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Energy & Economics
Reading, Berkshire, England - June 04, 2018, representation of trade tariffs imposed by the United States of America on steel and aluminium imports

Trump’s 25% tariffs on Canada and Mexico amp up the risk of a broader trade war

by Markus Wagner

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.

Defense & Security
Meeting of NATO Ministers of Defence during a two-day meeting of the alliance's Defence Ministers at the NATO Headquarters in Brussels, Belgium on February 14, 2023.

Where is the transatlantic relationship heading?

by Florentino Portero

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском The social dimension of the Alliance The North Atlantic Treaty Organization, the organization created by the signatory states of the Washington Treaty to achieve the goals set by the Alliance, is an institution characteristic of the democratic realm, where governments depend on their respective public opinions when trying to establish a security policy. The people matter – and this is something we must keep in mind – when reflecting on their future. The simplest and most logical answer to the question posed in the title of this conference, the one that responds to common sense, is wherever its member states want. And this is the core of the problem. Do the allies have a common vision? Do they share interests as they did in 1949? Do they still believe they are a community united by their commitment to democracy? Is it reasonable to consider that they form a “collective defense system”? Without clearly answering these questions, it becomes very difficult to move forward with this analysis. We would be venturing into speculative territory. On the other hand, we cannot ignore reality, and this leads us to acknowledge that it is unlikely we will receive clear answers due to a set of considerations characteristic of the present time. The first refers to the lack of reliability of the State because of the high fragmentation of public opinion. Globalization and the Digital Revolution are causing social and economic changes that have led the population to distrust their political elites. Traditional parties are disappearing or losing seats, while new political forces emerge, questioning many of the paradigms we have been working with for years. The societies of the member states no longer have as clear a sense of the purpose of the Alliance as they did a decade ago, because there is confusion about what the actual risks, challenges, and threats they face are. The second is the absence of prominent figures with the authority to exercise leadership at the heads of the allied governments. We cannot ignore that in times of uncertainty, leadership is more necessary than ever, because in its absence, it becomes extremely difficult to shape a sufficiently common position among the citizens. The third is the empirical realization that the Alliance has not been able to manage the crises in Afghanistan and Ukraine in a competent and professional manner. In the first case, the European allies decided to activate Article 5 of the Washington Treaty even though it wasn’t necessary, but wanting to show their solidarity with the state that had guaranteed their security for decades. However, on the battlefield, the vast majority shield themselves behind their ‘rules of engagement’ to avoid complicated situations. The goal was to comply with the United States more than to commit to victory. For its part, the United States was unable to maintain consistent objectives and strategy over time, which led to a humiliating defeat. What was the point of the waste of lives and money if, in the end, the same people returned to power? What was the point of the Alliance's technological superiority if it was defeated by poorly armed militias? In the second case, we have observed that despite the obvious incompetence of its armed forces, its limited capabilities, and its dire economic situation, Russia has managed to consolidate its control over a significant portion of Ukrainian territory and continues to advance. For the average citizen, it is incomprehensible that, having committed ourselves to reclaim all Ukrainian sovereign territory and being much wealthier, our strategy has led Ukraine to the unfortunate situation it finds itself in. Why didn’t we offer them the weapons they needed from the very beginning? Why have we deprived them of the victory we formally committed to? The fourth is a derivative of the previous one. In this context, does it make sense for the citizen to trust the Alliance? Isn’t it understandable that they try to seek refuge within the national framework and fear that the Alliance, in the hands of unqualified people, will drag them into scenarios that are not critical to their lives? Whether we like it or not, the citizen's distrust in NATO is as justified as their intuition that only NATO can guarantee their security, which includes both their freedom and their well-being. What is the Alliance today? In circumstances as complex as those we are currently experiencing, it is virtually impossible for an organization composed of thirty-two member states to be a community committed to the defense and promotion of democracy. The mere reference to Turkey, Hungary, or Spain is proof of how far there are nations within it that are heading in a different direction. The evolution of European political systems points to a worsening of the situation rather than the exceptional nature of the mentioned cases. The community, as well as the idea that it constitutes a "collective defense system," falls within the realm of aspirations. The Alliance has been a “collective defense system,” and I have no doubt that there are allies who continue to act consistently with this idea. However, putting aside formalities, I believe that when assessing the transatlantic relationship, we must focus on its strict condition as an alliance. NATO is an asset that no one wants to lose, even though in its current state, it leaves much to be desired. Its strength does not lie in the common perception of the threat, the solidarity of its members, the available capabilities, or in sharing a strategy, which is clearly nonexistent. What makes its members want to keep it alive is the accumulated legacy after 75 years of shared experiences and the deep sense of insecurity in the face of the dual realization of a world undergoing profound change and poorly prepared national defenses from any point of view. Outside the Alliance, it’s even colder. NATO provides us with a starting point to try to react collectively, knowing that, in reality, except for the United States, no member state has the critical size to act as a "strategic actor." We have a history, an institutional framework, civilian and military bodies, doctrines, resources... that allow us to try to adapt without having to start from scratch. The European Perspective In recent years, the European states that are members of the Alliance have experienced the contrast between the claim that the European Union should assume the role of a "strategic actor" and the harsh, relentless reality of its impotence to effectively and competently address the crises in the Middle East and Ukraine. In parallel, they have shifted from contempt for the United States, due to its erratic foreign policy and its inability to successfully complete its foreign initiatives, to seeking shelter once again under its military strength, considering the evidence of their own inability to understand international politics and act accordingly. It seems beyond doubt that the dynamics of the European integration process are heading towards the establishment of a federation. The transfer of sovereignty represented by the single currency was a milestone, marking the creation of "political Europe" through the Maastricht Treaty. Gradually, we are moving toward a single fiscal policy, with banking union, European monetary fund... ultimately towards the consolidation of an economic and monetary policy. Such significant common economic interests demand both a shared legal framework and a unified foreign policy. However, the factor of time plays a fundamental role. The passing of generations has allowed us to make progress, overcoming nationalist prejudices. Despite the formidable progress made, which is easily reflected in the recognition by young people that we live in a common cultural environment, the reality is that we are still far from forming what Miguel Herrero y Rodríguez de Miñón referred to decades ago as a "European people." One thing is to delegate certain public policies to European institutions, and another, undoubtedly very different, is the exercise of actions that are characteristically sovereign. History and geography matter, and we must acknowledge that we have not yet formed that continental identity that would allow us to credibly face the formidable challenge of establishing a common foreign policy. The advantages of planning together and having the same capabilities are obvious, but above all, what matters is its viability. The Union is still not in a position to replace American leadership. This humbling realization transforms into a flow of energy in favor of the Alliance, assuming as inevitable the implementation of changes that allow it to adapt to a new international environment. For years, we have been aware that the Washington Treaty, and especially its Article 5, are anachronistic. The emergence of new domains – space, cyber, and cognitive – and the development of hybrid strategies challenge some of its foundations. Even so, we try to adapt without facing a reform of the treaty, in an exercise of understandable but risky caution. We are aware that the European theater is no longer the same as it was in 1949, that globalization and the "competition among great powers" in the race to win the "Digital Revolution" have shaped a considerably different scenario that we must integrate into, but we feel dizzy at the thought of leaving our own geographic zone, when we are not even in a position to effectively address our own problems. The American Perspective Since the creation of the United States, American society has lived with the contradiction between its isolationist vocation and its dependence on foreign trade. It fears becoming involved in the affairs of others at a high cost. However, the commercial dimension of its economy demands freedom of navigation, legal security, access to raw materials, and the ability to penetrate other markets, conditions that lead to an international role. From the First and Second World Wars, they learned that it was impossible to turn their back on what was happening in other countries, that they had to commit to international security, trying to establish an order that would guarantee their national interests. After years of involvement in international conflicts that seemed to have no end, isolationist and nationalist sentiment has grown, as a classic pendulum effect. In this context, it is understandable that the public debate openly questions its presence in the Atlantic Alliance. Is NATO a guarantee of the security of the United States? In the years immediately preceding the Madrid Summit, it was evident that the Alliance lacked a threat to unite it, a strategy to guide its steps, and capabilities that would allow it to carry out combined activities. It should therefore come as no surprise that since the second term of the Bush Administration, statements from senior officials have been warning of the dangerous drift of the Organization or threatening its withdrawal. There has been much talk about the low defense spending by many of the European allies. It is evident that without investment, there is no modernization, and without it, there is a technological disconnect that prevents the joint action of the armed forces of the different member states. However, what is truly concerning is what this implies in terms of abuse and disregard towards the United States. Hence, the heated reactions we receive from the other side. It is indecent that we spend on welfare, reaching levels that are unattainable for the average American, while we let them bear the cost of our security, both in economic terms and in human lives. As grave as, or even more than, the lack of investment is the absence of a shared vision and strategy, but it is understandable that the debate has focused on investment, an instrumental element. For European allies, increasing defense spending under the current economic circumstances will be as difficult as it is painful, but it will not be any less difficult or painful to reach an agreement that gives meaning to NATO's existence in the coming years. One of the few consensuses in the Capitol is to consider China as its main rival, around which all its economic, foreign, and defense policies revolve. In the Strategic Concept approved in Madrid, we can read that China is a “systemic challenge” for all of us. What policy have we derived from this categorical statement? Is there an Atlantic vision on this? It is hard to imagine that the Alliance can have a future if the states on both sides of the Atlantic do not reach a common position on how to engage with the great Asian power. In the same document, we find the statement that Russia is a “threat,” which does not align with statements from American leaders of both parties, though more from the Republican side than the Democratic one. It is neither acceptable nor responsible that, after the approval of such an important document, just two and a half years later, the United States acts as if the problem is not theirs. Putting formal aspects aside, is Russia a threat to the United States? To what extent does the behavior of the Moscow government in Eastern Europe affect U.S. national interests? Does it make sense for the United States to get involved in the war in Ukraine? Was Biden's behavior a reflection of a Cold War veteran, detached from the international circumstances of today? The establishment of the Atlantic Alliance was not the result of U.S. leaders in the early postwar years being convinced that the Soviet Union posed a threat to their national interests. On the contrary, they were fully aware that it did not. What concerned them was the extreme weakness of the European states, ravaged by a brutal war, the absence of a democratic culture, the high risk of totalitarian currents feeding off misery and uncertainty, and leading the Old Continent to a Third World War. European governments felt Soviet pressure. The area occupied by the Red Army was experiencing the extermination of representative institutions, Germany was torn between neutrality and partition, communist parties were gaining parliamentary positions in significant countries like France and Italy, supported by the prestige earned in the Resistance. For U.S. analysts, the European perception of the Soviet threat was exaggerated, but its effects could be concerning. The United States chose to engage in European reconstruction to prevent its drift towards fragmentation and totalitarianism, as the consequences of this drift could directly affect their national interests. They established a comprehensive strategy based on two pillars, the Marshall Plan and the Atlantic Alliance. NATO has been and continues to be an instrument to guarantee cohesion and democracy on the Old Continent. The second Trump administration must resolve the tension between the isolationist demand of the citizenry, the need to create jobs on domestic soil through the erection of tariff barriers, the necessity of securing supply and distribution chains, and the consolidation of alliances or understandings between different regional blocs in response to Chinese initiatives. It is a set of contradictory actions wrapped in the populist demagoguery characteristic of our time, but which will require decisions in times marked by a succession of crises. Time for decisions An organization inhabited by officials does not need meaning to continue functioning. From 9 AM to 5 PM, qualified staff will move papers from one office to another, showcasing their professionalism and operational efficiency. However, it is important not to confuse NATO with the Alliance. The latter does need meaning, which is now in question. Whether we like it or not, the coming years will be crucial for its future. We will witness how the decisions made regarding a set of circumstances and debates will ultimately determine it, as well as the link between the two shores of the Atlantic. As happened at its origin, that link will go far beyond security, which is instrumental in consolidating that community which was the original aspiration and is now marked by its absence. The war in Ukraine is undoubtedly the central issue in the transatlantic relationship, as it brings to the negotiation table many of the fundamental issues that question its very existence. We are facing a continental conflict that arises after a Russian diplomatic attempt to reach an agreement on a new balance of power. Moscow's proposal demanded the withdrawal of U.S. units from areas bordering its territory and the removal of its nuclear weapons stationed in the Old Continent. Putin’s government felt threatened by NATO and the European Union's eastward expansion and demanded compensation. When it was not granted, it launched its third campaign on Ukraine and its fifth on territories that were once part of the Soviet Union. This is not a campaign that can be understood in a bilateral Russia-Ukraine logic, but rather as part of an effort by a revived Russian imperialism to reconstitute its historical sphere of influence. This invasion is not the first, and unless the Alliance acts wisely, it will not be the last. The role played by the Europeans has been disappointing. Their response to previous aggressions – Moldova, Georgia, Crimea, and Donbas – was the perfect example of how supposedly educated elites learn nothing from history. The French, Germans, and Italians collectively made the same mistakes as Chamberlain in Munich, thinking that the aggressor would be satisfied by acknowledging their right to aggression, when, in reality, they were encouraging them to proceed and prepare for new expansionist ventures. This attitude provoked the logical irritation and distrust in the Slavic-Scandinavian space, which was never deceived by the ongoing process under the Russian government. These powers refused to believe U.S. intelligence warnings about Russia's willingness to invade and reacted too late and poorly. All this, combined with the old problem of lack of investment in defense, made European armed forces ineffective and their industry powerless in responding to a demand for military capabilities in a short period of time. If the Europeans do not take their defense seriously, if they have become accustomed to parasitizing U.S. leadership, the frustration of their elites with their European allies is understandable. The Biden administration tried to use the Ukraine War to reconstitute the Alliance, but the strategy of attrition applied, renouncing victory out of fear of its political and military consequences, has led to a very high number of Ukrainian casualties and to public fatigue, which, following the Russian plan, is pushing through new political formations from both the right and the left to reach an unfeasible understanding with Russia at Ukraine’s expense. In the new international scenario, characterized by competition among great powers to achieve technological hegemony within the framework of the Digital Revolution, the United States needs Europe as much as Europe needs the United States. Russia does not pose a direct threat to U.S. interests, but it has become a vassal of China and an instrument of Beijing to weaken the cohesion of the Western bloc. The Trump administration must not fall into the temptation of turning its back on its allies, no matter how irresponsible and incompetent they may be, as this would cede ground to the rival. An even more protectionist policy could push European states, if not the Union itself, to seek alternative markets in China. A policy of greater withdrawal would encourage both division among continental powers and the pursuit of a middle ground between the two superpowers. What is at stake is much more than tariffs or investment in defense. What we will decide soon is whether we are a community or not, whether we face the challenges of a new era together, or if we choose separation. Within the framework of the Atlantic Alliance, the United States has valuable allies, particularly the United Kingdom and the Slavic and Scandinavian blocs. Attempting to find a diplomatic solution to the Ukraine War could mean a victory for Russia by recognizing its right to alter Europe's borders by force, and the loss of trust from these allies, who are aware that even Trump would have fallen into the Munich trap, and despite his brash rhetoric, he would have ended up playing Chamberlain’s role. This would be a grave mistake for the United States, which, on the contrary, should rely on these countries to contain Russian expansionism and send a very clear message to Beijing about its commitment to updating and maintaining the cohesion of the Western community. Such an update would require allies, this time for real, to commit to defense investment and be prepared to use their capabilities when necessary. The Alliance needs a strategy. The concept approved in Madrid was merely the political framework to develop it. It is up to the Trump administration to lead its development in order to ultimately agree on what to do about the "Russian threat" and the "systemic challenge" posed by China. The Middle East crisis is unfolding in a scenario defined by two fronts established after years of diplomatic work: the "Abraham Accords" and the Axis of Resistance. Hamas’ aggression towards Israel has materialized in a harsh military campaign in the Gaza Strip, which has severely damaged the political and military capabilities of the Islamist group, and has extended to Lebanon, where Hezbollah is also suffering a heavy blow. In addition, Iran has seen its defense industry, anti-aircraft artillery systems, and, more limitedly, its nuclear network has suffered significant damage, while its intelligence system has been humiliated and degraded. In this context, despite the damage suffered by the Gazan population, the block formed by the Abraham Accords has remained cohesive, aware of Hamas' blackmail and the cost of yielding to it. On the other hand, Europe has presented itself as divided, lacking a strategic vision, not understanding that this was not a problem between Israelis and Palestinians, but an instrumental conflict aimed at undermining the regimes of Arab countries not aligned with the Axis of Resistance. Its criticism of Israel for the effects of its military campaign on the Gazan population consciously ignored both Hamas’ responsibility in turning them into human shields and the cost that accepting Hamas' blackmail would have had for all of us — Arabs, Israelis, and Europeans — if the campaign had not continued. How is it possible that we have so easily forgotten how the Axis powers were defeated? What would have happened in Europe during WWII if we had followed the European Union's demands during the Gaza War? The Middle East is a critical space for the Atlantic Alliance. It is understandable that the United States is frustrated with many of its European allies who, once again, have acted in a frivolous and irresponsible manner, unable to think in strategic terms. Israel has long chosen to turn its back on Europe, in response to a behavior it associates with a new form of anti-Semitism. The Arab bloc appreciates the European sensitivity to the suffering of the Gazan or Lebanese people, but it seeks security under the umbrella of the United States and Israel in the face of the Axis of Resistance, which poses a challenge of internal subversion, asymmetric warfare, and nuclear threat. A renewed Alliance needs to establish a strategy for the MENA region focused on containing Islamism and consolidating moderate regimes. China and Russia are taking advantage of the instability to infiltrate and hinder our missions. For them, instability on our southern front is a strategic objective, one that would fuel migration and insecurity, and with them, division within the Alliance and the Union. The Arab-Israeli bloc distrusts the United States due to its inability to maintain a strategy over time and does not rely on the Europeans. Only a firm stance from the Alliance in favor of this group of countries and against the Axis of Resistance could overcome this situation and guarantee both the cohesion of the Alliance and its authority in the region. The circumstances that led to the creation of the Alliance are behind us. They are history. However, today the Alliance is more necessary than ever. The circumstances have changed, but the community of values and interests remains the same, even though not everyone may understand this. Dissolving this community would be a grave mistake that would only benefit those powers whose goal is nothing more than to "revise" our legacy. Reviving it will not be easy. It will require political awareness and high-level diplomacy. Challenges that are impossible to achieve without leadership that matches the times. 

