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Energy & Economics
Middle East Conflict. Conceptual photo

How might a wider Middle East conflict affect the global economy?

by Ahmet Kaya

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском The world economy is underperforming as a result of tight monetary policies, weaker global trade, a slowing Chinese economy and uncertainty around the US election. An escalation of conflict in the Middle East could increase uncertainties, harming inflation reduction efforts and hurting growth. It has been over a year since the Hamas-led attack on Israel. Israel’s response in Gaza has resulted in widespread destruction and significant loss of life. The conflict has since expanded beyond Gaza, involving the Houthis in Yemen, Hezbollah in Lebanon and Iranian strikes targeting Israel. In addition to the awful humanitarian cost of the conflicts, the war and the possibility of its further expansion pose significant repercussions for the global economy. This article discusses three potential ways in which the current conflict and a wider conflict in the Middle East could affect the global economy. Increased geopolitical uncertainties First and foremost, an escalation of the Middle East conflict could lead to greater geopolitical uncertainties. Figure 1 shows the evolution of the geopolitical risk (GPR) and geopolitical acts (GPRA) indices (Caldara and Iacoviello, 2022) – these are text-based measures of heightened uncertainties due to adverse geopolitical events such as wars, terrorism and international tensions. (See this article for more discussion about these measures.) Following the Hamas-led attack on 7 October 2023, both the overall GPR index and its ‘war and terror acts’ component spiked strongly, to a level higher than that seen during the ISIS attack in Paris in November 2015. Both indices eased significantly in the months following October 2023 despite the continuation of the conflict. But they jumped again following Israel’s attack on southern Lebanon in September 2024. As of mid-October 2024, the GPR and GPRA remain, respectively, 21% and 35% higher than their historical averages.   What might be the consequences of such elevated levels of risk? Research tells us that higher geopolitical risk raises oil prices (Mignon and Saadaoui, 2024). It also reduces global investment and increases inflation (Caldara et al, 2022). Greater geopolitical risk has a significantly negative impact on business and consumer confidence in several advanced economies (de Wet, 2023). This is because consumers typically cut non-essential spending and businesses postpone investment decisions during turbulent times. This reduces firm-level investment, particularly for businesses with higher initial investment costs and greater market power (Wang et al, 2023). Higher geopolitical risks also reduce global trade and financial flows, causing greater volatility in capital flows in emerging markets (Kaya and Erden, 2023). Oil production cuts and higher energy prices The second way in which the Middle East conflict could affect the global economy is its impact on energy prices, both directly through production cuts and indirectly through greater uncertainties. In response to Israel’s actions against its neighbours, the Organization of the Petroleum Exporting Countries (OPEC) could reduce oil production to penalise countries supporting Israel. A similar action in the 1970s led to a significant jump in oil prices, which contributed to years of stagflation, with higher global inflation and recessions in major economies. Before Israel's attack on Lebanon at the end of September, oil prices had been declining due to falling demand, particularly from China. On the supply side, oil production had increased in Canada and the United States, countering the production cuts by OPEC, and Saudi Arabia was expected to increase oil production from December. But the situation quickly reversed following Israel’s attack on Lebanon. Oil prices jumped by nearly $10 per barrel within a week, before easing by around $5 per barrel. While the immediate oil price impact of Israel’s attack has mostly faded, the potential for higher oil (and other energy) prices still poses a risk to global inflation and economic activity (Liadze et al, 2022). To provide further context for the potential scale of this impact, we can show what would happen if oil and gas prices were to remain $10 higher for two years than the baseline levels projected in the Summer Global Economic Outlook from the National Institute of Economic and Social Research (NIESR), using NIESR’s Global Macroeconometric Model (NiGEM). The results demonstrate that the $10 rise in oil and gas prices increases inflation by around 0.7 percentage points in major economies in the first year (see Figure 2). The impact is higher in China, where the economy relies relatively more on oil imports for its strong manufacturing industries. The inflationary pressures persist for two years despite central banks’ efforts to curb inflation by increasing interest rates.   The effect of higher oil and gas prices on real GDP is shown in Figure 3. In the scenario described above, GDP would fall by 0.1-0.2% in major economies immediately. Partly due to higher interest rates, real GDP would continue to weaken for three years following the shock. After this, economic activity would start to return to base levels as oil and gas prices revert to their levels in the baseline forecast.   