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Amazon and Walmart on Thursday kicked off a two-year government pilot program allowing low-income shoppers on government food assistance in New York to shop and pay for their groceries online for the first time. 

ShopRite will join the two retailers on the program early next week, said the U.S. Department of Agriculture, which oversees the Supplemental Nutrition Assistance Program, or SNAP. 

The USDA has long required customers using electronic benefits transfer, or EBT, to pay for their purchases at the actual time and place of sale. So the move marks the first time SNAP customers can pay for their groceries online.

ShopRite and Amazon are providing the service to the New York City area, and Walmart is providing the service online in upstate New York locations. The agency said the pilot will eventually expand to other areas of New York as well as Alabama, Iowa, Maryland, Nebraska, New Jersey, Oregon and Washington.

Purchase food, but not delivery

The pilot program will test both online ordering and payment. SNAP participants will be able to use their benefits to purchase eligible food items but will not be able to use SNAP to pay for service or delivery charges, the agency said. 

People who receive SNAP benefits should have the opportunity to shop for food the same way more and more Americans shop for food — by ordering and paying for groceries online,'' said USDA Secretary Sonny Perdue.As technology advances, it is important for SNAP to advance, too, so we can ensure the same shopping options are available for both non-SNAP and SNAP recipients.” 

Perdue said he will be monitoring how the pilot program increases food access and customer service, specifically for those who have trouble visiting physical stores.  

Roughly 38 million individuals receive food stamps in the U.S., according to the USDA. Nearly $52 billion, or 82% of all food stamp dollars, were spent at big box stores and grocery chains in 2017, according to the most recent USDA data. 

The 2014 Farm Bill authorized the USDA to conduct and evaluate a pilot program for online purchasing prior to national implementation. The USDA says the move was intended to ensure online transactions are processed safely and securely. 

Seattle-based Amazon said those who qualify don’t need to be Prime members to buy groceries with their benefits. They’ll get free access to its AmazonFresh service, which delivers meat, dairy and fresh produce to shoppers’ doorsteps. And they’ll also be able to use Prime Pantry, which delivers packaged goods like cereal and canned food.

Qualifying amounts

However, they’ll need to spend over a certain amount to qualify for free shipping: $50 at AmazonFresh and $25 at Amazon.com. The online shopping giant launched a website, amazon.com/snap, where people can check if they qualify. Amazon said it’s working with the USDA to expand service to other parts of New York state. 

Amazon.com Inc. was on the initial list for the government pilot program, and Bentonville, Ark.-based Walmart Inc. made the list later. The world’s largest retailer, however, in late 2017 had started allowing customers in limited locations to order items through its online grocery pickup service and then pay for it in person at the stores. 

Access to convenience and to quality, fresh groceries shouldn't be dictated by how you pay,'' Walmart said.This pilot program is a great step forward, and we are eager to expand this to customers in other states where we already have a great online grocery.” 

Walmart said that nearly 300 locations with grocery pickup in the states will be part of the USDA government program. 
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The National Enquirer is being sold to the former head of the airport newsstand company Hudson News following a rocky year in which the tabloid was accused of burying stories that could have hurt Donald Trump’s 2016 presidential campaign. 

Tabloid owner American Media said Thursday that it plans to sell the supermarket weekly to James Cohen. Financial terms were not immediately disclosed for the deal, which included two other American Media tabloids, the Globe and National Examiner.  

American Media said last week that it wanted to get out of the tabloid business to focus on its other operations, which includes its teen brand and broadcast platforms.

Non-prosecution agreement

Federal prosecutors in Manhattan agreed last year not to prosecute American Media in exchange for the company’s cooperation in a campaign finance investigation. That probe eventually led to a three-year prison term for Trump’s former personal lawyer Michael Cohen for campaign violations among other charges.

American Media admitted it had paid $150,000 to keep former Playboy model Karen McDougal quiet about an alleged affair with Trump to help his campaign. Trump has denied an affair.  

The sale would end a longtime relationship between the Enquirer and Trump. Under the aegis of American Media CEO David Pecker, the tabloid has for years buried potentially embarrassing stories about Trump and other favored celebrities by buying the rights to them and never publishing in a practice called “catch and kill.” 

The Associated Press reported last year that Pecker kept a safe in the Enquirer’s office that held documents on buried stories, including those involving Trump. 

Whether James Cohen has any allegiances to Trump is not clear. While he was a registered Republican as late as 2017, according to Nexis records, he has given to both Republicans and Democrats. That included $17,300 in 2016 to an arm of the Democratic National Committee and $2,500 to the Republican National Committee in 2012.

News of the sale comes two months after Amazon chief Jeff Bezos publicly accused the Enquirer of trying to blackmail him by threatening to publish explicit photos of him. 

An American Media attorney denied the charge, but it threatened potentially big legal costs by upending American Media’s non-prosecution agreement in the hush money case. The AP reported that federal prosecutors were looking into whether the publisher violated terms of the deal, which included a promise not to break any laws in the future.

Heavy debt load

The Bezos accusation comes at a difficult time for American Media. It has financed several recent acquisitions with borrowed money and has been struggling under a heavy debt load. American Media said the Cohen deal would help reduce the amount it needs to pay back, leaving it with $355 million in debt. 

The Washington Post, which earlier reported the sale, said Cohen will pay $100 million in the deal.

