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11. Who’s Afraid of Russian Gas? Bridging the Transatlantic Divide

Author:
Nikos Tsafos
Publication Date:
05-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
The Issue Russian energy has divided the transatlantic alliance for over 60 years. Tensions normally just simmer, but they flare up when a new project is proposed, especially after a political crisis. In the 1960s, it was the prospect of increased Soviet oil exports following the Cuban missile crisis. In the 1980s, it was more Soviet gas for Western Europe after the Soviet Union had invaded Afghanistan and martial law had been declared in Poland. Today, it is the proposed Nord Stream 2 gas pipeline after Russia’s annexation of Crimea and its war against Ukraine (among other actions). Disagreements are natural in a broad alliance with diverse interests and perspectives. But it is now almost impossible to discuss Russian gas with any sense of calm (increasingly true for all things related to Russia). Russian initiatives are infused with perceptions and fears that range from the simple and legitimate to the obscure and far-fetched. In reality, arguments about Russian gas are rarely about Russian gas; they are about history, strategy, and geopolitics. Gas is just the spark. The end result is confusion and discord at a time when the transatlantic alliance has enough problems—without needing to add gas to the fire. It is time to separate Russian gas from the broader Russia agenda. Doing so will boost energy security, protect and strengthen the transatlantic alliance, and allow us to focus where the West can resist Russian power more meaningfully. This argument rests on three propositions. First, that energy does not give Russia as much power as we usually assume; second, that an antagonistic strategy is unlikely to be sustained or succeed in bringing about change, whether in energy or geopolitics; and third, that the best response to Russian gas is a set of policies that Europe should pursue anyway and that are unrelated to Russia. In short, we need to radically rethink Russian gas; how much it matters; and what the United States and Europe should do about it.
Topic:
Foreign Policy, Energy Policy, Natural Resources, Gas, and Transatlantic Relations
Political Geography:
Russia, United States, Europe, and North America

12. Mapping the U.S.-Canada Energy Relationship

Author:
Andrew J. Stanley
Publication Date:
05-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
he United States and Canada are each other’s largest energy trading partners as measured by the value of energy commodity trade, which in 2017 stood at U.S.$95 billion. The energy relationship between the two countries extends beyond just the trade of commodities, encompassing a variety of common, though not always identical, economic, security, and environmental priorities. In March 2018, the CSIS Energy and National Security Program undertook a project with the Embassy of Canada in the United States to create a physical map depicting the U.S.-Canada energy trade relationship. The following CSIS brief explains the various aspects of the energy trade relationship using this map, as well as highlights some of the important issues in the development of this partnership moving forward.
Topic:
Energy Policy, Environment, Regional Cooperation, and Trade
Political Geography:
United States, Canada, and North America