Increased shipping costs and supply chain disruptions A wider conflict in the Middle East could also affect the economy through higher shipping costs and supply chain disruptions. Houthi attacks on commercial ships in the Red Sea in late 2023 showed that such disruptions can have a huge impact on global trade through shipping, which comprises 80% of world trade volume. Following the rocket attacks by the Houthi rebels, some commercial shipping re-routed from the Red Sea to the Cape of Good Hope, leading to significant delays in travel times and increased freight costs. As a result, the Shanghai Containerized Freight Index – a measure of sea freight rates – rose by around 260% in the second quarter of 2024 with additional disruptions to supply chains. Our analysis shows that an increase of 10 percentage points in shipping cost inflation can lead to import prices rising by up to around 1% and consumer inflation increasing by around 0.5% in OECD countries. As Figure 4 shows, the impact of shipping costs on inflation shows its full effects over six quarters. This means that inflationary concerns could be with us for the next year and a half as a result of higher shipping costs that may emerge from any possible escalation of the Middle East conflict.   Wider economic implications and policy responses While rising geopolitical risk and increased oil and shipping costs can each individually exert upward pressure on inflation and may slow down economic activity in the global economy, the combined impacts are likely to be greater. Countries with stronger trade and financial ties to the Middle East and those that rely heavily on oil imports as an input for domestic production would be most affected. On the monetary policy front, central banks may have to take a more hawkish stance in response to rising inflationary pressures from the Middle East conflict. This could lead to higher interest rates, which would further dampen economic activity, particularly in an environment where there are already recessionary concerns in some major economies. Beyond its immediate economic implications, an escalation of the Middle East conflict could trigger large-scale displacement of people, which would increase economic and social pressures on neighbouring countries. Many countries may also have to increase their military spending in response to growing regional tensions. Given that public debt levels are already elevated in many countries due to successive shocks to the global economy over the past decade, any additional defence spending could come at the expense of public infrastructure investments that would otherwise boost productivity growth. Overall, the global economy is already underperforming as a result of the lagged effects of tight monetary policies, weaker global trade, a slowing Chinese economy and uncertainties surrounding the upcoming US election and possible changes to US trade policy. A potential escalation of conflict in the Middle East could exacerbate the situation by increasing uncertainties, harming efforts to bring down inflation and reducing global GDP growth. Over the medium and long term, it could further damage the global economy, with the possibility of refugee crises as well as increased defence spending, making the effects more complex and longer lasting. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Defense & Security
Buenos Aires, Argentina, Feb 16, 2024: People protesting in front of the obelisk, downtown, with posters in the colors of the Palestinian flag forming the text Free Palestine.

Community of Latin American and Caribbean States (CELAC) and Operation al-Aqsa Flood

by Prof. Dr. Walid ‘Abd al-Hay, Yarmouk Universi

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском Introduction In 2010, the Community of Latin American and Caribbean States (CELAC) was established and ratified in 2011, with membership expanding to 33 countries. According to the organization’s statements, its aims include “deepening the integration of Latin American countries, promoting international peace, and respecting human rights.” Additionally, there is an implicit ambition among several members to reduce the political and economic influence of the US in the region, as suggested by the context of some of the organization’s statements.[2] With a total population of about 635 million people, covering an area of about 22 million km², and accounting for 17% of the United Nations (UN) voting power, their Gross Domestic Product (GDP) on a Purchasing Power Parity (PPP) basis for 2023 is approximately $12.8 trillion, equivalent to 7.8% of the world’s GDP. However, four of the 33 countries contribute more than $9.6 trillion, or about 75% of the GDP. These four countries also comprise 68% of the total population of the regional group, as shown in the following table:[3]   CELAC’s Position on Operation al-Aqsa Flood The Latin American and Caribbean region has the highest percentage of leftist political regimes in the world. Among the 19 most significant countries in the region, 12 are now run by left-wing governments, accounting for 63% of the total. These leftist-led countries represent 92% of the region’s people and 90% of its GDP.[4] This demographic and economic dominance is clearly reflected in CELAC’s stance on two interconnected issues: the position on Operation al-Aqsa Flood, marked by varying degrees of rejection of Israeli policy, and a relative independence from US influence in the region. First: CELAC’s Stance as a Political Bloc on Operation al-Aqsa Flood[5] At the eighth CELAC summit, held in March 2024 in Kingstown, the capital of St.Vincent and the Grenadines, a lack of consensus emerged among the members regarding Operation al-Aqsa Flood. Despite the compromise language in the conference statement, 27 countries endorsed it while 6 countries opposed it.