Justin Trudeau Falls From Grace


April 11, 2019

Chris Wattie / Reuters

The depressing squalor of the Trump era has created in liberal Americans a gnawing hunger for leaders to admire. Foreign leaders are especially likely to set liberal hearts aflutter, because they are farther away and their flaws less visible. Of all these alternative “leaders of the free world,” it is perhaps Canada’s Justin Trudeau who has enjoyed the most attention. He proclaims himself a feminist, he hugs Syrian refugees as they arrive at Canadian airports, he performs yoga, he is impossibly handsome—what could go wrong?

But there were always two cracks visible in the face Trudeau presented to the world, and over the past three weeks, those lines have widened.

The first flaw: When frustrated or disappointed, he loses his cool. As one person on the receiving end of his ill temper put it to me, “He yells when he does not get his way, then gloats when he does.” The second? Trudeau does not always accurately think through the ultimate consequences of his actions.

Together, those two fault lines create a dangerous formula for bad decision making in times of crisis.

Over the four years since he came to power in November 2015, Trudeau has offset his personal weaknesses by relying heavily on shrewder advisers. But since February, a serious and growing scandal has cost him the service of trusted aides. The head of the civil service has been forced to resign. Trudeau has been left more and more to his own judgment. This past weekend, that judgment tinged the scandal with a new note of farce.

On April 3, in the Canadian House of Commons, Trudeau was forced, under tightly focused questioning by Conservative MP Pierre Poilievre, to acknowledge that one of his first important statements about the scandal had been a falsehood.

On April 7, the leader of the Conservative Party, Andrew Scheer, revealed that a week earlier, a lawyer for Trudeau had threatened him with a libel lawsuit, a rare step in Canadian politics. One basis of the threat? Scheer had, on March 29, accused Trudeau of lying about the very thing that, on April 3, Trudeau admitted to lying about.

Could the situation get more absurd? Yes! On the evening of April 7, Trudeau’s spinners issued a statement denouncing Scheer for wasting the public’s time talking about issues irrelevant to Canadians’ real concerns—that is, by talking about the lawsuit Trudeau himself had initiated.

Trudeau just failed Kipling’s challenge: “If you can keep your head when all about you / Are losing theirs and blaming it on you.”

The scandal convulsing Canadian politics began with a corruption case involving a large engineering firm, SNC-Lavalin. To secure contracts in Libya a decade ago, SNC-Lavalin paid bribes to the son of the former Libyan dictator Muammar Qaddafi. Those bribes violated Canadian law. SNC-Lavalin was caught and prosecuted, and faced tough penalties.

Hoping to avert or mitigate the penalties, SNC-Lavalin commenced a lobbying campaign within Trudeau’s Liberal Party almost as soon as it came to power in November 2015. SNC-Lavalin has long been an important Liberal campaign contributor. Its chairman is a supremely well-connected former head of the Canadian civil service.

The trouble for SNC-Lavalin was that the then-federal attorney general, Jody Wilson-Raybould, refused to play ball. JWR, as she’s become known, was the first indigenous Canadian to hold Canada’s top law-enforcement job. She had her own agenda, one that often put her at variance with the rest of the Trudeau government. When the party began to pressure her to help SNC-Lavalin, she refused to yield.

In January 2019, Wilson-Raybould was removed as attorney general and demoted to the lesser job of minister of veterans’ affairs. On February 8, the Canadian newspaper The Globe and Mail published the first story about the pressure campaign on Wilson-Raybould. Four days later, Wilson-Raybould resigned from the cabinet, followed on March 4 by another cabinet official, Jane Philpott.

Trudeau has forcefully denied allegations that he sought to tamper with justice. But again and again, the specifics of those denials have been contradicted—culminating in the explosive revelation on March 29 that Wilson-Raybould recorded a phone call back in December with Michael Wernick, then head of the civil service, in which Wernick intimated to Wilson-Raybould that by refusing to relent on SNC-Lavalin, she was putting her job as attorney general at risk. That’s the core allegation of the scandal, and it now stands as fact.

You can read a transcript of that call. A week before the release of the recording, Wernick announced his early retirement from the civil service.

At each stage of the scandal, Trudeau has defended his actions. But his specific statements of self-defense have again and again proved false.

On February 12, Trudeau told the media that no person had ever suggested to him that his actions on behalf of SNC-Lavalin over the previous months, before the issue came into public view, were in any way inappropriate. This is the falsehood that Poilievre exposed in debate on April 3. Trudeau was compelled under Poilievre’s questioning to admit that Wilson-Raybould had directly told him in September 2018 that she felt the pressure was inappropriate. “Once she said that …” and here the House erupted in shouts, but Trudeau continued: “I responded, ‘No, I am not … It is her decision to make …’ And she then committed to revisit and look into the decision again …”

The trouble was that, when Wilson-Raybould made the decision that was supposedly hers to make, and made it in a way different from the way Trudeau wanted her to make it, she got sacked.

