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한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском Donald Trump seems to be turning tariffs, which can serve as a legitimate tool to achieve the goals of fair trade and the protection of key national security interests, into an illegitimate tool of coercive statecraft. It is likely to undermine the global economic order and US soft-power influence across the world Since re-entering the Oval Office Donald Trump has already threatened dozens of nations with economic tariffs in relation to a vast array of issues, many of which are non-economic in nature. What, if any, is the legal basis for these tariffs in domestic and international law, and how are they different from or similar to the type of economic measures China applies to influence other sovereign nations’ choices in ways that benefit Beijing? In this article we address these questions. Trumps weaponisation of trade tariffs Trump 2.0 seems set on following China’s leadership in the practice of using trade relations for economic coercion against other states, in breach of international and bilateral trade agreements. This practice decouples tariffs from their legitimate World Trade Organization (WTO) purpose of offering protection against unfair trade practices. WTO rules allow protective tariffs in cases of anti-dumping—for instance where foreign firms sell exports below their cost of production—or as countervailing measures against subsidised imports that would otherwise unfairly undercut and thus harm domestic producers. Such tariffs are a lawful tool for economic defence. Furthermore, in a geo-economic world there may be other limited situations where a reasonable argument can be made for using tariffs in a national security context not covered by WTO rules, or against economies that do not play by WTO rules. Moving beyond this delimited use of tariffs inevitably results in the tool becoming an economic cudgel for achieving non-economic political objectives. Where these are based on highly questionable claims regarding the relationship to US national security, and without basis in WTO or bilateral free trade agreement rules, the likelihood that tariffs are naked coercion rather than a legitimate defensive measure grows. Making a wide array of economic and non-economic demands of countries—including Canada, Colombia, Mexico, Denmark, Panama, Taiwan, and the EU—President Trump clearly views tariffs as the medicine for every international ailment, real or imagined, impacting the United States. This is a radical break from the US-led post-war order of rules-based trade, and sends a message that the US is no longer a trusted partner. This shift was most vividly highlighted on 1 February 2025, when Trump’s administration threatened 25 percent tariffs on Canada and Mexico, and imposed a 10 percent tariff on China, citing a national emergency due to illegal migration and drugs, and claiming the target states had failed to assist the US in countering this emergency. While the Canada and Mexico tariffs were suspended after both countries made concessions to Trump, their situation is most indicative of Trump’s radical approach to international relations. Both countries renegotiated the North American free trade agreement directly with Trump during his first term—an agreement Trump lavished with praise, while Canada is also one of America’s closest military allies, and has supported many US military operations since WWII. If Canada can be coerced, it is reasonable to believe any country can be coerced by Trump, including Australia. From a foreign policy perspective, Trump’s radical tariff coercion is likely to be one of the greatest acts of diplomatic self-harm, particularly as friends are forced to start looking at ways to mitigate American dependence. Who pays the price of tariffs?    If the foreign policy results of tariffs are to undermine US soft power, it is also true that tariffs will undermine the US economy. For example, Trump incorrectly believes that exporters will absorb the additional cost of tariffs—for instance, taxes on imports—by dropping their prices. Factors such as price elasticity (are goods necessary or discretionary), pricing power (i.e. brand power), and the size of profit margins influence who pays additional tariff costs. The latter is important when considering globally competitive traded goods. In competitive industries where profit margins are low, at or near the minimum rate of profit at which businesses will invest and operate, then, by definition, all additional costs must be passed on to the consumer to protect the business’s margin. Beyond that, protecting margins is the first choice of all businesses. Hence only where goods are highly discretionary and existing profit margins are high might one expect the exporter to incur the costs of tariffs. All things being equal, the American consumer will pay if Trump levies general tariff taxes on a vast array of goods coming from Mexico, Canada, and China, just as studies show that consumers paid for Trump’s 2018 tariffs. Job losses can also arise as a consequence of tariffs impacting supply chains by increasing the costs of inputs. Economists argue that, while the first Trump administration’s 25 percent steel import tariff created around 1,000 new jobs in steel production, the higher cost of steel hit downstream steel users, resulting in a loss of 75,000 manufacturing jobs. A tariff policy that is targeted and in response to breaches of WTO trade rules has their rightful place in the repertoire of a state’s national economic policies. But there are likely to be few long-term benefits to attacking allies and longstanding rule-abiding trade partners with universal tariffs per Trump’s Make America Great Again agenda. On the contrary Trump’s policies will lead to a Make America Expensive Again outcome, as ABC’s Matt Bevan put it. A Corrosion of US soft power? The weaponisation of everything has in recent times been attributed to China’s unrestricted warfare paradigm. Trump 2.0 seems to follow Beijing’s playbook without further consideration for alliances and partnerships—pivotal to US foreign policy. Working with allies and partners has been a key element of how the Biden administration countered the challenges posed by Russia, China, and Iran in the wider context of great power competition. Donald Trump’s threats of a trade war against Denmark, a NATO ally, over the status of Greenland; threats against Taiwan’s steel, pharmaceutical, and semiconductor industries; tariff threats against more NATO allies in the European Union; and tariff threats against the BRICS bloc resemble the unrestricted weaponising of trade by Beijing and mark a departure from Trump 1.0’s more targeted tariffs. The US is facing the clear and present danger of losing its soft-power acumen, and losing trust from its partners, with tragic consequences for the global rules-based order. In that respect, Trump might be playing directly into the Moscow–Beijing ambition to undermine the US and its allies across the military, economic, and diplomatic domains. The ambiguity of Trump’s “negotiation” strategy, which contains both national security and economic objections as raison d’être, adds to the challenge of maintaining trust and confidence among partners and allies, which would be both tragic and fatal for the US and its alliances.This article was published under a Creative Commons Licence. For proper attribution, please refer to the original source