[6] The resolution included the following points:[7] a. Condemning the killing of civilians on both the Palestinian and Israeli sides and emphasizing the need to protect civilians in accordance with international law.b. Supporting the UN General Assembly call for a ceasefire.c. Demanding the immediate and unconditional release of hostages.d. Urging the delivery of humanitarian aid to the affected areas in the Gaza Strip (GS).e. Calling for a peaceful solution based on the two-state solution. Second: Stances of the Central States within CELAC[8] Countries with left-leaning governments are often the most vocal in supporting the Palestine issue, as reflected in their leaders’ statements. Venezuelan President Nicolás Maduro slammed “the international position regarding the ongoing genocide in Gaza,” and pointed out that “international justice exists only to protect the interests of American, European, and Western imperialism, in order to conceal the massacres committed against Palestinian families.” Brazilian President Lula da Silva aligned with this view, calling on “the five permanent members of the United Nations Security Council (UNSC) to set aside their differences and put an end to the genocide in Gaza.” He reiterated his call for an immediate ceasefire, as outlined in the CELAC statement from the 8th Congress. Additionally, he noted Brazil’s efforts to support UN Security Council resolutions aimed at halting the fighting in GS, which were vetoed by the US. Colombian President Gustavo Petro criticized both the United States and Europe for supporting “Israel in committing genocide against the Palestinians,” with similar sentiments expressed by Nicaragua. Generally, the positions of CELAC countries, particularly the major powers, can be categorized into three distinct stances, as illustrated in the table below:[9]   1. Countries closest to the Israeli position: This group varies in their level of support for Israel, as illustrated by the following indicators: a. The Salvadoran stance is notably one of the most vehement against the Palestinians, despite President Nayib Bukele being a Christian of Palestinian descent who calls for the “demise of the Palestinian resistance.” This position aligns closely with that of Paraguay, one of the few countries to label the Palestinian resistance as “terrorism” and announce plans to move its embassy from Tel Aviv to Jerusalem. Paraguay’s stance on Israeli settlements in the occupied territories is marked by a consistent lack of condemnation at the UN and frequent abstentions from voting on resolutions that support Palestinian rights. b. The Jewish minority in Argentina plays a significant role in influencing the government. With a population of between 300–400 thousand, Argentina has the largest Jewish community in Latin America and the fifth largest in the world. The attacks on Jewish institutions in Argentina during 1992–1994, which were linked to Iran—a key supporter of Palestinian resistance—also influenced the government’s stance, despite opposition from the pro-Palestinian Worker’s Left Front – Unity party. c. Guatemala, with a population of about 18 million, was the first Latin American country to move its embassy to Jerusalem. It is also one of the centers of gravity for Anglican Christianity, which tends to be more sympathetic to Zionism. 2. Countries that have adopted a middle ground, attempting to balance support for and opposition to both sides of the conflict: a. Both Mexico and Brazil criticized the attack on Israel on 7/10/2023, but strongly condemned the Israeli response. b. In the diplomacy of Brazil and Mexico, a role reversal was observed. The presidencies of both countries adopted more articulate positions than their foreign ministries, where traditional diplomatic language prevailed. c. Mexico has not severed ties with Israel; however, its representatives at the UN have sharply criticized the Israeli government. d. Ecuador can be included in this group due to its effort to mediate peace between the Palestinian resistance and Israel by sending Ecuadorian Vice President Verónica Abad in October 2023. Additionally, Ecuador has backed Palestine’s bid for full membership in both the UN Security Council and the UN General Assembly, though it has explicitly condemned the resistance attack that occurred in October 2023. 3. Countries that support Palestinian rights are typically left-leaning and their policies often exhibit the following characteristics: a. Nicaragua unequivocally supported the Palestinian position and even received some Palestinian leaders after the war. b. Colombia has taken a definitive stance in strong support of Palestine. It is one of the most vocal critics of Israeli policies, culminating in its decision to sever diplomatic ties with Israel. Colombian President Gustavo Petro has sharply condemned Israeli actions in Gaza, labeling them as “genocide.” It is important to note that Colombia’s position is significant given its historical and strategic ties with Israel. Although Colombia relies on Israeli military equipment for combating armed opposition and drug trafficking groups, and there has been a free trade agreement between the two countries since 2020, as well as various agreements since the establishment of diplomatic relations in 1957, trade data shows a 53% decline in trade between Israel and Colombia following the recent conflict, compared to 2022. c. The Cuban and Venezuelan position was a continuation of their traditional support for the Palestinian right, and Cuba justified the Palestinian attack on 7/10/2023 as a reaction to 75 years of oppression of the Palestinians. d. Bolivia did not condemn the Palestinian attack in October, instead focusing its statements on de-escalating the conflict between the two sides. However, the lack of Israeli response to its calls led Bolivia to sever diplomatic relations with Israel. Additionally, Bolivia supported South Africa’s case against Israel at the International Court of Justice (ICJ) and endorsed a case before the International Criminal Court (ICC). Colombia and Belize have also cut ties with Israel. Notably, during the last week of June 2024, Bolivia experienced a failed coup attempt, raising suspicions that the US and Israel may have been involved as retaliation for Bolivia’s clear stance on the Gaza war.