Defense & Security
Greenland for sale? asks a Donald Trump doll, Denmark, January 10, 2025

4 reasons why the US might want to buy Greenland – if it were for sale, which it isn’t

by Scott L. Montgomery

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском President-elect Donald Trump has sparked diplomatic controversy by suggesting the U.S. needs to acquire Greenland for reasons of “national security” and refusing to definitively rule out using military force to do so. Greenland, a self-governing Danish territory, “is not for sale,” said Denmark’s prime minister, Mette Frederiksen. Trump’s interest in Greenland is not new. He first expressed interest in the territory in 2019, but it never developed into any action. Whether or not Trump has actual plans this time around to advance any attempt in Washington to own Greenland is far from clear. But given the incoming president’s repeated statements and invocation of national security, it’s worth considering what strategic value Greenland might actually have from the perspective of the U.S.’s geopolitical priorities. As a scholar of geopolitical conflicts involving natural resources and the Arctic, I believe Greenland’s value from an international political perspective can be viewed in terms of four fundamental areas: minerals, military presence, Arctic geopolitics and the territory’s potential independence. A matter of minerals Greenland’s most valuable natural resources lie with its vast mineral wealth, which holds real potential to advance its economy. Identified deposits include precious metals such as gold and platinum, a number of base metals – zinc, iron, copper, nickel, cobalt and uranium – and rare earth elements, including neodymium, dysprosium and praseodymium. A detailed 2023 summary published by the Geologic Survey of Denmark and Greenland suggests new deposits will be found with the continued retreat of the Greenland Ice Sheet. Greenland’s rare earth resources are particularly significant. These elements are essential not only to battery, solar and wind technology but also to military applications. If fully developed, the Kvanefjeld – or Kuannersuit in Greenlandic – uranium and rare earth deposit would place Greenland among the top producers worldwide. During the 2010s, Greenland’s leaders encouraged interest from outside mining firms, including leading Chinese companies, before finally granting a lease to the Australian company Energy Transition Minerals (formerly Greenland Minerals Ltd). When China’s Shenghe Resources took a major share in Energy Transition Minerals, it raised red flags for Denmark, the European Union and the U.S., which felt China was seeking to expand its global dominance of the rare earth market while reducing Europe’s own potential supply. The issue was put to rest in 2021 when Greenland’s parliament banned all uranium mining, killing further development of Kvanefjeld for the time being. That same year saw the government also prohibit any further oil and gas activity. Predictably, a majority of mining companies have subsequently steered clear of Greenland due to perceived concern of any investment being jeopardized by future political decisions. Fears of China abroad China’s interest in Greenland stretches back at least a decade. In 2015, Greenland Minister of Finance and Interior Vittus Qujaukitsoq visited China to discuss possible investment in mining, hydropower, port and other infrastructure projects. One firm, China Communications Construction Company, bid to build two airports, one in the capital, Nuuk, the other in Ilulissat. Another Chinese firm, General Nice Group, offered to purchase an abandoned Danish naval base in northeastern Greenland, while the Chinese Academy of Sciences asked to build a permanent research center and a satellite ground station near Nuuk. None of this sat well with the first Trump administration, which put pressure on Denmark to convince Greenland’s government that a significant, official Chinese presence on the island was unwanted. The Danes and Greenlanders complied, rebuffing Chinese attempts to invest in Greenland-based projects. The Trump administration, in particular, viewed China’s interest in Greenland as having hidden commercial and military motives, concerns that continued under the Biden administration in its recent lobbying of another Australian mining firm not to sell any of its Greenland assets to Chinese companies. Long-standing US interest The U.S. has had a long-standing security interest in Greenland dating from 1946, when it offered Denmark US$100 million in gold bullion for it. The Danes politely but firmly declined, with their foreign minister saying he didn’t feel “we owe them the whole island.” In the early 1950s, the U.S built Thule Air Force Base 750 miles (about 1,200 kilometers) north of the Arctic Circle. Originally a missile early warning and radio communications site, it was transferred to the newly formed U.S. Space Force in 2020 and renamed Pituffik Space Base in 2023.   The northernmost military facility of the U.S., Pituffik has updated radar and tracking capabilities to provide missile warning, defense and space surveillance, and satellite command missions. While it also supports scientific research focused on the Arctic, the base is intended to increase military capabilities in the Arctic region for both the U.S. and its allies. The base has the ability to track shipping as well as air and satellite positions, giving it both real and symbolic importance to American strategic interests in the Arctic. As a result, much of the U.S. foreign policy establishment, not just those in Trump’s orbit, view any notable Chinese presence in Greenland, whether temporary or permanent, with concern. Geopolitics of the Arctic Greenland is geographically situated between the Northern Sea Route and the Northwest Passage, two Arctic shipping routes whose importance is growing as sea ice shrinks. By around 2050, a Transpolar Sea Route is likely to open through the central Arctic Ocean, passing Greenland’s eastern shores. Furthermore, the island is the basis of Denmark’s sovereignty claim to the North Pole – rivaled by claims by Russia and Canada. While international law recognizes no national sovereignty in international waters, that has done little to end the diplomatic tug-of-war over the pole. The matter is far from trivial: Sovereignty would give a country access to potentially significant oil, gas and rare earth resources, as well as superior scientific and military access to the future Transpolar Sea Route. Yet, this dispute over ownership of the North Pole is only one part of the geopolitical struggle for offshore territory in the region. Russia’s growing militarization of its enormous coastal area has been countered by NATO military exercises in northern Scandinavia, while China’s own moves into the Arctic, aided by Moscow, has seen the launch of several research stations supported by icebreakers and agreements for research and commercial projects. China’s government has also asserted it has rights in the region, for navigation, fishing, overflight, investment in oil and gas projects, and more. Greenland for Greenlanders? All of these factors help decipher the realities involved in the U.S.-Denmark-Greenland relationship. Despite Trump’s words, I believe it is extremely unlikely he would actually use U.S. military force to take Greenland, and it’s an open question whether he would use coercive economic policies in the form of tariffs against Denmark to give him leverage in negotiating a purchase of Greenland. Yet while Trump and other foreign policy outsiders view Greenland through an external strategic and economic lens, the island is home to nearly 60,000 people – 90% of them indigenous Inuit – many of whom treat the designs of foreign nations on their territory with skepticism. Indeed, in 2008, Greenland voted to pursue nationhood. The island receives an annual subsidy of 500 million euros ($513 million) from Denmark, and to further economic independence, it has sought foreign investment. Interest from China has accompanied Greenland’s moves toward independence, backed by Beijing’s strategy to be an Arctic player. The thinking in Beijing may be that an independent Greenland will be less shackled to NATO and the European Union, and as such, more open to investment from further afield. Ironically, Trump’s recent comments have the potential of achieving something very different than their aim by encouraging Greenland’s prime minister, Mute Egede, to propose a referendum in 2025 on full independence. “It is now time for our country to take the next step,” he said. “We must work to remove … the shackles of colonialism.”