13. Rebooting U.S.-China Trade Ties: “Enter Ye Through the Narrow Gate”

Author:
Christopher K Johnson
Publication Date:
05-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
Nearly two weeks after the U.S. “Trade Avengers” unleashed during their visit to Beijing what one reasonably could call “trade shock and awe” with a very aggressive—if thoroughly researched and well-crafted—set of demands targeting the yawning U.S. trade deficit with China and the core of that country’s throaty industrial policy, China this week is taking its turn with the visit of Chinese Communist Party (CCP) Politburo member and Vice Premier Liu He, President Xi Jinping’s economic point man who is almost universally described as a thoughtful, pragmatic, and mild-mannered policy academic. In the interim, voices from a wide swath of official Washington have sounded the alarm about the dangers of Chinese influence operations and the presence of alleged subversives, while President Trump himself seemed to cast aside these growing concerns by suggesting via Twitter that he would ask the Commerce Department to overturn its action against the Chinese telecommunications firm ZTE—long a focus of the U.S. security community for suspected cyber espionage activity and irrefutable violations of U.S. law—in response to protests that reportedly emanated directly from President Xi. With such frenetically sustained action in such a short period of time, the fog of war seems particularly thick at the moment. As such, it seems like a good time to slow down and have a think about how we got here, what actually is going on, and, with a little bit of luck, perhaps think about some ways to craft a viable way forward. Just like milestone birthdays in one’s personal life, important political anniversaries also can incline the mind toward reflection. Next year, of course, marks the fortieth anniversary of the reestablishment of diplomatic ties between the United States and China. As such, much breath and a lot of ink have been devoted to analyzing the course of the bilateral relationship over that nearly half-century. Although certainly not a universal opinion, it seems fair, if perhaps overly reductionist, to suggest that the general conclusion among a substantial number of U.S. officials, policy analysts, and journalists has been that the consistent U.S. policy emphasis on engagement with China during those forty years was, at the end of the day, a sham. In this rendering, naïve groups of senior policymakers in succeeding U.S. administrations and in most of the U.S. China-watching community were hoodwinked by wily CCP leaders who talked the talk of integrating into the so-called U.S.-led rules-based international order, but all the while they had a secret master plan to instead subvert that order and challenge U.S. primacy throughout the globe. In a slightly less menacing (if no less absurd) version of this narrative, China was, indeed, headed generally toward this hoped for integration under the stewardship of deceased paramount leader Deng Xiaoping and his handpicked successors Jiang Zemin and Hu Jintao until Xi Jinping arrived and, through a ruthless consolidation of power, decided instead to change course in what now regularly is referred to in shorthand as Xi’s “authoritarian turn.” But this conclusion seems utterly wrongheaded when examined in the light of hard facts. On the Chinese side of the equation, for example, Deng Xiaoping may have appeared warm and cuddly when donning his cowboy hat during his famous 1979 visit to the United States, but he could be just as ruthless and grasping as any other authoritarian leader. Deng’s exceptionally courageous and dogged pursuit of the policies of reform and opening certainly are worthy of praise, but they cannot, and therefore should not, be separated from the fact that he was content to sit idly by as Chairman Mao’s loyal lieutenant as Mao decimated his political rivals during the Anti-Rightist Campaign (1957-59) and the Great Leap Forward (1958-62). Nor should we forget that Deng used every ounce of his massive personal prestige with the People’s Liberation Army to, with steely determination, rally his many reluctant commanders to execute the brutal Tiananmen crackdown of June 4, 1989. Similarly, Xi Jinping is no Jack-in-the-Box-like figure who has pulled a fast one with a sharp directional turn in the last couple of years made all the more stark after his sweeping consolidation of power at last fall’s 19th Party Congress. In fact, it is this author’s contention, as supported by a large body of written work and public commentary, that everything Xi has done over the last five years was abundantly clear, whether explicitly or in embryonic form—from the moment he was introduced to the world as China’s new top leader in the fall of 2012, as encapsulated in his call for his country to pursue the “China Dream” set on a foundation of “the great rejuvenation of the Chinese nation.” This by no means suggests the United States should express support for, or even acquiescence in, Xi’s policies, but only that it should not be reacting with the borderline hysteria that now seems to be gripping Washington.
Topic:
Security, Diplomacy, Global Political Economy, and Trade Wars
Political Geography:
United States, China, Asia, and North America

14. Intellectual Property and the International Trade Commission An Examination of the Role of the ITC in Protecting IP Rights

Author:
William Alan Reinsch and Jonathan Robinson
Publication Date:
06-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
Section 337 of the Tariff Act of 1930 has been a powerful tool for protecting U.S. intellectual property (IP) rights and the U.S. market from unfair competition for nearly 100 years. The statute empowers the U.S. International Trade Commission (ITC) to ban imports of goods that inappropriately use U.S. intellectual property. Since it was last amended in 1988, however, new issues have emerged with the law and the Commission’s role in enforcing its provisions. As the economy modernizes and intellectual property enters the digital realm, we examine the ITC and its role in enforcing IP rights and suggest possible ways the ITC can modernize its operations to better confront the challenges of the twenty-first century.
Topic:
Intellectual Property/Copyright, Digital Economy, Trade, and Modernization
Political Geography:
United States and North America

