US Congress may give Iran deal greater legitimacy

Significance The White House had opposed the bill, and launched one of the most energetic lobbying campaigns on Congress of Barack Obama's presidency. After the bill's passage through the committee, both Republicans and Democrats argued that the legislation favoured their agendas, which had been largely mutually exclusive. Impacts The Corker bill creates some credibility problems for the United States on long-term sanctions relief. With US sanctions more likely to be lifted, other nations may follow Russia in lifting unilateral sanctions. Iran will nonetheless become a major issue in the Republican campaign for the presidential nomination. This could lead to a subsequent Republican administration seeking to reimpose sanctions on Iran for different reasons. The deal will not affect US-Iranian tacit cooperation in Iraq and hostility in Syria and Yemen.

Significance Last week, its partners in the ‘Quad’ grouping -- the United States, Japan and Australia -- agreed to help increase its vaccine manufacturing and exporting capacity. Each of the Quad members is wary of China, which like India is gifting and selling coronavirus jabs around the world. Impacts India’s manufacturing sector will attract more foreign direct investment. Greater cooperation over supply chains will help strengthen India-Australia ties. Indian pharma will in the long term aim to ease dependence on imports of active pharmaceutical ingredients from China.


Significance The Vietnam analogy implies that President Joe Biden’s decision to leave Afghanistan will have deeply negative consequences for the United States. However, Afghanistan is not Vietnam and the Biden withdrawal needs to be considered within the wider context of his administration’s review of US commitments abroad. Impacts The White House will be pressured to clarify the future of other US military commitments, particularly in Iraq. Biden will seek to reassure allies, particularly those in NATO, that his commitment to multilateralism will not diminish. Biden may seek an opportunity for a military show of force, possibly in the Middle East, to refute accusations of weakness.


Significance London's actions drew a harsh, if unofficial, reaction from the White House. It underscores the growing rivalry between the United States and China over the changing architecture of global and regional institutions. Impacts Institutional competition will not spill over much into the security field, where China's neighbours seek to balance it. Increased European involvement in South-east Asia will accelerate movement towards an EU-ASEAN free trade agreement. Increased international prestige could help Chinese President Xi Jinping's domestic clout.


Significance The ruling Justice and Development Party (AKP) should easily get the most votes, but it faces a likely setback and a dent in its authority. Weakening support from its voters and Turkey's proportional representation system are likely to drive its number of parliamentary seats down from the 327 out of 550 seats it won in 2011, perhaps even to the point where an overall majority is in doubt. Impacts Market confidence and the lira may weaken, but will not deteriorate drastically, unless AKP is forced out of office -- a remote scenario. Fiscal and monetary policy may be loosened to win support until a new government able to last for a full four-year term is in office. A politically weaker AKP risks long-term splits, but these will not emerge unless there have been months of instability. Growing internal discord -- and the government's defiant response to its critics at home and abroad -- may isolate Turkey internationally. The United States and EU will continue to avoid confrontation with the Erdogan government as far as possible.


Significance The deal reached between Iran and the P5+1 negotiating group (UN Security Council permanent members plus Germany) on July 14 promises to end most sanctions on the country, in return for suspension and monitoring of its nuclear programme. If ratified by all parties, it will create opportunities for an expansion of Iran's gas production and exports. Iran is the holder of the world's largest gas reserves, according to BP estimates. It is also the third-largest producer (after the United States and Russia, and probably having overtaken Qatar during 2015), and the fourth-largest consumer. Impacts Iran could increase gas exports by advancing projects stalled by sanctions, although most of these will take some years to come to fruition. Iran would seek to attract foreign investment into its gas industry to increase production and exports in the longer term. If this occurs, Iran will compete with other gas exporters, particularly Russia, into the 2020s.


Significance The Obama administration faces an uphill fight in Congress to secure enough votes for TPP ratification, given Democratic suspicions of free trade agreements, Republican animus for the White House and the frustrations of key industry groups in the United States. The United States can in effect veto the TPP's international implementation, while the White House's 'Asia pivot' policy relies partly on firmer trade ties with East and South-east Asia. Impacts The battle over TPP will likely divert political capital and US government resources from the TTIP negotiations. China may benefit diplomatically in the Asia-Pacific if the United States blocks TPP from coming into force. The trade debate may spill over to greater US legislative attention on currency manipulation issues ahead of 2017.


Subject Palace politics Significance Military courts earlier this month handed down the most severe sentences thus far in lese majeste cases, sentencing two people to 30 and 28 years in prison for criticising the monarchy on Facebook. The sentence, which has drawn sharp criticism from the United States and the UN, reflects a broader trend of tighter political and legal controls by the military in the context of the monarch's declining health. Impacts Domestic consumption will suffer as long as political uncertainty regarding the return of civilian rule persists. The palace has become more partisan since 2006; this is likely to continue after the royal transition. Lese majeste prosecutions will damage US-Thai relations, but Washington will not expand sanctions.


Subject Gulf states lobbying in the United States. Significance The Gulf states have long been among the largest spenders on lobbying initiatives in the United States, promoting their economic interests and perspectives on regional geopolitics. This has intensified since 2017 as the Qatar dispute has polarised the region and both sides have sought to win over crucial US decision-makers. These efforts have often backfired and drawn accusations of improper behaviour that could damage bilateral relationships and may affect US domestic politics. Impacts Others considering influencing US policy will look carefully at the successes but also the controversies this lobbying has generated. There is a risk of long-term damage to some Gulf-US relationships amid growing suspicion of foreign influence. Robert Mueller’s probe into the Trump campaign and Russia, which may conclude this year, may also implicate some Gulf states.


Subject The Erdogan-Trump meeting on May 16. Significance Turkey yesterday blamed US officials for "security lapses" during President Recep Tayyip Erdogan's visit to Washington last week, which turned into a media disaster when the Turkish president’s guards beat up demonstrators in front of the TV cameras, with Erdogan looking on. The visit to meet President Donald Trump failed to produce any breakthrough on the issues dividing them, despite a friendly meeting at the White House. Although Trump is outwardly much more sympathetic to Erdogan than his predecessor was, the two countries are still far apart on Syria, where the United States remains the protector and ally of the Syrian Kurds. Impacts Turkey will continue to fortify the strip of land it occupies in northern Syria. It will step up training and support for the Sunni Arab rebel Free Syrian Army. Erdogan will respond to his increased international isolation by further clampdowns on remaining critics in Turkey.


Significance Rubio's move comes as several candidates for the Democratic Party's 2020 presidential nomination are discussing 'packing' the Supreme Court -- adding justices intended to nullify the perceived long-term conservative bias of the Court following Trump-era appointments. Impacts A constitutional change to limit the Supreme Court to nine justices is unlikely: amendments are purposely hard. Court-packing would not guarantee 'Democratic' or 'Republican' rulings: much depends on the case and how justices feel. Packing the courts would likely increase their politicisation, and potentially slow their deliberative capacity. If Trump wins a second term and Republicans keep the Senate, they will appoint further conservative justices. If the Democrats win the White House and Senate in 2020, they might 'pack' the lower courts.


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