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201. AUKUS Security Pact: Setting the Rivalry with China in the Indo-Pacific

Author:
Krševan Antun Dujmović
Publication Date:
12-2021
Content Type:
Policy Brief
Institution:
Institute for Development and International Relations (IRMO)
Abstract:
The announcement of the trilateral security pact between Australia, the United Kingdom, and the United States, known by the acronym AUKUS, intended to enhance cooperation between the three countries in the Indo- Pacific region in defense and security, has sent shockwaves throughout the world, especially the UK for the Royal Navy of Australia. The nuclear fueled submarines will be armed by conventional weapons, the number of acquired vessels will be at least eight, and as a typically Australian request, part of the vessels will be constructed in Australia’s naval shipyards. So far, the US, the UK, Russia, China, France in China and Europe. The key element of the AUKUS pact, signed on 15th September 2021, is the acquisition of nuclear-powered submarines from the US and and India are the only six countries that have commissioned nuclear-powered submarines. Furthermore, before signing the AUKUS pact, the UK was the only country in the world with which the US was sharing the nuclear propulsion technology, under the Mutual Defense Agreement signed back in 1958. The supply of Australia with British and American nuclear-powered attack submarines, as the most delicate part of the AUKUS pact, attracted by far the most of media attention and provoked China’s aggressive reaction. Even more, the three nations security pact, which is in principal intended to bring “enhanced trilateral security partnership for the 21st century”, has made Beijing particularly worried as China fears that this triple alliance is pointed directly against it. The three countries intend to step up their cooperation in the security and defense sector, and apart from cooperation in industrial production of new military equipment, AUKUS also envisages a broad cooperation in the fields where the three countries feel particularly threatened by China’s staggering growth, and they include cyber security, quantum computing and artificial intelligence.
Topic:
Security, International Cooperation, Alliance, Conflict, and Rivalry
Political Geography:
United States, China, United Kingdom, Europe, Asia, Australia, North America, and Indo-Pacific

202. The AUKUS agreement, what repercussions for the European Union?

Author:
Elie Perot
Publication Date:
09-2021
Content Type:
Policy Brief
Institution:
Robert Schuman Foundation (RSF)
Abstract:
On 15 September, Australia, the United Kingdom and the United States announced the formation of a partnership called "AUKUS", with the aim, among other things, of providing the Australian Navy with nuclear-powered submarines over the next few decades. This trilateral agreement, presented by US President Joe Biden as responding to "the imperative of ensuring peace and stability in the Indo-Pacific over the long term", serves the unstated but obvious purpose of counterbalancing an increasingly powerful, and sometimes aggressive, China in its neighbourhood and on the international scene. As such, the AUKUS agreement is not in itself fundamentally opposed to the objectives and interests of the European Union and, in particular, of France - the Member State that had been until now most strongly engaged in the Indo-Pacific in response to the Chinese challenge. Yet the announcement of the trilateral partnership between Canberra, Washington and London led to a particularly severe crisis with Paris, with France losing a major deal it had had with Australia since 2016 for the supply of 12 conventionally powered (dieselelectric) submarines. With the telephone exchange between Presidents Joe Biden and Emmanuel Macron on 22 September, during which it was acknowledged that "the situation would have benefitted from open consultations among allies on matters of strategic interest to France and our European partners", it is possible that the worst of this diplomatic crisis is now over. The question now is whether this sequence, which at first sight was played out at the bilateral level between France and the three AUKUS states, could have wider and longer-term repercussions at the EU level. With this in mind, this paper first proposes to understand the new AUKUS agreement in its proper perspective, since above all it signifies a reinforcement of military industrial cooperation between Australia, the United Kingdom and the United States rather than a true diplomatic revolution with regard to China. The paper then looks at the French response to this new partnership, emphasising that it was first and foremost the secrecy surrounding the formation of AUKUS, and not so much the resulting breach of the Franco-Australian submarine contract, that led to such high levels of diplomatic tension. Finally, this paper seeks to assess the extent to which France succeeded in bringing this crisis to the European level, with what consequences, but also what limitations.
Topic:
Treaties and Agreements, European Union, and Partnerships
Political Geography:
United Kingdom, Europe, and Australia

