U.S. coronavirus supply spree sparks outrage among allies

[rooster59]

U.S. coronavirus supply spree sparks outrage among allies

By Richard Lough and Andreas Rinke

 

A New England Patriots Boeing 767-300 jet with a shipment of over one million N95 masks from China, which will be used in Boston and New York to help fight the spread of the coronavirus disease (COVID-19), arrives at Logan Airport, Boston, Massachusetts, U.S., April 2, 2020. Jim Davis/Pool via REUTERS

 

PARIS/BERLIN (Reuters) - From Europe to South America, U.S. allies are complaining about the superpower's "Wild West" tactics in outbidding or blocking shipments to buyers who have already signed deals for vital medical supplies.

 

In France and Germany, senior officials said the United States was paying far above the market price for medical-grade masks from No. 1 producer China, on occasion winning contracts through higher bids even after European buyers believed a deal was done, and Brazil's health minister reported a similar incident.

 

"Money is irrelevant. They pay any price because they are desperate," one high-level official in German Chancellor Angela Merkel's ruling CDU/CSU group told Reuters.

 

A German government source said: "Americans are on the move, carrying a lot of money."

 

Since the virus was first recorded in China late last year, the pandemic has spread around the world. Governments in Europe, the Americas and elsewhere are desperately trying to build up supplies for medics, nursing home staff and the public.

 

Now, with global cases surpassing one million and the outbreak exploding in the United States, the competition for precious stocks is intensifying further.

 

U.S. President Donald Trump said on Friday that the U.S. government is now recommending Americans wear cloth face coverings on a voluntary basis to stem the spread of the virus, but the guidance from the Centers for Disease Control and Prevention (CDC) does not recommend wearing medical-grade masks.

 

He also said he was signing a directive to stop the export of N95 respirator masks, which provide essential protection for healthcare workers, and other U.S. medical equipment.

 

U.S.-listed multinational 3M Co said Friday that the White House had ordered it to stop all shipments to Canada and Latin America of respirators that it manufactures in the United States, despite what 3M called “significant humanitarian implications.”

 

Canadian Prime Minister Justin Trudeau said the blocking the flow of equipment across the border would be a "mistake" that could backfire, noting that the country's healthcare professionals go to work in Detroit every day.

 

In another case, an order of 200,000 masks bound for Germany from a 3M factory in China were “confiscated” in Bangkok, Berlin Secretary of Interior Andreas Geisel, said in a statement, calling it an “act of modern piracy."

 

“Even in times of global crisis you shouldn’t use Wild West methods,” he said.

 

A U.S. Department of Homeland Security official told Reuters this week that U.S. companies and the government have been paying above market price for much of the gear purchased overseas.

 

The official, who requested anonymity to discuss the matter, said the United States would not stop buying "until we have way too much" and could still be searching out protective gear abroad through August.

 

“We’ve gotten our hands on every bit of it that we can,” the official said.

 

Lea Crager, a spokeswoman for the Federal Emergency Management Agency (FEMA), the agency coordinating the search for medical supplies abroad, said disasters often lead to price increases for certain goods.

 

"If it causes some sort of a supply chain disruption, you’re going to see costs rise for an essential commodity," Crager said. "It just happens."

 

In Brazil, Health Minister Luiz Henrique Mandetta said this week that China had ditched some Brazilian equipment orders when the U.S. government sent more than 20 cargo planes to the country to buy the same products.

 

"Our purchases, which we expected to complete in order to be able to supply, many were dropped," said the minister in an interview on Wednesday.

 

On Thursday, Mandetta said Brazil had finally succeeded in placing a 1.2 billion reais ($228 million) order for equipment, although it will only be delivered in 30 days.

 

CASH IN HAND

 

A second German source employed by a company now helping Merkel's government to order masks said the last weekend of March had been a turning point, and drew a link with the United States' increased presence in the market.

 

Contracts no longer guaranteed delivery, the source said, adding: "Demand is much, much bigger than supply."

 

In France, three regional leaders painted a similar picture. Jean Rottner said it was a constant fight to ensure mask orders arrived in his Grand Est region, where the outbreak first took hold before spreading west towards Paris.

 

He said consignments were changing hands at the last minute.

 

"On the (airport) tarmac, the Americans get out their cash and pay three or four times what we have offered," Rottner told radio RTL France on Wednesday.