Energy & Economics
Selective focus of the 2015 United Nations Climate Change Conference, COP 21 or CMP 11 logo on a mobile screen stock image: Dhaka, BD- Feb 27, 2024

Ten Years After the Paris Agreement: The Tragedy of the Overshoot Generation

by Marcelo de Araujo , Pedro Fior Mota de Andrade

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском The Paris Agreement will be ten years old in 2025. It is a good opportunity, then, to reassess the feasibility of its long-term goals and understand what they mean for the current and for the next generations. In a very optimistic scenario, if the goals of the Paris Agreement are achieved, the climate crisis will have been solved by the end of the 21st century. In the meantime, though, the crisis will worsen, as temperature overshoot is very likely to occur by the middle of the century. During the overshoot period, our planet’s average temperature exceeds 1.5°C above pre-industrial levels, which is the threshold proposed by the Paris Agreement. At the end of the overshoot period, which could last from one to several decades, the temperature will begin to fall until it eventually stabilises at 1.5°C at the turn of the century (IPCC 2023, 1810). Expectedly, the success of the Paris Agreement would greatly benefit the “post-overshoot generation”, namely the generation that will live in the first half of the 22nd century. But to ensure the success of the Paris Agreement, the generation that will live in the overshoot period – the “overshoot generation” – will have to remove an enormous amount of GHG (Greenhouse Gases) from the atmosphere. For now, though, it is unclear whether CCS (Carbon Capture and Storage) technologies will be available at a scale that might enable the overshoot generation to achieve the long-term goals of the Paris Agreement. To aggravate the problem, the overshoot generation will also probably have to rely on as-yet untested geoengineering technologies to promote their own survival. As we can see, conflicting interests of three different generations are at stake here, namely: (1) the interests of the current generation, (2) those of the overshoot generation, and (3) the interests of the post-overshoot generation. Given the unequal distribution of power across generations (Gardiner 2011, 36), it is likely that the current generation will tend to further their own interest to the detriment of the overshoot generation, even if, in the end, the climate policies enforced by the current generation do indeed fulfil the interests of the post-overshoot generation. The best possible world is one in which the goals of the Paris Agreement are achieved. Yet, depending on the choices that we make today, the best possible world could also mean the worst possible world that human beings will ever have met on our planet. That will be the fate of the overshoot generation, squeezed between the self-serving policies of the current generation and the climate hopes of the post-overshoot generation. The implications for international relations are momentous, as we intend to show in this article. Possible pathways The Paris Agreement did not establish a concrete deadline for the achievement of the goals set out in Article 2, namely: Maintain the increase in the global average temperature well below 2°C above pre-industrial levels, and make efforts to limit this temperature increase to 1.5°C above pre-industrial levels, recognising that this would significantly reduce the risks and impacts of climate change. The scientific community generally understands that the Paris Agreement aims at climate stabilization at the end of the 21st century. There are two main reasons for this. The first is a constraint imposed by our planet’s climate system. The second is a constraint imposed by agreed upon principles of justice. As for the first reason, we have to bear in mind that an immediate reduction of GHG emissions would not be followed by an immediate decline of global temperature (Dessler 2016, 91). Even if all countries decided to eliminate their respective emissions today, the global temperature would continue to rise for several decades, until it begins to recede and stabilises at the turn of the century. As for the second reason, the Paris Agreement assumed that developing countries could not immediately reduce their own emissions without compromising their own development and the prospect of eradicating poverty. Thus, the Paris Agreement also established in Article 4 that each country could continue to emit GHG until their respective emissions peaked as soon as possible. After peaking, emissions should be rapidly reduced. Thus, the attempt to achieve the goals set out in Article 2 well before the end of the 21st century might turn out to prove inconsistent with the reality of our planet’s climate system and unfair towards developing countries. The problem, however, is that the Paris Agreement did not establish a specific pathway for the achievement of its long-term goals (Figure 1). There is, indeed, a multitude of pathways, but many (if not most) of them involve an overshoot period (Geden and Löschel 2017, 881; Schleussner et al. 2016). And as there are “different interpretations for limiting global warming to 1.5°C”, there emerges the question, then, as to which interpretation could do justice to the conflicting claims of the three different generations considered as a whole, namely the claims of the current generation, those of the overshoot generation, and the claims of the post-overshoot generation (Figure 2). There has been much discussion now on the concept of a “just transition”. But this debate has focused entirely on the claims that the members of the current generation can raise against each other, and not on claims that could be raised – or presumed – across the three generations referred to above. The IPCC (Intergovernmental Panel on Climate Change) Glossary from 2023, for instance, contains a specific entry on this topic: “Just transitions. A set of principles, processes and practices that aim to ensure that no people, workers, places, sectors, countries or regions are left behind in the transition from a high-carbon to a low carbon economy” (IPCC 2023, 1806). The IPCC entry ends with some considerations regarding past generations: “Just transitions may embody the redressing of past harms and perceived injustices”. Interestingly, though, the entry says nothing about the normative implications of a just transition for future generations. A 2023 United Nations document defines the concept of just transition along similar lines (United Nations Economic and Social Council 2023, 3, 12–13). But, again, it understands “just transition” in terms of claims that stakeholders within the current generation, whether at national or international level, can raise against each other. As for the international level, the United Nations document makes the following statement concerning the concept of just transition as applied to international relations: “As countries pick up the pace of their climate change mitigation strategies, it is critical that developed countries do not transfer the burden of the transition onto developing countries” (United Nations Economic and Social Council 2023, 8). The problem, however, is that, as a matter of justice, it is equally critical that the current generation does not transfer the burden of the transition onto the overshoot generation, even if that burden, in the end, turns out to benefit the post-overshoot generation. Such an unequal distribution of burdens across three generations would certainly conflict with the requirements of intergenerational justice (Moellendorf 2022, 161–70; Meyer 2021). Overshoot generation and retroactive mitigation One might perhaps argue that no extra burden is being imposed on the overshoot generation, for the current generation is already having to face challenges that the overshoot generation, supposedly, will not have to face. The overshoot generation, one might suggest, will inherit from the current generation all the benefits resulting from the energy transition, but without having to bear the costs that the transition imposes on the current generation. The idea here is that by the middle of this century global emissions will have already peaked and will be declining at an accelerated pace, towards stabilisation at 1.5°C above the pre-industrial level at the end of this century. Thus, the overshoot generation can arguably reap the benefits of green energy, as long as the current generation remains free, at least for the time being, to emit GHG further, which is necessary to finance the human and technological development that the overshoot generation will need later. This claim, however, overlooks a crucial fact about the climate crisis – a fact that has not been given due attention in the public debate on climate policies. In a very optimistic scenario, the overshoot generation will not have the burden of reducing their own emissions because they will be able to rely on carbon-free energy. The problem, however, is that the overshoot generation will still have to retroactively mitigate the emissions of previous generations – including, of course, the emissions of the current generation. We call this process “retroactive mitigation”, for what is at stake here is not reduction and phasing out of one’s own emissions, but the removal of massive amounts of GHG, which previous generations failed to mitigate in the past. In a 2014 report, the IPCC realised that simply reducing GHG emissions would no longer be enough to preclude irreversible climate change. Removal of GHG would also be necessary (IPCC 2014, 12). The IPCC called attention to yet another problem: it was unclear whether CCS (Carbon Capture and Storage) technologies, including DAC (Direct Air Capture), could be deployed on a global scale in time to avoid a climate disaster. In a 2018 report, the IPCC was even less confident about the future development and scaling-up of CCS technologies (IPCC 2018, 136). To make matters worse, two further factors must be taken into consideration. (1) Recent studies show that there are practically no pathways left for the achievement of the Paris Agreement goals without the massive deployment of CCS (Smith et al. 2023). And (2) it has become increasingly probable that the overshoot generation will also have to deploy geoengineering technologies to cope with ever more frequent heatwaves (Moellendorf 2022, 161–70). It could perhaps be argued that afforestation and preservation of existing forests could be used instead of CCS technologies. However, the amount of land and water that would be necessary for the creation of new forests is probably larger than the amount of land and water available. Moreover, the attempt to create new forests on such a large scale might compromise the water and food security that the overshoot generation will need to promote their own climate adaptation (Shue 2017, 205). It is also necessary to take into account the amount of time new forests need to grow, not to mention the risk of fire. In this case, forests stop absorbing GHG and become GHG emitters themselves (Gatti et al. 2021). Implications for international relations In the aftermath of the Second World War, human being’s capacity to trigger catastrophic events at a global scale became increasingly apparent. As Garrett Hardin aptly put the problem in 1974: “No generation has viewed the problem of the survival of the human species as seriously as we have” (Hardin 1974b, 561). But while even realist thinkers such as Hans Morgenthau and John Herz argued for international cooperation in the face of global threats, Hardin himself advanced what he called the “lifeboat ethics”. According to Hardin, instead of engaging in international cooperation, richer states should behave like lifeboats and resist the temptation to help individuals from poorer states to cope with environmental disasters or famines. This, he argued, might undermine richer states’ capacity to secure their own survival (Hardin 1974a; 1974b). In his The Limits of Altruism: An Ecologist’s View of Survival from 1977, Hardin resumes his criticism of international cooperation to alleviate the plight of poorer states: We will do little good in the international sphere until we recognize that the greatest need of a poor country is not material: call it psychological, moral, spiritual, or what you will. The basic issue is starkly raised in a story of personal heroism that unfolded in South America a few years ago (Hardin 1977, 64). Hardin goes on to recall the 1972 Andes plane crash, turned into a feature film in 2023. Hardin suggests that the passengers who had survived the crash would not have taken the initiative to save their own lives had they not heard on the radio that the search efforts to rescue them had been called off. Hardin’s conclusion is this: “This true story, I submit, bears a close resemblance to the moral situation of poor countries. The greatest gift we can give them is the knowledge that they are on their own” (Hardin 1977, 65). Hardin, of course, does not take into consideration the extent to which richer states themselves may be responsible for the plight of poorer states. Hardin’s self-help approach to international relations is in line with political realism. But when major realist thinkers themselves addressed the question of human survival, around the same time Hardin advocated his lifeboat ethics, they came to entirely different conclusions. Authors such as Morgenthau and Herz realized that nation-states had become unable to protect their own citizens in the face of global catastrophes triggered by the depletion of the environment or the outbreak of a nuclear war. As Morgenthau put the problem in 1966: “No nation state is capable of protecting its citizens and their way of life against an all-out atomic attack. Its safety rests solely in preventing such an attack from taking place” (Morgenthau 1966, 9). In a 1976 article on the emergence of the atomic age, Herz made a similar point: “Nuclear penetrability had rendered the traditional nation-state obsolete because it could no longer fulfill its primary function, that of protection” (Herz 1976a, 101). Both Morgenthau and Herz argued for international cooperation – or perhaps even the dissolution of the system of states (Morgenthau 1978, 539) – as the better strategy to avert global catastrophic risks (Herz 1976a, 110; 1976b, 47). Herz later also theorized about the concept of “ecological threat” and argued for the development of a new interdisciplinary field, which he aptly named “survival studies” (Herz 2003; Seidel 2003; Laszlo and Seidel 2006, 2–3; Graham 2008; Stevens 2020). During the overshoot period, as heatwaves and other climate-related extreme events become more severe and frequent, people in poorer countries are likely to suffer the most. Mass migrations are likely to occur on an unprecedented scale (Vince 2022). Given the current popularity of anti-migration measures both in the United States and Europe, it is imaginable, then, that the lifeboat ethics will strike a chord with future conservative governments. That would be an error, for the assumption that governments will be protecting their own citizens by way of making their borders impenetrable to climate migrants is misleading. The “ecological threat” cannot be held back by higher walls. Lifeboat ethics will make everyone worse-off. Back in the 1960s, Martin Luther King may not have had climate change or mass migration in mind, but his words strike us as even more poignant now: “We may have all come on different ships, but we’re in the same boat now” (as quoted by former American President Barack Obama). There is only one boat, carrying three generations of hopeful passengers with equal legitimate claims to a better climate. It is a long journey. Let us not allow our only boat to go down. Final remarks The scenario in which the overshoot generation will have to live is not an encouraging one, but it is even less inhospitable than the scenario that the post-overshoot generation will have to face if the goals of the Paris Agreement are not met. It is up to the current generation to make sure that the overshoot period is as short as possible, and that the overshoot generation will not only be in a position to adapt to unprecedented climate scenarios in the history of human civilization, but also fulfil hopes of the post-overshoot generation. Figures Figure 1: Pathways compatible with the goals of the Paris Agreement (IPCC 2018, 62). FIGURE01  Figure 2: Pathways that would limit global warming to 1.5°C (IPCC 2018, 160).   Acknowledgements Marcelo de Araujo thanks Prof. Darrel Moellendorf for the invitation and the Alexander-von-Humboldt Foundation for the financial support. Support for this research has also been provided by the CNPq (The National Council for Scientific and Technological Development) and FAPERJ (Carlos Chagas Filho Research Support Foundation). An earlier draft of this article was presented at the University of Graz, Austria, Section for Moral and Political Philosophy, in 2024, with thanks to Prof. Lukas Meyer for the invitation. Pedro Fior Mota de Andrade benefited from financial supported provided by CNPq (National Council for Scientific and Technological Development). References Dessler, Andrew Emory. 2016. Introduction to Modern Climate Change. Second edition. New York, NY, USA: Cambridge University Press. Gardiner, Stephen. 2011. A Perfect Moral Storm: The Ethical Tragedy of Climate Change. Oxford: Oxford University Press. Gatti, Luciana V., Luana S. Basso, John B. Miller, Manuel Gloor, Lucas Gatti Domingues, Henrique L. G. Cassol, Graciela Tejada, et al. 2021. ‘Amazonia as a Carbon Source Linked to Deforestation and Climate Change’. Nature 595 (7867): 388–93. https://doi.org/10.1038/s41586-021-03629-6. Geden, Oliver, and Andreas Löschel. 2017. ‘Define Limits for Temperature Overshoot Targets’. Nature Geoscience 10 (12): 881–82. https://doi.org/10.1038/s41561-017-0026-z. Graham, Kennedy. 2008. ‘“Survival Research” and the “Planetary Interest”: Carrying Forward the Thoughts of John Herz’. International Relations 22 (4): 457–72. https://doi.org/10.1177/0047117808097311. Hardin, Garrett James. 1974a. ‘Lifeboat Ethics: The Case against Helping the Poor’ 8 (September):38–43. ———. 1974b. ‘Living on a Lifeboat’. BioScience 24 (10): 561–68. ———. 1977. The Limits of Altruism: An Ecologist’s View of Survival. Bloomington: Indiana University Press. Herz, John. 1976a. ‘Technology, Ethics, and International Relations’. Social Research 43 (1): 98–113. ———. 1976b. The Nation-State and the Crisis of World Politics: Essays on International Politics in the Twentieth Century. New York: D. McKay. ———. 2003. ‘On Human Survival: Reflections on Survival Research and Survival Policies’. World Futures 59 (3–4): 135–43. https://doi.org/10.1080/02604020310123. IPCC, ed. 2014. Climate Change 2014: Mitigation of Climate Change Working Group III Contribution to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change. New York: Cambridge university press. https://www.ipcc.ch/site/assets/uploads/2018/02/ipcc_wg3_ar5_full.pdf. ———. 2018. ‘Global Warming of 1.5°C. An IPCC Special Report on the Impacts of Global Warming of 1.5°C above Pre-Industrial Levels and Related Global Greenhouse Gas Emission Pathways, in the Context of Strengthening the Global Response to the Threat of Climate Change, Sustainable Development, and Efforts to Eradicate Poverty’. Edited by V Masson-Delmotte, P Zhai, HO Pörtner, D Roberts, J Skea, PR Shukla, A Pirani, et al. Intergovernmental Panel on Climate Change. https://www.ipcc.ch/sr15/. ———, ed. 2023. ‘Annex I: Glossary’. In Climate Change 2022 – Mitigation of Climate Change, 1st ed., 1793–1820. Cambridge University Press. https://doi.org/10.1017/9781009157926.020. Laszlo, Ervin, and Peter Seidel, eds. 2006. Global Survival: The Challenge and Its Implications for Thinking and Acting. 1st ed. Change the World. New York: SelectBooks. Meyer, Lukas. 2021. ‘Intergenerational Justice’. The Stanford Encyclopedia of Philosophy. 2021. https://plato.stanford.edu/archives/sum2021/entries/justice-intergenerational/. Moellendorf, Darrel. 2022. Mobilizing Hope: Climate Change and Global Poverty. New York: Oxford University Press. Morgenthau, Hans. 1966. ‘Introduction’. In A Working Peace System, D. Mitrany, 7–11. Chicago: Quadrangle Books. ———. 1978. Politics among Nations: The Struggle for Power and Peace. New York: Alfred Knopf (Fifth Edition, Revised, 1978). Schleussner, Carl-Friedrich, Joeri Rogelj, Michiel Schaeffer, Tabea Lissner, Rachel Licker, Erich M. Fischer, Reto Knutti, Anders Levermann, Katja Frieler, and William Hare. 2016. ‘Science and Policy Characteristics of the Paris Agreement Temperature Goal’. Nature Climate Change 6 (9): 827–35. https://doi.org/10.1038/nclimate3096. Seidel, Peter. 2003. ‘“Survival Research:” A New Discipline Needed Now’. World Futures 59 (3–4): 129–33. https://doi.org/10.1080/02604020310134. Shue, Henry. 2017. ‘Climate Dreaming: Negative Emissions, Risk Transfer, and Irreversibility’. Journal of Human Rights and the Environment 8 (2): 203–16. https://doi.org/10.4337/jhre.2017.02.02. Smith, Stephen, Oliver Geden, Gregory Nemet, Matthew Gidden, William Lamb, Carter Powis, Rob Bellamy, et al. 2023. ‘State of Carbon Dioxide Removal – 1st Edition’, January. https://doi.org/10.17605/OSF.IO/W3B4Z. Stevens, Tim. 2020. ‘Productive Pessimism: Rehabilitating John Herz’s Survival Research for the Anthropocene’. In Pessimism in International Relations: Provocations, Possibilities, Politics, edited by Tim Stevens and Nicholas Michelsen, 83–98. Cham, Switzerland: Palgrave Macmillan, Springer Nature. United Nations Economic and Social Council. 2023. ‘Committee for Development Policy Report on the Twenty-Fifth Session (20–24 February 2023)’. Supplement No. 13 E/2023/33. Official Records. New York: United Nations. https://documents.un.org/doc/undoc/gen/n23/088/80/pdf/n2308880.pdf. Vince, Gaia. 2022. Nomad Century: How Climate Migration Will Reshape Our World. First U.S. edition. New York: Flatiron Books. The text of this work is licensed under  a Creative Commons CC BY-N

