvest were down 48% from a year ago, US Department of Agriculture (USDA) data showed.

China's overall corn imports are down about 10% this year, according to customs data, as buyers there await ample supplies of cheap Brazilian corn in the coming months.

"Brazil's winning the game right now. We're just not competitive on price," said one US export trader, citing Brazilian corn offers that are US$30 per metric ton below US Gulf Coast port prices.

Total US corn export sales in April and May were the lowest in at least 22 years, according to weekly USDA export sales data. The period included three weeks in which more purchases were canceled than booked, and the two worst weeks of US corn exports on record.

US corn exporters are hurting from stiff competition from cheaper Brazilian supplies and a strong dollar that makes their produce more expensive to buyers abroad.

Mexico has been a bright spot for US corn exports this season, with sales of the 2022 harvest through mid-June down only 11% from last year, compared with a 36% year-on-year drop sales to all destinations, according to USDA data.

An ongoing dispute over Mexico's decree to ban some biotech corn imports may risk disruption to US shipments, analysts said. The country is boosting corn production by about 2 million tons, the agriculture ministry said.

US corn exports in the 2022-23 marketing year that ends on August 31, 2023 are currently projected at 43.817 tons, a decade low representing a 24.8% share of global trade, according to USDA data. Brazil's projected exports were seen at a record 55 million tons.

Rapid growth in Brazilian corn production offset loss of much of the corn exports from Ukraine since Russia’s invasion.

It is the second smallest US share of the global corn market on record, behind only the 2012-13 season when a severe drought slashed production and sent prices to record highs.

Some analysts expect the USDA to cut its exports outlook in its next monthly report to be released on July 12, 2023.

The USDA forecasts 2023-24 US corn exports at 53.342 million tons, remaining behind Brazil's 55 million ton outlook.

 

Biggest financial crises of last four decades

Markets have experienced massive upheaval in the last month, prompted in part by two of the three largest banking failures in US history while Swiss lender Credit Suisse was bought by rival UBS Group AG in a merger engineered by Swiss regulators.

Fears of banking contagion remain, and investors are worried that global economies will suffer if the effects of higher interest rates torpedo more lenders. Here is a rundown of some of the biggest financial crises in the last 40 years:

US SAVINGS AND LOAN CRISIS

Over 1,000 savings and loan (S&L) institutions were wiped out in the crisis that unfolded throughout the 1980s, resulting in up to US$124 billion in costs to taxpayers. The upheaval was rooted in the unsound real estate and commercial loans made by S&Ls after the United States removed interest-rate caps on their loans and deposits, which allowed them to take on more risk.

JUNK BOND CRASH

After nearly a decade of supercharged growth, the junk bond market slumped in the late 1980s following a series of interest rate hikes by the Federal Reserve. Michael Milken had helped popularize the financial instrument, with many using it as a way of funding leveraged buyouts. But supply eventually outpaced demand, and the market tanked. Milken was charged with securities and reporting violations. He paid a US$200 million fine and served a 22-month sentence in jail.

MEXICAN PESO CRISIS

In a surprise move in December 1994, Mexico devalued its currency, the peso, after the country's current account deficit grew and its international reserves declined. The country ended up getting external financial support from the International Monetary Fund and a US$50 billion bailout from the United States.

ASIAN CURRENCY CRISIS

A massive outflow of capital from Asian economies in the mid-to-late 1990s put pressure on the currencies in the region, necessitating government support. The crisis kicked off in Thailand, where authorities had to devalue the Thai baht after months of trying to defend the currency's peg to the dollar drained its forex reserves. The contagion soon spread to other markets in Asia including Indonesia, South Korea and Malaysia. Global bodies, including the International Monetary Fund and the World Bank, had to step in with rescue packages amounting to more than $100 billion for the economies.

LONG TERM CAPITAL MANAGEMENT (LTCM)

The highly leveraged US hedge fund lost more than US$4 billion in a span of a few months in 1998 following the Asian crisis and a subsequent financial crisis in Russia. The fund had a huge exposure to Russian government bonds, and took major losses after Russia defaulted on its debt and devalued its currency. The New York Federal Reserve Bank helped broker a US$3.5 billion private-sector bailout for LTCM and the Federal Reserve cut interest rates three times in successive months.

GLOBAL FINANCIAL CRISIS OF 2008

The biggest financial crisis since the Great Depression was rooted in risky loans to shaky borrowers, which started to lose value after central banks raised interest rates in the period leading up to the crisis. Many companies had taken big positions in highly leveraged mortgage bonds that had proliferated in previous years. The crisis led to the collapse of some storied Wall Street giants including Bear Stearns and Lehman Brothers, both of whom had large positions in mortgage securities. The debacle also engulfed insurance giant American International Group, which needed a US$180 billion bailout. The US government closed Washington Mutual, in what was largest-ever failure of a US bank. The "Great Recession" that resulted was the worst economic downturn in 70 years.

