Kim-Trump meeting presages US climbdown

Subject The outlook for North Korea-US denuclearisation talks. Significance On June 30, President Donald Trump used a long-planned trip to South Korea after the G20 summit in Osaka to visit the Demilitarised Zone (DMZ), for his third meeting in barely a year with North Korean leader Kim Jong-un. Impacts Working talks will resume, but progress may depend on Pyongyang gaining partial sanctions relief. Inter-Korean relations will likely remain stalled unless sanctions are eased. The peninsula has not become risk-free; Kim may miscalculate or hardliners could push for policies even Trump cannot accept. Japan’s Prime Minister Shinzo Abe seeks his own summit with Kim; Kim has scant incentive to grant one.

Subject Politics in South Korea. Significance President Moon Jae-in has hailed the second summit between North Korean leader Kim Jong-un and US President Donald Trump due to be held in Hanoi on February 27-28 as a “remarkable breakthrough” for peace on the Korean peninsula. Moon hopes the meeting will lead to an easing of sanctions on Pyongyang, enabling inter-Korean cooperation such as the relinking of roads and railways to progress, and that this will boost his waning popularity. Impacts US pressure on Seoul to pay more for US troops in South Korea may stoke anti-US sentiment. Rising tensions with Japan will ultimately cause problems for both countries, and their currently indifferent US ally. Pinning hopes on the unpredictable Kim and Trump is risky; failure with North Korea would galvanise the conservatives.


Subject North Korea's foreign relations. Significance China’s President Xi Jinping visited Pyongyang on June 20-21, ahead of the G20 summit in Osaka where he will meet his US counterpart Donald Trump. Trump is then due in Seoul on June 29-30 to meet President Moon Jae-in. Reports that Trump may visit Panmunjom in the inter-Korean Demilitarised Zone (DMZ) have sparked speculation of steps to revive nuclear diplomacy, possibly even including an unannounced third summit with Kim. Impacts North Korea will be Trump’s main agenda item in Seoul, so some initiative seems likely. South Korea risks being sidelined if nuclear diplomacy resumes, with China perhaps taking the intermediary role. If Trump and Kim meet at Panmunjom, that would boost Moon’s position; the more so if he joins them.


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.


Significance However, the departure of former US President Donald Trump -- who was an enthusiastic supporter of Brexit and UK Prime Minister Boris Johnson -- has made this harder to achieve. Impacts Johnson will consider holding a snap election in 2023 to capitalise on the successful vaccination campaign and economic reopening. The failure to conclude a US-UK FTA would increase the prospects of an EU-UK veterinary agreement. Without a UK-EU veterinary agreement, the chances of persistent disruption on trade between Great Britain and Northern Ireland will grow.


Significance It also benefits from policies that heavily favour the domestic arms industry. This has resulted in a well-equipped modern military and a high degree of self-reliance in equipping it. However, this model may be unsustainable. Impacts Seoul will likely attempt to expand armaments collaboration with other countries to gain additional resources, technologies and markets. China’s military modernisation is an increasing concern, including in the context of potential war with China’s ally, North Korea. Threats from North Korea make air and missile defence the top procurement priorities.


Significance The Pakistan Muslim League-Nawaz (PML-N)’s five-year term ended on May 31. PML-N President Shehbaz Sharif faces a tough fight to become prime minister, with the main challenge set to come from Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) and further opposition provided by Bilawal Bhutto Zardari’s Pakistan Peoples Party (PPP). Impacts With Khan as prime minister, the military would likely have free rein to pursue an anti-India foreign policy. Khan would step up his criticisms of the war in Afghanistan and likely have a difficult relationship with US President Donald Trump. Pakistan under any government will pursue balanced diplomacy in the Middle East, seeking good ties with both Saudi Arabia and Iran.


Significance President Donald Trump said he dismissed Tillerson as he wants his cabinet to be more in line with his thinking; Trump and Tillerson had clashed over policies and priorities. CIA Director Mike Pompeo will be nominated to succeed Tillerson. The nominee to replace Pompeo at the CIA will be current CIA Deputy Director Gina Haspel. Impacts A better-coordinated foreign policy team could help Trump prepare for his new push on North Korea-US ties. Pompeo may find as secretary of state that he disagrees more openly with Trump; the CIA director is not public-facing. Conceivably, the 2018 midterm elections could further delay Trump nominees, but secretaries could work in an acting capacity.


Significance South Korea’s unification minister (MOU) warned on April 10 that any US strike on North Korea would put “the safety of the public” at risk. A day later, Seoul’s defence (MND) and foreign (MFA) ministries dismissed rumours on local social media of an imminent war crisis as “overblown” and “groundless”, respectively. Moon Jae-in, the liberal opposition candidate whom most polls predict will win the May 9 snap presidential election, said he does not expect a US pre-emptive strike on the North. However, Moon also warned Washington that South Korea is “the concerned party” which “owns” peninsula-related matters, including the nuclear issue. Impacts Experienced military professionals in Trump’s cabinet and National Security Council are a restraining influence. South Korea and Japan, being in the front line, will counsel their US protector against any action that might imperil their security. If Moon Jae-in is elected, his desire to re-engage the North will clash with Trump’s hard-line attitude and narrow nuclear focus. After his smooth -- if insubstantial -- summit with Xi, Trump’s threatened unilateralism on North Korea is likely to stop at sanctions.


Subject US trade policy. Significance During his election campaign, Donald Trump slammed decades of US policy and pledged to secure better trade deals, putting 'America First'. Upon taking office, Trump withdrew from the Trans-Pacific Partnership (TPP), but six months on, his trade agenda remains disjointed. Impacts Trump could use executive powers in a more sweeping fashion if he cannot deliver trade changes via legislation. Washington will expand secondary trade sanctions on firms and people that deal with North Korea, most of which are Chinese. Securing 'big-ticket' export deals will be a means for Trump to deliver manufacturing jobs to his political heartland. US opposition to funding and reforms of international financial institutions could reduce the momentum behind global cooperation.


Subject Prospects for East Asia in the second quarter of 2015. Significance Pronouncements made at the National People's Congress (NPC), which opened in Beijing yesterday, will give pointers on policy during the coming months. Debt has become a significant issue in the assessment of China's economic outlook. In Japan, nationwide local elections in April could see setbacks for Prime Minister Shinzo Abe's government, hit in recent days by political funding scandals. Meanwhile, annual large-scale military exercises have just begun in South Korea, antagonising Pyongyang.


Sign in / Sign up

Export Citation Format

Share Document