Diplomacy
EU and USA trade war caused by the 2018 US tariffs on steel and aluminium

What a second Trump Administration will mean for multilateralism

by Andrea Ellen Ostheimer

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском Less than a week away from the inauguration of Donald J. Trump as the 47th President of the United States of America, not only strategic allies and trading partners but also multilateral organisations and the UN system are bracing themselves for the certainty of unpredictability.  However, taking into consideration President Trump’s first term in office, his announcements on the campaign trail, his own personality, the nomination of personnel for positions of high relevance for the international system as well as the impact of the Republican trifecta and diminished checks and balances, a substantial re-positioning of the US within the international system can be expected.   The impact of the first Trump Administration Since the UN’s founding in 1945, the relationship between the US and the United Nations can at best be described as contradictory, which is largely the result of constant tensions between domestic considerations and foreign policy goals. As the leading advocate for a successor institution to the League of Nations, the US fundamentally shaped the objectives and values of the United Nations. This support, which had been driven by national interests, started to wane in the mid-70s when enlarged membership and the creation of the G77, a group of 77 developing countries, reduced US influence.  Although the US was a leading actor in the UN’s establishment, the UN has become a secondary platform of international cooperation. Various US administrations have engaged substantially with the UN system when it served national interests. However, domestic power constellations have frequently impeded any substantial engagement that has gone beyond financial contributions.1  However, Trump’s “America First” ideology stood out from his predecessors’ policies, and particularly conservative ones, in its obstructive approach to the United Nations and disdain towards institutions such as NATO, thus rebuking the closest allies of the US. Indifference and discord towards the United Nations not only damaged the institution but also the reputation of the US. President Trump’s unilateral “America First” policy and abject disregard for multilateral institutions damaged US legitimacy as a global leader and weakened the UN. Under Trump, the transactional nature of US engagement with the UN became obvious. As long as US interests were served, constructive engagement was applied.  US Ambassador to the UN, Nikki Haley even managed to gain the support of China and Russia on a Security Council Resolution (SC/RES/2397) that would impose harsh sanctions on North Korea (DPRK).2 However, in other areas the dominance of national interests guided US policies at the UN during the Trump administration. In showing its unconditional support for Israel, the Trump administration cut all of the US’s funding from the UN Relief and Works Agency for Palestine Refugees (UNRWA) and further reduced its potential role as mediator in the Middle East Peace Process.3 After accusing the UN Population Fund (UNFPA) of supporting coercive abortions and involuntary sterilisations in China without proof, the Trump administration cut all core funding for UNFPA and jeopardised many family planning programmes in developing countries.4 In the Security Council, the US position at times even aligned with Russia’s or China’s policy – particularly when other UNSC members tried to raise the nexus of climate change and security. This, as well as the US positions on the rights of victims of sexual violence in war and their reproductive health, further enhanced tensions with traditional Western allies. In addition, Trump withdrew the US from the Paris Climate Accords, the JCPOA5, the INF treaty6, and boycotted the UN Migration Pact7 negotiations.  However, the most obstructive political manoeuvres under President Trump have certainly been the scapegoating of the WHO and the labelling of the organisation as a Chinese puppet during the COVID-19 crisis, the suspension of funding for WHO, and the subsequent withdrawal from the UN body at the height of the pandemic. By doing so, the US squandered its reputation as a reliable partner and blocked any declaration by the UNSC on the pandemic for months.  Equally harmful was the US withdrawal from the UN Human Rights (HR) Council in 2018. Not only did the US abandon a platform for denouncing human rights violations worldwide, but its departure also allowed China to disseminate its own human rights narrative. Although autocratic regimes are regularly elected to the Council and use the opportunity to ensure their own HR violations are not addressed, the US withdrawal created a vacuum and took away a powerful ally for like-minded states, particularly the European Union (EU). In the HR Council, we see an increasingly assertive China, which previously only tried to shield its domestic situation from scrutiny, but which has now come up with its own interpretation of collective, developmental rights versus individual human rights. Swift action and a prepared agenda During his first term President Trump only slowly appointed key positions in foreign relations. It took him two years to appoint an Ambassador to Geneva, for example. His ambition to fundamentally cut financial support to the UN system found its limits in Congress. The US remained the world’s largest donor of development and humanitarian assistance. Even within in the Republican party and in conservative circles, particularly in the religious and evangelical constituencies the opinion prevailed that official development assistance still served the interests of the American people.  In January 2025, the situation is different. One of the first nominations of Donald Trump after his re-election in November has been Marco Rubio, as Secretary of State, and he appointed Republican Representative Elise Stefanik as his Ambassador to the United Nations in New York.  Senator Rubio has been known so far as a supporter of US global engagement as when it serves American economic interests and national security. He is hard on China and aims for more transparency and accountability in the aid sector. He supported the fight against Malaria and other preventable and treatable diseases in the past. Although a sigh of relief went through the development community when his name was circulated, it cannot be taken for granted that he will defend their interests against the MAGA dynamics in the party and administration. As with all Trump appointments, and considering experiences from the past, the question will always be how much autonomy can they preserve, and for how long will they endure in the system?8  Although Donald Trump distanced himself during the campaign from Project 2025, a blueprint for an incoming conservative administration by the Heritage Foundation, it is to be expected that those he has so far selected not only share the views on the multilateral order but also the criticism and preconceptions brought up against the institutions.  The frontline of Trump’s anticipated crusade against multilateral organizations might this time also include those who have been spared so far: World Bank, IMF, as well as the OECD. 9 In the case of others, he might continue where the end of his first term prevented further action or the Biden administration reversed the steps he had taken. Human Rights Council The latter has been the case of the Human Rights Council. In 2018 the Trump administration had been withdrawing from the Council arguing that it had become an “exercise in shameless hypocrisy – with many of the world’s worst human rights abuses going ignored, and some of the world’s most serious offenders sitting on the council itself.”10  In October 2021, the US got reelected to the Human Rights Council. In the context of its staunch support for Ukraine, the US became the driving force behind a Commission of Inquiry on Ukraine as well as on the creation of the Special Rapporteur on Russia. However, when its reelection came up again in October 2024, the Biden administration deliberately decided not to stand as a candidate. Although some observers argue that this decision has been taken in order to avoid a backlash from a majority of UN Member States who see the unwavering US position on the collateral implications for International Humanitarian Law and Human Rights by Israel’s fight against Hamas and Hizbollah as a paramount example of double-standards. One could also argue that not being a sitting Member of the Human Rights Council at a time when the likelihood of another withdrawal is not too far away, reduces the reputational damage for the organization as well as for the standing of the US in the International System.  US Ambassadors to the United Nations in New York are generally Cabinet Members, thus directly involved in shaping policies. With Elise Stefanik, Trump has not only appointed a staunch supporter of Israel who has accused the UN of being “a den of antisemitism”11 but also a reliable anti-abortion proponent. Her positioning in New York will certainly influence dynamics in Geneva as well. And if Project 2025 is becoming the playbook that everybody expects it to be, the Universal Declaration of Human Rights to which the US is a signatory might not remain the uncontested reference point anymore.  The U.S. Commission on Unalienable Human Rights created during the first Trump administration by Secretary of State Mike Pompeo, produced a report which is projected by Project 2025 as an important guidepost for bilateral and multilateral engagements on human rights.12 The report sets out to define which rights are ‘unalienable,’ elevating religious liberty and the right to private property, while dismissing rights the report calls “divisive social and political controversies,” including sexual and reproductive rights, LGBTI rights, and the right to non-discrimination.13  The intention of Project 2025 is not only to reevaluate all multilateral engagements by the US in the light of the work of the Commission on Unalienable Human Rights, but also to forge a consensus among like-minded countries in support of human life, women’s health, support of the family as the basic unit of human society, and defense of national sovereignty. In 2020, the Trump administration sponsored in the UN General Assembly the Geneva Consensus Declaration on Women’s Health and the Protection of the Family (A/75/626) for which it gained the support of 34 Member States, including those whose human rights and women rights track records are anything but clean: e.g. Belarus, Saudi Arabia, Uganda, Pakistan.14  Taking into consideration initiatives like the Geneva Consensus, the in-coming Trump administration could besides of complete withdrawal also undermine Human Rights standards by introducing almost in a similar way as China is doing, new narratives. In this endeavour, the US could even find support amongst states who are normally staunch US critics but who will seize the moment and opportunity to dismantle the liberal rules-based order that they perceive as Western dominated anyway. World Trade Organisation (WTO) To avoid another blockage in the appointment of a WTO Director General in 2025 by the US, WTO members brought forward the re-election process of incumbent Ngozi Okonjo-Iweala by two months. President Trump had already in 2020 blocked her appointment, leaving the organisation without leadership for almost seven months.  From an “America first” perspective, “America gets fleeced every day in the global marketplace both by a predatory Communist China and by an institutionally unfair and nonreciprocal WTO.”15 Thus, Project 2025 recommends to reform the WTO or to build a successor organisation and limiting its membership to liberal democracies. The main red-flag for the US at WTO certainly is the developing-country status of China in the WTO and the alleged infringements on US sovereignty – albeit ignoring the veto right the US has as the WTO is a consensus-based organisation.  However, and although Trump’s announced tariffs applied on friends and foes will be disruptive for the international trade system, one must highlight that also during the Biden administration, the US has not been a WTO member easy to engage. This held particularly true for the reform of the appellate body of the dispute settlement mechanism whose appointment process remains dysfunctional since the Obama administration. For the in-coming administration, trade is considered also as a tool for development. In this regard it does not differ too much from the reforms out-going USAID Administrator, Samantha Power, had tried to initiate.16 And it could be an area where WTO Director General Ngozi Okonjo-Iweala, who is seen as particularly focused on the development aspects of trade, and the Trump administration could perhaps find a common ground. Humanitarian and development assistance Humanitarian assistance that already faces substantial funding gaps will certainly face new vulnerabilities with the in-coming Trump administration. Despite substantial reductions which already kicked in in 2022, the US remains the largest donor for UN agencies such as the World Food Programme (2023: 36.53% of total WFP came from US); UNHCR (2023: 38.93%); and OCHA (2023: 19.9%). Although humanitarian aid and particularly funding for food security (WFP was run by the Trump ally, David Beasley) was not contentious during Trump’s first administration, this might change. According to Max Primorac who had been Deputy Administrator of USAID during Trump’s first term, and is the author of the Project 2025 chapter on the Agency for International Development, “’emergency’ aid distorts humanitarian responses, worsens corruption in the countries we support, and exacerbates the misery of those we intend to help.