EUROPEAN DEBT CRISIS

Spurred by the 2008 financial crisis, surging debt at some of the major European economies led to a loss of confidence in the region's businesses. Greece was among the hardest hit as its primary industries of shipping and tourism were economically sensitive. It was the first to be bailed out by other euro zone economies. Portugal, Ireland and Cyprus also were rescued from default, and unemployment surged, particularly in the countries bordering the Mediterranean Sea.

 

 

 

 

 

US exports over 100 million gallons of ethanol

The United States exported 101.48 million gallons of ethanol and 1.01 million metric tons of distillers’ grains in June, according to data released by the USDA Foreign Agricultural Service on August 04. Exports of both products were up as compared to June 2021.

Ethanol is an organic chemical compound. It is a simple alcohol with the chemical formula C₂H₆O. Its formula can be also written as CH ₃−CH ₂−OH or C ₂H ₅OH, and is often abbreviated as EtOH. Ethanol is a volatile, flammable, colorless liquid with a characteristic wine-like odor and pungent taste.

Ethanol is naturally produced by the fermentation of sugars by yeasts or via petrochemical processes such as ethylene hydration. It has medical applications as an antiseptic and disinfectant. It is used as a chemical solvent and in the synthesis of organic compounds, and as a fuel source. Ethanol also can be dehydrated to make ethylene, an important chemical feedstock.

The 101.48 million gallons of ethanol exported in June was down when compared to the 147.06 million gallons exported in May, which was a four-year high, but up from the 82.09 million gallons exported during the same month of last year.

The US exported ethanol to more than 30 countries in June. Canada was the top destination for US ethanol at 41.2 million gallons, followed by South Korea at 13.64 million gallons and the UK at 12.02 million gallons.

The value of US ethanol exports was at US$324.77 million in May, down from US$410.39 million a month ago, but up from US$187 million in June 2021.

Total US ethanol exports for the first half of 2022 reached 827.39 million gallons at a value of US$2.25 billion, compared to 662.62 million gallons exported during the same period of 2021 at a value of US$1.27 billion.

The 1.01 million metric tons of distillers’ grains exported in June was up from both 966,108 metric tons in May and 938,280 metric tons in June 2021.

The US exported distillers’ grains to approximately three dozen countries in June. Vietnam was the top destination at 197,192 metric tons, followed by Mexico at 158,501 metric tons and Turkey at 109,819 metric tons.

The value of US distillers’ grains exports was at US$311.08 million in June, down slightly from US$311.85 million the previous month but up from US$248.47 million in June of last year.

Total US distillers’ grains exports for the first six months of the year reached 5.67 million metric tons at a value of US$1.67 billion, compared to 5.4 million metric tons exported during the same period of last year at a value of US$1.42 billion.

Countering drug trade in Afghanistan

According to reports, Jim Jordan (R-Ohio) urged President Joe Biden administration on Wednesday to provide a plan on how it will counter the illicit narcotics trade in Afghanistan. 

Jordan asked the Office of National Drug Control Policy (ONDCP) if the administration has a strategy in place to address Afghanistan's opium and heroin trade in light of the Taliban’s takeover of the country.

“The Taliban takeover of Afghanistan due to President Biden’s reckless and chaotic withdrawal has created a power vacuum that has emboldened terrorist groups and threatened our vital national security interests. It has also led to the Taliban seizing control of the illicit drug trade in Afghanistan that will help to finance its terror activities,” Jordan said.

The Republican congressman cited a July report from the ONDCP that said more than 80 percent of the global heroin supply originates in Afghanistan and that poppy cultivation increased in 2020, following a two-year decline. 

The Taliban said in August it would ban the production of opium poppies after years of profiting from it.

“To date, President Biden has not yet established a comprehensive counternarcotics strategy to tackle our country’s drug crisis. This failure is particularly concerning in light of the Biden border crisis and the surge of illegal alien encounters at the southwest border,” Jordan said.

He also asked if ONDCP meets with the State Department’s Bureau of International Narcotics and Law Enforcement Affairs, the Defense Department, and the Drug Enforcement Administration about drug eradication efforts, seizing illicit narcotics in transit, or deterring access to drug trafficking routes.

He questioned if ONDCP also works with those entities to enhance the capacity to stop the flow of illicit narcotics leaving Afghanistan and if programs the US had with Afghanistan to counter the drug trade have been terminated with the Taliban’s takeover.

Jordan requested answers from Regina LaBelle, acting director of ONDCP, by October 13, 2021. 

The July report from the ONDCP found that 90 percent of heroin seized and tested in the US originates from Mexico, despite the majority of the global supply originating in Afghanistan. The White House released the ONDCP report in July, prior to the fall of Afghanistan, and touted that President Biden’s budget request calls for US$10.7 billion in investments for populations at greatest risk or overdose and substance abuse.