Peace for the World

Peace for the World
First democratic leader of Justice the Godfather of the Sri Lankan Tamil Struggle: Honourable Samuel James Veluppillai Chelvanayakam

Wednesday, September 20, 2017

U.S. Weighs Options on Detainees in Iran

When Aircraft Manufacturers Clash

How to solve the dispute between the aircraft manufacturers in the determination of whether subsidies have in fact passed between the governmental authority and manufacturer concerned!

by Dr. Ruwantissa Abeyratne-
( September 20, 2017, Montreal, Sri Lanka Guardian) The current spat between Boeing – a manufacturer of aircraft in the United States, and Bombardier – an aircraft manufacturer in Canada, brings to bear a dispute in the aviation industry that has been surfacing from time to time and involves the contentious word “subsidies”.  Boeing’s complaint to the U.S. International Trade Commission against the Canadian manufacturer is based on the former’s allegation that the latter is using subsidies granted to it by the Canadian government to sell its aircraft to American carriers at prices below cost and using such subsidies to build a larger version of the C-Series plane that would directly compete with Boeing’s own flagship narrow body 737 aircraft.
In its complaint – which runs into 109-pages – Boeing claimed that Canadian subsidies, unless checked, would enable Bombardier to build a full-fleet of single-aisle planes, carrying overtones of the strategy employed some years ago by Airbus Industrie – a French aerospace company —  to the detriment of Boeing.  In response, Bombardier stated that Boeing was attempting to forge a halt to Bombardier’s innovative technology which was a misguided attempt at shutting down healthy competition in the aviation industry. Unlike the Boeing-Airbus subsidies dispute which was brought before the dispute settlement tribunal of the World Trade Organization by both the United States and Europe, Boeing’s complaint does not involve the two countries – at least not yet – and is being considered within a local jurisdiction.  However, Boeing has claimed that Bombardier’s acts are diametrically at variance with accepted norms of international trade law, which would inevitably bring to bear a discussion of the principles concerned.
This essay is neither a discussion of the merits and demerits of Boeing’s claim nor is it in defense of Bombardier’s position.  It is merely a discussion of the principles that are involved in a subsidies dispute. The fundamental principle underlying State aid is that it disrupts normal competitive forces of the market if the State subsidizes certain firms and products to the detriment of others. Unsubsidized corporate entities could run out of business trying to compete with those receiving State aid, thus losing their right to compete fairly and equally.

GATT and Havana Charter

One of the corollaries to iniquitous State aid is the loss of employment for those in an unsubsidized environment. At first impression, principles on the law of subsidies as entrenched in international economic law are seemingly composed of a patchwork of provisions emerging from various agreements and amendments. However, a deeper examination reveals that State subsidies are governed under a central theme which discourages unfair trade practices. Subsidies, which are government grants or bounties, are an integral part of international trade and entitle a government, by a selective process, to assist trading services and entities to the betterment of society. At the negotiating process when General Agreement on Tariffs and Trade (GATT) was formed, subsidies were considered less of a trade obstacle than tariffs and quantitative restrictions.
This was brought to bear in the 1948 Havana Charter of the International Trade Organization (ITO) which only contained a general ban on subsidies in its Article 26. The GATT of 1947, which replaced the ITO, did not prohibit subsidies. It merely required that members reported to other members any subsidy which directly or indirectly affected exports by increasing exports or reduced imports into its territory. This was specific to Article XVI:3 GATT 1947 which provided that if a contracting party (to the GATT) were to grant directly or indirectly any form of subsidy which operated to increase the export, the party concerned need only advise other parties of its action. However, in 1955, when GATT 1947 was reviewed, Article XVI was amended to prohibit export subsidies of non-primary products and to avoid the use of subsidies on the export of primary products. Under the World Trade Organization (WTO) system (which replaced GATT), the Uruguay Round Subsidies Agreement, in Article 3 prohibits export subsidies to non-agricultural products. Regarding internal subsidies, Article XVI:1 obligates members under the GATT 1947 system not to cause by means of any subsidy internally serious prejudice to competition.