It was for saying these things outside Parliament that Trudeau threatened litigation on March 31. The abrupt collapse of the factual predicate for that lawsuit in the following week led to the unusual outcome that by April 7, the target of the lawsuit eagerly invited the prospective plaintiff to proceed: “If Mr. Trudeau intends to pursue this course of legal action, if he believes he has a case against me, I urge him to do so immediately,” Scheer said. That same day, a spokesperson for the prospective plaintiff dismissed his own threat of a lawsuit as a petty distraction from the important concerns of voters: “Andrew Scheer’s press conference today is yet another attempt at talking about anything other than his own damaging plans for the economy.”

The tabloid Toronto Sun’s headline Monday morning expressed the public reaction of incredulity and mockery: “COURT JESTER.”

The SNC-Lavalin story is the kind of process story that political cynics dismiss as irrelevant to voters’ deepest concerns. Indeed, that has been the Trudeau government’s last line of defense in parliamentary debate. But polls suggest that the story has done enormous damage, with Trudeau now lagging Scheer’s Conservatives by double digits. Canada’s next election is scheduled for October 2019. If it were held today, the Conservatives would probably form a majority government.

Why has the scandal done so much damage?

One reason is economic. SNC-Lavalin is based in Quebec, where it employs 3,400 people. The largest investor in SNC-Lavalin is the Quebec public employees’ pension fund, with a 20 percent stake. That fund has taken a beating on SNC-Lavalin’s share price—and would hugely benefit from an easy punishment of the company for its Libyan bribery.

But at the same time the Trudeau government was bending the law to protect 3,400 Quebec jobs, it was shrugging off a jobs debacle in the western province of Alberta.

Since January 2015, the province of Alberta has lost more than 130,000 jobs off payrolls—and uncounted thousands more among the self-employed. The oil-dependent province’s unemployment rate reached 7.3 percent last month.

You might have expected that the Alberta economy would revive with the improvement in the price of oil over the past two years. But that expectation has bumped into contrary government policy. Alberta is landlocked; its oil must come to market via pipeline. Pipeline capacity is utterly inadequate. The Trudeau government has professed willingness to help, but it has consistently paid more attention to the preferences of environmentalists and the economic demands of indigenous groups. The result: Alberta oil sells at an enormous discount to the world price. In November 2018, at a time when West Texas crude was selling for more than $50 a barrel, Alberta oil fetched only $11 a barrel.

In Canada, the Trudeau brand is deeply associated with the crassest favoritism of Quebec economic interests. The SNC-Lavalin affair confirms every apprehension that a Trudeau in power means second-class citizenship for western Canadians.

Yet the polls indicate that it’s not only in the West that Trudeau’s support is collapsing. And this points to a deeper problem.

Canada’s politics are perhaps the least polarized in the Western world. The Liberals successfully appeal to business-minded voters; the Conservatives effectively compete for ethnic minorities. In an unpolarized polity, personality hugely matters. Justin Trudeau marketed himself as a radically different kind of politician: artless, open, transparent, feminist.

For him to be seen browbeating an indigenous woman to protect politically wired insiders from facing the legal consequences of their wrongdoing—the reaction to that, in the words of a cover story in Maclean’s by the high eminence of Canadian political commentary, Paul Wells, is to emblazon him as “The Imposter.”

We want to hear what you think about this article. Submit a letter to the editor or write to letters@theatlantic.com.

David Frum is a staff writer at The Atlantic and the author of Trumpocracy: The Corruption of the American Republic. In 2001 and 2002, he was a speechwriter for President George W. Bush.

Trump–The Demolition Man and an Upscale Archie Bunker


June 12, 2018

Trump–The Demolition Man and an Upscale Archie Bunker

by John Cassidy@www.newyorker.com

Image result for Trump the demolition man

 

Donald Trump hasn’t changed. The many biases and misconceptions that he has about the United States and its place in the world go back as far as 1990, when an interviewer from Playboy asked him about the first thing he would do if he were elected President. “Many things,” Trump replied. “A toughness of attitude would prevail. I’d throw a tax on every Mercedes-Benz rolling into this country and on all Japanese products, and we’d have wonderful allies again.” A President Trump, he went on, “wouldn’t trust our allies; he’d have a huge military arsenal, perfect it, understand it. Part of the problem is that we’re defending some of the wealthiest countries in the world for nothing . . . . We’re being laughed at around the world.”

This clearly wasn’t a man who had studied much history, beyond perhaps the volume of Hitler’s speeches that his former wife Ivana once claimed that he kept by his bed. He seemed blissfully unaware of how, after the Second World War, the U.S. used its military and economic power to create an open international economic system in which American multinational companies such as Ford, General Motors, and I.B.M. were guaranteed a growing and prosperous market. And he seemed similarly clueless about the role that multilateral institutions like NATO, the G-7, and the International Monetary Fund played in extending and perpetuating American power.

Image result for Trump the demolition man, The Economist Cover

If Trump’s worldview has any consistency, it is as the ideology of a certain type of parochial, embittered, outer-borough New Yorker, an upscale Archie Bunker. The first great misfortune that befell the U.S. and its allies came in November of 2016, when this small-minded parvenu was elected President. The second came earlier this year, when Trump belatedly realized that he didn’t have to surround himself with wiser and more knowledgeable people who could restrain his impulses. He replaced H. R. McMaster, the national-security adviser, and Gary Cohn, the head of the National Economic Council, with John Bolton and Larry Kudlow, two wizened conservative talking heads who both know their role, which is to parrot whatever nonsense Trump comes up with on any given day.