[...] humanitarian aid is sustaining war economies, creating financial incentives for warring parties to continue fighting, discouraging governments from reforming, and propping up malign regimes. Nefarious actors reap billions of dollars in profits from diversions of our humanitarian assistance, but so do international organizations.”17 While criticizing the overheads international agencies have to charge in order to deliver aid in emergency situations, Trump affiliated development experts highly advocate for localisation – albeit in a slightly different fashion as progressive voices would do. The quest of the latter for enhanced equity, inclusion, and ownership of local organizations from project design to implementation remains disregarded while a case is built for aid delivery by faith-based organisations. Although enhancing the inclusion of local organizations for the right reasons is laudable, it certainly will not diminish the need for strong oversight and staff capacities on donor level. One reason why multilateral and international organisations are often used as a type of “middlemen” in aid delivery relates to the lean project management structures in Foreign and Development Ministries these days and the need for accountability mechanisms where taxpayers’ money is spent.  Drawing on the visions presented by Project 2025, development assistance under the in-coming Trump administration will have a strong focus on countering Chinese influence and will align foreign and developmental with anti-abortion policies. What is labelled as “Protecting life in Foreign Assistance”18 will inter alia reintroduce the “global gag rule” which prohibits US funding to organisations abroad that provide abortion services or information. Trump had already in his first term expanded the interpretation of it to the “Protecting Life in Global Health Policy”, and it is expected that he will include now humanitarian and development assistance as well – making it extremely difficult to assess what is included under these new rules and what not.19 In this context it is almost a given that Trump will cut again all funding for the UN Population Fund (UNFPA) as its reproductive health services worldwide are a red-flag.20 Although UNFPA has gotten used to budget cuts by conservative US governments over the years, loosing 11% of its budget (2023) would not be easy to compensate for. World Health Organisation (WHO) and UNAIDS During the Covid-19 pandemic, the World Health Organisation (WHO) became a prime target for President Trump who inter alia accused the organisation of being too close to China and its handling of the early stages of the outbreak.21 He initiated a process to withdraw the US from it – a move that has been immediately reversed by his successor President Biden. Also for WHO, the US is currently the largest donor of assessed and voluntary contributions totalling 15.59% (2023).22 But with the negotiations of the Pandemic Treaty still underway, and the possibility for states to challenge the finalised amendments of the International Health Regulations until July 2025, it is much more at stake for WHO than just the financial implications of a disruptive relationship with the next Trump administration. With the nomination of Robert Francis Kennedy (RFK) Jr as the new Secretary of the Department of Health and Human Services (HHS), the global health community is on high alert. On his campaign trail for president, RFK Jr. had already proclaimed to stop the pandemic treaty, as has done President elect Trump. In addition, RFK Jr has linked vaccines to autism, called the Covid-19 vaccines deadly, supports anti-vaccine organisations, and even questioned the proven fact that HIV causes AIDS.23 When 77 Nobel Laureates urged the US Senate in December 2024 to reject the nomination of RFK Jr.24, WHO Director General Dr Tedros Ghebreyesus called for a “wait and see” attitude. He and his team are looking for areas where it might be possible to engage the Trump administration and its new HHS secretary. One area could be the epidemic of non-communicable diseases faced by Americans and which is often cited by RFK Jr. who advocates for enhanced prevention by healthier diets, environments and an active lifestyle.25  Health security has in the past always been a matter of common concern, and parties were able to work across the aisle. However, polarisation has also become a characteristic feature here. With a trifecta in place, the majority of Republicans in the House as well as in the Senate could become an issue of survival for programs such as PEPFAR. Already this year, PEPFAR, the US global flagship initiative in the fight against HIV/AIDS that had been established under Republican President George W. Bush in 2003, failed to secure bipartisan support for a full, five-year legislative reauthorization. After conservative groups had launched a campaign accusing without evidence the Biden administration to use PEPFAR money for abortions, the program only secured a temporary one-year reauthorization until March 2025.26 PEPFAR funding (6.5 billion USD in 2024) is comprised of U.S. bilateral funding and U.S. contributions to multilateral organizations addressing HIV, primarily the Global Fund to Fight AIDS, Tuberculosis and Malaria (Global Fund: 1.65 billion USD from PEPFAR) and UNAIDS. Particularly the latter would be severely impacted if funding would get further reduced. In 2024 UNAIDS received 50 million USD from PEPFAR27 making the US its largest donor. Personality, Ideology and Money – a toxic cocktail For most UN Agencies, Funds and Programs the US is the largest contributor in assessed and voluntary contributions. 22% of the UN budget are financed by assessed US contributions. With voluntary contributions counted in, this figure amounted in 2023 to 27.9%.28 Thus, the UN leadership is bracing itself for the worst-case scenarios. However, scraping the bottom of the barrel at times when other donors are equally becoming reluctant in financing multilateral and developmental programs, is only sustainable in the short term. In addition, the much-lamented growing influence of autocratic states such as China will only grow further when the US is creating once again a vacuum that will be filled with pleasure by its adversaries. During the first Trump administration’s withdrawal from multilateralism, the EU and EU Member States were stepping up their engagement and managed in many cases to fill the void.  To preserve a rules-based multilateral order, European governments need to be prepared not only to contribute to the empty coffers of UN institutions but also to take on a leadership role and to forge new alliances with states who are still sharing the same values. In the future, Russia will not remain the only disruptor on the multilateral parquet and China will not be the only country trying to create new narratives around human rights. By disengaging from multilateral arrangements and disregarding established collective norms, the next Trump Presidency will certainly have a negative impact on the social fabric of international cooperation.  But this should not come to us as a surprise. Multilateralism needs as a minimum requirement moral commitment to the established principles of collective decision-making, including the precondition of pacta sunt servanda. Multilateralism strives for inclusive decision-making and equality amongst those sitting around the table. Multilateralism lives on tolerance for the point-of-view of others, and the acceptance of compromises for the sake of mutual benefits. In the transactional, zero-sum world of Donald Trump neither compromise, reciprocity nor empathy are part of the vocabulary. “America First” reflects his personality and illustrates a perceived incompatibility between US national interests and multilateral engagement.29  To keep up a rules-based international order in a geo-political era of manifold crisis, like-minded states and above all Europeans have to step up their action to preserve what they treasure. Despite all the headwinds coming out of Washington, DC starting January 20th, multilateralism is not doomed to fail without US engagement. Power relations will certainly change but it must be Europe’s core interest to safeguard its influence in shaping the global order. References 1 Ostheimer, Andrea E.: The United Nations and Global Multilateral Organisations as a Playground for American-Chinese Rivalry, in: New Realities of Multilateralism, Panorama 2022, pp. 7-26.[ Panorama 2022_01_Multilateralism_cover_v3_crop.indd https://www.kas.de/documents/288143/21303801/Panorama+2022+New+Realities+of+Multilateralism.pdf/d2ed886c-83fa-6423-90b8-eeaa48ef8620?version=1.0&t=1668409843028 ].  2 Runde, Daniel F.: Competing and Winning in the Multilateral System. Center for Strategic & International Studies (CSIS), 2020, p 4. [ https://www.csis.org/analysis/competing-andwinning-multilateral-system-us-leadership-united-nations ]. 3 Amr, Hady. 7 September 2018. Brookings. [ https://www.brookings.edu/blog/order-from chaos/2018/09/07/in-one-move-trump-eliminated-us-funding-for-unrwa-and-the-us-role-as-mideast-peacemaker/ ].  4 Morello, Carl. 4 April 2017. The Washington Post. [https://www.washingtonpost.com/ world/national-security/trump-administration-to-eliminate-its-funding-for-un-population-fundover-abortion/2017/04/04/d8014bc0-1936-11e7-bcc2-7d1a0973e7b2_story.html]. 5 The Joint Comprehensive Plan of Action (JCPOA) had been an accord that restricted the Iranian nuclear program to mere peaceful usage.  6 The Intermediate-Range Nuclear Forces Treaty had limited the type of weapons systems the signatories, US and Russia could pursue.  7 The Global Compact for Safe, https://www.iom.int/resources/global-compact-safe-orderly-and-regular-migration/res/73/195 Orderly and Regular Migration is the first intergovernmental agreement covering all dimensions of international migration. It is a non-legally binding, cooperative framework that upholds the sovereignty of States and their obligations under international law. 8 Saldinger, Adva; Igoe, Michael: “We can work with him: Aid advocates react to Trump’s Rubio pick”, 14 November 2024, [‘We can work with him’: Aid advocates react to Trump’s Rubio pick | Devex https://www.devex.com/news/we-can-work-with-him-aid-advocates-react-to-trump-s-rubio-pick-108752 ]  9 Klingebiel, Stephan; Baumann, Max-Otto: Trump 2.0. in time of political upheaval? Implications of a possible second presidency for international politics and Europe, IDOS Policy Brief, No 24/2024, [https://doi.org/10.23661/ipb24.2024]. 10 Mike Pompeo, US Secretary of State, 19 June 2028 [Remarks on the UN Human Rights Council - U.S. Mission to International Organizations in Geneva https://geneva.usmission.gov/2018/06/21/remarks-on-the-un-human-rights-council/ ]  11 Elise Stefanik cited in King, Ryan; Spector, David, New York Post, 20 November 2024, [ICYMI: New York Post: Elise Stefanik vows to take on ‘den of antisemitism’ and ‘apologist for Iran’ at the UN | Press Releases | Congresswoman Elise Stefanik https://stefanik.house.gov/2024/11/icymi-new-york-post-elise-stefanik-vows-to-take-on-den-of-antisemitism-and-apologist-for-iran-at-the-un ].  12 2025_MandateForLeadership_CHAPTER-06.pdf https://static.project2025.org/2025_MandateForLeadership_CHAPTER-06.pdf  13 Commission on Unalienable Rights | https://bidenhumanrightspriorities.amnestyusa.org/commission-on-unalienable-rights/  14 n2034430.pdf https://documents.un.org/doc/undoc/gen/n20/344/30/pdf/n2034430.pdf  15 Navarro, Peter: The case for fair trade, Project 2025, [2025_MandateForLeadership_CHAPTER-26.pdf https://static.project2025.org/2025_MandateForLeadership_CHAPTER-26.pdf ] 16 90% of USAID funding from US Congress is earmarked and dedicated to basic sectors such as health care, education and agriculture. At the start of the Biden administration only 5% of USAID’s budget went into economic growth programs. Miolene, Elissa: How economic growth became a forgotten priority at USAID, 10 December 2024, [How economic growth became a forgotten priority at USAID | Devex https://www.devex.com/news/how-economic-growth-became-a-forgotten-priority-at-usaid-108911#:~:text=At%20the%20start%20of%20the,lack%20of%20focus%20surprised%20her. ]  17 Primorac, Max: The Agency for International Development, Project 2025 [2025_MandateForLeadership_CHAPTER-09.pdf https://static.project2025.org/2025_MandateForLeadership_CHAPTER-09.pdf ].  18 [2025_MandateForLeadership_CHAPTER-09.pdf https://static.project2025.org/2025_MandateForLeadership_CHAPTER-09.pdf ] 19 Igoe, Michael: What we do and don’t know about Trump’s US aid plans, 15 November 2024, [What we do and don't know about Trump's US aid plans | Devex https://www.devex.com/news/what-we-do-and-don-t-know-about-trump-s-us-aid-plans-108719 ]  20 Lynch, Colum: Will Trump gut UN family planning funds….again?, 31 October 2024, [Will Trump gut UN family planning funds ... again? | Devex https://www.devex.com/news/will-trump-gut-un-family-planning-funds-again-108655 ] 21 Coronavirus: what are President Trump’s charges against WHO?, BBC Fact Check, 8 July 2020, Coronavirus: What are President Trump's charges against the WHO? https://www.bbc.com/news/world-us-canada-52294623   22 WHO | Programme Budget Web Portal https://open.who.int/2022-23/contributors/top25  23 Lei Ravelo, Jenny: Will RFK Jr. ‘go wild’ on global health?, 4 December 2024, [Will RFK Jr. ‘go wild’ on global health? | Devex https://www.devex.com/news/will-rfk-jr-go-wild-on-global-health-108837 ]. 24 Nobel laureates oppose RFK Jr.'s confirmation to HHS https://thehill.com/policy/healthcare/5031298-nobel-laureates-oppose-rfk-jr/  25 Fletcher, Elaine Ruth: ‘Give them some space’: WHO Director General on Trump Nomination of RFK Jr as US Health Secretary, 11 December 2024, [‘Give Them Some Space’: WHO Director General On Trump Nomination Of RFK Jr As US Health Secretary - Health Policy Watch https://healthpolicy-watch.news/give-them-some-space-who-director-general-comments-on-trump-nomination-of-rfk-jr-as-us-health-secretary/ ]  26 Igoe, Michael: PEPFAR chief warns waning political will could hurt AIDS fight, 22 July 2024, [PEPFAR chief warns waning political will could hurt AIDS fight | Devex https://www.devex.com/news/pepfar-chief-warns-waning-political-will-could-hurt-aids-fight-107022 ] 27 The U.S. Government and the World Health Organization | KFF https://www.kff.org/coronavirus-covid-19/fact-sheet/the-u-s-government-and-the-world-health-organization/#:~:text=For%20example%2C%20in%20the%20previous%20budget%20period%20(2022%2D2023,totaled%20%2428.1%20million%20(0.4%25).  28 Revenue by Government donor | United Nations – CEB https://unsceb.org/fs-revenue-government-donor  29 Loewener, Franca/Cook, Justin D.: Trump re-elected. How the Trump Doctrine reshapes US multilateral engagement and global influence. 12.11.2024 [Publication - OI] https://observatoire-multilateralisme.fr/publications/trump-reelected-how-the-trump-doctrine-reshapes-us-multilateral-engagement-and-global-influence/  The text of this work is licensed under the terms of by "Creative Commons Attribution-ShareAlike same conditions 4.0 international", CC BY-SA 4.0