US v. AMR Corp

The United States competition law has as its genesis the Sherman Act of 1890 followed by the Clayton Act of 1914 (which was later amended in 1936). Such established legislation has been interpreted judicially to require two criteria: pricing must be below average variable costs and there must be proof of recoupment of losses incurred during the alleged period of predatory pricing. In the 2001 case of US v. AMR Corp the court held that an air carrier, which matches prices and increases output when faced with competition from low cost carriers, is not guilty of monopolization of the market.
If the issue were to escalate into a dispute between the States concerned before the WTO, it could be brought under the Agreement on Subsidies and Countervailing Measures of the WTO (SCM) which is enforced through the WTO dispute settlement system. The Agreement deals with two subjects closely related to each other. The first is concerned with issues of multilateral disciplines regulating the provision of subsidies and the second provides rules for the use of countervailing measures to offset injury caused by subsidized imports. Of these, the first will be applicable to the dispute between the two aircraft manufacturers in the determination of whether subsidies have in fact passed between the governmental authority and manufacturer concerned. The second would apply in determining what countervailing measures must be taken by the WTO Dispute Settlement Body.
Of primary concern would be Part 1 of the Agreement which specifies that the SCM would apply exclusively to subsidies that are specifically given to an enterprise or a group of enterprises or industries. The SCM goes on to define a subsidy as a provision which is composed of three fundamental elements: it has to be a financial contribution; it has to be made by a government or any public body within the territory of a WTO member; and it has to confer a benefit on the recipient. It must be noted that according to the SCM, subsidies, as defined, must be specific. In other words, the subsidy must be specifically provided to an enterprise or industry or group of enterprises or industries, resulting in the distortion of the allocation of resources within the economy. The SCM recognizes four types of specificity: enterprise specificity, where a government identifies and provides a subsidy to a business entity; industry specificity, where a government targets a particular industrial sector; regional specificity, where a government targets business entity in a region or part of its territory; and prohibited subsidies, where a government subsidizes export goods or goods using domestic resources and inputs. Of these, clearly, the Boeing/Bombardier dispute would be considered under the enterprise specificity. The next step would be to slot the dispute into one of two categories: prohibited category, and actionable category. The prohibited category is composed of two sub categories, the first being contingent upon export performance and the second being applicable to the use of domestic over imported goods. These two categories are prohibited because they are directly calculated to adversely affect trade, impacting the interests of other members. Actionable subsidies, on the other hand, are not prohibited, but nonetheless subject to challenge either through a multilateral dispute settlement system or through the imposition of countervailing actions. If adjudicated by the Dispute Settlement Body, the Boeing/Bombardier dispute would clearly become an actionable issue under the latter category, on the basic assumption that the issue at stake is injury to a domestic industry.
The author is former Senior Legal Officer at the International Civil Aviation Organization.   Dr. Abeyratne has written numerous books on competition law, among which are Competition and Investment in Air Transport, and Aviation and International Cooperation.
Malaysia’s Taib family to face Canadian court over money laundering case




A CANADIAN business linked to billionaire Malaysian politician Abdul Taib Mahmud will face court in Toronto over alleged money laundering.

The Swiss anti-corruption NGO Bruno Manser Fund (BMF) is suing three Canadian banks and an auditing firm to disclose financial information regarding the CAD250 million (US$203 million) real estate firm Sakto Corporation owned by Sarawak Governor Taib Mahmud’s daughter Jamilah Taib Murray.

A judge at the Ontario Superior Court of Justice has ruled that the case – initially sealed – will be heard in public.

BMF released an investigation earlier this year which claimed that the Taib family had “secretly channelled” US$23.6 million into Sakto over the first ten years of its operations, after being incorporated in the Canadian province of Ottawa in 1983.

It claims that Canadian public prosecutors have failed to investigate and charge Sakto for money laundering, and thus is suing the Royal Bank of Canada, Toronto-Dominion Bank, Manulife Financial Corporation and Deloitte & Touche to release the company’s financial records.

The BMF report entitled Safe Haven Canada alleges that Sakto was established with the proceeds of corruption, noting that Jamilah Taib established the multimillion-dollar business aged only 23.