On Saturday, Trump once again made a stunning display of his ignorance. Before departing early from the G-7 summit in La Malbaie, Quebec, to fly to Singapore, he issued a preposterous threat to cut off all U.S.-Canadian trade if the Canadians responded to his imposition of tariffs on Canadian steel and aluminum goods entering the United States by levying similar duties on some American goods entering Canada. At a press conference that Justin Trudeau, the Canadian Prime Minister, held to close the summit, he was inevitably asked whether his government would go ahead with the retaliatory tariffs despite Trump’s barking. “I have made it very clear to the President that it is not something we relish doing, but it is something that we absolutely will do,” Trudeau said. “Because Canadians, we’re polite, we’re reasonable, but we also will not be pushed around.”

In diplomatese, Trudeau’s statement was polite but firm. (He also said that he stood ready to resolve the trade dispute in consultation with Trump.) But when Trump watched, or got wind of, the press conference on Air Force One as he flew to Singapore, he flipped out and fired up his Twitter account, describing Trudeau as, “Very dishonest & weak,” and adding, “Our Tariffs are in response to his of 270% on dairy!” He also said that he had ordered the U.S. representatives on the ground to not endorse the G-7 communique that they had previously agreed on.

Far from trying to talk Trump around, or clear up the mess that the President had created, Bolton and Kudlow made matters worse. On Saturday afternoon, Bolton tweeted out the most talked-about image from the G-7 meeting, in which a seated Trump is being confronted by Angela Merkel, the Chancellor of Germany, and Emmanuel Macron, the President of France. “Just another #G7 where other countries expect America will always be their bank. The President made it clear today. No more,” he wrote.

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On Sunday, Kudlow said on CNN’s “State of the Union” that Trudeau “kind of stabbed us in the back,” and added, “It was a betrayal.” Another Trump aide, Peter Navarro, who is a self-styled trade hawk, told Fox News, “There’s a special place in hell for any foreign leader that engages in bad-faith diplomacy with President Donald J. Trump and then tries to stab him in the back on the way out the door.”

The invocation of Weimaresque rhetoric to describe a trade dispute with America’s closest neighbor was something to behold. But in geopolitical terms, it wasn’t even the most provocative thing that Team Trump did over the weekend. Before, during, and after the G-7 summit, the U.S. President called for Vladimir Putin’s Russia to be allowed to rejoin the group, and sought to downplay the reason that the country got kicked out in the first place—Putin’s decision, in 2014, to invade Crimea and destabilize eastern Ukraine.

“Something happened a while ago where Russia is no longer in,” Trump said, at a press conference on Saturday. “I think it would be an asset to have Russia back in.” He didn’t dwell on Putin’s aggression further, other than to say that questions about it should be addressed to Barack Obama, who “allowed Russia to take Crimea. I may have a much different attitude.”

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Really? At this stage, Trump’s bromance with Putin is so obvious that it has turned into something of a joke. Guy Verhofstadt, the former Prime Minister of Belgium who is now a powerbroker in the European Parliament, tweeted out the viral G-7 photo, and suggested a caption for what Merkel was saying to Trump: “Just tell us what Vladimir has on you. Maybe we can help.” Putin, for his part, said he would welcome a summit meeting with Trump in the Oval Office.

It is possible, of course, that Putin doesn’t have anything on Trump, and that Trump has simply had a lifelong affection for ruthless, authoritarian figures that overwhelms any actual knowledge he may have picked up in the past seventeen months about the benefits of Atlanticism, a liberal trading order, or anything else. Back in that 1990 Playboy interview, in addition to expressing his protectionist beliefs about the economy, he criticized Mikhail Gorbachev for allowing the Soviet Union to break up and praised the leaders of China for putting down the Tiananmen Square demonstrations “with strength.”

This side of Trump—the wannabe strongman—has always been there. But the truly alarming thing is how few restraining influences it now faces. Defense Secretary James Mattis, who has maintained a steadfast support for NATO and the Atlantic alliance more generally, appears to be about the only one left. The Vice-President, the Secretary of State, and the Secretary of the Treasury are all Trump toadies. John Kelly, the White House chief of staff, seems to be a busted flush. The Republican leadership on Capitol Hill is AWOL. And Fox News, which is Trump’s main source of information, is a Trump echo chamber.

And so we go to Sentosa Island, in Singapore, where the North Korean boy autocrat awaits. After Trump’s behavior in the past few days, the world will be watching nervously.

  • John Cassidy has been a staff writer at The New Yorker since 1995. He also writes a column about politics, economics, and more for newyorker.com.

  • Here’s a who’s who of the people pictured (pic above), and where they stand on the trade row that defined the summit.

    1. Donald Trump, US President

    Mr Trump shocked America’s allies – namely the EU, Mexico and Canada – when he recently announced a 25% tariff on imports of steel and 10% on aluminium from these countries. They are all threatening retaliatory measures and the rift overshadowed the summit, leaving the American president isolated at times. Mr Trump departed before the other leaders, and complained that America was “like the piggy bank that everybody is robbing”.

