Tag: Trade
Stevenson’s army, August 3
My SAIS colleague, Charlie Stevenson, distributes an almost daily news digest of foreign/defense/national security policy to “Stevenson’s army” via Googlegroups. I plan to republish here. This is a second tasting. If you want to get it directly, follow the instructions below:
Interagency conflicts are a normal part of the policy process. Officials and agencies have different perspectives on problems and often different views on solutions. Yesterday I noted WSJ report of the conflict over trade policy. Today, NYT has THREE stories about other policy fights.
– The US military sees ISIS as a bigger threat in Afghanistan than does the intelligence community, assessing double the number of ISIS fighters as does the community.
-SecState Pompeo opposed the recent agreement with Guatemala, but the DHS acting secretary won the fight.
– Pompeo has fired the head of policy planning, apparently for management problems, but who knows.
– A trade prof argues that Lighthizer’s trade strategy has been proved a failure.
– BTW, the trade war with China has led to a drop to only 3rd US trade partner.
– Cong. Ratcliffe’s removal as DNI designee led the president to justify his poor vetting policy in an unusual way:
“I give out a name to the press and they vet for me. We save a lot of money that way,” Trump said.The president also seems to take China’s side on Hong Kong, calling the protests “riots” that China should deal with.
To get Stevenson’s army by email, send a blank email (no subject or text in the body) to stevensons-army+subscribe@googlegroups.com. You’ll get an email confirming your join request. Click “Join This Group” and follow the instructions to join. Once you have joined, you can adjust your email delivery preferences (if you want every email or a digest of the emails).
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Peace Picks June 17-23
1. Transatlantic Cooperation in an Era of Crisis and Competition|June 17|3:15pm-5:00pm|Hudson Institute|1201 Pennsylvania Ave NW, Suite 400, Washington, DC 20004|Register Here
Hudson Institute will host distinguished scholars from France’s Institut Montaigne for a discussion on transatlantic relations. Founded in 2000, Institut Montaigne is a pioneering independent think tank dedicated to public policy in France and Europe. Panelists will include Michel Duclos, special advisor on Geopolitics at Institut Montaigne and former French Ambassador to Syria and Switzerland; and François Godement, senior advisor for Asia at Institut Montaigne.
Against a backdrop of surging populism in democracies and rising authoritarianism worldwide, Europe finds itself at the center of a return to great power rivalry between China and the United States. Disputes over trade and security are straining longstanding areas of cooperation even as global power centers shift and new partnerships beckon. How should policymakers in Washington, Brussels, and capitals across Europe respond to these challenges? What is the future of the transatlantic relationship in a rapidly changing world?
Speakers:
Michel Duclos, Special Advisor, Geopolitics, Institut Montaigne and former French Ambassador to Syria and Switzerland
François Godement, Senior Advisor for Asia, Institut Montaigne
Ben Judah, Research Fellow, Hudson Institute
Peter Rough, Fellow, Hudson Institute
Ken Weinstein, President and CEO, Hudson Institute
2. South Sudan’s Stalled Path to Peace|June 18|9:30am-11:30am|United States Institute of Peace|2301 Constitution Ave NW, Washington, DC 20037|Register Here
In early May, South Sudan’s ruling and opposition parties agreed to extend the pre-transitional period of the South Sudan peace agreement leading to the formation of a unified Government for an additional six months. The extension of this period presents an opportunity to reflect on the progress and challenges to establishing a just peace in the country. South Sudanese citizens are desperate for peace, but many are asking what channels exist to support a meaningful reduction of violence. Between January and March alone, 25,000 people fled the country, adding to the already two million South Sudanese refugees worldwide. Without full implementation of the peace process, national- and local-level conflicts will continue to threaten hard-won development gains and require greater investments in lifesaving humanitarian aid.