Jamila-Taib-Murray-cheque-Source-Twitter
Jamilah Taib Murray presents a cheque for $21,000 to Ottawa Food Bank. Source: Twitter @jtaibmurray

The investigation states that “it remains totally unclear where Laila Taib [Taib Mahmud’s late wife] who had no independent income could have legally earned her share of the CAD20 million dollars that were lent to Sakto.”

Sakto Corporation told Asian Correspondent in March that the allegations by BMF were “false, malicious and sensationalised.”

“The organisation’s rehashed and repackaged allegations have been found to be lacking and never substantiated by a government or authoritative body,” it said.

Taib Mahmud ruled resource-rich Malaysian state of Sarawak as Chief Minister between 1981 and 2014, making him the second-longest serving parliamentarian in Malaysian history. Sarawakians call Taib Pak Uban or “white-haired uncle” or Pek Moh (white hair), and he has been referred to as the “last white rajah.”

During the period of his rule, Taib’s family became extremely wealthy and by 2011 had amassed assets in 14 Malaysian companies worth some US$1.4 billion. Today, it owns stakes in 400 companies in 25 countries and offshore jurisdictions.

For decades, the now-Governor of Sarawak and his family have been accused of corruption. Watchdogs claim the state’s political elites and their cronies have systemically siphoned off timber revenue to enrich their own personal fortunes.

shutterstock_278404169
Deforested tropical rain forest in Borneo to be used for a oil palm plantation. Photo taken near Kuching in Sarawak, Malaysia, 16 May 2015. Source: Rich Carey/Shutterstock


The Sakto case follows a string of probes by BMF into the Taib family, including a report from 2015, which alleged the Taib-owned Australian company Sitehost – owner of Adelaide’s AUD50million (US$38 million) Hilton Hotel – had been used to launder tens of millions of dollars.

According to the NGO’s executive director Lukas Straumann, “the Taib family are extremely powerful, extremely rich, and they are extremely corrupt.”

“Sakto Corporation is a reputable, local Canadian Company whose officers, directors and shareholders are Canadian,” said the company in an email to Asian Correspondent.

“The company is led by a local family known for being community supporters and philanthropists.”

Selling out the Rohingyas



By Sumit Ganguly-2017-09-18

In the past several weeks, much attention has been devoted to the abject plight of the minority, predominantly Muslim, Rohingya community in Myanmar's Rakhine state. They have long been mistreated in the country and are denied citizenship rights despite a claim to have inhabited the Rakhine region since the sixteenth century; their situation has recently taken a particularly adverse turn.

On 25 August, it was reported that an emergent Rohingya guerrilla group had launched an attack on some Myanmarese Army units.

The military retaliated with considerable force and massacred substantial numbers of villagers at Tula Toli near the Bangladeshi border. In its wake, thousands of the hapless villagers trekked to nearby Bangladesh swelling an already turgid refugee population.

The harshness with which the Burmese military has responded to the guerrilla attack has generated understandable condemnation in the global community. Some groups have even tried to strip the Burmese leader, Aung San Suu Kyi, of her Nobel Prize. A fellow Nobel Laureate, Bishop Desmond Tutu of South Africa, has sharply criticized her deafening silence about the situation of the Rohingyas. Another Nobel Laureate, Malala Yousufzai, has also criticized her silence. The focus on the global community's response to these most tragic developments in Myanmar is entirely warranted and appropriate. Lost in much of the reportage on these events, however, are the reactions of two key regional countries, Bangladesh and India. Bangladesh, which has grudgingly sheltered Rohingya refugees for years, has allowed more of them to enter the country, albeit with much reluctance.

The conditions that prevail in the Bangladeshi refugee camps can only be described as being downright squalid. Yet, such dire conditions do not deter the wretched Rohingyas from fleeing the depredations of the Myanmar Army. Of course, Bangladesh has little or no incentive and has limited resources to improve the existing state of the camps. Making them more liveable is likely to make them a magnet for further refugee inflows.