    He then tore into Canadian Prime Minister Justin Trudeau in a pair of tweets, calling him “very dishonest and weak” and attacking his “false statements” after Mr Trudeau reasserted his strong opposition to the US tariffs in a news conference.

    2. John Bolton, US National Security Adviser

    It’s been just three months since he was appointed President Trump’s top security adviser but John Bolton has already made an impact. One of the President’s arguments for the tariffs is on “national security grounds” – a view Mr Bolton has stridently backed.

    3. Kazuyuki Yamazaki, Japanese Senior Deputy Minister for Foreign Affairs

    Promoted to the post in July 2017, he recently led a Japanese delegation to Pakistan and took part in joint talks between Japan, China and South Korea in Seoul about a proposed free trade agreement.

  • 4. Shinzo Abe, Japan’s Prime Minister

    He has come under increased pressure to join retaliatory measures against America’s tariffs. This puts him in a difficult position – he has tried hard to cultivate a warm relationship with President Trump and the two are said to have met at least 10 times since he was elected to the White House.

    5. Yasutoshi Nishimura, Japanese Deputy Chief Cabinet Secretary

    The MP from Japan’s governing party once worked in the ministry of international trade and industry.

    6. Angela Merkel, German Chancellor

    She has been at the forefront of talks to try to resolve differences at the summit, as is clear in this photo. Mrs Merkel apparently floated an idea to set up a mechanism to resolve trade disputes between the US and its allies on Friday. Asked during the summit about her relationship with President Trump, Mrs Merkel said the two leaders did not always agree but could talk to each other: “I can say that I maintain a very open and direct relationship with the American president.”

    7. Emmanuel Macron, French President

    He engaged in a Twitter spat with President Trump over the tariffs hours before the summit – leading some to question whether the blossoming “bromance” between the two was over. Despite this, they were seen to be on good terms, and President Macron’s team said his talks with Trump were “frank and robust”. However, following Mr Trump’s online outburst against Mr Trudeau, the French president issued a statement that “international co-operation cannot be dictated by fits of anger and throwaway remarks”.

    8. Theresa May, UK Prime Minister

    In a telephone call last week, she told President Trump she found the US tariffs “unjustified and deeply disappointing”. But she also struck a more conciliatory tone at the summit, urging fellow leaders to step back from the brink of a possible trade war.

    9. Larry Kudlow, Director of the US National Economic Council

    Mr Trump’s top economic adviser has defended the new tariffs and said his boss should not be blamed for trade tensions. After the summit, Mr Kudlow told CNN that the president and his team had gone to the summit “in good faith” but that Mr Trudeau had “stabbed us in the back” in his news conference.

 

 

 

Foreign Policy: Trump’s America First is America Against the Rest of the World


June 9, 2018

Foreign Policy:Trump’s America First is America Against the Rest of the World

by Susan B. Glasser @www.newyorker.com

President Donald Trump and The G-7 leaders–Creating  an Island called America

The Canadian Prime Minister, Justin Trudeau, was less than forty-eight hours away from hosting the biggest diplomatic gathering of his career when I spoke with one of his top advisers on Wednesday afternoon. Trudeau’s team was searching for strategies to salvage the annual G-7 summit with the American President, Donald Trump, and leaders of five of the world’s other large democratic economies—all of them close allies of the United States, and all of them furious with Trump. “Look, he personally decided he wanted to be fighting with everybody,” the Trudeau aide told me, referring to Trump. “Maybe he thinks it’s in his best interests to be combative and fighting.”

Image result for justin trudeau and donald trump dumb and dumber

 

For close to a year and a half, Trudeau and his counterparts have employed various strategies to try to head off conflict with the volatile American President, from flattery to stonewalling to hours of schmoozing on the golf course. But in recent weeks Trump has confounded their efforts, unleashing a tit-for-tat trade war with allies, blowing up the Iran nuclear deal over European objections, and walking away from a deal with Canada and Mexico to overhaul NAFTA, all while lavishing praise on the North Korean dictator with whom he hopes to reach an accord next week. Adding insult to injury, Trump even cited an obscure national-security provision to justify the tariffs, as if America’s closest friends had suddenly become its biggest enemies. As a result, the G-7 meeting that Trudeau will host on Friday and Saturday was shaping up to be the most contentious, and possibly the most consequential, since the summits began, in 1975.

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Trump’s Chief Economic Adviser, Larry Kudlow, told the White House press corps on Wednesday that this was all just a “family quarrel,” but, if so, it’s one ugly fight. As Kudlow acknowledged the rift, Trudeau and France’s President, Emmanuel Macron, were meeting to plot strategy, and everyone was wondering why Trump, who is often described as averse to face-to-face conflict, had chosen the weeks preceding the annual G-7 summit to punch his allies in the face. In the days leading up to the meeting, Trump had tense phone calls with Trudeau, Britain’s Prime Minister, Theresa May, and Macron, who has been especially humiliated by the series of adverse decisions after flying to Washington to lobby Trump personally. All of them appear to fix blame on Trump himself. “We’ve gotten used to unorthodox behavior from your President,” the Trudeau adviser said.