Please join USIP for a look at South Sudan’s peace agreement and the measures required to build peace in the young nation. In this live-streamed discussion, experts from USIP, the Enough Project, and Democracy International will offer concrete, evidence-based recommendations for how to mitigate conflict, promote peace and advance accountability.
Speakers
David Acuoth, Founder, Council on South Sudanese-American Relations
Brian Adeba, Deputy Director of Policy, Enough Project, @kalamashaka
Mark Ferullo, Senior Advisor, The Sentry
Morgan Simpson, Deputy Director of Programs, Democracy International
Susan Stigant, Director of Africa Programs, U.S. Institute of Peace, @SusanStigant
3. Is the US Decoupling from Asia’s Economic Architecture|June 19|9:00am-1:30pm|Center for Strategic and International Studies|1616 Rhode Island Ave NW, Washington, DC 20036|Register Here
The CSIS Japan Chair, the CSIS Simon Chair, and JETRO cordially invite you to join us for the annual CSIS-JETRO conference.
9:00-9:05 Welcoming Remarks
John J. Hamre, President and CEO, CSIS
9:05-9:35 Opening Remarks (TBD)
9:35-10:00 Keynote Address
Nobuhiko Sasaki, Chairman and CEO, Japan External Trade Organization (JETRO)
10:00-11:15 Regional Perspectives on Indo-Pacific Economic Integration
China:
Xinquan Tu, Dean and Professor, Center for WTO Studies, University of
International Business & Economics, Beijing
Japan:
Yasuyuki Todo, Professor, Graduate School of Economics, Waseda, University
ASEAN:
Deborah Elms, Founder and Executive Director, Asian Trade Centre,Singapore
Moderator: Matthew P. Goodman, Senior Vice President; William E. Simon Chair in Political Economy and Senior Adviser for Asian Economics, CSIS
11:15-11:30 Break
11:30-12:30 Status and Impact of U.S. Trade Policy
Charles Freeman, Senior Vice President for Asia, U.S. Chamber of Commerce
Lorraine Hawley, Senior Director, International Government Relations,Archer Daniels Midland Company
Aaron Cooper, Vice President, Global Policy, BSA | The Software Alliance
Moderator:
Michael J. Green, Senior Vice President for Asia and Japan Chair, CSIS;Director of Asian Studies, Edmund A. Walsh School of Foreign Service,Georgetown University
12:30-13:30 Luncheon Address (TBD)
13:30 Adjourn
4. 2019 Atlantic Council-East Asia Foundation Strategic Dialogue|June 19|9:30am|Atlantic Council|1030 15thSt NW, 12thFloor, Washington, DC 20005|Register Here
Please join the Atlantic Council’s Asia Security Initiative, housed within the Scowcroft Center for Strategy and Security, for the 2019 Atlantic Council-East Asia Foundation Strategic Dialogue. This day-long conference will explore the current state of the United States and Republic of Korea’s ongoing negotiations with North Korea and the broader strategic picture developing in the Indo-Pacific. The Strategic Dialogue will feature keynote addresses by US Special Representative for North Korea Stephen Biegun and ROK Special Representative for Korean Peninsula Peace and Security Affairs Do-hoon Lee. This will be H.E. Lee’s first public address in the United States, as well as the first time both Special Representatives will speak on the same stage.
One year ago, President Donald Trump and Chairman Kim Jong-un met in Singapore for an unprecedented, historic summit that concluded with a promise to deliver lasting peace to a denuclearized Korean peninsula. Today, the question remains: will this promised future become a reality? Will the coming months see a continued stalemate in negotiations, a major crisis, or a dramatic breakthrough? Ultimately, how will developments on the peninsula shape the Republic of Korea’s role in the broader Indo-Pacific under intensifying US-China strategic competition?
Breakfast and lunch will be provided.
Agenda:
WELCOME REMARKS (9:30 a.m. – 9:50 a.m.)
