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June
America may be ‘back’ at G7, but allies’ doubts about U.S. democracy linger
Written by Nur Yasmin
In 2017 the president of the United States shocked Washington’s Western allies during his first European trip, scolding them for failing to pay their “fair share” on defense, physically shoving aside one prime minister, and white-knuckling another leader in a public handshake.
After four tumultuous years for the transatlantic relationship under Donald Trump, his Democratic successor Joe Biden's words of friendship and promise that "America is back" as he meets Western allies this week and next are a welcome relief.
But they're not enough, diplomats and foreign policy experts say.
Biden faces lingering doubts about America's reliability as a partner. Leaders from the Group of Seven advanced economies, NATO and the European Union are worried about the pendulum of U.S. politics swinging yet again, and are looking for concrete action, not words after the shock of the Trump years.
"Is this a an interregnum between Trump 1.0 and Trump 2.0? Nobody knows," said David O'Sullivan, a former European Union ambassador to Washington. "I think most people are of the view that we should seize the opportunity with this administration to strengthen the relationship and hope that this can survive beyond the midterms and 2024."
European leaders have been upbeat publicly, hailing the survival of multilateralism - but their doubts go beyond the scarring of the Trump years. The Biden administration's foreign policy has been sending mixed signals, marked by some missteps and uncertainty over key policy areas such as China, thanks to lengthy reviews, former U.S. officials and diplomatic sources said.
"America's partners are still reeling from what happened under Trump," said Harry Broadman, a former senior U.S. official and managing director at Berkeley Research Group. "But some of Biden's messaging has also been disjointed."
FOREIGN POLICY FOR THE MIDDLE CLASS
Just a handful of concrete international policies have emerged almost five months since taking office, while Biden's decisions to push for 'Buy America' provisions, back a waiver of intellectual property rights at the World Trade Organization with little consultation with other members, and set an aggressive schedule for withdrawal from Afghanistan have unnerved allies.
Biden said all U.S. troops would be leaving Afghanistan by Sept. 11, a key date marking the start of America's longest war two decades ago. U.S. officials have said they will complete the withdrawal before then.
The timeline sent allies scrambling to keep up, several Western diplomats said, adding that they saw the move as designed for domestic consumption.
Both Biden and his top diplomat, Secretary of State Antony Blinken, have repeatedly said U.S. foreign policy first and foremost should benefit America's middle class.
For many European governments, that sounds like a euphemism for Trump's isolationist "America First" motto. "America first will remain, no doubt," one Western diplomatic source said.
A senior European diplomat said the most important factor was again having someone to work with in Washington: "After the past four years, that really matters."
A LESS DEMOCRATIC AMERICA?
A major underlying concern for many foreign allies is a fundamental one, many experts say - their faith in American democracy is shaken.
Trump for months peddled false claims that he won the Nov. 3 election and on Jan. 6 encouraged his supporters to march to the U.S. Capitol while lawmakers were certifying Biden’s victory.
The riot, which led to the evacuation of the building and five deaths, stunned world leaders.
Jamie Shea, a former senior NATO official now at the Friends of Europe think tank in Brussels, told Reuters he was concerned that the next U.S. president could be another Trump-style leader. (Reuters)
June
Ex-Mongolian prime minister Khurelsukh wins presidential election in landslide
Written by Nur Yasmin
Former Mongolian Prime Minister Ukhnaa Khurelsukh became the country's sixth democratically elected president on Wednesday, further consolidating the power of the ruling Mongolian People's Party (MPP) with a landslide victory.
Khurelsukh, who was forced to resign as prime minister after protests earlier this year, comfortably defeated Sodnomzundui Erdene of the opposition Democratic Party and Dangaasuren Enkhbat of the Right Person Electorate Coalition in a national vote, the General Election Committee said.
With 99.7% of votes counted overnight, Khurelsukh's tally had reached 821,136, or 68% of the total, the largest share of the vote since the democratic era began in 1990. Enkhbat came second with 242,805 votes, or 20.1%, while Erdene trailed in third place, with 72,569 votes, 6% of the total.
Despite the scale of Khurelsukh's victory, there were few signs of celebration in the capital Ulaanbaatar overnight, and the winning candidate said in a speech that the presidency was a "huge responsibility".
"I understand that all of the Mongolian people who voted in this election are expressing hope that we will complete the work we have started ... and that we will do more for our country," Khurelsukh said.