203. Economic and Emission Impact of Australia–China Trade Disruption: Implication for Regional Economic Integration

Author:
Xunpeng Shi, Tsun Se Cheong, and Michael Zhou
Publication Date:
07-2021
Content Type:
Research Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study examines the debates on supply chain resilience and the economic and emissions impact of supply chain rerouting using Australia and China trade as an example. The estimations demonstrate that, in both export and import cases, a trade embargo between Australia and China, despite being compensated by alternative supply chains, will cause gross domestic product loss and emissions increases for both countries. Moreover, even if all other countries gain from the markets left by China, many of them suffer from overall gross domestic product loss and emissions increase. The findings that ASEAN and China may also suffer from an Australia–China trade embargo, despite a gain in trade volume, suggests that no country should add fuel to the fire. The results suggest that countries need to defend rules-based trading regimes and continuously promote regional economic integration.
Topic:
Regional Cooperation, Economy, Global Value Chains, Carbon Emissions, and Economic Integration
Political Geography:
China, Asia, Australia, and Southeast Asia

204. East Asian Integration and Its Main Challenge: NTMs in Australia, China, India, Japan, Republic of Korea, and New Zealand

Author:
Yan Lili Ing and Grace Hadiwidjaja
Publication Date:
07-2021
Content Type:
Research Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
While East Asia has been moving forward with its regional integration agenda, one main challenge remains and is growing – non-tariff measures (NTMs). Animal, vegetable, and food products tend to be more regulated than other products, largely due to quality and safety standards. NTMs affect 66%–98% of total trade in those sectors. Our paper presents the frequency index, coverage ratio, and prevalence score to measure NTMs in the region. They are highest amongst food, vegetable, and animal products; and vary amongst other products, depending on the economy. We find that the high frequency index of NTMs does not necessarily translate to a high value of coverage ratio for trade. One explanation could be that countries tend to regulate imported goods which compete with the domestic products more than imported goods which they need.
Topic:
Globalization, International Trade and Finance, Regional Cooperation, Tariffs, Non-Tariff Measures, and Economic Integration
Political Geography:
Japan, China, India, Asia, South Korea, Australia, Southeast Asia, and New Zealand

205. Growth Perspective on Western Australia

Author:
Ricardo Hausmann, Douglas Barrios, Ana Grisanti, Semiray Kasoolu, Tim O'Brien, Eric Protzer, Rushabh Sanghvi, Nikita Taniparti, and Jorge Tapia
Publication Date:
04-2021
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
The Government of Western Australia (WA), acting through its Department of Primary Industries and Regional Development (DPIRD), invited the Growth Lab of the Center for International Development at Harvard University to partner with the state to better understand and address constraints to economic diversification through a collaborative applied research project. The project seeks to apply growth diagnostic and economic complexity methodologies to inform policy design in order to accelerate productive transformation, economic diversification, and more inclusive and resilient job creation across Western Australia. As its name implies, this Growth Perspective Report aims to provide a set of perspectives on the process of economic growth in WA that provide insights for policymakers toward improving growth outcomes. This Growth Perspective Report describes both the economic growth process of Western Australia — with a focus on the past two decades — and identifies several problematic issues with the way that growth has been structured. In particular, this report traces important ways in which policies applied during the boom and subsequent slowdown in growth over the last twenty years have exacerbated a number of self-reinforcing negative externalities of undiversified growth. The report analyzes three key channels through which negative externalities have manifested: labor market imbalances, pro-cyclicality of fiscal policy, and a misalignment of public goods. The report includes sections on each of these channels, which provide perspectives on the ways in which they have hampered the quality of growth and explore the reasons why problematic externalities have become self-reinforcing. In some cases, new issues have emerged in the most recent iteration of WA’s boom-slowdown cycle, but many issues have roots in the long-term growth history of WA.
Topic:
Development, Employment, Economic Growth, and Diversification
Political Geography:
Australia