[10] e. The significant presence of the Palestinian community in Chile, the largest in Latin America with nearly half a million having Palestinian roots, has notably influenced Chilean politics. This influence is reflected in the Chilean Senate’s Human Rights Commission decision to ban companies from importing goods produced in Israeli settlements in the occupied territories. A US State Department official characterized this decision as one that unfairly singles out Israel.[11] f. Honduras has exhibited a decrease in its support for Israel following Israeli attacks on civilians, leading the government to summon the Israeli ambassador to protest these actions. In 2021, Honduras was one of the first countries to relocate its embassy from Tel Aviv to Jerusalem, joining Guatemala and Paraguay, which had made similar moves in 2018. However, Guatemala reversed its decision and returned its embassy to Tel Aviv shortly thereafter. The shift in Honduras’ stance can be attributed to the change in leadership from a right-wing to a left-wing administration after Xiomara Castro assumed the presidency in 2022. g. Since the beginning of the war, Latin American countries’ positions in support of Palestine have evolved at the diplomatic level in particular, and have begun cutting ties and recalling ambassadors from Israel, which was initiated by Chile, Colombia, and Honduras, while Bolivia and Belize cut diplomatic ties with Israel completely. Bolivia was one of the five countries that referred the situation in GS to the ICC for investigation in November 2023. In the referral, Bolivia cites evidence of crimes against Palestinians including murder, torture, inhumane treatment, persecution, apartheid, forced displacement, and the destruction of Palestinian cultural heritage. Mexico and Chile did the same in January 2024, whereas Brazil’s and Colombia’s foreign ministries issued statements supporting South Africa’s legal action against Israel before the ICJ. The Brazilian position has been the leading one, which has strained relations between Brazil and Israel despite efforts by the Brazilian Israelite Confederation (CONIB) to mend fences. However, the Brazilian president’s remarks that “what is happening in the Gaza Strip with the Palestinian people hasn’t happened at any other moment in history” except one: “When Hitler decided to kill the Jews,”[12] combined with the Brazilian Foreign Ministry’s endorsement of European countries’ recognition of Palestine as a state and support for a two-state solution, have solidified Brazil’s stance against Israeli policies. CELAC’s Vote at the UN A review of General Assembly and Security Council resolutions reveals that the countries most resistant to supporting resolutions favoring Palestinian demands are Guatemala, Paraguay and Argentina, followed by Haiti, Uruguay, Panama and El Salvador. These countries often either oppose or abstain from voting. Argentina, with a population of nearly 46 million, is the most significant ally of Israeli policy. This is followed by Guatemala with about 18 million people, Paraguay with around 7 million, Panama with 4.5 million and Uruguay, with approximately 3.5 million people. Argentina ranks third among CELAC countries in terms of GDP and fourth in terms of population. Argentina’s stance on Palestinian rights reflects the political shift introduced by President Javier Milei, who aims to align Argentina more closely with the Western capitalist bloc through his foreign policy.[13] Argentina did not support the General Assembly resolution calling for a ceasefire in December 2023 and opposed the resolution to grant Palestine full membership in the UN. The Argentine position can be attributed to the following reasons:[14] a. President Javier Milei’s religious inclination towards Judaism was evident in his prayers at the Western Wall in Jerusalem in 2021, accompanied by Rabbi Shimon Axel Wahnish, who was later appointed as Argentine ambassador to Israel. Although the Argentine president is a Catholic Christian, some sources suggest he is considering converting to Judaism. However, other sources claim that President Milei’s display of Jewish faith is a way to express repentance and counter accusations that he concealed his support for a Nazi sympathizer. b. The Argentine president’s intention to strengthen ties with the Jewish minority in Argentina, as previously mentioned, faced opposition from nearly four thousand Argentine Jewish intellectuals, who voiced concern over Milei’s “political use of Judaism.” This concern was highlighted when he became one of the first world leaders to visit Israel after the war erupted, offering high praise for Benjamin Netanyahu’s policies and pledging to move Argentina’s embassy from Tel Aviv to Jerusalem. Interestingly, the Argentine president demonstrated a clear bias towards Israel when he cut his state visit to Denmark short, following the Iranian attack on Israel in April 2024, which was in response to the Israeli attack on the Iranian consulate in Damascus. President Meli then convened a crisis committee alongside the Israeli ambassador to Argentina and his security minister, who began criticizing the positions of other Latin American countries, such as Bolivia and Chile, describing them as “Islamic hotbeds” and accusing them of hosting Hezbollah elements. He also criticized the defense agreement Iran concluded with Bolivia in July 2023. c. Milei, a university economics professor, bases his economic ideology on far-right principles and anti-leftist Peronism in Argentina, making him the most eager to strengthen the relationship with the US and, consequently, with Israel. d. It is noted that trade relations between Israel and Argentina are escalating significantly. Israeli exports to Argentina increased annually by 15.2% from 2017 to the end of 2022, reaching $156 million in 2022. Similarly, Argentine exports to Israel increased annually by 25.2%, reaching $200 million in 2022. Third: Trends in Public Opinion in CELAC Countries Quantitative studies on access to information and data from various sources show that Latin American countries lead the world in relying on social media for obtaining and sharing information. This trend has influenced Israel’s public image in the region.