Khurelsukh will replace incumbent Khaltmaa Battulga, who was denied an opportunity to seek re-election following controversial changes to Mongolia's constitution that restricted presidents to one term in office.
His victory follows a low-key campaign marred by COVID-19 restrictions. Most outdoor events were cancelled on Saturday after the outsider candidate Enkhbat of the National Labor Party tested positive for the coronavirus.
Mongolia's hybrid political system gives its elected parliament the right to appoint governments and decide policy, but the president has the power to veto legislation, and until recent constitutional changes could also hire and fire judges.
With the presidency often controlled by the opposition party, the division of power has created political deadlock that some believe has held back Mongolia's development.
Khurelsukh's election is expected to give the MPP more control over the levers of power, though he is obliged to relinquish his party affiliation as soon as he takes office.
The Democratic Party campaigned under the slogan "Mongolia without Dictatorship," and Erdene warned that the country was sliding towards a one-party state. read more
It remains unclear what the MPP's consolidation of power will mean for Mongolia’s biggest foreign investment project, the Oyu Tolgoi copper mine run by Rio Tinto (RIO.AX), (RIO.L), which the government in Ulaanbaatar has sought to renegotiate as construction costs surge. (Reuters)
June
Indonesia, South Africa, Mexico back G7 global tax reform proposal
Written by Nur Yasmin
The Indonesian, South African and Mexican finance ministers expressed support on Thursday for an overhaul of international tax rules to make companies pay their fair share in a more globalised and digitalised business world.
In a joint article with U.S. Treasury Secretary Janet Yellen and German Finance Minister Olaf Scholz, Indonesia's Sri Mulyani Indrawati, South Africa' Tito Mboweni and Mexico's Arturo Herrera Gutierrez endorsed changes proposed by the Group of Seven (G7) advanced economies.
G7 finance ministers agreed on Saturday on a system to make multinational companies pay more tax in countries where they operate, alongside a minimum global corporate tax rate of at least 15%. read more
"This year, nations have a historic opportunity to end the race to the bottom in corporate taxation, restoring government resources at a time when they are most needed," the five ministers said in the article, published in newspapers including the Washington Post and Frankfurter Allgemeine Zeitung.
"To pave the way to that goal, we endorse an initial understanding that the global minimum tax rate must be at least 15 percent, as agreed upon by the Group of Seven countries last week," they wrote, adding that they were confident the minimum rate could "ultimately be pushed higher".
The current international tax system had eroded national sovereignty and put the working class at a disadvantage, they said.
"Together, we can ensure that global capitalism is compatible with fair tax systems and that governments are able to tax multinational corporations," they added.
They urged all other countries involved in negotiations to work together and reach an agreement before finance ministers from the Group of 20 major economies meet in July. A G20 sign-off would in effect give the deal a worldwide reach.
G20 member China is among countries that have voiced objections to a global minimum corporate tax rate of at least 15%, people familiar with the negotiations said. (Reuters)
June
U.S. image among European, Asian partners improves under Biden
Written by Nur Yasmin
The United States' image abroad has improved dramatically since Joe Biden replaced Donald Trump as president, according to a Pew Research Center survey of 12 nations, mainly in Europe and Asia, that was released on Thursday.
The 2021 survey conducted by the nonpartisan research group found a median of 75% of people had confidence in Biden "to do the right thing regarding world affairs," versus 17% who felt that way about Trump in 2020.
A median of 62% had a favorable view of the United States in 2021, up from 34% last year. Those with an unfavorable view fell to 36% this year from 63% last.
These figures are based on Pew's surveys conducted from March 12 to May 26 in 12 countries: Canada, Belgium, France, Germany, Italy, the Netherlands, Spain, Sweden, the United Kingdom, Australia, Japan and South Korea.
"Throughout Donald Trump's presidency, publics around the world held the United States in low regard, with most opposed to his foreign policies," Pew said in a report, adding its surveys found "a significant uptick in ratings for the U.S., with strong support for Biden and several of his major policy initiatives."
Surveys in a similar group of 12 countries that included Greece and excluded Belgium suggested Biden's ratings reflected positive assessments of his character and his stands on issues such as climate change and rejoining the World Health Organization, Pew said.
A median of 77% surveyed this year describing Biden as well-qualified to be president compared to 16% who viewed Trump that way during his first year in office.