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском It’s official. On February 1, US President Donald Trump will introduce a sweeping set of new 25% tariffs on imports from Canada and Mexico. China will also face new tariffs of 10%. During the presidential campaign, Trump threatened tariffs against all three countries, claiming they weren’t doing enough to prevent an influx of “drugs, in particular fentanyl” into the US, while also accusing Canada and Mexico of not doing enough to stop “illegal aliens”. There will be some nuance. On Friday, Trump said tariffs on oil and gas would come into effect later, on February 18, and that Canadian oil would likely face a lower tariff of 10%. This may only be the first move against China. Trump has previously threatened the country with 60% tariffs, asserting this will bring jobs back to America. But the US’ move against its neighbours will have an almost immediate impact on the three countries involved and the landscape of North American trade. It marks the beginning of what could be a radical reshaping of international trade and political governance around the world. What Trump wants from Canada and Mexico While border security and drug trade concerns are the official rationale for this move, Trump’s tariffs have broader motivations. The first one is protectionist. In all his presidential campaigning, Trump portrayed himself as a champion of US workers. Back in October, he said tariff was “the most beautiful word in the dictionary”. This reflects the ongoing scepticism toward international trade that Trump – and politicians more generally on both ends of the political spectrum in the US – have held for some time. It’s a significant shift in the close trade links between these neighbours. The US, Mexico and Canada are parties to the successor of the North American Free Trade Agreement (NAFTA): the United States-Mexico-Canada Agreement (USMCA). Trump has not hidden his willingness to use tariffs as a weapon to pressure other countries to achieve unrelated geopolitical goals. This is the epitome of what a research project team I co-lead calls “Weaponised Trade”. This was on full display in late January. When the president of Colombia prohibited US military airplanes carrying Colombian nationals deported from the US to land, Trump successfully used the threat of tariffs to force Colombia to reverse course. The economic stakes The volume of trade between the US, Canada, and Mexico is enormous, encompassing a wide range of goods and services. Some of the biggest sectors are automotive manufacturing, energy, agriculture, and consumer goods. In 2022, the value of all goods and services traded between the US and Canada came to about US$909 billion (A$1.46 trillion). Between the US and Mexico that same year, it came to more than US$855 billion (A$1.37 trillion). One of the hardest hit industries will be the automotive industry, which depends on cross-border trade. A car assembled in Canada, Mexico or the US relies heavily on a supply of parts from throughout North America. Tariffs will raise costs throughout this supply chain, which could lead to higher prices for consumers and make US-based manufacturers less competitive. There could also be ripple effects for agriculture. The US exports billions of dollars in corn, soybeans, and meat to Canada and Mexico, while importing fresh produce such as avocados and tomatoes from Mexico. Tariffs may provoke retaliatory measures, putting farmers and food suppliers in all three countries at risk. Trump’s decision to delay and reduce tariffs on oil was somewhat predictable. US imports of Canadian oil have increased steadily over recent decades, meaning tariffs would immediately bite US consumers at the fuel pump. We’ve been here before This isn’t the first time the world has dealt with Trump’s tariff-heavy approach to trade policy. Looking back to his first term may provide some clues about what we might expect. In 2018, the US levied duties on steel and aluminium. Both Canada and Mexico are major exporters of steel to the US. Canada and Mexico imposed retaliatory tariffs. Ultimately, all countries removed tariffs on steel and aluminium in the process of finalising the United States-Mexico-Canada Agreement. Notably, though, many of Trump’s trade policies remained in place even after President Joe Biden took office. This signalled a bipartisan scepticism of unfettered trade and a shift toward on-shoring or re-shoring in US policy circles. The options for Canada and Mexico This time, Canada and Mexico’s have again responded with threats of retaliatory tariffs. But they’ve also made attempts to mollify Trump – such as Canada launching a “crackdown” on fentanyl trade. Generally speaking, responses to these tariffs could range from measured diplomacy to aggressive retaliation. Canada and Mexico may target politically sensitive industries such as agriculture or gasoline, where Trump’s base could feel the pinch. There are legal options, too. Canada and Mexico could pursue legal action through the United States-Mexico-Canada Agreement’s dispute resolution mechanisms or the World Trade Organization (WTO). Both venues provide pathways for challenging unfair trade practices. But these practices can be slow-moving, uncertain in their outcomes and are susceptible to being ignored. A more long-term option for businesses in Canada and Mexico is to diversify their trade relationships to reduce reliance on the US market. However, the facts of geography, and the large base of consumers in the US mean that’s easier said than done. The looming threat of a global trade war Trump’s latest tariffs underscore a broader trend: the widening of the so-called “Overton window” to achieve unrelated geopolitical goals. The Overton Window refers to the range of policy options politicians have because they are accepted among the general public. Arguments for bringing critical industries back to the US, protecting domestic jobs, and reducing reliance on foreign supply chains gained traction after the ascent of China as a geopolitical and geoeconomic rival. These arguments picked up steam during the COVID-19 pandemic and have increasingly been turned into actual policy. The potential for a broader trade war looms large. Trump’s short-term goal may be to leverage tariffs as a tool to secure concessions from other jurisdictions. Trump’s threats against Denmark – in his quest to obtain control over Greenland – are a prime example. The European Union (EU), a far more potent economic player, has pledged its support for Denmark. A North American trade war – foreshadowed by the Canadian and Mexican governments – might then only be harbinger of things to come: significant economic harm, the erosion of trust among trading partners, and increased volatility in global markets.