15. The U.S., NATO, and the Defense of Europe: Underlying Trends

Author:
Anthony H. Cordesman
Publication Date:
07-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
The Trump Administration has adopted an "America First" strategy, and taken aggressive stands on NATO burden sharing, trade, the JCPOA nuclear agreement with Iran, and the treatment of refugees that have led many in Europe to question its support for NATO and the Transatlantic Alliance. At least some European security experts talk about the U.S. as it was backing away from the NATO alliance, and a split between the United States and Europe that will force Europe to create its own approach to creating military and other security forces. Many aspects of the Trump Administration's approach to foreign policy are as controversial in the U.S. as in Europe, and President Trump has proved to be an exceptionally volatile and combative leader who can express himself in extreme terms and suddenly change his positions. However, it but it is important to note the underlying realities that shape the new U.S. strategy, the U.S. military role in the NATO alliance, and Europe's own divisions and failures to create effective forces. The current tensions between the U.S. and given European powers should not lead Europeans - or Americans and Russians for that matter – to ignore the fact that the U.S. remains fully committed to a strong Transatlantic alliance, that its forces and capabilities are critical to European security, and the Trump Administration's FY2019 budget to Congress will greatly increase the contribution that U.S. forces make to NATO and Transatlantic Security.
Topic:
Defense Policy, NATO, Regional Cooperation, and Military Strategy
Political Geography:
United States, Europe, North Atlantic, North America, and Western Europe

16. Enhancing the U.S.-Indonesia Strategic Partnership

Author:
Brian Harding and Andreyka Natalegawa
Publication Date:
07-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
The United States and Indonesia are natural partners. Despite our geographic distance, we have striking similarities. We are large, diverse, and democratic societies. We both seek an international order in the Indo-Pacific region based on rules that enable all countries to have a voice. Our shores each span two oceans, imbuing our countries with a deep maritime heritage and culture that shapes how we approach the world. When each plays its natural role as a leader in regional affairs, both parties benefit. In recognition of the great mutual benefit that a close U.S.-Indonesia partnership could bring, Presidents Barack Obama and Susilo Bambang Yudhoyono launched a comprehensive partnership in 2010 to build closer government-government, economic, and people-people ties between our two countries. Critically, the agreement created a framework for collaboration across a multitude of government departments and ministries under a joint commission co-chaired by the U.S. secretary of state and the Indonesian minister of foreign affairs. In 2016, under President Joko Widodo (Jokowi), the comprehensive partnership was elevated into a strategic partnership, further signaling the relationship’s importance to both countries. Yet despite having many common interests and recent high-level efforts to push the relationship forward, U.S.-Indonesia relations are not meeting their potential. Bilateral economic interaction is limited compared to the size of our economies. Official interaction is often bureaucratic and rarely strategic. And people-people relations, including of education exchanges, are minuscule considering that Indonesia and the United States are the third- and fourth-most-populated countries in the world. President Donald Trump’s political ascent has also created additional headwinds for U.S.-Indonesia relations. Candidate-Trump’s statements regarding the Muslim world caused unease in Indonesia and his policies as president toward Israel and Palestine have damaged Indonesian views of the United States. In Asia, the Trump administration’s framing of great-power competition with China and the administration’s nontraditional economic statecraft have created uncertainty in Jakarta. From Washington’s perspective, the Jokowi administration’s relative disinterest in playing a leading role in the Association of Southeast Asian Nations (ASEAN) and in the broader Indo-Pacific region has dampened enthusiasm in some quarters for investing in the relationship. Recognizing the importance of both the U.S.-Indonesia relationship and its continued underperformance, on May 3, 2018, the CSIS Southeast Asia Program convened a first annual bilateral, track 1.5 strategic dialogue in Washington, D.C., to inject new momentum into the relationship and to begin building deeper connectivity between policy experts in the two countries. This report outlines conclusions and recommendations that surfaced during the dialogue. However, the report reflects the opinions of the authors, and does not necessarily reflect those of the dialogue participants.
Topic:
International Cooperation, Culture, Maritime, and Economic Cooperation
Political Geography:
United States, Indonesia, North America, and Indo-Pacific