206. Economic Complexity Report for Western Australia

Author:
Ricardo Hausmann, Eric Protzer, Jorge Tapia, and Ana Grisanti
Publication Date:
04-2021
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
The Government of Western Australia (WA), acting through its Department of Primary Industries and Regional Development (DPIRD), invited the Growth Lab of the Center for International Development (CID) at Harvard University to partner with the state to better understand and address constraints to economic diversification through a collaborative applied research project. The project seeks to apply growth diagnostic and economic complexity methodologies to inform policy design in order to accelerate productive transformation, economic diversification, and more inclusive and resilient job creation across Western Australia. This Economic Complexity Report is organized in six sections, including this brief introduction. Section 2 explains the methodology of economic complexity, including its theoretical foundations and main concepts, as well as the adjustments that were required to obtain the required export data at a subnational level and incorporate the service sector to the analysis. Section 3 describes the structure of the WA economy, identifying its productive capacities and exploring its complexity profile. This is done at the state, regional, and city levels. Section 4 identifies industries with high potential and organizes them into groupings to capture important patterns among the opportunities. Section 5 contextualizes the opportunities further by identifying relevant viability and attractiveness factors that complement the complexity metrics and consider local conditions, as well as a criterion for regional participation in the state-wide diversification strategy. Finally, Section 6 summarizes the main findings of this report and discusses implications for Government of WA strategy and policy toward capitalizing on these revealed opportunities.
Topic:
Development, Economics, Economic Complexity, and Job Creation
Political Geography:
Australia

207. Western Australia Research Findings and Policy Recommendations

Author:
Ricardo Hausmann, Douglas Barrios, Ana Grisanti, Semiray Kasoolu, Tim O'Brien, Eric Protzer, Rushabh Sanghvi, Nikita Taniparti, and Jorge Tapia
Publication Date:
04-2021
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
The Government of Western Australia (WA), acting through its Department of Primary Industries and Regional Development (DPIRD), invited the Growth Lab of the Center for International Development at Harvard University to partner with the state to better understand and address constraints to economic diversification through a collaborative applied research project. The project seeks to apply growth diagnostic and economic complexity methodologies to inform policy design in order to accelerate productive transformation, economic diversification, and more inclusive and resilient job creation across Western Australia. This report is organized in six sections, including this brief introduction. Section 2 is an Executive Summary. Section 3 explains the methodologies of Growth Diagnostics and Economic Complexity, including its theoretical foundations and main concepts. Section 4 describes the main findings of the Economic Complexity Report, including a characterization of Western Australia’s complexity profile. This is done at the state, regional, and city levels. Additionally, this section identifies diversification opportunities with high potential and organizes them into groupings to capture important patterns among the opportunities. This section also contextualizes the opportunities further by identifying relevant viability and attractiveness factors that complement the complexity metrics and consider local conditions. Section 5 highlights the main findings of the Growth Perspective Report. This section describes the economic growth process of Western Australia — with a focus on the past two decades — and identifies several issues with the way that growth has occurred. This section highlights three key channels through which negative externalities have manifested: labor market imbalances, pro-cyclicality of fiscal policy, and a misalignment of public goods. The section provides perspectives on the ways in which each of these channels have hampered the quality of growth and explores the deep-rooted factors that underpin these adverse dynamics. Section 6 introduces a policy framework that can be leveraged by WA to capitalize on revealed diversification opportunities and address the factors that impact the quality of the growth process of the state.
Topic:
Economics, Economic Growth, Diversification, and Job Creation
Political Geography:
Australia