Furthermore, despite much economic progress over the past few decades, it remains a desperately poor country and can ill-afford to provide succour to increasing numbers of refugees even if they happen to be fellow Muslims. Even if substantial inflows of international assistance were available to Bangladesh, it is most unlikely that its regime would alleviate the milieu of these camps for fear that the refugees would seek more permanent residence in the country.

Bangladesh's response

Bangladesh's response to the emergent refugee crisis, while less than laudable, is at least somewhat understandable. What then has been India's reaction to the unfolding crisis? The country has a long and storied tradition of not merely accepting refugees, but actually providing them solace.

For example, in the wake of the Khampa Rebellion in Tibet in 1959, it provided comfort to thousands of Tibetans. It has also sheltered the Dalai Lama, the spiritual and temporal leader of the global Tibetan community, for decades since his flight to India.

More recently, in 1971, it opened its borders to nearly ten million Bengalis who fled East Pakistan following a military crackdown during the crisis that led to the creation of Bangladesh. Why then has the Bharatiya Janata Party (BJP) regime adopted a mostly uncaring stance? The reasons stem from the imperatives of both regional and domestic politics.

Narendra Modi

In his visit to Myanmar last week, Prime Minister Narendra Modi, at least in the public domain, scrupulously avoided bringing up the issue of the Rohingyas. Worse still, he concurred with Suu Kyi that Myanmar was confronted with and needed to address a "terrorist problem." According to reliable Indian newspaper sources, he was able, however, to persuade her that it was necessary to provide substantial economic assistance to the strife-torn region. Whether or not such aid ever materializes and reaches the unfortunate population remains an open question.

What explains Modi's reticence to criticize the country's role in precipitating this humanitarian crisis? In considerable part, it stems from a careful calculation of India's perceived national security interests. Given that the country has long faced and continues to confront a range of insurgencies in its north-eastern region abutting Myanmar, it needs to elicit Suu Kyi's cooperation to prevent them from using bases and sanctuaries in her country.

People's Republic of China

Additionally, it can also be traced to India's interest in limiting the influence of the People's Republic of China (PRC). In earlier decades, Myanmar's fledgling democracy movement was battling a vicious military dictatorship, and India had been at the forefront of supporting it. However, after watching the PRC make steady inroads into Myanmar in the early 1990s, India started to move away from its unstinted support for democratic reforms. Modi's muted reaction to the ongoing crisis amounts to a logical culmination of that strategy.

Deporting refugees

Beyond regional concerns, what are the domestic determinants of this policy? The BJP regime, as is well known, has little or no regard for India's vast Muslim minority. In fact, elements within the party are known for their active hostility toward India's Muslim citizenry. Consequently, it should come as little surprise that the regime has no particular regard for the Rohingyas who have sought refuge within India. With complete disregard for customary international law, which calls on states not to deport refugees to countries where they face a reasonable prospect of persecution, Kiren Rijiju, the Junior Minister for Home Affairs, has threatened to deport the Rohingyas to Myanmar. Without adducing any evidence, he has argued that the refugees pose a potential terrorist threat and thereby should be deported. It is uncertain that the stinging rebukes that he has received from both Indian civil society as well as human rights groups will lead to a suspension of this stated policy.

At a juncture when multiple global crises command the attention of national leaders, there is a strong likelihood that the stance of the two most important regional actors— Bangladesh and India—to this humanitarian crisis will be mostly overlooked. Under those circumstances, the predicament of the Rohingyas will simply be written off as yet another footnote to the many humanitarian tragedies of the new century.

(Sumit Ganguly is a Senior Fellow at the Foreign Policy Research Institute in Philadelphia and holds the Rabindranath Tagore Chair in Indian Cultures and Civilizations at Indiana University, Bloomington.)
(FPRI)

Why I Won’t Vote Unless Things Change

As long as the Democratic Party keeps allowing wealthy oligarchs to remain at the driver’s seat, it won’t matter what brand new figurehead they churn out of their assembly line.


By , September 16, 2017

Since November 8, 2016, Democrats have lost a series of special elections for the same reasons they lost the general election.

Without change, the Democratic Party is doomed to fail because Baby Boomers will turn out in droves to support the status quo or even the status quo ante (“make America great again”), while Millennials will simply stay home in disgust.