17. Back from the Brink: A Threatened Nuclear Energy Industry Compromises National Security

Author:
Michael Wallace, Amy Roma, and Sachin Desai
Publication Date:
07-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
The U.S. commercial nuclear energy industry helps the U.S. government meet several key national security objectives. But the industry is struggling to survive. We are not the first to say this and we will not be the last. We are also not the first to call for U.S. government support for this struggling industry—but this call to action is different. We are urging U.S. government action—not with the focus of protecting the commercial sector, but with a focus to protect U.S. government interests impacted by the decline in the commercial nuclear energy sector. This is a key distinction and warrants attention at the highest level of government. This paper is not intended for those in the nuclear energy industry. They know the issues. It is intended for the U.S. government and the U.S. public—to explain the reasons why U.S. government action is critical at this moment, and to explain how we can move forward in a manner that best protects our country’s national security. But what are these national security objectives and how are U.S. government and national security interests undermined by a decline in the commercial nuclear energy sector? In this paper we explain the critical importance of the U.S. commercial nuclear energy industry in support of U.S. defense, research, economics, geopolitics, and international nonproliferation. We walk through how the U.S. commercial nuclear energy industry arose out of and with the support of the U.S. government—and how President Eisenhower’s reasons for bringing nuclear energy to the world in the 1950s are the very same reasons that the United States needs to continue to do so today. We unravel the web of interconnections between the commercial nuclear energy industry and achieving U.S. government and national security goals. And we explain the impact that a declining commercial nuclear energy sector has on achieving those crucial goals. Moreover, we set forth a recommended path forward to come “back from the brink” and preserve critical commercial nuclear energy sector assets—including technology, knowhow, people, and influence—before they are lost forever, and U.S. national security is damaged as a result. This industry must survive—and it can if the U.S. government and private industry work together, recognizing the government and civilian integrated nuclear infrastructure moving forward. Notably, the response must be U.S. government led to take the approach that is best for the country, rather than any particular company or technology. We recommend five core U.S.-government-led actions to move forward that focus.
Topic:
Security, Energy Policy, National Security, and Nuclear Power
Political Geography:
United States and North America