A median of 14% surveyed this year regarded Democrat Biden as dangerous and 13% as arrogant, as compared to 72% who saw Republican Trump as dangerous and 90% as arrogant when surveyed in 2017, the year he took office. (Reuters)
June
U.S., Taiwan officials discuss trade, plan meeting 'in coming weeks'-USTR
Written by Nur Yasmin
United States Trade Representative Katherine Tai discussed trade and investment issues with Taiwan minister John Deng on Thursday and agreed to convene a meeting of the countries' Trade And Investment Framework Agreement Council "in coming weeks", Tai's office said in a statement.
"Ambassador Tai emphasized the importance of the U.S.-Taiwan trade and investment relationship and explained the Biden-Harris administration's worker-centered trade priorities," USTR said.
Taiwan had been "cautiously optimistic" about resuming stalled high level trade talks with Washington this year after U.S. Secretary of State Antony Blinken signaled a possible resumption on Monday. read more
The Biden administration has moved to reaffirm its strong commitment to the Chinese-claimed, democratically-governed island in the face of pressure from Beijing to try and assert its sovereignty.
Taiwan has long angled for a free trade deal with the United States, but trade and investment talks between the two have been stalled since the Obama administration.
A senior official at Taiwan's economy ministry told Reuters they hope to resume the Trade and Investment Framework Agreement(TIFA) talks this year.
The USTR statement did not provide specific timing of the meeting, which it said would come under the auspices of the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States.
The TIFA talks stalled after former President Barack Obama left office in 2016 and his successor Donald Trump's trade representative, Robert Lighthizer, imposed tariffs on China, the world's second-largest economy.
Any such agreement with Taiwan is likely to irritate China.
While Taiwan is a member of the World Trade Organization, many countries are wary of signing trade deals with the tech powerhouse fearing objections from China, though Taiwan does have free trade deals with Singapore and New Zealand.
Last year, Taiwan's government lifted a ban on the import of pork containing a leanness-enhancing additive, ractopamine, removing a major stumbling block to a deal with Washington.
However, Taiwan will hold a referendum in late August on whether to resume the ban on the import of pork containing ractopamine. The outcome could affect trade talks with Washington. (Reuters)
June
Biden Asia chief ‘relatively confident’ on billion vaccine timing despite India crisis
Written by Nur Yasmin
President Joe Biden’s Indo-Pacific policy chief said on Tuesday he was “relatively confident” a target for the production of a billion vaccine doses for the region by the end of 2022 would be met, despite the COVID-19 crisis in India, where they are due to be made.
Asked at an event hosted by the Center for a New American Security think tank if he expected a delay in the four-nation plan, which was announced at the White House in March with great fanfare, Kurt Campbell said Washington had been in close consultation with India and others involved in the project.
"Obviously, this is an extremely difficult period for Indian friends. The United States has tried to stand with Delhi and to bring others, both in the private and public sector, to support them," he said.
"Our discussions with both our partners in the private sector, and also in government, suggest that we are - knock on wood - still on track for 2022."
"I think we're feeling relatively confident as we head in to 2022," he added, while stressing that across Asia and the world even countries that did well in handling the virus were facing outbreaks due to new strains.
"I think we understand, the only way to be effective, to counter this, is through vaccine diplomacy. We're trying to step that up more generally," he said.
The so-called Quad grouping of the United States, India, Japan and Australia agreed at a March summit that Indian drugmaker Biological E Ltd would produce at least a billion vaccine doses by the end of 2022 that would go to Southeast Asian countries, elsewhere in the Indo-Pacific, and beyond.
U.S. officials said that under the plan the United States and Japan would help Indian manufacturing of vaccines for U.S. drugmakers Novavax Inc (NVAX.O) and Johnson & Johnson (JNJ.N).
India, the world’s largest vaccine producer, was subsequently hit by a catastrophic wave of infections and halted vaccine exports amid intense criticism of Prime Minister Narendra Modi for a domestic vaccine rollout that covered less than 5% of an estimated adult population of 950 million.
Indian government sources told Reuters in May India was unlikely to resume major exports of vaccines until at least October. On Tuesday, Indian officials and health experts welcomed a government plan to give free shots to all adults, but cautioned that vaccinations must be accelerated to prevent new surges in infections. (Reuters)
June
Malaysia, Taiwan say deliveries of Thai-made AstraZeneca vaccines delayed
Written by Nur Yasmin
Malaysia and Taiwan are expecting deliveries of AstraZeneca (AZN.L) COVID-19 vaccines manufactured in Thailand to be delayed, officials said this week, the latest countries to report a holdup with orders from the Thai plant.