Energy & Economics
Industrial Container Cargo freight ship, forklift handling container box loading for logistic import export and transport industry concept

A Quick Note on Trade and Inequality

by Dean Baker

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском Oren Cass, the head economist of Compass, had a column in the New York Times today touting Donald Trump’s proposed tariffs. The gist of the piece is that “free trade” has not worked out as economists’ textbooks promised and we should look to take a different path. As someone who was very critical of the major trade deals of the last three decades, I would say that they did work out very much as the economists’ textbooks promised. But they were also not “free trade,” and imposing high tariffs will not help us going forward. First, the economists’ textbooks did not promise that everyone would benefit from opening trade. They show that there would be a redistribution from some types of workers to other types of workers and/or capital. There is a famous article, co-authored by the first American Nobel Prize winner Paul Samuelson, that laid out this theoretical argument more than 80 years ago. Economists pushing NAFTA, China’s entry into in the WTO, and other recent trade deals always waved off the logic of the Stolper-Samuelson model, or alternatively promised government policies to offset the distributional impact of trade openings. As a practical matter, the policies (mostly trade-adjustment assistance) were one or two orders of magnitude too small for the job. We saw millions of workers displaced in manufacturing, as our trade deficit ballooned from 1997 to 2007. Communities across the industrial heartland were devastated as the factories that supported them downsized or shut altogether. We can have lengthy debates about the motives of working class people who switched from Democrats to Trump voters, but the fact that Democratic presidents pushed trade policies that destroyed millions of good paying jobs for non-college educated workers is not really in dispute. While it is important to recognize the damage caused by trade deals of the last three decades, it is also essential to recognize that these were not “free trade” deals even though this is what their proponents like to claim. These deals did little or nothing to free up trade in highly paid professional services, like the services of physicians or dentists. As a result, while our manufacturing workers get paid less than their counterparts in Western Europe, our physicians get paid more than twice as much as doctors in countries like Germany and Canada. The trade deals were all about lowering barriers to trade in manufactured goods, with the predictable effect of lost jobs and lower wages for manufacturing workers. But when it came to discussions of lowering the barriers to foreign doctors and foreign-trained professionals working in the U.S., most of the “free-traders” would suddenly get really dumb, as though they didn’t understand the concept of free trade. And to be clear, the economics textbooks tell us the same thing about free trade in professional services as they say about free trade in cars and shoes. If we paid our doctors the same as doctors in West Europe it would knock more than $100 billion a year ($1,000 per family) off our national health care bill. But we don’t have free trade in physicians’ services. But it gets worse. Even as we were lowering barriers to trade in manufactured goods, we were increasing barriers to trade in intellectual products in the form of longer and stronger patent and copyright protections. These protections are government-granted monopolies, 180 degrees opposite of free trade. Yet somehow every major “free trade” deal of the last four decades included provisions making these monopolies longer and stronger both in our trading partners and in the United States. The effect of longer and stronger patent and copyright protection is to redistribute income from the rest of us to those in a position to benefit from them. Bill Gates would probably still be working for a living if the government didn’t threaten to arrest people who copied Microsoft software without his permission. And to be clear, there is an enormous amount of money at stake. The higher prices from patent and copyright monopolies almost certainly cost us more than $1 trillion a year. They cost us more than $500 billion ($4,000 per family) in the case pharmaceutical alone. Patent and copyright monopolies do serve a purpose. They provide an incentive for innovation and creative work. But they are not the only way to provide this incentive. For example, we support more than $50 billion a year in biomedical research through the National Institutes of Health and other government agencies. Most importantly for this argument is the recognition that patent and copyright monopolies are government policies that should be treated as such. We can argue whether they are the best policy, but they are certainly not free trade, and it is a lie to call them free trade. Tariffs and the Trump Route Forward Getting the free trade story right is important for what we think is the best route going forward. The fact that reducing trade barriers in manufacturing was bad for non-college educated workers doesn’t mean that raising those barriers now will be good news for these workers. The wage premium that manufacturing workers had enjoyed in years past had largely disappeared. This means that if we get back jobs in the auto industry or textile industry, there is little reason to think these jobs will pay better than alternative jobs in warehouses or health care. High tariffs just mean that all workers will be paying higher prices for a wide range of goods in order to shift a relatively small number of other workers into not especially good-paying jobs in manufacturing. The reason manufacturing jobs were good paying jobs was because these jobs were far more likely to be union jobs than other private sector jobs. In 1980 more than 30 percent of manufacturing jobs were unionized, compared to 15 percent for the rest of the private sector. Today, the gap is just 8.0 percent compared to 6.0 percent. That’s still a difference, but not one that has much impact. If we got back another 1 million manufacturing jobs as a result of tariffs, a very big lift, it would translate into roughly 20,000 more union workers. That’s a pretty small drop in the bucket in a labor force of more than 160 million. If we want to reverse the rise in inequality of the last four decades, we should make use of those economics textbooks rather than ignoring them, as Mr. Cass advocates. We should do everything possible to have freer trade in highly paid professional services, exposing our most highly paid workers to the same sort of competition, both domestically and internationally, that our factory workers have long faced. And we should look to shorten and weaken the patent and copyright monopolies that have shifted so much income upward and made items like prescription drugs incredibly expensive. In the absence of patent monopolies, drugs would almost always be cheap, patent monopolies make them expensive. We also need to pursue other mechanisms for supporting innovation and creative work. This is the conversation that we need to have and one that unfortunately will not take place in the pages of the New York Times or other leading media outlets. In fact, the econ textbooks have much to teach us if we actually pay attention to what they say and don’t use them selectively to push a class agenda. Originally published on CEPR (https://cepr.net/publications/a-quick-note-on-trade-and-inequality/) under the Creative Commons Attribution 4.0 International License.

