US-Vietnam security ties may trump trade

Subject US-Vietnam relations. Significance Vietnam’s Prime Minister Nguyen Xuan Phuc met US President Donald Trump on May 31 in Washington, during a two-day visit in which he also conferred with the US business community and Vietnamese diaspora. Phuc’s visit is part of Hanoi’s plan to forge a relationship with the new US administration. The prime minister sought the continuance of the Obama-era US-Vietnam Comprehensive Partnership and to look ahead to the APEC meeting in Da Nang in November, which Trump will attend. Impacts Even without the twelve-member TPP, Vietnam will improve its intellectual property and labour laws. Increased US security support may see more frictions over maritime issues between Beijing and a more confident Hanoi. Trump’s wish to protect US borders will cause Hanoi concern that Vietnamese student numbers in the United States will fall. If so, this could hit knowledge and technology transfers from the United States to Vietnam.

Significance Canada’s Liberal Prime Minister Justin Trudeau is preparing to welcome a more predictable and stable partner in Biden than outgoing Republican President Donald Trump. However, Biden is also expected quickly to cancel the Keystone XL pipeline, cutting another lifeline to Canada’s oil industry and creating some strain in Canada-US ties. Impacts Improved Canada-US ties will persist even if Trudeau loses the next federal election to Conservative Erin O’Toole. Canada will re-engage militarily with UN peacekeeping and NATO deployments. Trudeau will encourage Biden to end US prosecution of Meng Wanzhou, allowing Canada to release her; Biden may agree. Canada’s border with the United States will open in stages as COVID-19 recedes. Ottawa will push Biden to end ‘Buy American’ procurement policies, with little success.


Subject Creation of the US Space Force. Significance President Donald Trump on February 19 signed a directive ordering the Pentagon to draw up legislation establishing a Space Force as the sixth branch of the US military, alongside the Army, Navy, Air Force, Marine Corps and Coast Guard. Impacts A separation of air and space budgets could positively affect future military space modernisation and development programmes. Creation of the Space Force could ultimately move the United States closer towards openly putting weapons in space. If China and Russia perceive it this way, it creates the risk of an arms race in space.


Subject Indian policy on Afghanistan. Significance India features prominently in the US strategy on Afghanistan articulated by President Donald Trump in August 2017. The United States views India as a 'strategic partner' and wants it to support the Afghan state. US support for Kabul fits with India's desire for a more even balance of power between Afghanistan and Pakistan. Impacts Pakistan will blame India and Afghanistan for its domestic insurgency problems. Islamabad will try to make a reduced Indian presence a condition for better relations with Kabul. Russia and China will watch India's actions warily as they position themselves closer to Pakistan.


Significance The hearing was part of the United States Trade Representative (USTR) Robert Lighthizer’s investigation of China under Section 301 of the Trade Act of 1974, initiated in August. The US delegation to the WTO submitted in September a request for China to delay implementation of its Cybersecurity Law, citing its anticipated impact on cross-border technology transfers. Both of these developments reflect increasing technology trade tensions between the world’s two largest economies. Impacts US allies are likely to face pressure from Washington over procurement of Chinese ICT in government facilities. The US government is likely to use power over contracts, regulation and informal pressure to shape tech companies’ behaviour. Espionage fears will drive harsher US and European scrutiny of Chinese investment in their domestic tech sectors.


Significance At the same time as pursuing peace talks with the Afghan government, the Taliban are using calibrated armed force to push the United States into withdrawing all its troops. In an incontrovertible breach of their agreement with Washington, the insurgents launched their largest military offensive in years in October. As though this were not happening, President Donald Trump ordered the US force in Afghanistan to be reduced to 2,500 by the end of his term. Impacts NATO and other coalition allies in Afghanistan will mirror the US exit with proportionate troop drawdowns. Opposition to talks is hardening in Kabul as sceptics claim the Taliban are acting in bad faith. Reverses suffered by the Afghan security forces will focus debate on whether they can cope once US forces leave. The Afghan president is accelerating the creation of the 'Territorial Army', recruited from the militias of former warlords.


Significance This also comes as indirect US nuclear talks with Iran resume in Vienna, despite concerted Israeli opposition. US President Joe Biden is in effect withdrawing the unconditional backing his predecessor Donald Trump gave Israeli Prime Minister Binyamin Netanyahu. Impacts The Gaza ceasefire will be fragile, with a significant chance of renewed hostilities in the short-to-medium term. The appointment of a new Mossad chief, David Barnea, may lower the profile of but will not materially change Israeli-US intelligence ties. The United States will further increase financial support to both Gaza and the West Bank. In a more serious possible future war against Hezbollah, Washington might not back a major Israeli military incursion into Lebanon.


Subject The impact of the US-China trade wars on US manufacturers. Significance The United States and China reached a tentative agreement in trade negotiations on October 11 that President Donald Trump described as "a substantial phase one deal". The deal, which is yet to be finalised, centres on China's agreement to purchase some 40-50 billion dollars' worth of additional US agricultural goods annually, and Trump's agreement to suspend a planned increase in tariffs on 250 billion dollars' worth of Chinese goods, from 25% to 30%, that was due to take effect tomorrow. However, existing tariffs on both sides remain in place. Impacts A manufacturing recession could lead to greater upper Midwest voters’ discontent. Midwestern voter discontent could help a Democrat win the presidency in 2020, and a populist win the party’s nomination. US-based manufacturers could benefit from new contracts as supply lines are revised, but costs would rise. A second Trump tax cut in 2020 could temporarily help US-based firms avoid competitiveness gaps.


Significance This includes 50 F-35 stealth jets, 18 MQ-9 Reaper drones and thousands of bombs and missiles. The deal was part of the September 15 Emirati-Israeli normalisation agreement and followed consultation, required by law, with Israeli Prime Minister Binyamin Netanyahu. His late announcement of this led political rivals to accuse him of misleading the Israeli public. Impacts Despite Tehran’s concerns about the deal and Gulf-Israeli ties, the UAE is too vulnerable to risk embarking on hostile action against it. In the long run, Israel could lose some of its regional deterrent capability, if its qualitative advantage becomes less marked. The ‘special relationship’ between Israel and the United States will remain firm despite the deal and the US election result.


Subject Spanish foreign policy. Significance Spain does not see itself replacing the United Kingdom as one of the ‘Big 3’ in driving EU policymaking and cooperation after Brexit. Instead, the government of Prime Minister Pedro Sanchez will seek to prioritise Spanish interests in the Mediterranean and on Brexit, and will become less preoccupied with EU cooperation and integration. Spain is seeking a more balanced and broader relationship with the United States, but there is tension over the political crisis in Venezuela and trade issues. Impacts Relations with the United States will become more difficult, especially if President Donald Trump is re-elected. Although Spain would like to shift its regional emphasis towards Asia, Venezuela and the coronavirus could nullify that ambition. Immigration is now a priority, as further illegal inflows would fuel support for the far-right Vox party.


Significance The action urges women to strike or avoid making purchases to highlight women’s importance in society. It follows marches in the United States and across the world on January 21 against the election of Donald Trump to the presidency of the United States. Impacts The US cut in reproductive health services funding will restrict access to contraception for millions of women globally. This could lead to increases in unsafe abortion, and higher maternal death rates. In Europe, the rise of far-right governments may also result in reversals in legislation protecting women’s rights.


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