The delay comes amid concerns over AstraZeneca's distribution plans in Southeast Asia, which depends on 200 million doses made by Siam Bioscience, a company owned by Thailand's king that is making vaccines for the first time. read more
Any questions about Siam Bioscience meeting production targets are sensitive because King Maha Vajiralongkorn is its sole owner. Insulting Thailand's monarchy is a crime punishable by up to 15 years in prison.
AstraZeneca handed more than 1.8 million locally produced doses to Thai authorities last week, but said deliveries to other Southeast Asian countries would only begin in July.
The first delivery to the Philippines, which was promised 17 million doses, was reduced and postponed by several weeks, a Philippine presidential adviser told Reuters last week.
Siam Bioscience and AstraZeneca did not immediately respond to requests for comment on Wednesday.
Taiwan's Health Minister Chen Shih-chung told lawmakers on Tuesday that orders from AstraZeneca would be delayed by a month due to production problems at the firm's Thai plant.
Taiwan has ordered 10 million shots directly from the company but has so far only received slightly more than 100,000 doses.
Malaysia, which is due to receive 610,000 doses from Thailand this month and 1.6 million more later this year, is also expecting delays, Science Minister Khairy Jamaluddin told reporters on Wednesday.
Khairy did not specify how long the deliveries would be delayed or how many shipments would be affected. (Reuters)
June
Exclusive: Some 350,000 people in Ethiopia’s Tigray in famine, U.N. document shows
Written by Nur Yasmin
An unpublished analysis by United Nations agencies and aid groups estimates some 350,000 people in Ethiopia’s conflict-torn Tigray region are in famine conditions, according to an internal U.N. document seen by Reuters on Wednesday.
The Ethiopian government disputes the Integrated Food Security Phase Classification (IPC) analysis, according to the notes of a meeting on the situation in Tigray of the Inter-Agency Standing Committee (IASC) - made up of the heads of at least 18 U.N. and non-U.N. organizations.
"On the risk of famine, it was noted that the unpublished IPC analysis figures were being disputed by the Ethiopian government, notably the estimated 350,000 people across Tigray believed to be in IPC 5 famine conditions," the June 7 document read.
It also said the analysis, which diplomats said could be released publicly as soon as Thursday, had found that millions more across Tigray required "urgent food and agriculture/livelihoods support to avert further slides towards famine."
U.N. aid chief Mark Lowcock chairs the committee, which includes the U.N. children's agency UNICEF, the World Food Programme, the High Commissioner for Refugees, the World Health Organization and the International Committee of the Red Cross
A senior Ethiopian diplomat in New York, speaking on condition of anonymity, confirmed the government disputed the analysis, questioning the survey methods and accusing the IPC of a lack of transparency and not enough consultation with relevant authorities.
The Ethiopian government's emergency task force on Tigray, Prime Minister Abiy Ahmed's office and the Foreign Ministry did not immediately respond to a request for comment.
'ALARMING LEVELS'
Ethiopia's Embassy in London said in a statement on Saturday that the government "takes its responsibility to end the current suffering of the people of Tigray very seriously and has so far made concerted efforts to comprehensively respond to the humanitarian needs on the ground, in coordination with local and international partners."
Famine has been declared twice in the past decade - in Somalia in 2011 and in South Sudan in 2017, according to the IPC. U.N. agencies, aid groups, governments and other relevant parties use the IPC to work together to determine the severity of food insecurity.
Fighting in Tigray broke out in November between government troops and the region's former ruling party, the Tigray People's Liberation Front. Troops from neighboring Eritrea have also entered the conflict in support of Ethiopia's government.
The violence in Tigray has killed thousands of people and forced more than 2 million from their homes in the mountainous region of more than 5 million.
The United Nations said on Wednesday there had been reported incidents of denial of the movement of aid and the interrogation, assault and detention of humanitarian workers at military checkpoints, along with looting and confiscation of humanitarian assets and supplies by the parties to the conflict.
"Levels of food insecurity and malnutrition are at alarming levels," U.N. spokesman Stephane Dujarric said, adding there had been reports of starvation among displaced people, while there was a severe need for food in northwest Tigray after the burning or looting of harvests. He did not attribute blame.