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском Donald Trump has made clear his intent to supercharge his “America First” approach to foreign policy in his second term – and Mexico looks set to be at the tip of the spear. While many of Trump’s predecessors have also followed a “realist” strategy – that is, one where relative power is at the forefront of international relations, while diplomatic success is viewed through how it benefits one’s own nation – the incoming president has displayed an apparent unwillingness to consider the pain that his plans would inflict on targeted countries or the responses this will engender. Trump’s proposed policies threaten Mexico in three key ways: First, his goal of deporting millions of migrants would put tremendous pressure on Mexico’s economy and society as the country tried to absorb the influx. This would be exacerbated by his second threat, a sharp increase in tariffs, which could devastate the critical export sector of Mexico’s economy. And third, Trump has floated the idea of using U.S. military power to confront narcotraffickers within Mexico, which would directly impinge on Mexico’s sovereignty and could generate more violence on both sides of the border. But as a scholar of Latin American politics and U.S.-Latin American relations, I see several options that Mexico could use to push back on Trump by imposing high costs on U.S. interests. Indeed, Mexican President Claudia Sheinbaum has already signaled how she may counter Trump’s policies. The most obvious tools are ending cooperation on drugs and immigration and imposing tariffs of her own. She could also revoke some of the decades-old tax and labor privileges that have benefited U.S. businesses operating within Mexico. And finally, she could play the “China card” – that is, in the face of worsening U.S.-Mexico ties, Mexico could turn to Washington’s biggest economic rival at a time when Beijing is seeking to assert more influence across Latin America. From conciliation to confrontration Of course, a worsening relationship is not inevitable. During Trump’s first term, Mexico’s then-president, Andrés Manuel López Obrador, maintained a constructive relationship with the U.S. administration. In fact, Lopez Obrador was surprisingly cooperative given Trump’s at times hostile rhetoric toward Mexico. For example, he helped facilitate the Trump administration’s “Remain in Mexico” program for those seeking asylum in the U.S. and also accepted Trump’s demands to renegotiate NAFTA and give it a title reflecting U.S. leadership: the United States-Mexico-Canada Agreement, or USMCA. Sheinbaum, who took office on Oct. 1, 2024, started with a cautious approach to her relationship with Trump. She congratulated Trump on his victory and urged dialogue with the incoming U.S. president. “There will be good relations with the United States. I’m convinced of that,” she told reporters on Nov. 7, 2024. But Trump hasn’t been conciliatory. In addition to talk about dumping millions of immigrants across the border, he announced on social media on Nov. 24 that he would impose a 25% tariff on Mexican and Canadian goods – a move that would effectively abrogate the USMCA. That post seemingly ended Sheinbaum’s cautious approach. In a strongly worded response, the Mexican president cautioned that she would respond in kind. A trade war, she noted, would harm the economies of both countries; progress on immigration and drug trafficking required cooperation, not threats, she added. The impact of tariffs Sheinbaum has said she wants to avoid a trade war, but Trump’s threats have led her nonetheless to talk about how a trade war would begin. This trade war, plus other costs Sheinbaum could impose on U.S. investors, would also likely foment a coalition of opposition within the U.S. business community – a group that has been a key ally of Trump. Trump’s stated goal of putting high tariffs on goods coming from Mexico is to encourage businesses that currently exploit lower employment costs in Mexico to relocate to the northern side of the border. But that approach ignores the impact that retaliatory tariffs and investment controls would have on U.S.