It is no secret that my generation did not show much enthusiasm during the last presidential election. Despite the fact that Millennials are currently tied with Baby Boomers as the largest generation cohort in the United States, our impact during the 2016 presidential election was minimal at best.

Less than half of us (including me) even bothered to show up at the voting booth on Election Day, while roughly 70% of Baby Boomers did, as they overwhelmingly voted for Trump.

Passion for Sanders

But why was that? No, it wasn’t because of complacency or lack of interest on our part. During the Democratic Primaries, Millennials on my own campus, as well as all over the country, displayed an immense passion for Bernie Sanders.

This trend certainly showed in the Primaries results in which Sanders earned more votes from Millennials than Clinton and Trump combined.

To us, Sanders represented a different type of politician. Unlike so many others that came before him, he actually lived by his teachings.

Sanders seemed to truly have the general population’s best interest in mind. He spoke like a man who actually understood the problems of the lower and middle classes instead of someone just reciting rehearsed lines.

No Wall Street dollars

But above all, when it came to campaign finance reform, he backed up his stance by not accepting a single dollar from neither Wall Street nor any Super PACs. The very same opulent entities that have been subverting our elections for quite some time.

However, Sanders did not win the nomination. To us, he was never given a real chance thanks to the Democratic Party establishment.

Instead, they backed Clinton because of her massive fundraising record and her connections within the party.

As the primaries transitioned into the general elections, this anger and frustration with the establishment stuck. In our minds, Clinton was unarguably the better candidate, but that wasn’t enough to make her appealing to us.

Clinton’s flip-flopping

Clinton had a fairly lengthy history of flip-flopping on her policies in order to adapt to whatever was politically or socially in vogue. Nothing about her seemed genuine.

She was all about self-promotion and not much about caring. She tried to snatch our vote in the general elections by wrapping herself in the populist flag, opposing the “too big to fail” banks and promoting campaign finance reform.

These positions were in stark contrast to her actions as she had raised a total of over $400 million among all her campaigns for Senate and President between 1999 and 2016.

In the last election alone, she raised over $64 million with three of her top individual donors being Goldman Sachs, Citibank, and JP Morgan. As you can imagine, her ridiculous populist persona came off as more comical than sincere.
 
Yet, it was the lack of ideas by Clinton that turned us off the most, combined with her establishment image, as well as the blatant effort by the DNC to put their finger on the scale for her. This discouraged and dispirited many Millennial voters in the general elections.

Tired of the lies

We’re tired of our political system. We’re tired of empty promises, phony populist agendas, bought-out elections, elitist pandering, subversive foreign policies, and the dismantling of our rights.

Most of us will not vote again, unless the framework for U.S. politics can be reformed. A democracy without the support from its largest voting base is not sustainable. So, Democrats should take notes from Sanders and the basis for his presidential campaign.

Democrats must not only present a positive agenda, but must also follow through with it. An agenda that is based on creating a brighter future for our youth rather than pandering to jingoistic paranoia.
It must contain ways to create opportunities for all of us to succeed according to our own capabilities.

Invest in the people

For starters, upgrading our education system would create a strong foundation for increasing the average income of lower and middle class Americans which has remained stagnant since the 1980’s.
Providing healthcare for all should also be a top priority, especially considering the fact that it’s affordable in virtually every civilized country.

If we want to catch up with the rest of the civilized world, we must put constraints on the powers of pharmaceutical companies, insurance companies, private hospitals and doctors in order to care for all of our citizens.

Implementing more aggressive policies to protect our environment is also an absolute necessity. The urgency of this issue is lost on far too many people, politicians and average citizens alike.

But the fact of the matter is that we cannot allow the neglect of the past to echo throughout future generations. If we don’t address this problem now, everyone, not just Millennials, will have to cope with the disastrous aftermath.

Campaign finance reform needed

In order to accomplish all of that and more, campaign finance reform is needed now more than ever before. Much like the separation between church and state, there needs to be a separation between big money and the state.