For his part, Trump seems to relish the confrontation he has unleashed and is spoiling for more. On Thursday morning, the President tweeted that he was “getting ready to go to the G-7 in Canada to fight for our country on Trade,” insisting, as he often does, that “we have the worst trade deals ever made.” But others involved in the summit were preparing for an America more alone than ever before, and now Trump faces the very real risk of allies teaming up against him. “The American president may not mind being isolated, but neither do we mind signing a 6 country agreement if need be,” Macron tweeted pointedly to Trump, in English, later on Thursday. Trump quickly fired back. “Please tell Prime Minister Trudeau and President Macron that they are charging the U.S. massive tariffs and create non-monetary barriers,” the President tweeted. “Look forward to seeing them tomorrow.”

Soon after that, the White House said in a statement that Trump would skip the second day of the summit entirely, and it seemed increasingly certain that the traditional joint communique signed off on by all seven leaders will be discarded because of Trump. (As of Wednesday, when it would normally be in the final stages of elaborate negotiations, the communique was not even being circulated.) Instead, the Trudeau adviser told me, the Canadian Prime Minister, as the summit’s host, was likely simply to release a “statement from the chair,” summarizing the discussions without requiring Trump to approve it. The American President has blundered his way into “opening a four-front-at-least war simultaneously,” the Trudeau adviser said, and now the goal of the summit has become unlike any other that preceded it: “to get allies together to try to contain the amount of damage he’s doing.”

Ever since Trump took office, America’s allies have desperately sought to avoid this moment. Over the last year and a half, though, many of them have come to realize, with growing dread, that it was inevitable. The rift between the world’s great democracies that Trump’s election portended is coming to pass, and it is about far more than Iran policy, obscure trade provisions, or whether Germany spends two per cent of its G.D.P. on NATO. Many senior European officials speak of it, as one Ambassador to Washington did to me recently, as nothing less than a “crisis of the West.”

As Trump’s dramatic moves have played out this spring and hardened into a Presidential narrative of American victimization at the hands of free-riding allies, senior government officials in London, Berlin, and other European capitals, and in Washington, have told me they now worry that Trump may be a greater immediate threat to the alliance than even authoritarian great-power rivals, such as Russia and China. Equally striking is the extent to which America’s long-term allies have no real strategy for coping with the challenges posed by such an American President. Trump may be reorienting U.S. foreign policy away from its closest friends, such as Great Britain and Germany, and toward those with whom Trump is more politically aligned in Israel, the Gulf, and along Europe’s restive fringes, but his traditional partners have no real strategy for how to respond.

Image result for Angela Merkel

Last year, the German Foreign Office embarked on what two sources described to me as its first-ever effort to produce an America strategy aimed at answering that question, with the goal of producing a strategy document similar to those it has for adversaries. “Essentially, it’s an overhaul of German foreign policy,” a senior German official told me, “since the key assumption being called into question is the total reliance we have on the friendship with the U.S.” Work on the new strategy began after Trump’s Inauguration but accelerated last spring, after the German Chancellor, Angela Merkel, returned from Trump’s initial foray into international summitry rattled by him and announced that “Europeans must really take our fate into our own hands.” The painful realization, the senior German official said, was that “we might get to a situation where we see Americans not only as friends and partners but also as competitors and adversaries. We don’t want to do that. That is how we treat other great powers around the globe, like Russia and China.”

Image result for charles kupchan georgetown

Until now, allies have been notably divided on how to handle Trump, largely settling on an approach that Charles Kupchan (pic above), who served as President Barack Obama’s senior director for Europe at the National Security Council, characterized as “limit the damage and run out the clock.” Trump’s recent confrontational moves, however, have made it all but impossible for allies to continue with their policy of “don’t give in but don’t give up,” as Kupchan described it. In interviews in Europe and Washington over the last week, I heard a new tone of anguish and concern as the extent and consequences of the rift have become more clear. “They cruised through 2017 and they thought everything was fine,” Julianne Smith, a former Pentagon official and deputy national-security adviser for Vice-President Joe Biden who now heads the transatlantic program at the Center for a New American Security, told me. “Now he is doing in 2018 what he threatened to do, and it’s ‘Oh, no, I feel the shock and awe’ and ‘What can we do?’ ”

Daniel Vajdich, who served as a foreign-policy adviser to the Republican Presidential candidates Ted Cruz and Scott Walker in the 2016 election, agreed. “There’s no denying that the transatlantic relationship is at a low point in the post-Cold War period,” Vajdich, who is one of two Republicans who defended Trump’s approach in a debate against two Europeans at a security conference in the Estonian capital of Tallinn last week, said. Initially, the session had been titled “Eighteen Months of Trump Foreign Policy: Right Direction or Wrong Track?” Organizers decided they had to change the title because no one could make the case that relations were on the right track after last week’s tariffs decision. Instead, Vajdich’s team was asked to argue that perhaps things were “better than they seemed” under Trump’s foreign policy.

When the reframed debate terms were announced at the event, they drew a laugh from the audience, which was composed largely of European security officials and experts. Constanze Stelzenmüller, the German debater on the panel, compared Trump’s foreign policy to Margaret Atwood’s dystopian novel “The Handmaid’s Tale” and said the Europeans were the handmaids. As for Trump, she said, the American President seemed to be treating his allies like a girlfriend he could abuse, slapping her around as if that would make her more likely to accept his marriage proposal.