Another U.N. spokesperson declined to comment specifically on the internal IASC notes. (Reuters)
June
China, U.S. commerce chiefs to cooperate on handling differences, Beijing says
Written by Nur Yasmin
Top U.S. and Chinese commerce officials spoke by telephone and agreed to promote healthy trade and cooperate over differences, China’s commmerce ministry said on Thursday, the latest high-level exchange as the countries spar over disagreements.
Both sides recognise the importance of business exchanges and will keep lines of communication open, the Chinese statement said after Commerce Minister Wang Wentao spoke with U.S. Commerce Secretary Gina Raimondo.
"They agreed to promote the healthy development of trade and investment and cooperate in a pragmatic way to handle their differences," the Chinese ministry said.
Earlier this month, Chinese Vice Premier Liu spoke with U.S. Treasury Secretary Janet Yellen, and late last month he held a similarly “candid” exchange of views with U.S. Trade Representative Katherine Tai.
The world’s two biggest economies are at loggerheads on a variety of fronts, with the U.S. Senate this week approving a sweeping package of legislation intended to boost the country’s ability to compete with Chinese technology, drawing strong criticism from Beijing.
On Wednesday, however, President Joe Biden withdrew a series of Trump-era executive orders that sought to ban new downloads of the popular Chinese-owned WeChat and TikTok, and ordered a Commerce Department review of security concerns posed by those apps and others.
In a Thursday editorial, official China Daily saying in an editorial that the U.S. technology legislation is “really deployment for Cold War.” (Reuters)
June
Two Australian states on COVID-19 alert after infected woman’s interstate travel
Written by Nur Yasmin
Two Australian states are on COVID-19 alert after an infected woman and her husband traveled from Victoria, the epicentre of country’s latest outbreak, through the states of New South Wales and into Queensland, visiting dozens of sites enroute.
Authorities in New South Wales and Queensland are rushing to trace close contacts and locate virus hotspots. The couple may face criminal charges for breaching COVID-19 border restrictions.
The 44-year-old woman tested positive for COVID-19 once in Queensland, authorities said late on Wednesday, and her husband has since tested positive.
Queensland state Health Minister Yvette D'Ath told reporters in Brisbane on Thursday that the couple's tests suggested they were likely at the end of their infectious period.
"This means the risk is lower than we were expecting yesterday, which is really positive news," D'Ath said. No other cases were reported from the state.
Australia has largely contained all prior outbreaks through snap lockdowns, regional border controls and swift contact tracing, with just over 30,200 cases and 910 deaths since the pandemic began. It has reported zero cases most days this year.
Queensland authorities said they were investigating if the couple, who drove from Melbourne, had a travel exemption to enter the state, despite their home state of Victoria being under a hard lockdown.
Queensland has issued alerts for parts of Sunshine Coast, a popular tourist spot, and two regional areas.
NSW authorities said the pair traveled mostly through regional towns over five days last week.
"The message broadly to our regional communities is be on high alert, this is a real and present danger to us, having people who are positive, travelling through our state stopping at multiple venues puts our state at risk," NSW state Health Minister Brad Hazzard said.
NSW, the country's most populous state, has not reported any locally acquired cases of COVID-19 in more than a month, while Queensland last reported cases in late March.
MELBOURNE LOCKDOWN
On Thursday, Victoria reported four new locally acquired cases, versus one case a day earlier, taking the total infections in the latest outbreak to 90.
The new cases, all from the same household, come as Melbourne prepares to come out of a two-week lockdown on Thursday night, although some curbs on travel and gatherings remain.
Melbourne's five million residents must stay within 25 kms (15 miles) of their homes, a move that could inflict more pain on businesses in rural areas as officials seek to limit community transmission during an upcoming long weekend.
Though Thursday's cases are not linked to any other clusters in the latest outbreak, the lifting of lockdown in Melbourne will proceed due to low-risk levels, Victoria state Acting Premier James Merlino said during a televised media conference.
Separately, New Zealand authorities have moved three Melbourne residents into managed isolation after they boarded their flight from Sydney to beat a travel ban imposed in response to the Victoria outbreak, New Zealand media reported.
New Zealand began quarantine-free travel for Australian travellers in April, a pandemic milestone, but paused the so-called “travel bubble” with Victoria late last month. (Reuters)