As long as the Democratic Party keeps allowing wealthy oligarchs to remain at the driver’s seat, it won’t matter what brand new figurehead they churn out of their assembly line. If the Democratic Party expects to win back the confidence of Millennial voters, then it must make this a key plank of its platform.

The next time I vote, it will be for a candidate who actually deserves to be President — a candidate who champions the interests of the majority instead of a handful of affluent aristocrats.

A candidate more concerned about the future rather than the present, or worse, dragging us into the past. Hopefully, I won’t have to wait too long for such a person to run.
The bill — coming two months after a previous failed repeal effort in the Senate — is the subject of a last-ditch lobbying push by Senate Majority Leader Mitch McConnell (R-Ky.) and the Trump administration, led by Vice President Pence, ahead of a Sept. 30 deadline for Senate action.

In a letter to Senate leaders, the group of 10 governors argued against the Graham-Cassidy bill and wrote that they prefer the bipartisan push to stabilize the insurance marketplaces that Sens. Lamar Alexander (R-Tenn.) and Patty Murray (D-Wash.) had been negotiating before talks stalled Tuesday evening.

Sen. Charles E. Schumer (D-N.Y.) attacked the latest GOP health-care plan, the Cassidy-Graham proposal, on Sept. 19 as 10 governors came out against it. "Millions will lose coverage," Schumer said. (The Washington Post)

The governors who signed the letter are particularly notable, since some are from states represented by Republican senators who are weighing whether to back the bill. Among the signers were Alaska Gov. Bill Walker (I), who holds some sway over Murkowski, a potentially decisive vote who opposed a previous Republican effort to repeal and replace the Affordable Care Act.

Nevertheless, Murkowski said Tuesday afternoon that she was still weighing her options and explained how her position on the bill might ultimately differ from her opposition to the repeal effort that failed dramatically in July.

“If it can be shown that Alaska is not going to be disadvantaged, you gain additional flexibility. Then I can go back to Alaskans, and I can say, ‘Okay, let’s walk through this together.’ That’s where it could be different,” she said.

But Murkowski, who has been in close contact with Walker, said she did not yet have the data to make such a determination. Alaska’s other Republican senator, Dan Sullivan, said he was still mulling whether to support the bill.

On the other side, a group of 15 Republican governors announced their support for the Senate bill Tuesday evening. The list includes Kentucky Gov. Matt Bevin (R), whose backing could help influence Sen. Rand Paul (R-Ky.), who has frequently criticized the legislation for failing to fully repeal the ACA.

On Tuesday, Pence traveled from New York, where he was attending the annual United Nations General Assembly session, to Washington with Graham in a sign of the White House’s support for the proposal.


Sen. Lindsey O. Graham (R-S.C.) said President Trump "is very excited about this state-centric health-care system" on Sept. 19. (The Washington Post)

“My message today is I want to make sure that members of the Senate know the president and our entire administration supports Graham-Cassidy,” Pence told reporters on the flight. “We think the American people need this.”

Graham added that President Trump called him at 10:30 p.m. Monday.

“He says, ‘If we can pull this off, it’ll be a real accomplishment for the country,’ ” he recalled.
Trump has played a limited role in building support among senators in recent days, but it is possible that his participation will increase as a potential vote nears. He has, however, been in touch with some governors, including a weekend call with Arizona Gov. Doug Ducey (R), according to aides.

Pence attended the weekly Senate Republican policy luncheon, where he said the current health-care system is collapsing and the bill fulfills key GOP promises to return control to states and rein in federal entitlement programs, according to several GOP senators.

Afterward, McConnell declined to ensure a vote on the bill but said his team is working to secure sufficient support.

“We’re in the process of discussing all of this. Everybody knows that the opportunity expires at the end of the month,” said McConnell, referring to the limited window Republicans have to take advantage of a procedural tactic to pass a broad health-care bill without any Democratic support.

Democrats say the ACA needs modest improvements by Congress but is working well overall, and they have railed against a process in which Republicans are pressing ahead with few hearings on legislation that would affect an industry that accounts for about a sixth of the U.S. economy.