Mr. Barry Pavel, Senior Vice President, Arnold Kanter Chair, and Director,Scowcroft Center for Strategy and Security, Atlantic Council
Minister Sung-hwan Kim, Former Minister of Foreign Affairs and Trade, Republic of Korea; Board Member, East Asia Foundation
KEYNOTE REMARKS (9:50 a.m. – 10:50 a.m.)
The Hon. Stephen Biegun, US Special Representative for North Korea,US Department of State
H.E. Do-hoon Lee, ROK Special Representative for Korean PeninsulaPeace and Security Affairs,ROK Ministry of Foreign Affairs
PANEL DISCUSSION: SEEKING A POST-HANOI BREAKTHROUGH ON THE KOREAN PENINSULA(11:00 a.m. – 12:30 p.m.)
Dr. Toby Dalton, Co-Director, Nuclear Policy Program,Carnegie Endowment for International Peace
H.E. Jong-dae Kim, Member, 20th National Assembly; Head of the Foreign Affairs and Security Division;Member of the National Assembly’s National Defense Committee;Head of the Foreign Affairs and Security Division; Member, Justice Party
H.E. Jae-jung Lee, Member, 20th National Assembly; Spokesperson, Democratic Party of Korea
Amb. Joseph Yun, Former US Special Representative for North Korea Policy, US Department of State; Senior Adviser, Asia Program, United States Institute of Peace
Mr. Barry Pavel (Moderator), Senior Vice President, Arnold Kanter Chair, and Director,Scowcroft Center for Strategy and Security, Atlantic Council
LUNCH CONVERSATION (1:00 p.m. – 1:45 p.m.)
Amb. Paula J. Dobriansky, Former US Under Secretary of State; Senior Fellow, The Future of Diplomacy Project, JFK Belfer Center for Science and International Affairs, Harvard University
Dr. Chung-in Moon, Special Adviser to the President for Unification, Foreign, and National Security Affairs, Republic of Korea
PANEL DISCUSSION: CHARTING KOREA’S ROLE IN US-CHINA STRATEGIC COMPETITION IN THE INDO-PACIFIC(2:00 p.m. – 3:30 p.m.)
The Hon. Ami Bera, US House of Representatives (D-CA); Chair, Subcommittee on Oversight and Investigations, House Foreign Affairs Committee; Co-Chair, Congressional Caucus on Korea
H.E. Ihk-pyo Hong, Member, 20th National Assembly; Vice Chairman of the National Assembly’s Public Administration and Security Committee; Chief Spokesman, Democratic Party of Korea
Prof. Jaeho Hwang, Director of Global Security Cooperation Center, Hankuk University of Foreign Studies
H.E. Sun-suk Park, Member, 20th National Assembly; Member, National Assembly’s Science, ICT, Future Planning, and Communications Committee,Member, Bareunmirae Party
The Hon. Ted S. Yoho DVM, US House of Representatives (R-FL), Lead Republican, Subcommittee on Asia, The Pacific, and Nonproliferation; Member, Subcommittee on Western Hemisphere, Civilian Security, and Trade, House Foreign Affairs Committee
Dr. Miyeon Oh (Moderator), Director and Senior Fellow, Asia Security Initiative,Scowcroft Center for Strategy and Security, Atlantic Council
CLOSING REMARKS (3:30 p.m. – 3:45 p.m.)
Mr. Barry Pavel, Senior Vice President, Arnold Kanter Chair, and Director, Scowcroft Center for Strategy and Security, Atlantic Council
5. Sixth Annual Building a Competitive U.S.-Mexico Border Conference|June 20|8:30am-4:30pm|Woodrow Wilson Center|1300 Pennsylvania Ave NW, Washington, DC 20004|Register Here
The Wilson Center’s Mexico Institute and the Border Trade Alliance invite you to save the date for our sixth annual high-level “Building a Competitive U.S.-Mexico Border” conference, which will focus on improving border management in order to strengthen the competitiveness of both the United States and Mexico. Topics covered at the conference will include the USMCA (the renegotiated NAFTA), strengthening security and efficiency at border ports of entry, the impact of tariffs and reduced staffing on trade, and growing crossborder cooperation for regional economic development.