[15] Public opinion polls in Latin America reveal that approval of the way US President Joe Biden’s is dealing with the GS war is modest. A survey of six major Latin American countries showed the following results:[16]   The approval rate with Biden’s GS war policy in six countries is notably low, at around 26%. In contrast, the same survey indicates that the disapproval in these countries is more than double the approval rate, reaching approximately 57%. Meanwhile, the people of CELAC countries expressed their solidarity with Palestine after Operation al-Aqsa Flood. This solidarity was evident in demonstrations involving former presidents, civil society organizations, popular sectors, football associations, artists and universities, particularly in Brazil, Venezuela, Bolivia, Mexico, Uruguay, Peru and Argentina, etc. Conclusion The “instability” in political orientations towards international issues is a key feature of Latin American countries’ policies, largely due to the frequent shifts in political regimes and the consequent changes. In analyzing the positions of Latin American countries on the Arab-Israeli conflict, four factors seem to be the most significant in shaping this relationship:[17] 1. The political shifts between leftist and rightist regimes, whether due to coups or presidential elections, often characterize these countries as “unstable.” This is particularly evident in major countries within this group, such as Brazil, Mexico, Argentina and Colombia. This instability is reflected in their stances on the Arab-Israeli conflict: leftist regimes typically support Palestine, while rightist ones back Israel. 2. The positions of these countries on Israel are notably influenced by US policies. Some countries align with the US stance to avoid potential pressure, a pattern observable since the Monroe Doctrine in 1823. 3. A growing trend among Catholic Christians toward Anglicanism, which shares a closer religious alignment with the Israeli position. 4. Israeli presence in the technological sector of the Latin American economy is significant. In major Latin American countries like Brazil, Mexico, Argentina and Colombia, more than 450 Israeli companies are active in this industry. The data we have discussed highlight the need for resistance forces to recognize the significance of this region in the following ways: 1. Despite a noticeable division among Latin American countries in their responses to Operation al-Aqsa Flood and its aftermath, the balance of support leans considerably toward the resistance. This is due to the increasing leftist inclination in the region, particularly in its major countries. Demonstrations in support of Palestine have occurred in Brazil, Bolivia, Venezuela, Cuba, Peru and Chile. 2. Cutting ties with Israel, recalling ambassadors, or participating in cases against it in the ICJ and the ICC by Latin American countries is perhaps the most significant in terms of political impact. This development requires follow-up, including providing these countries with relevant information and support to reinforce this trend. 3. Despite their Anglican background, public opinion trends in these countries reveal a strong sympathy for Palestinian suffering, which is more than twice as significant as the sympathy for Israel. This is evident from the approval rates toward President Biden’s pro-Israel policies. These findings suggest the need for engaging with leftist forces in the region based on shared libertarian values. 4. Comparing the trade between Latin American and Israel, which was $6 billion in 2022, to the trade with Arab countries, the trade volume with the Gulf countries alone is more than three times greater than that with Israel. However, the political influence of these trade relations with the Arab world remains relatively modest.[18] 5. Arab and Palestinian diplomacy should focus on four Latin American countries-Brazil, Mexico, Argentina and Colombia—due to their significant political, economic and demographic influence in the international arena. References [1] An expert in futures studies, a former professor in the Department of Political Science at Yarmouk University in Jordan and a holder of Ph.D. in Political Science from Cairo University. He is also a former member of the Board of Trustees of Al-Zaytoonah University of Jordan, Irbid National University, the National Center for Human Rights, the Board of Grievances and the Supreme Council of Media. He has authored 37 books, most of which are focused on future studies in both theoretical and practical terms, and published 120 research papers in peer-reviewed academic journals. [2] CELAC/ Zone of Peace: “A key step to countering the globalization of militarism” – UN Expert, site of The Office of the High Commissioner for Human Rights, 3/2/2014, https://www.ohchr.org/en/press-releases/2014/02/celac-zone-peace-key-step-countering-globalization-militarism-un-expert [3] World Economic Outlook Database: October 2023, site of International Monetary Fund, https://www.imf.org/en/Publications/WEO/weo-database/2023/October/weo-report?c=311,213,314,313,316,339,218,223,228,233,238,321,243,248,253,328,258,336,2; GDP, PPP (current international $) – Latin