Texas Governor Greg Abbott has defied intensifying pressure over his new border policy that has gridlocked lorries entering the US and shut down some of the world’s busiest trade bridges.
Mr Abbott ordered commercial lorries to undergo extra inspections at the US-Mexico border, causing traffic to snarl.
The Republican governor, who has been fighting with US President Joe Biden's administration over immigration, ignored pleas from the Mexican government and allies for him to relent.
The stand-off has stoked fears that grocery shoppers could experience higher prices and empty shelves at stores.
The White House claimed that the extra inspections have led to five-hour delays at border crossings and a 60 per cent drop in commercial traffic.
"Governor Abbott’s unnecessary and redundant inspections of trucks transiting ports of entry between Texas and Mexico are causing significant disruptions to the food and automobile supply chains," White House press secretary Jen Psaki said on Wednesday.
During a trip to Laredo, Mr Abbott said he would stop inspections at one bridge in the city after reaching an agreement with the governor of neighbouring city Nuevo Leon.
“I understand the concerns that businesses have trying to move product across the border,” he said.
“But I also know well the frustration of my fellow Texans and my fellow Americans caused by the Biden administration not securing our border.”
Mr Abbott said inbound lorries elsewhere would continue to be inspected until leaders of Mexico's other neighbouring states reached agreements with Texas over security.
The governor said the extra inspections were necessary to curb human and drug trafficking.
The move was part of several actions he is taking in response to Mr Biden's intention to wind down a law that would turn away asylum seekers to prevent the spread of Covid-19.
Scrutinising each lorry meant that up to 80 per cent of perishable fruit and vegetables have not been able to cross the border since last week, The New York Times reported.
The delays has also idled drivers who are not strictly paid by the hour.
Walmart, America's largest retailer, pays its lorry drivers by the kilometre and for waiting times while loading and unloading, Walmart spokesman Jimmy Carter told The National.
At an event at the White House last week, Mr Biden said investing in "people who make the supply chain run" is the best way to strengthen it.
Transport Secretary Pete Buttigieg said: “If you enjoyed the food you ate for breakfast, the clothes you’re wearing right now … you can thank a truck driver for getting that to you."
The American Trucking Associations last year estimated the US had a deficit of 80,000 drivers.
Additional reporting by Holly Aguirre
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UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Yemen's Bahais and the charges they often face
The Baha'i faith was made known in Yemen in the 19th century, first introduced by an Iranian man named Ali Muhammad Al Shirazi, considered the Herald of the Baha'i faith in 1844.
The Baha'i faith has had a growing number of followers in recent years despite persecution in Yemen and Iran.
Today, some 2,000 Baha'is reside in Yemen, according to Insaf.
"The 24 defendants represented by the House of Justice, which has intelligence outfits from the uS and the UK working to carry out an espionage scheme in Yemen under the guise of religion.. aimed to impant and found the Bahai sect on Yemeni soil by bringing foreign Bahais from abroad and homing them in Yemen," the charge sheet said.
Baha'Ullah, the founder of the Bahai faith, was exiled by the Ottoman Empire in 1868 from Iran to what is now Israel. Now, the Bahai faith's highest governing body, known as the Universal House of Justice, is based in the Israeli city of Haifa, which the Bahais turn towards during prayer.
The Houthis cite this as collective "evidence" of Bahai "links" to Israel - which the Houthis consider their enemy.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
