EU is unlikely to change course on Russia sanctions

Significance The sanctions, reviewed on a semi-annual basis, have now been extended until January 2018, despite speculation about divisions within the EU. This comes after the US Treasury imposed new sanctions on 38 individuals, companies and organisations on June 20. Impacts Russia is likely to continue efforts to sow divisions within the EU and between the EU and the United States. Future oil prices will shape Russia’s ability to weather sanctions. Russia may raise capital through bond sales and by turning to Asian investors, although this may not fully offset the effects of sanctions. Russia’s counter-sanctions -- a ban on food imports from the EU -- have led to some successful agricultural import substitution.

Subject Optimistic outlook for Russian agriculture. Significance Russia is set to overtake Canada and the United States to become the world's largest grain exporter this year, and some forecasters are predicting even higher levels. Moscow has extended its embargo on food imports until the end of 2016, although a recent thaw in relations with Turkey should revive fruit, vegetable and dairy imports from that country. Russian agriculture has performed well, boosted by an import substitution programme. Impacts If the EU lifts sanctions in January 2017, Russia may reciprocate, but food imports will not bounce back to their former scale. Russian food exporters will seek new markets and build export terminals to serve them. Moscow will be a bastion against genetically modified food products.


Subject The prospects for finalising TTIP. Significance While the EU as a whole -- the European Commission, most member states and a majority of members of the European Parliament (EP) -- appears to remain committed to a wide-ranging agreement with the United States, there are growing indications that public opposition may render the proposed Transatlantic Trade and Investment Partnership (TTIP) agreement politically unviable. Impacts TTIP is estimated to raise the EU's GDP by 0.5%. European governments may decide that such a modest growth boost is not worth the political problems generated by the negotiations. If implemented, its terms could serve as a blueprint for future trade agreements between the EU and other countries. The deal's prospects will be diminished by the US election cycle's appeals to protectionist sentiment.


Subject EU-US ties. Significance Attracting the ire of US President Donald Trump, the US goods trade deficit with the EU has widened since 2009. While Trump blames the imbalance on the EU charging higher tariffs on its US imports than the United States charges on its EU imports, the deficit is instead driven by US demand. Most US-EU trade is between foreign affiliates and the declaration between Trump and European Commission President Jean-Claude Juncker in late July reaffirmed the close economic ties between the two blocs. Impacts The prospects for US exports of LNG to the EU will be higher if Chinese retaliatory restrictions remain in place. The US farm lobby will push for agriculture to be covered in the trade negotiations. The negotiations are unlikely to lead to a return to a comprehensive Transatlantic Trade and Investment Partnership-type deal. Renegotiating US-EU goods trade tariffs will necessarily involve other chapters including services or foreign investment. Escalating trade tariffs would damage the EU but would damage the United States more owing to the size of US-EU cross-border investments.


Significance Trump’s controversial Middle East policy decisions have met bipartisan criticism in the US Senate, but in the House of Representatives -- where the influence of the party grassroots is more keenly felt -- Republican congressmen have staunchly backed the president. There are growing partisan differences towards other countries, a notable shift from previous decades when party was not a clear indicator for preference. This may have a major impact on Washington’s future relationship with the Middle East. Impacts Foreign lobbying efforts in Washington will increasingly be targeted on a partisan basis. Russian foreign policy, not beholden to the vagaries of democracy, may become more influential in the Middle East. The EU could seek to play a stronger, independent regional role to replace the United States.


Significance Microsoft said WikiLeaks had been in contact with them about vulnerabilities disclosed when WikiLeaks published files on March 7, the first in a series called ‘Vault 7’. This leak has been rebuked by US national security officials, but further revelations could be forthcoming. Impacts Customers may be reluctant to buy products that have previously been associated with CIA spy tools and listening devices. The revelations will damage an already strained relationship between the US government and technology firms. Privacy concerns will hinder internet regulation liberalisation between the United States and other countries, particularly in the EU.


Significance Trump first snubbed the EU on April 30 with a mere postponement of possible tariffs and then humiliated the E3 (Germany, France and the United Kingdom) on May 8 with his decision to withdraw from the Iranian nuclear deal. This sends a highly symbolic message from the US president to his European allies: buckle or face penalties. Impacts Trump’s decisions reinforce a growing realisation in the EU that he will interpret their search for compromise as weakness. The EU faces a difficult road ahead with multiple pressures increasing, both within and outside the bloc. The growing divide between the EU and the United States will please Russia.


Subject US-China trade policy ahead. Significance Starting on August 1, the United States and China have this month imposed more import tariffs on each other’s products following the collapse of the Shanghai round of US-China trade talks. The quick reaction by both indicates that neither sees much prospect of reaching a deal. To protect domestic activity and maintain momentum for further talks, both could apply a lower tariff to products they cannot buy from elsewhere. For example, rare earths, which the United States depends on China for, remain exempt from tariffs. Impacts Worries about the overreliance on consumer spending and uncertainty over investment ahead suggest that the US downturn could accelerate. Despite suffering slower growth and employment worries, China will not simply agree a deal on the US administration’s terms. Chinese negotiators understand the US-China trade dynamics better than the US administration and will use this to their advantage. The US administration can impose 25% tariffs on its global imports of cars and parts, citing national security; this would hit the EU hard.


Significance The Port Arthur Refinery is the largest in the United States. Tropical Storm Harvey is estimated to have closed nearly one-quarter of the country’s refining capacity, which is concentrated along the Gulf of Mexico coast. While petrol futures have risen because of the curtailment of supply, crude prices have fallen due to fears of oil inventories building up before the restoration of demand from refinery operations. Persistently weak oil prices pose a threat to the US shale oil industry’s finances and expansion plans. Impacts Oil-dependent economies like Saudi Arabia, Russia and Venezuela will have to budget for sustained low oil prices. Consumers will enjoy relatively low fuel prices after the post-Harvey price spike subsides, freeing up spending power. Low oil prices will slow the market rollout of new electric and hybrid-electric model cars debuting in 2018-19.


Publications ◽  
2021 ◽  
Vol 9 (2) ◽  
pp. 18
Author(s):  
Mauro G. Carta ◽  
Matthias C. Angermeyer ◽  
Silvano Tagliagambe

The purpose is to verify trends of scientific production from 2010 to 2020, considering the best universities of the United States, China, the European Union (EU), and private companies. The top 30 universities in 2020 in China, the EU, and the US and private companies were selected from the SCImago institutions ranking (SIR). The positions in 2020, 2015, and 2010 in SIR and three sub-indicators were analyzed by means of non-parametric statistics, taking into consideration the effect of time and group on rankings. American and European Union universities have lost positions to Chinese universities and even more to private companies, which have improved. In 2020, private companies have surpassed all other groups considering Innovation as a sub-indicator. The loss of leadership of European and partly American universities mainly concerns research linked to the production of patents. This can lead to future risks of monopoly that may elude public control and cause a possible loss of importance of research not linked to innovation.


Significance Follow-on action from Washington and responses from foreign actors will shape the US government’s adversarial policy towards China in semiconductors and other strategic technologies. Impacts The Biden administration will likely conclude that broad-based diversion of the semiconductor supply chain away from China is not feasible. The United States will rely on export controls and political pressure to prevent diffusion to China of cutting-edge chip technologies. The United States will focus on persuading foreign semiconductor leaders to help develop US capabilities, thereby staying ahead of China. Washington will focus on less direct approaches to strategic technology competition with China, notably technical standards-setting. Industry leaders in the semiconductor supply chain worldwide will continue expanding business in China in less politically sensitive areas.


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