18. The U.S. Defense Budget in FY2019: Underlying Trends

Author:
Anthony H. Cordesman
Publication Date:
08-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
The report draws on a wide range of official sources and is designed to provide an overview of official reporting on major trends rather than make an independent analysis. The U.S. provides a vast amount of detail on its annual budget request for military and international affairs spending – much of it in graphic, tabular, and summary form. The material presented here is an attempt to pick the key materials to show where the U.S. is focusing its military spending, how it relates to its strategy, how major force improvements will affect U.S. capabilities, and how the U.S. is dealing with its strategic partners and potential threats. However, the user should be aware that much of the material presented is often uncertain and is not comparable from source to source. There also is no easy or single way to summarize the trends in the U.S. defense budget. The materials that go into just the unclassified portions of the Department of Defense’s annual submission of President’s budget request to Congress, and the subsequent Congressional review of that request, run well over several thousand pages. It is also critical for the reader to understand that only the portion of the report dealing with the National Defense Authorization Act (pages 24-43) represents the final result of Congressional action and the FY2019 budget signed by the President, and not all of the portions of reference action by the key Committees involved were approved in exactly the form shown in the final bill signed by the President. Much of the material is drawn from sources that precede the final Congressional markup because the Department never updates most of the tables and charts in the Department of Defense request until the following year and new budget submission. The material presented also shows that different sources define total defense spending in different ways, and include different expenditures and convert current to constant dollars in different ways. More importantly, most sources report in terms of “Budget Authority” (BA) – the total money the Congress authorizes in a given Fiscal Year that can be spent over a period of years. This is the best estimate of what the Congress is actually approving. However, some sources in terms of “Budget Outlays” (BO) – only the money that can be spent in 12-month period of that U.S. Fiscal Year. (Which begins on 1 October of the year the Congress acts upon, and ends on 30 September of the following year). This is the best way of assessing the impact of spending on how well the budget is balanced, the size of the deficit, and impact on the federal debt. Budget projections for future years present other problems. The Congressional Budget Office (CBO) provides detailed estimates of how the President’s budget request – and the final budgets the Congress authorizes – will impact over time. Many such estimates precede Congressional action on the budget, and it then takes several months for the CBO to estimate the probable future trends in the total federal budget and impact of the final Congressionally approved levels of U.S. defense spending on that total federal budget and the U.S. GDP. This often creates major lags in official estimates of the trends in every aspect of federal spending, the budget deficit, and the national debt. More broadly, the Department of Defense has effectively abandoned any serious effort to create a program budget, and to provide a realistic estimate of the cost of the Future Year Defense Program beyond the fiscal year directly under review. It essentially rolls forward current activities and plans to make estimates of the next four years that are based on the spending levels in the budget year under review. It bases such estimates largely on input categories such as personnel, O&M, RDT&E, and procurement. The Department of Defense does not report expenditures by major mission or command. The Department defines “strategy” largely in terms of broad concepts and goals. It does not tie its “strategy” to net assessments of the balance in terms of threats and strategic partners, to specific force plans, to specific actions and schedules, to specific costs, or to measures of success and effectiveness. Unclassified reporting in “PPB” – or planning, programming, and budgeting– form has become a functional oxymoron. The Congress does hold strategy hearings and directs studies of key strategic issues, but these efforts rarely address any of the practical details of any aspect of the nature and cost of U.S. strategy. Similarly, the outyear estimates of military spending by the Department of Defense, OMB, and the Congressional Budget Office (CBO) focus on a “baseline” that assumes the United States does not actually use its military forces in any operational form. The limited estimates provided for future Overseas Contingency Operations are “placeholders” and not actual estimates. This is partly inevitable given the inability to predict the future, but it creates a practical problem in a country whose civil plans call for major future increases in mandatory spending on retirement, medical case, and welfare. This means the official U.S. projections of civil spending rise relative to military spending in ways history indicates will be highly unrealistic.
Topic:
Defense Policy, Military Strategy, Military Affairs, and Budget
Political Geography:
United States, Europe, Middle East, and North America

19. Safety of Crude Oil by Rail

Author:
David Pumphrey, Lisa Hyland, and Michelle Melton
Publication Date:
03-2014
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
In the last several years, rail has come to play an important role in the transportation of growing U.S. crude oil production. Over the last seven months, a number of serious accidents have resulted in intense review of the safety of shipping large quantities of oil by rail. The focus has been on classification of the oil, the integrity of tank cars, and rail operations. Regulatory processes have been initiated to attempt to deal with these issues in a timely manner. This analysis provides facts that illuminate the players, concerns, current status of regulatory action, as well as the potential issues going forward.
Topic:
Climate Change, Energy Policy, International Trade and Finance, Markets, National Security, and Oil
Political Geography:
United States, Canada, and North America

20. U.S.-Russia Health Engagement

Author:
Judyth L. Twigg
Publication Date:
03-2014
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
Over the last few years, Russia's relationship with the United States has traveled a swift and seemingly deliberate arc from partner to pariah. The current turmoil in Ukraine and near-certain resulting isolation of Russia culminate several years' worth of deteriorating ties. The Edward Snowden mess, disagreements over Syria and Iran, dismay over the eroding human rights environment in Russia, and now Russian annexation of Crimea have led the previously heralded "reset" to an unceremonious end. What are the implications of these and related developments for U.S.-Russia collaboration in medicine and public health? Should avenues of partnership remain open, even in such a frosty political context? Should the international community support Russia's health sector when ample resources exist within Russia itself? Is it even possible anymore?
Topic:
Development, Diplomacy, Economics, Health, Human Rights, Human Welfare, and Bilateral Relations
Political Geography:
Russia, United States, and North America