Confirmed Speakers*
Senator John Cornyn (R-TX)
Congressman Will Hurd (R-TX 23)
Ambassador Martha Bárcena, Ambassador of Mexico to the United States
C.J. Mahoney, Deputy United States Trade Representative
John Sanders, Acting Commissioner, U.S. Customs and Border Protection
Gustavo de la Fuente, Executive Director, Smart Border Coalition
Lance Jungmeyer, President, Fresh Produce Association of the Americas
Mario Lozoya, Executive Director, Greater Brownsville Incentives Corporation
Federico Schaffler, Director, Texas Center for Border Economic Enterprise Development, Texas A&M International University
Christopher Wilson, Deputy Director, Mexico Institute, Wilson Center
Britton Clarke, President, Border Trade Alliance
6. Russian Influence in Venezuela: What Should the United States Do?|June 20|9:00am|Atlantic Council|1030 15thSt NW, 12thFloor, Washington, DC 20005|Register Here
As a wave of public support for democratic transition is sweeping Venezuela and the international community, Moscow continues to stand by Nicolás Maduro. Displays of military force, Rosneft’s ownership of 49.9 percent of CITGO shares, and billions in loans to Maduro, showcase Russia’s rooted geopolitical and economic interests in Venezuela and the hemisphere.
What drives Russian support for Maduro? What is its role in the unfolding humanitarian, economic, and political crisis? How can the United States counter Russian involvement in Venezuela?
Join the Atlantic Council’s Adrienne Arsht Latin America Center and Eurasia Center on Thursday, June 20, 2019 from 9:00 to 10:30 a.m. for a public event that will discuss the extent of Russian involvement in Venezuela, Moscow’s motivations and possible next moves, and how the United States should react.
Breakfast will be provided.
Speakers to be announced.
7. The Global Peace Index 2019 Launch|June 20|9:00am-10:30am|Center for Strategic and International Studies|1616 Rhode Island Ave NW, Washington, DC 20036|Register Here
The Human Rights Initiative of CSIS invites you to a public launch event of the 2019 Global Peace Index (GPI). The Global Peace Index is the world’s leading measure of global peacefulness, ranking 163 countries and territories according to their level of relative peacefulness. Created by the Institute for Economics and Peace, the report presents the most comprehensive data-driven analysis to-date on trends in peace and its economic value.
The report findings will be followed by a panel discussion considering the implications of closing civic space and inequality for peace. It will look particularly at the factors that IEP has found to be necessary preconditions for peace in its Positive Peace Report, many of which rely on an active civil society and limits on inequality.
This event is made possible by the Institute of Economics and Peace (IEP).
Featuring:
Stephen Lennon, Senior Policy Adviser to USAID’s bureau of Democracy Conflict and Humanitarian Affairs (DCHA)
Shannon Green,Senior Director of Programs at the Center for Civilians in Conflict (CIVIC)
Jonathan Drimmer, Senior Adviser at Business for Social Responsibility (BSR)
Laurie Smolenski, Outreach and Development Officer, Institute for Economics and Peace (IEP)
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The disgrace
A presidency that has known few happy days is at a nadir, though it may well go lower. Russia and Iran are celebrating the American withdrawal from Syria, which President Trump decided to please Turkey. Ankara will now attack the Kurds who allied themselves with the US to fight ISIS successfully. The President has consequently lost a universally respected Defense Secretary as well as a capable lead for the diplomatic campaign against ISIS.
The economy is shaky. The stock market is correcting and the Fed is raising rates. Recession before the 2020 election is increasingly likely. The trade wars with China and Europe continue with no end in sight, devastating American agriculture and some American manufacturing. The budget deficit is exploding due to an ill-conceived tax cut for the very wealthy. Trump hasn’t spent already appropriated funds for border security, but he is demanding more for an unnecessary and extraordinarily expensive wall on the Mexican border, partly closing down the government through Christmas.