America & Caribbean, site of World Bank Group, https://data.worldbank.org/indicator/NY.GDP.MKTP.PP.CD?locations=ZJ; and List of Latin American and Caribbean countries by GDP (PPP), site of Wikipedia, https://en.wikipedia.org/wiki/List_of_Latin_American_and_Caribbean_countries_by_GDP_(PPP)#cite_note-1 [4] Latin America’s left-wing experiment is a warning to the world, site of The Economist newspaper, 18/5/2023, https://www.economist.com/the-americas/2023/05/18/latin-americas-left-wing-experiment-is-a-warning-to-the-world [5] For a historical overview of Israel’s relations with Latin America, see Walid ‘Abd al-Hay, Academic Paper: Israeli Relations with Latin America, site of al-Zaytouna Centre for Studies and Consultations, 5/4/2021, https://eng.alzaytouna.net/2021/04/05/academic-paper-israeli-relations-with-latin-america/ [6] Estimates vary, but the number of signatories is likely to be 27, see CELAC member states divided over Israel-Gaza war stance, site of SEARCHLIGHT, 5/3/2024, https://www.searchlight.vc/front-page/2024/03/05/celac-member-states-divided-israel-gaza-war-stance; and Brazil, 23 other Celac countries call for immediate ceasefire in Gaza, site of Agencia Brasil, 4/3/2024, https://agenciabrasil.ebc.com.br/en/internacional/noticia/2024-03/brazil-23-other-celac-countries-call-immediate-ceasefire-gaza [7] CELAC summit fails to take unanimous position on Gaza, site of iWitness News, 2/3/2024, https://www.iwnsvg.com/2024/03/02/celac-summit-fails-to-take-unanimous-position-on-gaza [8] Latin American peace, anti-imperialism, and Gaza at the heart of CELAC, site of Al Mayadeen English, 1/3/2024, https://english.almayadeen.net/news/politics/latin-american-peace–anti-imperialism–and-gaza-at-the-hear; Oliver Stuenkel, The Israel-Hamas War Is Inflaming Polarization in Latin America, site of Americas Quarterly (AQ), 16/11/2023, https://www.americasquarterly.org/article/the-israel-hamas-war-is-inflaming-polarization-in-latin-america; Ecuador VP says she will go to Israel amid spat with president, Reuters News Agency, 28/11/2023, https://www.reuters.com/world/middle-east/ecuador-vp-says-she-will-go-israel-amid-spat-with-president-2023-11-28; and At CELAC, Lula extols the potential of Latin Americans and Caribbeans as an integrated bloc, site of Planalto, 5/3/2024, https://www.gov.br/planalto/en/latest-news/2024/03/at-celac-lula-extols-the-potential-of-latin-americans-and-caribbeans-as-an-integrated-bloc [9] For detailed information on the positions of CELAC countries, either individually or as a bloc, please refer to the following references, see Rogelio Núñez Castellano and Carlos Malamud, Latin America and the Gaza crisis, site of The Elcano Royal Institute, 24/11/2023, https://www.realinstitutoelcano.org/en/analyses/latin-america-and-the-gaza-crisis; Enrique Reina (@EnriqueReinaHN), site of X (Twitter), 3/11/2023, 10:01, https://x.com/EnriqueReinaHN/status/1720531624289575107; Brazil’s president withdraws his country’s ambassador to Israel after criticizing the war in Gaza, site of Associated Press (AP), 29/5/2024, https://apnews.com/article/brazil-lula-israel-ambassador-withdrawn-af9d295d989a86c4fcd8ca4531350f42; Colombia breaks diplomatic ties with Israel but its military relies on key Israeli-built equipment, AP, 3/5/2024, https://apnews.com/article/colombia-israel-diplomatic-ties-military-equipment-0c04009ccfc6110e20ee358403509500; President Milei’s surprising devotion to Judaism and Israel provokes tension in Argentina and beyond, AP, 3/6/2024, https://apnews.com/article/milei-judaism-hezbollah-israel-hamas-war-netanyahu-d8831369a6bc8a96205d4080d2b2045b; Argentina demands that Bolivia explain its new defense agreement with Iran, AP, 25/7/2023, https://apnews.com/article/argentina-bolivia-iran-defense-mou-2cb8c5917fdb6d3e01af4c67af969797; Israel/ Argentina, site of Observatory of Economic Complexity (OEC), https://oec.world/en/profile/bilateral-country/isr/partner/arg; Latin America divided and nuanced on Israel-Hamas conflict, site of Buenos Aires Times, 1/11/2023, https://www.batimes.com.ar/news/latin-america/latin-america-divided-and-nuanced-on-the-israel-hamas-conflict.phtml; Marta Tawil Kuri, Perspectives from the Global South: Latin America’s Fragmented Approach to Palestine, site of Arab reform initiative (ARI), 15/12/2023, https://www.arab-reform.net/publication/perspectives-from-the-global-south-latin-americas-fragmented-approach-to-palestine; IntelBrief: Leaders in Latin America Speak Loudly on Gaza, site of The Soufan Center (TSC), 1/3/2024, https://thesoufancenter.org/intelbrief-2024-march-1; Honduran president in Israel for opening of Jerusalem embassy, site of i24NEWS, 24/6/2021, https://www.i24news.tv/en/news/israel/diplomacy-defense/1624517565-honduran-president-in-israel-for-opening-of-jerusalem-embassy; Angeline Montoya, In Honduras, the mixed track record of President Xiomara Castro, site of Le Monde, 10/2/2023, https://www.lemonde.fr/en/international/article/2023/02/10/in-honduras-the-mixed-track-record-of-president-xiomara-castro_6015218_4.html; Latin America countries hold rallies in support of Palestine, site of Anadolu Agency (AA), 4/3/2024, https://www.aa.com.tr/en/americas/latin-america-countries-hold-rallies-in-support-of-palestine/3154305; Latin America: Demonstrations expressing support for Palestinians scheduled in several regional cities Oct. 20-22, site of Crisis24, 20/10/2023, https://crisis24.garda.com/alerts/2023/10/latin-america-demonstrations-expressing-support-for-palestinians-scheduled-in-several-regional-cities-oct-20-22; Gaza solidarity sweeps across Latin America, site of Middle East Monitor (MEMO), 23/10/2023, https://www.middleeastmonitor.com/20231023-gaza-solidarity-sweeps-across-latin-america; Alejandro Santos Cid, University Gaza solidarity protests extend to Mexico: ‘We are urgently