When I went to Berlin after the Tallinn conference, I talked with several German officials who made similar references to personal and familial dysfunction. In their view, Trump’s decision to take on his allies on so many issues all at once is quite different from the standard-issue European policy disputes with the United States, such as the 2003 rift over George W. Bush’s invasion of Iraq, or Ronald Reagan’s early nineteen-eighties military buildup against the Soviet Union. Those were differing views over how to protect the alliance; now Trump is questioning the alliance itself. “It’s like your parents questioning their love for you,” Norbert Röttgen, the chairman of the Bundestag’s foreign-affairs committee, told me on Monday. “It’s already penetrated the subconscious.”

លទ្ធផល​រូបភាព​សម្រាប់ Berlin

Nowhere in Europe has that subconscious been more rocked than in Germany, where its close relationship with the United States has defined the country’s remarkable resurrection after the Second World War. “It took Germany the longest of all partners to come to terms with someone like Trump becoming President,” the senior German official told me. “We were very emotional, because our relationship with America is so emotional—it’s more of a son-father relationship—and we didn’t recognize our father anymore and realized he might beat us.” Only in recent weeks, he said, after Trump reorganized his foreign-policy team, replacing his Secretary of State and national-security adviser with the more like-minded Mike Pompeo and John Bolton and launching his trade war, did they finally get that “this is real. And still many people haven’t come to grips with the idea that Trump is not considering us an ally and as a son but maybe even as adversary.”

Image result for Richard Grenell,

As we spoke, the latest controversy was reinforcing the idea that Germany was no longer America’s favored ally. Trump had named Richard Grenell (pic above), a Republican activist well known for his aggressive Twitter spats and dismissive views, to be the new U.S. Ambassador to Germany, and he, even before meeting his German hosts, had just given an interview to the right-wing Web site Breitbart praising the European far right; the headline suggested he saw it as his job to “empower” such leaders. Grenell later insisted on Twitter that his remarks had been misconstrued, but not before some German politicians called for him to be kicked out and the German Foreign Office asked for a formal clarification of his comments. The fracas had a certain Trumpian irrelevance, but a more consequential rebuke came in a speech this week at the conservative Heritage Foundation, in Washington, where the Assistant Secretary of State for Europe, A. Wess Mitchell, outlined a new strategy toward the Continent that suggested a shift away from longtime allies, such as France and Germany, and toward newcomers in Central and Eastern Europe, where Trump-style populism flourishes and democratic norms are being challenged.

Still, Röttgen, like Merkel herself, remains wary of outright confrontation with the Trump Administration over these policies, even as the German public becomes increasingly disillusioned. “We should choose the option of damage limitation instead of escalation,” Röttgen told me. “Trump might force us to become more confrontational, but we should try to resist.” How bad has it already gotten? A recent poll found that only fourteen per cent of Germans now believe the United States is a reliable partner, compared with thirty-six per cent in Russia and forty-three per cent in China.

A year ago, after Trump returned from his first Presidential trip overseas with deeply unsettled allies in Europe, his national-security adviser, H. R. McMaster, and his chief economic adviser, Gary Cohn, teamed up to write a reassuring op-ed in the Wall Street Journal. “America First is not America alone,” they promised. Neither of the two men still works for Trump. A few months after that, Trump himself made an appearance before the rattled global financial élites at the World Economic Forum, in Davos. “America First is not America alone,” he insisted. Now, increasingly, it is.

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  • Susan B. Glasser is a staff writer at The New Yorker, where she writes a weekly column on life in Trump’s Washington.Read more »

Moving from Defence to Offence on Trade Strategy


March 5, 2018

Moving from Defence to Offence on Trade Strategy

Author: Editorial Board, East Asia Forum

Image result for Trump declares a trade war  Commerce Secretary Wilbur Ross with his Boss,President Donald Trump

 

The trade architecture in East Asia — the most dynamic region in the global economy — is up for grabs. The very system on which regional arrangements are built is under threat.

US President Donald Trump’s withdrawing the United States from the Trans-Pacific Partnership (TPP), his ‘America First’ agenda and his declaration last week of the first shots in a global trade war undermine the WTO and the global rules-based economic system that it underpins. Asia and the global community, including the United States, have relied upon and benefitted from that system for over 70 years.

Can East Asia put aside its differences and define a set of arrangements that protect its own economic security interests absent the United States? US leadership put this system in place and drove its expansion throughout the post-war years. Now the United States is generating the headwinds that threaten to unravel it. Just last week Trump announced the first salvo in what could be a trade war with a 25 per cent tariff on all steel imports and 10 per cent tariff on aluminium imports. The temptation for other countries is to retaliate with their own self-harm policies.

What’s at stake?

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The multilateral trade regime provides the cement and ballast that makes it easier to manage tricky rivalries and conflictual relationships of the kind that abound in Asia but around which large-scale economic interdependence and prosperity have been built. The ‘America First’ challenge threatens the collapse of that system and a descent into beggar-thy-neighbour protectionism and political conflict reminiscent of the lead-up to World War II.