-based companies that rely on the Mexican market. It would have several negative effects. First, a tit-for-tat tariff war would generate inflation for U.S. and Mexican consumers. Second, it would disrupt the integration of markets across North America. As a result of the elimination of tariffs – a key component of both NAFTA and the Trump-era USMCA – markets and the production of goods across North America have become highly interconnected. The trade treaties severely reduced barriers to investment in Mexico, allowing significant American investment in sectors such as agriculture and energy – where U.S. companies were formerly prohibited. Further, manufacturers now rely on processes in which, for example, the average car crosses the border multiple times during production. Similarly, agribusiness has developed symbiotic practices, such that grains, apples and pears are predominantly grown in the United States, while tomatoes, strawberries and avocados are grown in Mexico. Given these processes, the U.S. now exports over US$300 billion of goods and services per year to Mexico, and the stock of U.S. investments in Mexico reached $144 billion in 2023. If Trump abrogates the trade deals and imposes tariffs, he might convince investors to spend their next dollars in the U.S. But if Mexico imposes tariffs, business taxes or investment restrictions, what would happen to investors’ farms and factories already in Mexico? Past experience suggests that any disruption to supply chains or U.S. export markets would awaken strong business opposition, as analysts and business groups have already recognized. Trump is not immune to pressure from U.S. businesses. During his first administration, companies successfully opposed Trump’s attempt to close the border, arguing that slowing the flow of immigrants also meant slowing trucks full of goods. Security and immigration On the issue of the border and immigration, while Trump has issued threats, Sheinbaum has stressed the importance of cooperation. Currently, the Mexican government expends significant resources to patrol its own southern border, not to mention dealing with the many potential migrants who gather in its northern cities. Mexico could demand more support from the U.S. in exchange for this work, plus the costs associated with welcoming back the estimated 4 million Mexicans who are currently in the U.S. without proper documentation. The deportation of undocumented immigrants that Trump has repeatedly promised will require other types of cooperation, such as processing border crossings, and Mexico could slow-walk this process. Mexico has already signaled that it will withhold processing of non-Mexicans. The two countries have a history of collaboration in addressing the illegal drugs trade – but here too there have also been tensions. Toward the end of Trump’s first term, for example, a Mexican general was arrested in the U.S. on drug charges. After a diplomatic uproar, he was returned to Mexico and released. In late November, Sheinbaum noted that she and Trump had discussed security cooperation “within the framework of our sovereignty.” But Trump’s campaign rheotric seemed less concerned with Mexico’s sovereignty, floating the idea of sending troops to the border or even deploying them within Mexico to counter narcotraffickers. That would clearly enrage Mexico, with consequences that would extend far beyond a willingness to cooperate on the issues of drug trafficking. A chance for China? One country that stands to benefit should U.S.-Mexican relations deteriorate is China – an issue that Mexico could exploit. China is now the first or second trading partner with nearly every country in Latin America, including Mexico. The value of U.S.-Mexico trade is over $100 billion a year, but the growth of Chinese imports into Mexico has been limited somewhat by rules-of-origin provisions in NAFTA and the USMCA. A U.S.-Mexican trade war could weaken or end any incentive to keep Chinese goods out. Further, if the doors to the United States are narrowed through tariffs and hostile rhetoric, China’s car parts and financial services would clearly become even more attractive to Mexican businesses. A U.S.-Mexican trade war, in short, would augment Beijing’s access to a market on the U.S. border. A coalition of the concerned? In sum, if Trump goes through with his threats, the result will be costs to consumers and businesses, plus a new opportunity for China. This is likely to foment a coalition of industries, investors, consumers and foreign policy experts concerned with China – many parts of which supported Trump’s campaign.

Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском Ladies and Gentlemen, Today marks a truly historic milestone. Let me begin by thanking the Chief Negotiators for their dedication and determination. They worked tirelessly, over many years, for an ambitious and balanced agreement – and they succeeded. The bond between Europe and the Mercosur countries is truly one of the strongest in the world. It is a bond anchored in trust, enriched by a shared heritage, that spans centuries of mutual learning and growth. In fact, exactly 30 years ago, in 1994, my predecessor Jacques Delors stood here in Montevideo. He met with your father, dear Luis, who was then President of Uruguay. Together they shared a bold vision. A vision of deeper integration, not only within Europe and Mercosur, but also between them. Today, in Montevideo, we are turning that vision into reality. We are strengthening this unique partnership as never before. And in doing so, we are sending a clear and powerful message to the world. First, in an increasingly confrontational world, we demonstrate that democracies can rely on each other. This agreement is not just an economic opportunity, it is a political necessity. We are like-minded partners. We both believe that openness and cooperation are the true engines of progress and prosperity. I know that strong winds are blowing in the opposite direction – towards isolation and fragmentation. But this agreement is our clear response. We stand together on the global stage, as partners. Second, we are sending a message to our people and businesses in our regions: This agreement was designed with your interests at heart. It is made to work for you. It means: more jobs – and good jobs – more choices and better prices. The European Union and Mercosur create one of the largest trade and investment partnerships the world has ever seen. We are taking barriers down and we are allowing investments in. We are forming a market of over 700 million consumers. This partnership will strengthen entire value chains; it will develop strategic industries; it will support innovation; and it will create jobs and values, on both sides of the Atlantic. Third, we are showing the world that trade can – and must – be guided by values. Trade agreements are more than economic frameworks. They are a way to build communities of shared values. The EU-Mercosur agreement reflects our steadfast commitment to the Paris Agreement and to the fight against deforestation. President Lula's efforts to protect the Amazon are welcome and necessary. But preserving the Amazon is a shared responsibility of all humanity. This agreement ensures that investments respect Mercosur's extraordinary yet fragile natural heritage. My fourth message is that, economically, this is a win-win agreement. Europe is already a leading investment and trade partner for Mercosur. So you know how we do business together. We are focused on fairness and mutual respect. EU-Mercosur will bring meaningful benefits to consumers and businesses, on both sides. It will facilitate European investments in strategic industries across all Mercosur countries: like sustainable mining, renewable energy and sustainable forest products, just to name a few. It will also make it easier to invest in sectors that directly impact the people's daily lives. For example, expanding the electricity grid to rural and remote areas and advancing digitalisation across the region. Finally, let me address my fellow Europeans: This agreement is a win for Europe. 60,000 companies are exporting to Mercosur today – 30,000 of them are small and medium-sized enterprises. They benefit from reduced tariffs, simpler customs procedures and preferential access to some critical raw materials. This will create huge business opportunities. To our farmers: We have heard you, listened to your concerns and we are acting on them. This agreement includes robust safeguards to protect your livelihoods. EU-Mercosur is the biggest agreement ever, when it comes to the protection of EU food and drinks products. The agreement protects 350 EU geographical indications. In addition, our European health and food standards remain untouchable. This is the reality – the reality of an agreement that will save EU companies EUR 4 billion worth of export duties per year while expanding our markets and opening new opportunities for growth and jobs on both sides. I want to thank President Lacalle Pou for hosting this Summit and for bringing us together in Montevideo. This is a good day for Mercosur, a good day for Europe and a landmark moment for our shared future. A whole generation dedicated their effort, vision and determination to bring this agreement to life. Now, it is our turn to honour that legacy. Let us ensure that this agreement delivers on its promises and serves the generations to come. Thank you very much.

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.

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском Ushering in a multipolar order requires a streamlined and coherent political agenda – not unfocused expansion.  The 16th BRICS Summit in Kazan, Russia, concluded last week with the usual grand declaration of the group’s commitments, concerns and aspirations.  Many media headlines, particularly in Western countries, focused on how the summit and BRICS generally, symbolised Moscow’s ability to circumvent the fallout of sanctions by turning to the global south. In this way, BRICS is indirectly viewed as a threat to Western efforts to isolate Russia, weaken its power projection capabilities, and end its invasion of Ukraine.  Western governments and analysts often struggle to frame BRICS’s evolution beyond a binary, zero-sum narrative in which the group is a key geopolitical challenge to the Western-dominated international order. This interpretation places the forces of democracy and liberal political values in one camp and authoritarian governments in another, with certain developing countries caught in the middle, trying to play one side off the other for their own benefit.  There is some merit to these kinds of headlines. Russia and China are primarily major status-quo powers. Both have been permanent United Nations Security Council (UNSC) members since its establishment. Moscow was the ‘other pole’ in the international order for most of the 20th century, a position Beijing is working towards. And the foreign policy goals of both place them in confrontation with the United States and its Western allies.  BRICS may be on a path towards unnecessary substantive bloat, and away from its core business.  So, are these two countries in a position to champion the global south’s cause, and why haven’t more representative bodies like the Non-Aligned Movement played a more prominent role?  The preoccupation with Russia and China detracts from BRICS’s broader, underlying geopolitical project – the need for global south countries to reform and shape the international order’s future direction on their own terms.  These include greater representation and agency in global policy- and decision-making bodies and facilitating greater freedom to trade, invest and borrow money outside the Western-dominated financial system. They also include a more just and equitable global power balance that reflects modern realities.  In pursuing these aims, BRICS countries have made steady progress on developing a shared strategic agenda for increased cooperation across various policy domains.  The Kazan summit’s 32-page outcomes declaration covers almost everything from reforming the UNSC and Bretton Woods institutions to climate change, biodiversity and conservation. It also covers challenges from global crises, conflicts and terrorism and a suite of economic development, health, education, science and cultural exchange-related issues.  