The current bill would give states control over billions in federal health-care spending and enact deep cuts to Medicaid. The Medicaid cuts in particular are a major source of concern to the governors, both in terms of imposing a per capita limit on what states would receive and putting restrictions on how they could spend any federal aid on their expanded Medicaid populations.

Medicaid was expanded under the ACA to provide states with generous funding if they opted to cover adults earning up to 138 percent of the poverty level. Many Republican-led states decided against an expansion following a Supreme Court decision allowing them to opt out.

The fact that the bill also would restrict states’ abilities to tax health-care providers to fund their Medicaid programs posed a problem for several governors, as well.

In a sign of how alarmed state officials are about the prospect of funding cuts, Louisiana’s health secretary sent a letter to Cassidy on Monday saying that their state could see disproportionate cuts with significant impacts on people with preexisting or complex and costly conditions.

“This would be a detrimental step backwards for Louisiana,” wrote Rebekah Gee, who posted her letter on Twitter on Monday.

And although Walker has not played a visible role in the national health-care debate until now, certain aspects of the new bill pose an even bigger challenge for Alaska than previous proposals did. Health-care premiums are particularly expensive in the state, given its many remote areas. Premiums on the ACA market average roughly $1,000 a month for an individual, according to the most recent federal data.

Since federal tax credits over time would be equalized and based on the number of low-income people in a given state, that new calculation would eliminate the more generous subsidies Alaska enjoys.

Given the complex nature of the Graham-Cassidy proposal, it is difficult for state officials and health-care analysts to predict exactly how much money a given state would gain or lose if the legislation were enacted. But early estimates suggest that states with expanded Medicaid programs and active participation in the ACA markets could face major cuts.

An initial estimate for Colorado, according to state officials, suggests it could lose at least $700 million in annual federal funding by 2025. Since the state has roughly 450,000 people in its Medicaid expansion program and another 100,000 receiving premium tax credits on its health-care exchange, that could translate into hundreds of thousands of Coloradans losing coverage.

The governors who have been most outspoken in their criticism of the bill negotiated behind the scenes to bring as many state executives on board as possible, according to aides, tweaking the language of Tuesday’s letter over the past couple of days to get maximum support.

Others who signed the letter in opposition to Graham-Cassidy included John Kasich (R-Ohio) and Brian Sandoval (R-Nev.). Sandoval’s positioning puts him at odds with Sen. Dean Heller (R-Nev.), who has been touting the bill as another co-sponsor.

Pence said Trump told him to reach out to some Democrats, and he spoke to Sen. Joe Manchin III (D-W.Va.) over the weekend. But after reviewing the bill, Manchin said, he told Pence’s aides he could not support the legislation.

Senate Minority Leader Charles E. Schumer (D-N.Y.) said he’s confident no Democrat will vote for the legislation, because “it hurts people in every state.”

Democrats had been working furiously since Monday to advance talks between Alexander and Murray on a deal to immediately stabilize ACA insurance marketplaces with federal subsidies. The negotiations rapidly escalated after weeks of slow but consistent talks once it became clear that Senate GOP leaders were serious about holding a health-care vote before the end of the month, according to several Senate aides.

Alexander on Tuesday played down expectations of reaching an agreement this week, telling reporters the pair had reached an impasse.

“During the last month, we have worked hard and in good faith but have not found the necessary consensus among Republicans and Democrats to put a bill in the Senate leaders’ hands that could be enacted,” Alexander said in a statement.

Democrats denied that the talks had fallen apart, accusing Republicans of walking away despite making progress on areas of disagreement. Schumer spokesman Matt House said Democrats offered to accept a number of GOP requests, including waivers to give states more latitude in how they spend federal dollars and the creation of new low-cost plans under the ACA.

“This is not about substance,” House said in a statement. “The Republican leadership is so eager to pass Graham-Cassidy that they’re scuttling a balanced, bipartisan negotiation.”

Many Democrats, including Murray, said they hoped the talks could still be salvaged despite roadblocks from Republicans.

“I am disappointed that Republican leaders have decided to freeze this bipartisan approach,” Murray said in a statement. “But I am confident that we can reach a deal if we keep working together.”

Ed O’Keefe and Ashley Parker contributed to this report.