Diplomacy
OTTAWA, CANADA - JUNE 22, 2016: Prime Minister Justin Trudeau reviews the highlights of his Liberal government's first parliamentary session

Trudeau taps out: How Trump’s taunts and tariff threats added to domestic woes confronting Canada’s long-standing PM

by Patrick James

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском After weeks of speculation over his future, Canadian Prime Minister Justin Trudeau announced his intention to resign on Jan. 6, 2025. His departure will bring an end to a decade of power for the progressive politician and once-darling of the liberal left. It follows infighting in his own party and a slump in Trudeau’s popularity to the point where he trails the leading opposition candidate by over 20 percentage points. But it can’t escape notice that the resignation comes just weeks ahead of a Trump administration – and after a barrage of personal slights and threats of punishing tariffs directed at Canada by the incoming Republican president. The Conversation turned to Patrick James, an expert on Canadian-U.S. relations and Dean’s Professor Emeritus at USC Dornsife, to explain why Trudeau chose now to bow out – and what role Trump played in his departure. Why did Trudeau resign? The first thing to note is that Trudeau’s resignation is no real surprise to anyone following Canadian politics – the only real surprise is the timing. At its heart, this is a personal political decision; the reality is Trudeau’s party was doomed in the next election – which is due to take place before the end of October 2025. Barring any wild changes between now and the vote, the chances of Trudeau’s Liberal Party winning are as dead as a doornail. The opposition Conservative Party, also known as the Tories, are up in the polls by some 24 points. The Tory leader, Pierre Poilievre, has done a reasonably good job at moderating his image from that of a hard right-winger – narrowing any chance Trudeau had of capturing enough of the center he needed. My best guess is that, faced with this imminent defeat, Trudeau believes getting out now will insulate him and make it more likely that he can return to front-line Canadian politics further down the line, after a period of time in the wilderness. Is such a return likely? While in the U.S. figuratively dead presidents rarely come back to life – with Grover Cleveland and Trump the only ones to return after a reelection loss – in Canada, there is a bit more of a tradition of political resurrection. This stretches back to the country’s first prime minister, John A. MacDonald, who resigned in 1873 amid scandal only to be reelected five years later. William Mackenzie King served three nonconsecutive terms as prime minister in the first half of the 20th century. And Trudeau’s father, Pierre Trudeau, came back after losing the 1979 election to serve a fourth and final term in 1980. But I feel with Justin Trudeau it is different. At this moment in time, his parliamentary career looks beyond rehabilitation. He is deeply unpopular and has enraged many of his loyal lieutenants – with the resignation of longtime ally and Deputy Prime Minister Chrystia Freeland in December adding to the pressure on Trudeau to resign. And while inflation – a scourge of left, right and center incumbents the world over – no doubt played a role in Trudeau’s declining popularity, other factors are at play, too. Canadians generally feel that given the cards he was dealt, Trudeau still played a bad hand. Under Trudeau, immigration to Canada increased massively – and many blame this for a housing affordability crisis. More generally, it seems like Trudeau, despite being the relatively young political age of 53, is out of step with politics at this precise moment in time. Trudeau, much like his father before him, is very much associated with identity politics, focusing on the perceived needs of certain groups over others. And while the merits of identity politics can be argued, what is certainly true is that it isn’t particularly popular anywhere in the world right now. Indeed, right-of-center populists such as Trump have been able to make great political capital in painting opponents as identity politicians. How did Trump’s election win affect Trudeau’s prospects? Former Deputy Prime Minister Freeland resigned in part over discontent with the way Trudeau had responded to Trump’s proposed tariffs on Canadian goods. And that discontent with the way Trudeau was dealing with the incoming Trump administration extends to a lot of Canadians, regardless of their political stripes. The Canadian economy isn’t in good shape, and a 25% tariff – as envisioned by Trump – would be disastrous. Canadians are looking for someone who can negotiate with Trump from a position of strength, and that doesn’t appear to be Trudeau. In fact, faced with being trolled and humiliated by Trump – for instance, being referred to as a “governor” rather the leader of a nation – Trudeau has faced criticism for his weak response. He symbolizes a growing sense in Canada that the country is seen by policymakers in Washington as weak. While Trudeau reportedly laughed off a suggestion at Mar-a-Lago that Canada become the “51st state,” back home the remark was seen as a test – would Trudeau stand up for Canada or not? In this sense, Trump’s election provided a challenge to Trudeau but also an opportunity to stand up to Washington – something that would have won him favor among anti-American Canadian nationalists. Instead, he is perceived to have cowered before Trump, further damaging his reputation at home. What will Trudeau’s legacy be in regard to US-Canada relations? I believe he got caught up in a dynamic that has seen a growing perception in the U.S. – as espoused by the incoming president – that Canada is freeloading militarily off its southern neighbor. President Joe Biden is more aligned politically with Trudeau, but, certainly under Trump’s first term, the Canadian prime minister was seen by Washington as one of the NATO leaders not paying a fair share for the military alliance. Partly as a result, Canada under Trudeau has dropped down the list of trusted allies – especially among Republicans. If you asked Americans to name Washington’s most trusted ally, the United Kingdom or Israel would likely beat out Canada. Trump’s statements since being reelected suggest that he sees Canada as less an ally and as more of an irrelevance. Comments regarding the buying of Greenland point at Trump’s desire to run roughshod over the desire of other nations in order to be more active in the Arctic – something that should have raised alarms in Canada. So, in short, you can characterize Trudeau’s relationship with the U.S. as OK under Biden, bad under Trump’s first administration and – potentially – irrelevant under Trump II. What happens next in Canadian politics? I see one of two things happening. The most likely scenario is that the Conservatives will win an election that could take place any time between March and October. Current polling suggests they are on course of winning over 50% of the vote. If that happens, we can expect a Canadian government much more aligned with that of the incoming U.S. administration – with a more centralist foreign policy and border reforms that will tighten immigration controls. And the timing may provide an opportunity for Trudeau’s successor to start afresh with Trump and forge a relationship that is either stronger or, alternatively, to reassert a degree of Canadian resistance to Trump. The second scenario is what I call “the French oddity.” Just like in France’s last election in which the two main anti-right parties entered a noncompetition deal to thwart the far-right National Rally, we could see the Liberal Party and the socialist New Democratic Party try something similar in an attempt to blunt Tory gains. But that is a long shot and still won’t increase the chances of Trudeau returning. As for the Liberal Party post-Trudeau, it is difficult to see who will want to lead it into a near-certain election defeat. But I believe the most likely outcome will be the party will try to tack to a more centralist, economically conservative agenda. It would truly mark the end of the Trudeau era.

Energy & Economics
Mexican exports to the United States. Mexican goods

Faced with Trump’s tariffs − and crackdowns on migration and narcotrafficking − Mexico is weighing retaliatory options

by Scott Morgenstern

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.

Diplomacy
New Zealand parliament

New Zealand Strengthens Relations with Australia

by Vladimir Terekhov

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском The meeting held on 6 December in Auckland, the second session of the “2+2 Format” established earlier this year, involving the foreign and defence ministers of both Australia and New Zealand, marked an important milestone in the rapidly advancing development of all aspects of bilateral relations. The Foreign Policy of New Zealand’s Conservative Government This process has become particularly evident since the conservative National Party government assumed power in New Zealand at the beginning of 2023. A few clarifications are warranted in this context. Firstly, the current government, led by Prime Minister Christopher Luxon and representing the NPNZ (New Zealand National Party), officially took office in January 2023. However, it initially functioned as a caretaker government, succeeding the Labour administration under Jacinda Ardern, who had resigned prematurely. This interim status lasted until November 2023, when it shed the “caretaker” label following the general election held the previous month. It is worth noting that the NPNZ-led coalition’s victory was far from decisive, necessitating complex negotiations with a minor party to retain power. Secondly, it would be inaccurate to suggest that New Zealand entirely disregarded the foreign policy concerns of other Anglophone nations in past decades, including under Labour governments. For instance, Wellington has consistently remained a member of the Five Eyes alliance, an intelligence-sharing cooperative among five Anglo-Saxon countries. However, until the conservative government came to power, New Zealand appeared to make every effort to ensure that the significant deterioration in international relations, which began at the end of the previous decade, had no adverse effect on its relations with China. Nevertheless, the global restructuring process initiated in the second half of 2019 (notably marked by the Skripal affair) inevitably impacted New Zealand, particularly given its location in the Indo-Pacific region, which has become the focal point of the current phase of the “Great Game”. Bilateral Engagements in Relations with Australia New Zealand’s involvement in the aforementioned global restructuring is primarily occurring within the surrounding region of the vast Indo-Pacific area. Naturally, the country’s leadership has prioritised its relations with Australia, its closest partner in every respect. Within two months of shedding its “caretaker” status, New Zealand’s government, alongside its Australian counterparts, inaugurated the “2+2 Format” platform for foreign and defence ministers. The first session of this format took place on 1 February of this year in Melbourne. The mere existence of such a platform underscores the particularly close and trusting relationship between the two nations. However, the intention for closer bilateral cooperation on a broad range of issues was signalled six months earlier, during the first session of a separate “2+2 Format” involving finance and environment ministers, held in Wellington on 8 June 2023. This platform was subsequently convened for the second time on 30 July 2024 in Brisbane, Australia. Both sessions concluded with a “Joint Statement”. From the perspective of the evolving Indo-Pacific situation, special attention should be given to the second session of the defence and foreign policy “2+2 Format”, held on 6 December in Auckland. The key points of the document adopted at the session can be reviewed here. Notably, the title of the first chapter, “The Australia-New Zealand Alliance”, stands out. This chapter opens with an acknowledgment of the “natural, neighbourly, and formalised” bond between the two nations. The final element of this statement is confirmed by a significant reference to the ANZUS trilateral military-political treaty (involving the United States), which was adopted back in 1951, during the height of the Cold War. It is worth noting that until the signing of the document under discussion in Auckland, the very existence of ANZUS was likely remembered by few. This is not surprising, as for decades, international treaty reference guides consistently noted that, although ANZUS had not been formally dissolved, the United States and New Zealand had long ceased to maintain an alliance in practice. This situation stems from New Zealand’s 1984 declaration as a nuclear-free country, which resulted in the closure of its ports to American vessels with nuclear propulsion systems, even if they did not necessarily carry nuclear weapons at the time. By contrast, Japan, despite a similar “three non-nuclear principles” policy, has never taken such a step. Following the 1984 decision, which effectively marked the withdrawal of one participant from this tripartite alliance, the remaining two members restructured it to suit new conditions. However, with the end of the Cold War, even its bilateral format barely showed signs of activity. This continued until the latter half of the previous decade, a period when the world seemingly turned upside down. During this time, the Australian government, led by the conservative coalition under Scott Morrison, adopted a policy of sharply intensifying military-political ties with allies. This course has been largely upheld by the current Labour government under Anthony Albanese, which has also accelerated the development of comprehensive relations with its new ally, Japan. Canberra is also closely monitoring another key regional player: India. In summary, a particularly noteworthy development occurred on 6 December of this year in Auckland, New Zealand, when viewed from the perspective of assessing the evolving situation in the Indo-Pacific region (IPR). New Zealand Increases Engagement in the Indo-Pacific Region The meeting held on that day fits into the broader trend of New Zealand’s comprehensive engagement in the region, following Australia’s example. Indeed, the main aspects of this trend are mentioned in the final document adopted in Auckland. During his visit to Australia in August of this year, New Zealand Prime Minister Christopher Luxon announced his country’s intention to join the AUKUS pact (Australia-United Kingdom-United States), specifically its “Pillar II,” which focuses on the development of cutting-edge military technologies. The “Pillar I” of AUKUS, by contrast, deals with the provision of nuclear-powered submarines to Australia. Japan and the Republic of Korea are also potential candidates to join AUKUS Pillar II. However, due to internal turmoil in South Korea, Japan currently remains the more likely candidate. Incidentally, in June of this year, Christopher Luxon made a three-day visit to Japan. A government communiqué regarding the trip and his discussions with then-Japanese Prime Minister Fumio Kishida noted the shared intention to develop various aspects of bilateral relations. This clearly signals a shift in New Zealand’s trajectory away from the popular (and to some extent accurate) stereotype of the country as a sleepy geopolitical backwater that also enjoys economic prosperity. This image has seemingly been satisfactory for New Zealanders until now. However, the geopolitical storms raging worldwide have inevitably reached even this distant nation. As New Zealand becomes increasingly involved in global disputes, it faces the prospect of previously unfamiliar challenges arriving on its shores. Finally, it is essential to note that the above developments weigh heavily on the negative side of the scale when assessing the current situation in the IPR. This does not mean, however, that there are no positive counterweights, albeit fewer in number. These positive elements suggest that the main players (at least for now) maintain control over the unfolding dynamics in the region. This is no small achievement in a world order that appears to be in upheaval.