This is a record of unparalleled chaos and failure, even without mentioning the new North Korean missile sites and the Iranian refusal to discuss either their missiles or Tehran’s regional power projection until Trump reverses his decision to exit the Iran nuclear deal. Pyongyang and Tehran represent serious threats to US interests that Trump has no strategy to counter.
Nor has he been any more effective in changing Russian behavior, which the Congress and his Administration continue to sanction without any admission by the President of Moscow’s wrongdoing. The “deal of the century” Trump promised on Palestine his negotiators have botched completely. America’s diplomacy and international reputation have rarely known worse, more incoherent and less effective, moments.
What can be done?
Little is the serious answer. Even when the Democrats take control of the House little more than a week from now, they will have no ability to fix 90% of what ails the country. Their main role will be oversight: making clear to the public what the real situation is through hearings and reports. Beyond that, they can refuse to sign on to stupidities like the border wall, but no legislation can pass the Senate without a good bit of Republican support, especially if overriding a veto will be necessary. The Democrats cannot force the US back into the Iran nuclear deal, the Paris climate change agreement, or the Trans Pacific Partnership, all of which held substantial advantages for the US.
Meanwhile, Special Counsel Mueller’s investigation has produced indictments, guilty pleas, and convictions of high-ranking Trump campaign and administration officials as well as Russian intelligence operatives. There is no longer even a slight doubt that Moscow campaigned in 2016 in favor of Donald Trump, likely tipping the balance in his favor in key Midwest states and Pennsylvania. Trump is obsessed with legitimacy, as well he should be. He is not a fairly elected president, even if we accept the inequities of the Electoral College. He is the product of blatant, widespread, and illegal foreign assistance. We need barely mention Trump’s own illegal campaign contributions as well as his criminal use of Trump Foundation resources.
I doubt though that we have reached bottom. Still to come are revelations about massive Russian and Saudi financing for Trump real estate, as well as indictments of his co-conspirators in stealing and publishing emails. Trump really hasn’t hidden these things, but a report from Mueller that details them will be more than interesting. It will raise questions about whether a felon should be sleeping and watching TV in the White House, where he does little else except brood. If his former National Security Adviser can go to prison for years, why can’t the President be indicted and tried?
The short answer is that the toadies he picks as Attorney General won’t allow it, claiming that Justice Department regulations they could change prohibit it. Trump can no longer, with a Democratic majority in the House, avoid impeachment, if the Mueller report suggests it. But in the Senate he still has not only a majority, but one that hesitates to criticize, never mind convict. Trump has humiliated Mitch McConnell and his cohort repeatedly, but the Senate Republicans remain steadfastly loyal. It is hard to picture how conviction would gain a 2/3 majority it needs in the upper chamber.
The only remedy for this shambolic and bozotic presidency is likely at the polls, less than two years hence. There are no guarantees, but Trump’s path to re-election is narrowing, especially if recession happens. The disgrace is in the White House, not in the country.
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Respect
Hard not to write about John McCain, but most of what needs saying has been said: he was a Vietnam War hero, a stalwart supporter of a strong and democratizing American role in the world, and a flawed presidential candidate who lowered the level of electoral discourse with his choice of a know-nothing vice presidential candidate whose name should be forgotten. I disagreed with many of the Senator’s domestic policy preferences and didn’t vote for him, but give him ample credit for saving the Affordable Care Act at a crucial moment.
McCain liked to be called a maverick, but he only occasionally behaved like one. A Republican loyalist to the end, McCain was critical of President Trump but never quite broke with him completely. This is unfortunate, as he might have led a Congressional rebellion to limit Trump’s worst impulses. But to expect that of someone dying of a malignant brain tumor really is too much. McCain merits a lot of credit, especially for his principled stand on supporting human rights and democracy, at home and abroad.