How leaders in Asia respond to this challenge and the arrangements that the region settles on will matter for three important reasons. It will substantially affect the welfare of individual countries and the communities within them. It will affect the atmosphere for both economic and political cooperation in the region. And, given the size of the Asian economy, it will matter for whether the global rules-based economic system withstands the assault upon it.

No single country  acting on its own can lead a response to the vacuum that United States is daily creating in global governance. This US-sized hole in the Asia Pacific will have to be filled with leadership from the rest of the region as a whole.

Asian and Pacific nations have responded definitively so far. And leadership has come from one of the most unexpected places: Japan, traditionally shy to step out in front.

Once Trump declared that the United States was getting out of the TPP, Japan led the remaining 11 members towards the agreement’s conclusion without the United States. That deal is expected to be signed in Chile this week. The awkwardly named Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), otherwise known as TPP-11, would not have happened were it not for Prime Minister Shinzo Abe’s leadership. Australia’s also played a major role, but Japan (the Partnership’s largest economy absent the United States) was the decisive player.

As Shiro Armstrong explains in this week’s lead essay, ‘conclusion of the CPTPP does not deliver the big strategic goal of keeping the United States entrenched in Asia. Instead, it sends to Mr Trump a strong message of the region’s commitment to openness. Holding the line and pushing back against growing protectionist sentiment keeps the pressure up, with market opening and reform on which US businesses and consumers miss out’.

Most surprised about Japanese leadership are the Japanese themselves. As Armstrong says, Japan ‘has found itself in an unusual position. Japan has often relied on external pressure, usually from the United States, to advance its diplomatic goals and even to push domestic reforms’.

Asia cannot count on Japanese leadership alone, nor can it count on Japan’s continuing in this manner. In saving what’s left of the TPP, Mr Abe saw an opportunity to hedge ‘against the uncertainties that Trump has generated in regional and global trade policy, strengthening ties with other partners like Australia and India and laying the groundwork for improving relations with China’.

Australia almost single-handedly led the push back against Trump’s team  tearing up multilateralism as APEC’s central tenet at the summit in Vietnam last November.

With Australia having held the line in APEC and moved forward on the TPP, what is needed now is for the other powers in Asia to join Australia and Japan in preserving and protecting the global system.

The CPTPP, even if it expands membership to include other middle powers in East Asia, is not systemically important enough to do the job. With the United States in the agreement, the TPP would have accounted for 38 per cent of the global economy but without it the agreement accounts for only 13 per cent.

In East Asia, there is fortunately another vehicle that has the weight to do the job. The Regional Comprehensive Economic Partnership (RCEP), which is currently being negotiated, involves the 10 ASEAN members plus Australia, China, India, Japan, New Zealand and South Korea. That grouping accounts for 31 per cent of global economy.

RCEP (perhaps the second-worst acronym in Asia after the CPTPP) is as important as it is difficult to realise with the required ambition. Including the major economies of Indonesia, India and China makes a tall order out of large and credible commitments to economic opening . The anxiety to get a deal done quickly could compromise the quality of the arrangement and therefore its impact. A hastily concluded RCEP deal that is not credible in its ambition would be a mistake and a huge lost opportunity, risking more harm than good. India is still playing its familiar role of spoiler by dragging the agreement down and other leaders have yet to expend political capital that they need to on RCEP.

There is no clear leader in RCEP. The Partnership is not China-led as is often wrongly claimed: ASEAN is the hub and inspiration, and the major powers, including China, are the spokes. The only leadership that China can show that Australia, Japan, India and others can accept is one where it commits to reforms and opening up its economy. That will benefit both China and the global economy.

RCEP is the best chance at an agreement that is inclusive of China and locks it into reforms. The CPTPP may be easier for countries to join than the original TPP since it has frozen ‘some of the more egregious provisions of TPP — especially the US-pushed intellectual property protections that were likely to benefit big business in the United States at the expense of consumers in the region’, as Armstrong explains. But expanding CPTPP membership to China is unlikely since it would close the door to any possibility that the United States might rejoin at some time in the future.

There is little chance of the United States rejoining the TPP under Mr Trump or even the president after him. Piecing together political leadership on trade in Washington will be difficult without making progress on an agenda for dealing with the issues that have led to the current problems: stagnant middle-class incomes, wider distribution of the gains from trade and a properly functioning social safety net. The US Congress is unlikely to agree to join an existing deal, even though the United States was the driving force of the original TPP. The United States’ joining a deal that China is party to any time soon is inconceivable.

If East Asia does not hold the line on corrosion of the global trade regime and protectionism, no one else is likely to.Crafting regional trade architecture without the constructive participation of the United States is the immediate challenge and will remain the challenge for the foreseeable future. Australia and Japan have led the initial charge, but China, India and Indonesia will need to step up.

Asian powers may not be ready for the sort of leadership that is needed, but the threat to their interests in the global system will not wait until they are.

The EAF Editorial Board is located in the Crawford School of Public Policy, College of Asia and the Pacific, The Australian National University.