Diplomacy
Paper ship with flags of the USA, Great Britain, Canada, Australia, Japan, the EU and China Concept of state relations, free trade agreement

China's Role in the Gaza Conflict: Global South Leadership and U.S. Rivalry

by Nadia Helmy

Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском  Through its recent official and popular position towards the Gaza war, China seeks to define its position as a leader and defender of the so-called “global south” to pass the policy of transformation towards a multipolar international world in the face of the United States of America and its allies in the West. China seizes the opportunity to express the urgent need to reshape the global system led by the West under the leadership of Washington. Here, both Moscow and Beijing see Israel's war on the Gaza Strip as having led to directing Western military support efforts from Ukraine in the face of Russia, Beijing's close ally, to Israel, while China views the war from the perspective of its confrontation with America. As China attempts to express global and popular public opinion on the Israeli-Palestinian conflict, as part of a much broader Chinese strategy aimed at winning the support of the countries of the Global South to its side.    Both Russia and China are working to benefit from the war in Gaza, by strengthening their roles as supporters of the countries of the Global South, and demonstrating the failure and bias of the United States and the international system led by Washington in dealing with the grievances of that large bloc of countries in the world in the South. This also serves to realize Chinese President Xi Jinping’s vision of Chinese leadership of the Global South, which includes the majority of Arab countries and Palestine, which enhances Beijing’s efforts to confront Washington and its Western allies and reshape the international system in its favor. China has exploited anti-Israel sentiments globally and at home, in an attempt to strengthen its position within the framework of the Global South.  In its strenuous efforts to express world public opinion and the feelings of peoples, China is pursuing many and varied plans to support the issues of the developing global south, most notably the Palestinian cause, and to expose what China considers to be American double standards in dealing with the Palestinians compared to Israel.    China's assumption of the presidency of the UN Security Council in November 2023 comes immediately after Operation “Al-Aqsa Flood” or the Gaza War in October 2023, succeeding Brazil, coinciding with the escalation of brutal Israeli military operations in Gaza. For this reason, China has risked angering Israel, as it sees broader stakes in the current conflict that go beyond the Palestinian-Israeli issue. Beijing sees the crisis as an opportunity to distinguish its position from the pro-Israel West and to enhance its reputation in the global south, many of whose countries strongly sympathize with the Palestinian cause, which serves China's image.  To this end, China has used a tough diplomatic rhetoric against Israeli crimes in the Gaza Strip, and has condemned the US position, especially the obstacles created by the US by voting against a series of Chinese and Russian ceasefire resolutions in the UN Security Council. In addition, China has supported various decisions of the International Court of Justice and the International Criminal Court to condemn Israel and arrest its Prime Minister “Benjamin Netanyahu”.  China used its veto power against a draft resolution proposed by the United States of America on October 15, 2023, which did not include a call for an immediate ceasefire, or a permanent humanitarian truce for the entry of humanitarian aid into the Gaza Strip. The Chinese Permanent Representative to the United Nations, "Chang Jun”  justified his country's opposition to the American draft resolution, because it includes many elements that divide rather than unite, and goes beyond the humanitarian dimension, and is unbalanced and mixes right and wrong, and does not reflect a strong call for a ceasefire and an end to the violence. The Chinese Permanent Representative to the United Nations “Jun” considered that the ceasefire is not just a diplomatic phrase, but means life and death for many civilians, which Washington did not understand, according to him. China also participated in the (Cairo Peace Summit 2023), which was held on October 21, 2023 in the New Administrative Capital, with China's call during the summit to stop the war in Gaza.  China's motivation for taking an interest in the Palestinian issue after the recent Gaza war may be more related to its competition with the United States and the image that China wants to project domestically and even internationally in light of its new position as a major global power. China wants to be seen as a wise and responsible superpower interested in mediation and peacebuilding. It is also likely that Beijing seeks to present an alternative viewpoint to the United States' perspective on peace to the world order, especially in the global South, where most countries in the region support the Palestinians.   Beijing has already come a long way in the Israeli-Palestinian conflict, from its active support for Palestinian factions recently to their invitation to China after the recent Gaza war to complete the Palestinian reconciliation process between all the warring Palestinian factions with Chinese support.  Since the beginning of the war in the Gaza Strip, Chinese positions and statements by officials in Beijing have carried a degree of escalation in tone towards Israel’s behavior. Beijing criticized the comprehensive Israeli bombing of civilians, condemned violations of international law, called for the implementation of the two-state solution, and called for the establishment of a humanitarian corridor to allow aid to enter the besieged Gaza Strip. Chinese Foreign Minister “Wang Yi” went further, describing the Israeli bombing of civilians in Gaza as actions that go beyond the scope of self-defense.  Chinese state media have also been highly critical of Israel, and in most of their reports have cited Iranian media, with the Chinese emphasis that: “the illegal use of white phosphorus bombs by the Israeli army against Palestinian civilians exposes it to international accountability”. Chinese state media have also blamed the United States, Israel’s strongest supporter, and have been explicitly accused in Beijing, for fueling tensions in the region. China has also angered Israel by refusing to join the United States and other countries in designating Hamas as a terrorist organization, describing it instead as a Palestinian resistance movement.    In late October 2024, immediately after the Gaza war, the China Daily, a Chinese propaganda outlet, declared that: “the United States is on the wrong side of history in Gaza”. Elsewhere, Chinese state television reported that Jews represent 3 percent of the United States’ population but control more than 70 percent of its wealth. With all official and popular Chinese media keen to repeat the narratives that dominate the popular discourse in the Global South. This repetition is in line with the majority opinion in some countries of the South, and it allows China to present itself as an alternative to the image of the United States of America as a warmonger, hegemonic, hypocritical and unjust.         In July 2024, Hamas, Fatah and other Palestinian factions signed a preliminary agreement in the Chinese capital, Beijing, to form a transitional government for national reconciliation, with the aim of managing Gaza after the end of the war. The same group met in the Russian capital, Moscow, in February 2024, seeking to reach a similar agreement. At the same time, China was able to bring the Palestinian Fatah and Hamas movements together at the negotiating table in Beijing in two sessions of the National Dialogue during the months of April and June 2024, in a move that reflects China’s desire to interact with the Palestinian issue in a positive way.        Chinese official media is trying to support its position before Chinese public opinion at home and their sympathy for the people of Gaza, by emphasizing China's official discourse, which seeks to confirm that Beijing has made proposals to stop the war on Gaza, brought together the Palestinian movements Hamas and Fatah inside China, and called on the UN Security Council to calm the conflict. China also seized the opportunity of its meetings with Arab and Gulf foreign ministers to reaffirm the multiple peace plans it had previously proposed in favor of resolving the Palestinian issue. With the Chinese envoy to the Middle East “Zhai Jun” , confirming, with Palestinian and Arab officials, China's immediate call for an immediate ceasefire and providing humanitarian support to the Palestinian people.   As for the most prominent Chinese academic and research analyses of the Gaza war, Chinese Professor “Yan Shutong”, Dean of the Institute of International Relations at China's Xinhua University, described the matter as: “The Israel-Gaza war will reduce the global political influence of the United States. This has become very clear, because even its allies will have to distance themselves from it on this issue, and with the undermining of the United States' strategic relations with other major powers, the strategic balance between China and the United States will shift in China's favor”. Professor “Wang Yiwei”, a professor of international relations at Renmin University in Beijing, also said: “China is now in a better position than the United States to help resolve conflicts, whether between Saudi Arabia and Iran, Russia and Ukraine, or Israel and the Palestinians”.  In this context, Professor Shi Yinhong, a professor of international relations at Renmin University of China, asserts that: “Beijing’s policy in the Middle East has been paralyzed by the conflict, given that the United States, which strongly supports Israel, is involved in this crisis, whether directly or indirectly. Who would listen to China?”. A report by the (international human rights organization Freedom House) described a wave of anti-Semitic sentiments on the Chinese Internet and Chinese media, especially popular ones related to Chinese social media, such as: the widely-used Chinese WeChat program, Weibo, QQ, and others. The Freedom House report confirmed that: “With regard to the Israeli-Palestinian conflict, the Chinese government has long promoted a narrative that places the blame squarely on Israel”. In light of the growing global and internal Chinese popular sympathy for the Palestinians, and the unprecedented spread of its manifestations within Chinese society via Chinese social media, and the holding of limited demonstrations in light of China’s sensitive internal policy towards popular demonstrations, decision-makers in Beijing find themselves facing a challenge to maintain a balanced position between the crimes committed by Israel against civilians in the Gaza Strip, and the position of the Palestinians in the Strip.   As an expert in Chinese politics and the policies of the ruling Communist Party in China, and constantly informed of all reports of Chinese think tanks and research centers, especially those related to the Middle East, it is noted that a number of Chinese analyses adopt a trend, vision, and perhaps another theory or school for the war in Gaza, namely the “theory of war between wars”, which later became clear to a large extent to be correct, meaning: that the war that was limited to the Palestinian Hamas movement and Israel, and Israel's practices in the West Bank and Gaza Strip, will expand to include a conflict between Israel and Iran, but through its agents in the region, which means waging wars on different fronts at the same time, namely the war of Israel against Hamas, targeting Palestinian resistance elements in the West Bank, confronting Hezbollah on the southern Lebanese front, confronting the threats of the Houthi militia in Yemen, fighting the Shiite militias in Syria and Iraq, and waging confrontations against Iran, which leads the axis of resistance.    To this end, China seized the opportunity of the 10th China-Arab Cooperation Forum, to be held on May 30, 2024, with the participation of Chinese President “Xi Jinping” and a number of Arab leaders, most notably Egyptian President “Abdel Fattah El-Sisi”, to reflect the common desire to discuss aspects of China-Arab relations and ways to enhance them, deepen consensus between China and Arab countries, raise questions about the position of Gaza in China-Arab discussions, the limits of China's role in helping to stop the Israeli aggression on Gaza, and support the return to the path of political settlement between the Palestinian and Israeli sides, leading to the two-state solution supported by major powers, most notably China.  Here, the Arab Summit, which was held in the Bahraini capital, Manama, on May 16, 2024, adopted the necessity of calling for an international peace conference that would contribute to restoring the negotiating track. This call intersects with the Chinese President Xi Jinping’s call to hold an international peace conference during the Arab-Chinese Cooperation Forum, where he stressed in his speech before the forum on May 30, 2024, that Beijing wants to strengthen its relations with Arab countries to be a model for global stability, calling for an international peace conference aimed at ending the war between Israel and Hamas, noting that Beijing is ready to work with Arab countries to resolve issues related to hot spots in ways that support the principles of fairness and justice and achieve peace and stability in the long term. Xi Jinping stressed that war cannot continue indefinitely, justice cannot remain absent forever, and the two-state solution cannot be arbitrarily overthrown.     Based on the previous analysis, we reach the conclusion that the Chinese trend towards interacting with the Middle East issues and the recent Gaza war represents one of the pillars of the escalation of the Chinese role at the global level and among the developing countries of the Global South led by China. This trend coincided with the vision of the United States of America to limit its ties to the interactions of the Middle East, due to its high cost and to move eastward to confront the growing Chinese influence in Asia.