It is apparently also too much to expect the President to show even minimal respect for a war hero whose entire life is admittedly a condemnation of Trump’s. He managed to issue a pro forma recognition of McCain a day or two after his death and to order flags flown at half mast, after pointedly refusing to answer questions about McCain and having the White House flag raised in a purposeful show of disrespect.
It is hard for me to understand how the US military puts up with Trump, never mind likes him. It is not only McCain he disdains. Trump has failed to visit troops in a conflict zone since becoming president. His most intense personal interest in the troops was on display when he needed them for his now-cancelled parade in Washington. The troops will be grateful that isn’t happening.
McCain’s death represents a big loss for American foreign policy. He was a stalwart of NATO and advocate for a strong American leadership role abroad. Trump thinks the allies are worthless and the leadership role too expensive. His Make America Great Again has amounted to making America alone again, as it was after the first world war when it declined to join the League of Nations. We know how well that worked.
Trump touts his trade deal with Mexico, which updates a small portion of NAFTA. It is only a little more real than his denuclearization agreement with North Korea and his “deal of the century” between Israel and the Palestinians, both of which amount to nothing. Never mind that the Mexicans have refused to pay for his wall and he is stiffing the Canadians over a few million additional dollars of dairy exports, wrecking relationships that the US should be treasuring.
Everyone is looking for a hedge against Trump’s bombast and unpredictability. My own today is to think about the other great American to be buried this week: Aretha Franklin. I saw and heard her at Radio City Music Hall about 1995, but here she is the year I graduated:
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Jobs count
Today two big items on the job front:
- President-elect Donald Trump has saved 1000 jobs at Carrier in Ohio, at a cost to the state of $7000 per job;
- The Obama recovery that started in July 2009 generated 178,000 new jobs last month, at no cost to the Federal or state governments, lowering the unemployment rate to 4.6%.
We are now in the eighth year of Obama’s much-criticized “slow” recovery.
Which news gets the electrons? It’s mainly the first of course: Trump is a master at attracting attention to everything he does. What he has done in this case is unusual: a direct intervention in a single company’s decisions by the president-elect, with the threat of “consequences” if it does not comply.
What’s wrong with that?
Let me count the ways:
- This kind of non-market intervention is precisely what most economists (and until recently virtually all Republicans) think is a bad idea, as it causes distortion in the distribution of resources (in this case both capital and labor) that cannot be justified on economic grounds.
- A precedent of this sort gives all companies who can pretend to be considering transfer of jobs out of the US an incentive to seek a bribe from the state or Federal governments not to go ahead. Ohio in particular can expect to be flooded with such requests.
- Carrier’s labor costs in the US will be higher than in Mexico, otherwise it would not have considered this move. It will need to pass those costs on to consumers, making its products less competitive than they might otherwise have been not only in the US but also abroad, reducing American exports.
- A company considering a US investment will now have to take into account the unspecified threat of consequences should it decide to move the jobs it creates here to another country, thus discouraging foreign investment.
- Mexicans who might have earned decent wages at a Carrier plant will be poorer, thus limiting their purchasing power and ability to buy US goods.
These downsides are all well-understood and major reasons why American presidents have stopped “jawboning” on price increases, investment decisions and other economic issues. As Ronald Reagan taught us, the proper role of government is to set the parameters for open competition and leave the specifics to private individuals or companies.
So what should a president do about jobs being shipped overseas? The key is to create an improved business environment at home, in particular by streamlining regulations and lowering corporate tax rates. This would make the US more competitive rather than more willing to dole out $7000 checks. There is actually a good deal of agreement between Democrats and Republicans on improving the business environment, even if there are serious disagreements on which regulations should be streamlined.
This carrier deal is an insignificant achievement in the grander scheme of things, though one that points in bad directions. For those who don’t like globalization, wait until you see the consequences of economic nationalism.
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