calling for an end to genocide’, site of EL PAÍS, 4/5/2024, https://english.elpais.com/international/2024-05-04/university-gaza-solidarity-protests-extend-to-mexico-we-are-urgently-calling-for-an-end-to-genocide.html; site of PRIMICIAS, 7/10/2023, https://www.primicias.ec/noticias/politica/ecuador-condena-ataque-hamas-israel (in Spanish) [10] See Lithium, severing ties with Israel, or rapprochement with Russia? What is the secret to the failed Bolivian coup?, site of RT, 28/6/2024, https://arabic.rt.com/world/1578053- الليثيوم-غزة-أم-موسكو-أيهم-كلمة-السر-في-الانقلاب-البوليفي-الفاشل/; and Türkiye and Bolivia: Experiences of Resisting Coups in a Changing World, site of Turk Press, 29/6//2024, https://www.turkpress.co/node/102003 [11] Patricia Garip, What Does Latin America Think About the Israel-Hamas War?, site of Foreign Policy, 29/1/2024, https://foreignpolicy.com/2024/01/29/israel-hamas-gaza-war-latin-america-chile-argentina-colombia-mexico-genocide/ [12] Lazar Berman, Israel livid as Brazil’s Lula says Israel like ‘Hitler,’ committing genocide in Gaza, site of Times of Israel, 18/2/2024, https://www.timesofisrael.com/israel-livid-as-brazils-lula-says-israel-like-hitler-committing-genocide-in-gaza/ [13] Argentina shifts historic position on Palestine as UN member state, Buenos Aires Times, 10/5/2024, https://www.batimes.com.ar/news/world/argentina-shifts-historic-position-on-palestine-asun-member-state.phtml [14] AP and TOI STAFF, Argentinian president’s surprising devotion to Judaism and Israel provokes tension, Times of Israel, 3/6/2024, https://www.timesofisrael.com/argentinian-presidents-surprising-devotion-to-judaism-and-israel-provokes-tension/; Argentina/ Israel, site of Observatory of Economic Complexity (OEC), https://oec.world/en/profile/bilateral-country/arg/partner/isr; and Israel/ Argentina, OEC, https://oec.world/en/profile/bilateral-country/isr/partner/arg [15] 4 Trends Among Latin American Internet Users That Will Impact the Market in 2022, site of Americas Market Intelligence (AMI), 9/1/2022, https://americasmi.com/insights/trends-latin-american-internet-users-marketing/#:~:text=In%20Latin%20America%2C%2083%25%20to,websites%2C%20broken%20down%20by%20country; and Annie Pforzheimer, Latin American Views on the Gaza War Are in Flux, site of The Jerusalem Strategic Tribune journal, November 2023, https://jstribune.com/pforzheimer-latin-american-views-on-the-gaza-war-are-in-flux [16] Survey conducted in Spring 2024, see Majorities disapprove of the way Biden is dealing with the Israel-Hamas war, site of Pew Research Center, 10/6/2024, https://www.pewresearch.org/global/2024/06/11/how-well-is-biden-handling-international-issues/gap_2024-06-11_us-image-2024_5_06 [17]Gian Luca Gardini (ed.), External Powers in Latin America: Geopolitics between Neo-extractivism and South-South Cooperation (Routledge, 2021), pp. 153-163; and Political stability – Country rankings, site of TheGlobalEconomy.com, https://www.theglobaleconomy.com/rankings/wb_political_stability/Latin-Am [18]Chase Harrison, Explainer: Latin America’s Relationship with Israel and Palestine, site of Americas Society (AS), Council of the Americas (COA), 16/11/2023, https://www.as-coa.org/articles/explainer-latin-americas-relationship-israel-and-palestine; and “Cultivating Ties: Deepening trade and investment between Latin America and the GCC,” site of Economist Impact, The Economist Group, 2022, https://impact.economist.com/perspectives/sites/default/files/economist_impact__dcci_latam_report_10th_march_2022_english_web.pdf

Defense & Security
Raid at the Mexican Embassy in Quito, Police capture Jorge Glas

Are embassies off-limits? Ecuadorian and Israeli actions suggest otherwise − and that sets a dangerous diplomatic precedent

by Jorge Heine

한국어로 읽기 Читать на русском Leer en español Gap In Deutsch lesen اقرأ بالعربية Lire en français It has long been held that embassies should be treated as “off-limits” to other nations. Yet in a single week, two governments – both long-established democracies – stand accused of violating, in different ways, the laws surrounding foreign diplomatic missions. First, on April 1, 2024, Iran’s embassy in Damascus was bombed, presumably by Israel, killing several high-ranking commanders of the Quds Force of Iran’s Islamic Revolutionary Guard Corps. Then, on April 5, Ecuadorian police forced their way into the Mexican Embassy in Quito to arrest a former vice president of Ecuador who was seeking political asylum. Both actions have led to claims of international law violations and accusations that the Vienna Convention, which establishes the immunity of diplomatic missions, was contravened. As someone with a fair amount of knowledge of embassy life – I have served as Chile’s head of mission in China, India and South Africa and coedited The Oxford Handbook of Modern Diplomacy – I believe the two incidents are of greater concern than much of the international community appears to be viewing them. Contrary to the famous quip from late businessman and presidential candidate Ross Perot, embassies are not just “relics of the days of sailing ships.” Rather, in an increasingly complex world where geopolitical conflict, mass migrations, pandemics and climate change require careful and stable diplomatic management, any incidents that erode the sanctity of embassy rules could have serious negative consequences. In short, they make for a more dangerous world. Curious indifference to embassy attack Of the two recent incidents, the Iranian embassy bombing is the more serious, as it involved the loss of life and resulted in warnings of retaliatory attacks. Yet, Western countries, leaders of which often voice concern over upholding the so-called “rules-based order,” have been reluctant to condemn the act. It was notable that the three liberal democracies on the