A group of democracies, autocracies and theocracies speaking with one voice on human rights and democracy is absurd.  The group’s ballooning cooperation agenda may indicate progress. But it could also signify the limits of its diverse members’ ability to agree on ‘hard’ political and security matters central to the core business of reforming the international order.  The expansion of BRICS’ substantive agenda and its membership dilutes its primary purpose and reinforces the binary, zero-sum Western narrative its members constantly try to shed.  Tangible, albeit gradual, progress on establishing intra-BRICS institutions and processes such as the Interbank Cooperation Mechanism, the cross-border payment system and its independent reinsurance capacity suggest that BRICS’ clout and credibility are growing.  These initiatives could enable members to pursue their international economic objectives without the constraints and transactional costs associated with traditional financial bodies like the World Bank and International Monetary Fund. Ideally, this would improve their relative positions of global power and influence, and help deliver a more multipolar international order.  In contrast, deepening cooperation on big cat conservation, while important, doesn’t serve that purpose. Nor does facilitating youth exchanges on sports and healthy lifestyles or championing a BRICS alliance for folk dance. Including these kinds of initiatives in BRICS’ growing agenda detracts from its core objectives.  A streamlined agenda would divert attention from the contradictions and geopolitical manoeuvring of BRICS’ members.  More worryingly, this suggests that BRICS’ diverse constellation of member states is pursuing the path of least resistance – expanding their cooperation in every direction, hoping something eventually sticks.  Instead of doubling down on hard strategic questions about a shared conception of multipolarity, and the steps necessary to reform global governance and security institutions, BRICS seems to be heading for greater expansion and formalisation. And with that come the risks, challenges and institutional dependencies that have led to the stagnation and ineffectiveness plaguing more established international organisations in recent years.  Perhaps the group’s core members recognise that they have very different ideas of what constitutes multipolarity. Russia (and China to an extent) envisage much more than global institutional reforms, focusing instead on reimagining international norms and core principles.  These differences are also reflected in BRICS’ expanding membership. It seems Russian and Chinese enthusiasm has been curbed by other founding members, who prefer a ‘partner country’ model for future growth. This contrasts with the full membership offers to Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and UAE in 2023. (Argentina’s new political administration declined, and the Saudis have remained non-committal.)    Most worrying, however, is BRICS’ preoccupation with promoting democracy, human rights and fundamental freedoms. There is no doubt that these terms are increasingly politicised and rife with double standards – among developing nations with mixed political systems and traditionally liberal, Western democracies. However, for BRICS to meaningfully champion normative values, its members must at least attempt to commit to common political governance systems in their own countries.  Having a group of partner nations composed of progressive constitutional democracies and closed repressive autocracies and theocracies attempting to speak with one voice on promoting human rights, democracy and fundamental freedoms is absurd. It reeks of empty political rhetoric at best, and Orwellian double-speak at worst.  This again dilutes BRICS’ key messages, undermines its important core business, and detracts from the significant progress being made towards a common strategic agenda.  BRICS primary goal moving forward should be to trim the fat.  A streamlined annual working agenda would divert attention away from its individual member states' contradictions and geopolitical manoeuvring. With a focus on addressing the international system’s failures, institutional reform and greater representation for global south countries in policy- and decision-making bodies could be prioritised.  This seems unlikely though, if this year’s summit is anything to go by. By following the path of least resistance, BRICS may be setting itself on a course towards increasing and unnecessary substantive bloat, and away from its core business.  Only time will tell if certain members are willing to be more assertive and correct course before they are too far down a path impossible to pivot away from. 

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

한국어로 읽기Leer en españolIn Deutsch lesen Gap اقرأ بالعربيةLire en françaisЧитать на русском Good afternoon, everyone. It is an honor for me and for Argentina to participate in this Peace Summit organized by President Zelenski, with whom we have established a close relationship. We Argentinians are fully aware of the value of peace and democratic coexistence as guiding principles of life in society, and that is why I want to especially thank you for the invitation to this event. I want to express, on behalf of the Argentinian people, our utmost support for the people of Ukraine and our friend, President Zelenski, as defenders of the idea of freedom, we condemn any form of violence, whether between individuals, but particularly, we repudiate war as an illegitimate mean of resolving conflicts between nations. War, tragic by nature, can never be the answer to problems that should be resolved in the political sphere. War is not a legitimate tool for resolving conflicts; it is the last resort of a people who must defend themselves, nothing more, nothing less. We are defenders of the idea of freedom. Liberalism, as we understand it, is the respect and protection of the life projects of others, based on the principle of non-aggression, in defense of the right to life, freedom, and private property. As defenders of freedom, we can advocate for nothing other than peace among free peoples and nations. When we say that the guiding principle of our doctrine is the defense of individuals' lives, liberty, and property, we are expressing that there is a direct relationship between peace, commerce, and prosperity. There is no economic prosperity without free trade, and there is no free trade without peace. Free trade naturally promotes peace, because as Bastiat said, "where trade enters, bullets do not," or as Milton Friedman said, "I may hate my neighbor, but if he doesn't buy my product, I go bankrupt." As a fervent believer in the philosophical consciousness found in liberalism and peace, I make this brief defense of these principles today, as they seem to have gone out of fashion. I believe it is an important step for Argentina to be present first at the G7 Summit and now here at this Peace Summit. It is part of the great shift we are undertaking as a country after decades of turning our back on the world. There is a new Argentina that is once again embracing the ideas that, 150 years ago, made it one of the most prosperous countries in the world. There is a new Argentina that also seeks to reclaim the prominent role in the concert of nations that it once held and never should have abandoned. Know that Argentina will always be committed to defending the ideas that made great the West, and that for us, peace among free nations is not only a moral duty but also a necessary condition for prosperity. Thank you all very much.