208. An Enduring Contribution? Australia's Term on the United Nations Security Council (2013-2014)

Author:
Michael Bliss and Gary Quinlan
Publication Date:
06-2021
Content Type:
Working Paper
Institution:
Australian Institute of International Affairs
Abstract:
As Australia took up its role as an elected member of the United Nations Security Council for 2013-2014, the challenges ahead were all too apparent. Dynamics between the five permanent members were particularly tense. Options for elected members to make a serious contribution appeared more limited than ever. The Council was unable to find consensus on how to address the most pressing threats to international peace and security. As political coordinator for Australia’s Security Council delegation across the Council’s 2013-2014 term, Michael Bliss had a unique insight into the workings of the Council, into Australia’s contributions, and into the relationships and diplomacy that underpinned the outcomes achieved. This monograph, published six years after Australia’s fifth Council term concluded, seeks to contextualise Australia’s work during its term, and to track how those contributions have endured and resonated in subsequent years. As a senior officer of Australia’s Department of Foreign Affairs and Trade, a specialist in multilateral affairs, an experienced diplomat and international lawyer, and an unrelenting optimist, Bliss is well placed to tell this recent story of Australian diplomacy. In doing so, he makes a compelling case that it is in Australia’s interests to seek to again “serve with distinction” as an elected member on the Security Council, in 2029-2030. Based on Australia’s experience in 2013-2014, Gary Quinlan AO, former Australian Ambassador and Permanent Representative of Australia to the United Nations (2009-2014) in his afterword asks the question of whether the Council has a future? Australia is a declared candidate for election for the 2029-2030 term but what kind of Council might we face and what are the dynamics that will affect our role?
Topic:
Security, Diplomacy, International Cooperation, United Nations, and UN Security Council
Political Geography:
Australia

209. Trade and Supply Chain Issues for Taiwan and Australia

Author:
Bryce Wakefield
Publication Date:
12-2021
Content Type:
Special Report
Institution:
Australian Institute of International Affairs
Abstract:
Covid-19 has disrupted supply chains around the world, while political movements in the United States and Europe that predate the pandemic have raised the prospect that we are once more living in a world where regionalism and nationalism trump global integration of trade. China, meanwhile, has made it clear that it sees trade as a tool in its political statecraft, a factor that has been keenly felt in the region. Nervous actors in the Indo-Pacific are looking to diversify their trade away from China, but do nations in the region have many choices? What does this mean for Taiwan-Australia trade relations? How does Taiwan’s ambiguous position in the international system relate to recent trade agreements? Where do Taiwan and Australia, as mid-level powers, sit within the global trading order?
Topic:
International Trade and Finance, Public Health, Pandemic, and COVID-19
Political Geography:
China, Taiwan, Asia, and Australia

210. AUKUS - A Harbinger of a New Geopolitical Reality

Author:
Giorgi Badridze
Publication Date:
11-2021
Content Type:
Special Report
Institution:
Georgian Foundation for Strategic International Studies -GFSIS
Abstract:
In September of this year, Australia, the United Kingdom and the United States announced the creation of a new defense pact in the Asia-Pacific region called AUKUS (which is an abbreviation for the names of the member states: Australia, the United Kingdom and the United States). This paper will discuss the objectives of this new tripartite pact as well as the rationale behind the reactions thereto vis-à-vis leading international players and how it reflects the current balance of power and security prospects in the world. Ongoing processes in the world today, including the creation of AUKUS, indicate that China's power and influence have grown so much that the more or less stabile world order may be radically altered if this is not balanced within the security sphere. The main task of the United States (the dominant power of the existing world order) and its allies is to prevent irreversible changes in world order; in particular, those that will accelerate the formation of Chinese hegemony in the Asia-Pacific region and the world at large.
Topic:
Security, Defense Policy, Alliance, and AUKUS
Political Geography:
China, United Kingdom, Australia, and United States of America