U.N. Security Council – the United States, the United Kingdom and France – all refused to condemn the strike on Iran’s embassy when the issue came up before them. Israel, while not officially acknowledging responsibility, argued that the Iranian ambassador’s residence was not really a diplomatic venue but “a military building … disguised as a civilian building.” As such, to Israel it was a perfectly legitimate target. But by this logic, nearly all embassies would be seen as fair game. Almost by definition, the vast majority of embassies – particularly of the larger countries – are populated with significant numbers of military and intelligence personnel. To suggest that for that reason embassies should lose their diplomatic immunity and become legitimate targets for armed attacks would bring the whole edifice of the Vienna Convention crashing down. And with it would come the structure on which worldwide formal diplomatic interactions are based. Bedrock diplomatic principles The case of Ecuador, though less serious because it did not involve loss of life, is a bit more complex and demands some unpacking. At the center of the diplomatic spat between Ecuador and Mexico is former Ecuadorian Vice President Jorge Glas, who served four years behind bars following a 2017 conviction on corruption charges. Glas is now facing trial on different charges, prompting his December 2023 application for asylum at the Mexican Embassy. Mexico accepted the request and conveyed this to the Ecuadorian government. The latter justified its decision to send police into the Mexican embassy on the grounds that it believes Glas cannot be granted political asylum as he is a convicted felon. There is some basis to this claim: Under the Organization of American States’ Convention on the Right to Asylum of 1954, political asylum cannot be given to convicted felons unless the charges behind such conviction are of a political nature. But at the same time, Article 21 of the Vienna Convention states that diplomatic missions enjoy full immunity and extraterritoriality, meaning the host government does not have the right to enter an embassy without the authorization of the head of mission. Ecuador argues that Mexico abused its diplomatic immunity, leaving it no option other than to send police in. Yet, here a crucial distinction needs to be made. Diplomatic immunity and the extraterritoriality of foreign missions are bedrock principles of the Vienna Convention. Political asylum is a separate matter that should be handled on its own. As such, if the Ecuadorian government considered Glas not to qualify for political asylum, it could have attempted to legally block the move or refuse safe passage for the asylum-seeker to exit the embassy and leave the country. Mexico would have strong grounds to counter such measures, however, as according to the Convention on the Right to Asylum of 1954, it is up to the asylum-granting state to decide whether the case is politically motivated. Implications for the future Regardless of the merits of the asylum case, sending in the equivalent of a SWAT team to storm the embassy represents a deliberate violation of diplomatic norms. There is a long history of Latin America politicians seeking asylum who spent many years holed up in embassy buildings because governments would not grant them safe passage – the most notable being Peruvian leader Víctor Raúl Haya de la Torre, who spent five years at the Colombian Embassy in Lima. Yet, with a few exceptions, not even in the darkest hour of Latin America’s military dictatorships in the 1960s and 1970s were police permitted to storm into embassy buildings to arrest asylum-seekers. And this highlights what makes Ecuador’s actions especially worrisome. Precisely because of Latin America’s problems with political instability and a tradition of military coup, the laws surrounding political asylum and diplomatic immunity are necessary. Undermining the Vienna Convention in the way Ecuador has risks setting a precedent that other governments might be tempted to follow. Political asylum in Latin America has traditionally worked as a safety valve, allowing deposed leaders to get themselves out of harm’s way. Weakening the diplomatic structures in place supporting asylum will make the handling of democratic breakdowns more difficult. It also risks exacerbating regional disagreements. We are already seeing this with Mexico breaking relations with Ecuador as a result of the embassy raid. Making diplomacy more difficult Of course, embassy violations are not unprecedented. Guatemala’s dictatorship attacked the Spanish Embassy in Guatemala City in 1980, killing several asylum-seekers, including a former vice president. And Uruguay’s military government sent security forces into the Venezuelan Embassy in Montevideo in 1976 to arrest a left-wing militant who had sought asylum, leading to the breakdown of diplomatic relations between the two countries. But those events in the relatively distant past were widely and rightly condemned at the time as the product of authoritarian regimes with little regard for international conventions. The comparatively relaxed international attitude to the embassy violations by Israel and Ecuador reflects, I believe, a failure to grasp the significance of eroding diplomatic immunity and norms. As global challenges increase, embassies and their representatives become more important, not less so. If the takeaway from the two latest embassy incidents is that the protection of diplomatic premises can be secondary to whatever is politically expedient on any given day, then it will be of great detriment to the management of international relations. Diplomacy will become much more difficult. And given the enormity of the challenges the world faces today, that is the last thing any country needs.