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском As Beijing’s investment approach to Latin America focuses on industries of strategic importance, the EU and US will need to contend with growing Chinese competition China is pouring less foreign direct investment (FDI) into Latin America. But while this may seem like a sign of Beijing’s disinterest in the region, data suggests that Chinese companies are simply recalibrating, not retreating. In doing so, they are becoming important players in sectors key to Western interests: critical minerals, fintech, electric vehicles, and green energy. While the European Union and the United States have long been top investors in Latin America, increased competition with Chinese investment now jeopardises their interests in the Latin American industries that will become most crucial to the digital and green transitions. The number of Chinese projects in Latin America grew by 33 per cent from 2018-2023, compared with the previous five-year period of 2013-2017, even as the total value declined. In other words, Chinese companies are making more investments in the region but are pursuing smaller-scale projects on average. These investments are also more focused on what China calls “new infrastructure“ (新基建), a term which encompasses telecommunications, fintech, renewable energy, and other innovation-related industries. In 2022, 60 per cent of China’s investments were in these frontier sectors, a key economic priority for the country. Beijing also views smaller projects in these industries as incurring less operational and reputational risk, especially compared to some of the large-scale infrastructure investment projects often associated with the Belt and Road initiative. Like China, the investment priorities of the G7 grouping – particularly the US and the EU – are centring on critical minerals, fintech, electric vehicles, and green energy as they aim to grow and reinforce existing economic and political partnerships in Latin America. However, both the US and the EU risk falling short of China’s investment strategy in the region. The US has signalled want for greater economic engagement with the region, especially in sectors of strategic interest. However, to date, US efforts to compete with China remain largely focused on building US domestic capacity in these strategic sectors, even as some US companies, such as Intel, are increasingly focused on including regional partners in their supply chains. Some see opportunity for Latin America in Joe Biden’s landmark legislation, the Inflation Reduction Act (IRA), which is aimed at incentivising the energy transition while also de-risking critical supply chains. For example, certain countries in the region may benefit from preferential market access for their lithium or other key inputs to new energy and technology supply chains. However, the reach of the IRA – which remains a largely domestic policy – does not stretch as far as China’s current investment reshuffle. The Americas Act, announced by members of Congress in March could generate promising new investment opportunities for the region, as it encourages US companies and others to move their operations out of China, to which Latin America stands as a promising replacement. But Americas Act reshoring would primarily incentivise textiles and potentially medical equipment manufacturing, with less overall focus on the range of “new infrastructure” industries that China is prioritising. Chinese interests in information and communication technologies reveal a similar story. While the US has focused its policy on 5G equipment sales, China is undertaking a process of vertical integration in Latin American tech sectors that will dramatically boost its competitiveness. For instance, Chinese company Huawei is rapidly expanding its focus to include data centres, cloud computing, cybersecurity, and other services, especially in Argentina, Brazil, Chile, Colombia, Mexico, and Peru. (Computing accounted for a sizable 41 per cent of total Chinese information technology investment in the region between 2018 and the first half of 2023.) At the same time, Global Gateway, the EU’s proposal for a global investment initiative is yet to reach its potential in the region. Brussels is looking to be Latin America’s partner of choice by building local capacity for making batteries and final products like electric vehicles, as European Commission president Ursula von der Leyen noted last year. Yet even as the EU signals renewed commitment, China is becoming increasingly dominant in the electric vehicle market in Latin America and other regions. China surpassed the US in electric vehicle sales in 2023, with Chinese companies accounting for 45 per cent of total global sales and three times that of Germany’s. What is more, China has invested $11 billion in lithium extraction in the region since 2018, as part of a bid to control a third of global lithium-mine production capacity. Meanwhile the EU has secured some access to lithium as part of trade deals with Chile, alongside other nations, but this pales in comparison to what will be required to fuel the future of EU battery production. Latin America as a whole accounts for an estimated 60 per cent of the world’s lithium reserves. Based on its current levels of engagement in the region, the EU risks falling short of lithium, stalling its battery production and subsequently, its electric vehicle sales, just as China advances in this field. The window is closing for the EU, the US, and other partners looking to both maintain market share and compete with China in these Latin American industries, despite still-high rates of US and EU investment in and trade with the region. Indeed, US automakers increasingly see Chinese competition across the globe as an “extinction-level event.” Ensuring competitiveness in “new infrastructure” and related sectors will require a continuous commitment by partners to building and supporting project pipelines, and to delivering products and services at price points that can compete with China’s subsidised offerings. Both the EU and the US remain critical economic partners for Latin America and are contributing in ways that China is not. Still, complacency risks allowing China to take the lead in emerging industries in the region, some of which weigh heavily in the EU’s green and digital transformation. To protect their own future industries, the EU and the US need to first take a longer look at Latin America’s – especially as China vies for a dominant position.