 

Post-Davos Depression


February 4, 2018

Post-Davos Depression

by Dr. Joseph E. Stiglitz@www.project-syndicate. org

The CEOs of Davos were euphoric this year about the return to growth, strong profits, and soaring executive compensation. Economists reminded them that this growth is not sustainable, and has never been inclusive; but in a world where greed is always good, such arguments have little impact

..,the lessons of history are clear. Trickle-down economics doesn’t work. And one of the key reasons why our environment is in such a precarious condition is that corporations have not, on their own, lived up to their social responsibilities. Without effective regulations and a real price to pay for polluting, there is no reason whatsoever to believe that they will behave differently than they have..–Joseph E. Stigltz

DAVOS – I’ve been attending the World Economic Forum’s annual conference in Davos, Switzerland – where the so-called global elite convenes to discuss the world’s problems – since 1995. Never have I come away more dispirited than I have this year.

Image result for The Economic Elites at Davos 2018Demonstrators in Zurich this week. While many are poised to recoil at President Trump’s arrival in Davos this week, much of the moneyed elite there are willing to overlook what they portray as the president’s rhetorical foibles in favor of the additional wealth he has delivered to their coffers. Credit Ennio Leanza/European Pressphoto Agency.

 

The world is plagued by almost intractable problems. Inequality is surging, especially in the advanced economies. The digital revolution, despite its potential, also carries serious risks for privacy, security, jobs, and democracy – challenges that are compounded by the rising monopoly power of a few American and Chinese data giants, including Facebook and Google. Climate change amounts to an existential threat to the entire global economy as we know it.

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Perhaps more disheartening than such problems, however, are the responses. To be sure, here at Davos, CEOs from around the world begin most of their speeches by affirming the importance of values. Their activities, they proclaim, are aimed not just at maximizing profits for shareholders, but also at creating a better future for their workers, the communities in which they work, and the world more generally. They may even pay lip service to the risks posed by climate change and inequality.

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But, by the end of their speeches this year, any remaining illusion about the values motivating Davos CEOs was shattered. The risk that these CEOs seemed most concerned about is the populist backlash against the kind of globalization that they have shaped – and from which they have benefited immensely.

Not surprisingly, these economic elites barely grasp the extent to which this system has failed large swaths of the population in Europe and the United States, leaving most households’ real incomes stagnant and causing labor’s share of income to decline substantially. In the US, life expectancy has declined for the second year in a row; among those with only a high school education, the decline has been underway for much longer.

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Justin Trudeau of Canada and Narendra Modi of India–The Globaists at Davos 2018 who together with Germany’s Angela Merkel, Emmanuel Macton of France and China’s Xi Jinping will make America First’s Donald Trump irrelevant.

Not one of the US CEOs whose speech I heard (or heard about) mentioned the bigotry, misogyny, or racism of US President Donald Trump, who was present at the event. Not one mentioned the relentless stream of ignorant statements, outright lies, and impetuous actions that have eroded the standing of the US president – and thus of the US – in the world. None mentioned the abandonment of systems for ascertaining truth, and of truth itself.

Indeed, none of America’s corporate titans mentioned the administration’s reductions in funding for science, so important for strengthening the US economy’s comparative advantage and supporting gains in Americans’ standard of living. None mentioned the Trump administration’s rejection of international institutions, either, or the attacks on the domestic media and judiciary – which amounts to an assault on the system of checks and balances that underpins US democracy.

No, the CEOs at Davos were licking their lips at the tax legislation that Trump and congressional Republicans recently pushed through, which will deliver hundreds of billions of dollars to large corporations and the wealthy people who own and run them – people like Trump himself. They are unperturbed by the fact that the same legislation will, when it is fully implemented, lead to an increase in taxes for the majority of the middle class – a group whose fortunes have been in decline for the last 30 years or so.

Even in their narrowly materialistic world, where growth matters above all else, the Trump tax legislation should not be celebrated. After all, it lowers taxes on real-estate speculation – an activity that has produced sustainable prosperity nowhere, but has contributed to rising inequality everywhere.

The legislation also imposes a tax on universities like Harvard and Princeton – sources of numerous important ideas and innovations – and will lead to lower local-level public expenditure in parts of the country that have thrived, precisely because they have made public investments in education and infrastructure. The Trump administration is clearly willing to ignore the obvious fact that, in the twenty-first century, success actually demands more investment in education

For the CEOs of Davos, it seems that tax cuts for the rich and their corporations, along with deregulation, is the answer to every country’s problems. Trickle-down economics, they claim, will ensure that, ultimately, the entire population benefits economically. And the CEOs’ good hearts are apparently all that is needed to ensure that the environment is protected, even without relevant regulations.

Yet the lessons of history are clear. Trickle-down economics doesn’t work. And one of the key reasons why our environment is in such a precarious condition is that corporations have not, on their own, lived up to their social responsibilities. Without effective regulations and a real price to pay for polluting, there is no reason whatsoever to believe that they will behave differently than they have.

The Davos CEOs were euphoric about the return to growth, about their soaring profits and compensation. Economists reminded them that this growth is not sustainable, and has never been inclusive. But such arguments have little impact in a world where materialism is king.

So forget the platitudes about values that CEOs recite in the opening paragraphs of their speeches. They may lack the candor of Michael Douglas’s character in the 1987 movie Wall Street, but the message hasn’t changed: “Greed is good.” What depresses me is that, though the message is obviously false, so many in power believe it to be true.