 

Rottner's counterpart in the greater Paris region, Valerie Pecresse, said she had been beaten to an order by a country with deep pockets, although she did not name the United States.

 

"We found supplies a few days ago but failed to buy them after others outbid us," Pecresse told Franceinfo radio on Friday. "They were prepared to pay three times the market price."

 

The French Foreign Ministry said it was verifying the reports. But one official doubted that action would be taken.

 

"It boils down to market forces," the official said. "The one who pays the most gets the prize."

 

(Reporting by Richard Lough and John Irish in Paris, Andreas Rinke in Berlin, Ted Hesson and David Brunnstrom in Washington Steve Scherer in Ottawa and Ricardo Brito in Brasilia; Editing by Kevin Liffey, Nick Zieminski and Cynthia Osterman)

 

-- © Copyright Reuters 2020-04-05

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[JimmyTheMook]

Money Talks and Bratwurst walks.....

[Tug]

Trump = chaos = mismanagement = new enemies making us and the world less safe every day

[unamazedloso]

shame!! Wonder if its from the shelves of supermarkets in Australia if purchased from china?? masks, womens products, baby formula, toilet paper...disgrace

[heybruce]

After wasting a month by not preparing, we are now screwing friends and neighbors in a mad scramble for medical supplies.  This will not end well.

[Eric Loh]

Trump’s is causing US global leadership decline and played right into the Xi’s hands. 

[Kaoboi Bebobp]

This is nothing new for China, which frequently does not honour contracts. I know four people who separately were in the China trade, including a Chinese American friend. Happened to them many times so they stopped dealing with the Chinese. There's definitely room in the world for alternative suppliers in other countries where contracts might mean more than it does to the rapacious Chinese. 

 

Maybe this chaos will be a wake-up call to distributors and manufacturers to shift supply chains elsewhere. I imagine India, Vietnam and Malaysia would be happy to have some new business.

[kevin612]

USA has a lot of debts but still have tons of money power to purchase medical supplies over the other countries. USA is still the strongest nation. However, since trump takes over the office, the reputation goes down.

[Mops59]

Downside of globalisation. Money talkes. Civilisation gone. Correct our mistakes. Take responsibility and bring home national companies with their production. And companies like 3M should have independent headoffices on every continent in return of the permission to supply the market. Let the EU go to work end protect their markets. Don't let China and USA dominate the markets again in crisis like this.

[rabas]

40 minutes ago, heybruce said:

After wasting a month by not preparing, we are now screwing friends and neighbors in a mad scramble for medical supplies.  This will not end well.

Oddly, the US case curve follows well behind the European case curve. If the US was wasting time not preparing what was Europe doing?

 

We were all caught off guard by the CCP covering up and severely downplaying its infectivity from the start. I remember being amazed that both China and WHO kept repeating no clear signs of H2H or limited H2H transmission for what we now know is the mother of stealth transmissible diseases.  

 

That said, nearly 2 decades after SARS-1 and multiple warnings, the US and the West were ill prepared for what was inevitable.

Edited April 5, 2020 by rabas

[RJRS1301]

1 hour ago, JimmyTheMook said:

Money Talks and Bratwurst walks.....

Oh remember vision of the pallets of money shipped after the Invasion in Iraq and Afghanistan, nothing new using money to attempt to achieve ends.

 

 

[rabas]

13 minutes ago, spidermike007 said:

"Money is irrelevant. They pay any price because they are desperate," one high-level official in German Chancellor Angela Merkel's ruling CDU/CSU group told Reuters. A German government source said: "Americans are on the move, carrying a lot of money."

Trying to buy 3M masks that the Germans absconded from 3M's suppliers in China? Secretly switched between ships on the high tarmacs in the Wild Wild East city of Bangkok? 

[bkk6060]

Trump realizes other countries could care less about him or the US.

So, whatever it takes America first.

 

You snooze, you lose..

[samran]

19 minutes ago, bkk6060 said:

Trump realizes other countries could care less about him or the US.

So, whatever it takes America first.

 

You snooze, you lose..

Indeed. Canada should close its borders so the couple of hundred nurses who travel from Windsor to Detroit each day take care of their own rather than the Americans. 
 

Canada can also stop supplying the pulp mill (the only one I read) which supplies these 3M masks for the Us market. 
 

And they should switch off the electricity which supplies the NE states as well.

 

America first indeed. Taking whatever...