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском Press statement on the occasion of the visit of French President Emmanuel Macron Full statement to the press by the President of the Republic, Luiz Inácio Lula da Silva, following the visit of French President Emmanuel Macron in Brasília (DF), on March 28, 2024 It is a great joy to reciprocate the hospitality with which my delegation and I were received in Paris when I participated in the Summit for a 'New Global Financial Pact' last June. Over the past three days, we have carried out an extensive agenda that included stops in Belém, home to COP30; Itaguaí, where we have Prosub; and now Brasília, for a State visit. This true marathon gives a sense of the breadth of the cooperation and friendship ties between France and Brazil. Among traditional powers, none are closer to Brazil than France. And among emerging powers, you tell me if any are closer to France than Brazil. In today's highly complex international landscape, the dialogue between our nations serves as a vital bridge connecting the Global South to the developed world, fostering efforts to overcome structural inequalities and achieve a more sustainable planet. Brazil and France are committed to collaborating in advancing a shared global vision through democratic dialogue. A vision grounded in the priority of production over unproductive finance, solidarity over selfishness, democracy over totalitarianism, and sustainability over predatory exploitation. President Macron was able to personally witness that our commitment to the environment is not merely rhetorical. In the past year, we have reduced illegal deforestation in the Amazon by 50%, and we aim to eliminate it entirely by 2030. As a symbol of the revitalization of our partnership, today we embraced a New Action Plan, broadening our collaboration into new arenas. These include financing the ecological and energy transition, advancing in bioeconomy, agriculture, public administration, digital issues, artificial intelligence, and reinforcing human rights and gender equality on our bilateral agenda. This range of topics is reflected in the more than 20 agreements we celebrate today. We discussed the success of the Brazil-France Economic Forum, held yesterday in São Paulo, which had not convened presentially since 2019. We explored ways to expand and diversify trade, which reached 8.4 billion dollars last year and has the potential to grow even further. France is the third-largest investor in Brazil, with a strong presence in sectors such as hospitality, energy, defense, and high technology, which generate employment and income in our country. I presented to President Macron the new investment opportunities in infrastructure and sustainability facilitated by the Growth Acceleration Program (Programa de Aceleração do Crescimento - PAC) and the Neoindustrialization Program. I presented our commitment to combating inequalities as the cornerstone of Brazil's G20 Presidency. Within this context, we are launching a Global Alliance Against Hunger and Poverty. As we mark the 80th anniversary of the Bretton Woods institutions this year, President Macron and I concur on the imperative for the G20 to send a clear message advocating for global governance reform and the reinforcement of multilateralism. We also agree that it is time for the super-rich to pay their fair share of taxes, in line with the proposal for fair and progressive international taxation that Brazil advocates within the G20. As strategic partners, we exchanged views on the major dilemmas facing humanity. Across the globe, democracy is under the shadow of extremism. The denial of politics and the dissemination of "hate speech" are growing and concerning. For this reason, Brazil joined, in 2023, the French initiative Partnership for Information and Democracy and will continue to work to promote and protect the circulation of reliable information. It is time to promote a truly multilateral debate on the governance of artificial intelligence. It is unacceptable for a new divide to emerge, segregating wealthy nations, possessors of this technology, from developing countries where basic internet access remains precarious. I reiterated to President Macron Brazil's unwavering belief in dialogue and the defense of peace. My administration will continue working diligently to ensure that Latin America and the Caribbean remain a conflict-free zone, where dialogue and international law prevail. The Security Council's paralysis in response to the conflicts in Ukraine and Gaza is both alarming and inexplicable. The arguments questioning the obligation to comply with the recent ceasefire directive in Gaza during the month of Ramadan once again undermine the authority of the Council. Discussing a world governed by rules that are not collectively agreed upon signifies a regression of centuries, reverting back to the law of the jungle. Brazil categorically condemns all forms of anti-Semitism and Islamophobia. We cannot permit religious intolerance to gain ground among us. Jews, Muslims, and Christians have always lived in perfect harmony in Brazil, contributing to the construction of the modern nation we see today. Dear friend Macron, the Strategic Partnership with France embodies our joint endeavor to modernize and invigorate our economies, prioritizing sustainability and upholding human rights. I am convinced that, even after three intense days, there is still much work ahead of us. The future holds countless possibilities for our countries to cooperate, develop, and create together I look forward to seeing you again soon at the G20 Summit in Rio de Janeiro. Thank you very much.