Cohen’s family had run a magazine and newspaper distributor for decades before his father branched into newsstand stores in 1980s, starting with a single one at LaGuardia Airport. Before he died in 2012, the father had opened more than 600 stores. 

After the death, James Cohen’s niece alleged her uncle had cheated her out of her inheritance. She lost the case. 

The family sold a majority stake in the chain about a decade ago. The business is now owned by Dufry, an operator of duty-free stores in which James Cohen is a major shareholder. 

Cohen still owns a magazine and newspaper distributor called Hudson News Distributors. In addition, he runs a real estate developer and a publishing company, which owns Gallerie, an art and design magazine. 

Cohen has reportedly been involved in American Media deals before. The New York Times reports that, in 2011, Cohen invested in the company’s American edition of OK!, a British tabloid. 
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The new North American free trade pact would modestly boost the U.S. economy, especially auto parts production, but may curb vehicle assembly and limit consumer choice in cars, a hotly anticipated analysis from the 

U.S. International Trade Commission showed on Thursday. 

The ITC report is a crucial step in the push for Congress to consider ratification of the U.S.-Mexico-Canada Agreement, which was signed by President Donald Trump and the leaders of the other two countries last year to replace the 25-year-old North American Free Trade Agreement. 

The report estimates that annual U.S. real gross domestic product would increase by 0.35 percent, or $68.5 billion, on an annual basis compared with a NAFTA baseline, and would add 176,000 U.S. jobs, while raising U.S. exports. 

The ITC’s estimates are for year six of the trade deal, once it is fully implemented. 

The trade deal’s success or failure in Congress could be determined by how it is expected to affect the U.S. auto industry, a sector that steadily drained jobs to Mexico under NAFTA. The USMCA deal contains much tighter regional content rules, requiring that 75 percent of a vehicle’s value be sourced in North America versus 62.5 percent currently, and 40 to 45 

percent produced in high-wage areas, namely the United States 

and Canada. 

Auto industry employment would rise by 30,000 jobs for parts and engine production, but U.S. vehicle assembly would decline. 

U.S. vehicle prices would rise up to 1.6 percent, causing consumption to fall by 140,000 units per year, or about 1.25 percent of 2017 sales, the report said. 

The report overall was more positive than initially anticipated by economists, who said the traditional economic models used by the ITC to measure previous trade deals would result in minimal gains for the United States. 

White House economic adviser Kevin Hassett told Reuters that he was pleasantly surprised by the results, which used different modeling methods that he called “accurate and well done.” 

“Their estimate is a lot closer to what we think USMCA will do than I expected,” Hassett in a telephone interview. “This is very strong argument for passing the USMCA.” 

Concerns not alleviated

But some key Democrats were not swayed from their demands for improvements to the enforcement of new labor standards before they consider USMCA. Democrats control the U.S. House of Representatives. 

Rep. Earl Blumenauer of Oregon, chairman of the House Ways and Means trade subcommittee, said that he had already believed the trade deal needed changes before it could be considered by the House. “Nothing in this report alleviates those concerns,” he said. 

Sen. Ron Wyden of Oregon, the top Democrat on the Senate Finance Committee said, “The administration shouldn’t squander the opportunity to lock in real, enforceable labor standards in Mexico.” 

The ITC report said Mexican union wages would rise by 17.2 percent if the labor provisions agreed to in the USMCA were enforced. Even so, Mexican factory wages would remain far below those in the United States. 

Republican Sen. Chuck Grassley of Iowa, chairman of the Senate Finance Committee, praised the report for highlighting benefits beyond tariff reductions. 

“Many of the significant improvements in USMCA are reducing non-tariff barriers and implementing rules and fair practices that will help U.S. workers, jobs and businesses tremendously over the coming years,” Grassley said in an emailed statement. 

Dueling analyses

The U.S. trade representative’s office had prepared a separate analysis of the USMCA’s automotive benefits that industry officials had described as a rosier alternative view of USMCA aimed at limiting any potential damage from the ITC report. 

USTR estimated that the trade deal would create 76,000 automotive sector jobs within five years as automakers invest $34 billion in new plants to comply with the regional content rules. The total includes about $15 billion in projects already announced. 

USTR officials said their analysis was based on plans disclosed by automakers to the trade agency for compliance with the new agreement’s tighter rules of origin.

“They have verbally committed to us that they intend to comply with the rules,” a senior USTR official said. “And they have told us that this is not going to have significant upward pressure on vehicle prices.” 

But the ITC report said some automakers may decide not to offer vehicles that would be too expensive to bring into compliance with the deal, reducing consumer choice in the U.S. auto market. 

The trade group representing Detroit automakers Ford, General Motors and Fiat Chrysler said it viewed the USTR analysis as more accurate than the ITC’s. 

The ITC “underestimates the longer-term investments and increased U.S. auto parts sourcing that will be made in our sector as a result of the certainty and predictability the USMCA will deliver,” Matt Blunt, president of the American Automotive Policy Council, said in a statement. 

The USMCA deal will also lead to new access for U.S. exports of dairy, poultry and egg products to Canada and U.S. imports of sugar and sugar-containing products from Canada, the ITC said. 

The ITC’s forecast estimated total U.S. dairy product output would increase by $226.8 million, or 0.1 percent. U.S. agriculture and food exports overall would increase by $435 million. 
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