Edited April 5, 2020 by samran

[Chomper Higgot]

What has yet to be revealed is who are these Americans with all the cash.

 

Are they Federal/State buyers or are they private businesses which are then selling on the the Federal/State agencies?

 

The US had months of forewarning but failed to act early to procure or order the production of supplies.

 

Somebody is making a fortune, follow the money!

[RJRS1301]

2 hours ago, kevin612 said:

USA has a lot of debts but still have tons of money power to purchase medical supplies over the other countries. USA is still the strongest nation. However, since trump takes over the office, the reputation goes down.

 think it is called quantative easing, they invested in more than government bonds. Essentially adding to the ever increasing debt burden for all 

I am not sure the debt is backed by much anymore.

 

[marko kok prong]

Some of the countries complaining would do well to remember that they would be living a totally different way of life,if the USA had not stepped in in the last world war.

[MaiDong]

Just now, marko kok prong said:

Some of the countries complaining would do well to remember that they would be living a totally different way of life,if the USA had not stepped in in the last world war.

Completely irrelevant, and a ridiculous thing to say.

[from the home of CC]

3 hours ago, Tug said:

Trump = chaos = mismanagement = new enemies making us and the world less safe every day

Yes, I believe Trumps ego and his election fears are pushing these predatory actions, for he's been criticized over lack of supplies (though not his fault imo). I'm concerned over this oil war as well as the virus one. Destruction of Saudi oil infrastructure could solve problems for many players though I have no doubt that America would retaliate which could get quickly out of hand. It all depends how hard countries are backed into a corner, I'm sure Russia is brainstorming a solution to their loss of earning power..  

[marko kok prong]

14 minutes ago, MaiDong said:

Completely irrelevant, and a ridiculous thing to say.

Okay DONG

[rudi49jr]

3 hours ago, heybruce said:

After wasting a month by not preparing, we are now screwing friends and neighbors in a mad scramble for medical supplies.  This will not end well.

Agreed. And imagine Trump’s outrage if the shoe were on the other foot, and other countries were screwing over the USA. 

[bristolboy]

40 minutes ago, RJRS1301 said:

 think it is called quantative easing, they invested in more than government bonds. Essentially adding to the ever increasing debt burden for all 

I am not sure the debt is backed by much anymore.

 

The dollar is so strong that the US could pay negative interest rates on its t-notes.

[rudi49jr]

22 minutes ago, marko kok prong said:

Some of the countries complaining would do well to remember that they would be living a totally different way of life,if the USA had not stepped in in the last world war.

Such a lame argument. The USA wouldn’t be an independent country now if France hadn’t helped them. I don’t see a lot of gratitude from the USA for that, not for a very long time.

[ChouDoufu]

52 minutes ago, RJRS1301 said:

 think it is called quantative easing, they invested in more than government bonds. Essentially adding to the ever increasing debt burden for all 

I am not sure the debt is backed by much anymore.

 

just a second there, pardner!  out debt is backed by the full faith and cre......oh, right.

[Dap]

59 minutes ago, Chomper Higgot said:

What has yet to be revealed is who are these Americans with all the cash.

 

Are they Federal/State buyers or are they private businesses which are then selling on the the Federal/State agencies?

 

The US had months of forewarning but failed to act early to procure or order the production of supplies.

 

Somebody is making a fortune, follow the money!

Always! Follow the money 

[marko kok prong]

15 minutes ago, rudi49jr said:

Such a lame argument. The USA wouldn’t be an independent country now if France hadn’t helped them. I don’t see a lot of gratitude from the USA for that, not for a very long time.

They remodelled Caen and a lot of French towns during ww2

[atyclb]

4 hours ago, JimmyTheMook said:

Money Talks and Bratwurst walks.....

 

 

erratum;  bratwurst goes on pumpernickel with mustard and sauerkraut 

[phantomfiddler]

Buying medical supplies from the country that gave you the disease in the first place, something fishy here, Holmes ????

[Eric Loh]

1 minute ago, phantomfiddler said:

Buying medical supplies from the country that gave you the disease in the first place, something fishy here, Holmes ????

Maybe they took the tough medicine and draconian measures and reaping the benefits with manufacturing throttling back to life while others are slow to respond and industries severely impacted; say Sherlock. 

[atyclb]

here is Jared Moskowitz, director of the Florida Division of Emergency Management weighs in on 3M PPE production. he says foreign bidders outbid usa counterparts