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671. The Importance of WTO Reform from a Transatlantic Perspective

Author:
Thomas J. Duesterberg
Publication Date:
02-2019
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
Trade is at the forefront of international tensions in 2019. Political developments in the United States and Europe, and the rise of China as a peer competitor to the transatlantic economies, have led many to question the fundamental assumptions and operations supporting the World Trade Organization (WTO). Chinese mercantilism, the Trump administration’s aggressive use of unilateral tariff measures, and the inability of WTO members to reach consensus on expanding its disciplines to important new sectors and forms of commerce in the modern economy reinforce the critique of the WTO. Expansion in global trade, one of the great engines of growth and progress in bringing billions of people out of poverty since 1945, has slowed considerably in the last two decades. In 2018, however, several constructive efforts to craft reforms for this successor institution of the Bretton Woods system are engendering some hope that the WTO can be adapted to meet the needs of the contemporary economy. The first basket of problems revolves around a lack of WTO disciplines for newer sectors like services, including those associated with the emerging digital economy; for state-owned enterprises; for intellectual property protection; and for cross-border investments. The other main issues concern the sometimes ineffective and bounded operations of the WTO itself. Questions have been raised, notably by the United States, over the slow and inconsistent enforcement of existing WTO rules, and over rulings by judges in the Appellate Body which overstep the limits of existing WTO rules, undertake interpretations of domestic laws, and reinterpret facts established by earlier dispute panel decisions. This is the biggest issue now dividing U.S. and EU thinking on the reform of the WTO. The EU, Canada, Japan, the United States and other members have begun offering concrete proposals for addressing these problems, and the G20 political leaders gave a strong endorsement to their efforts in the December 2018 communique of the Buenos Aires summit. Ideas for new rules are being tested in sub-global trade agreements like the new North American and Trans-Pacific pacts and EU free trade agreements with Canada and Japan. Incorporation of new rules into the global WTO is extremely difficult; full consensus among its 164 members is required for the adoption of any new disciplines or internal operations. To overcome that impediment, this paper suggests that plurilateral agreements, like the Information Technology Agreement of 1997, be employed to establish and test new rules needed for the 21st-century economy. Some use of supermajority decision making instead of the consensus rule may also help advance the creation of new rules and redress weaknesses in WTO operations. The role of transatlantic leadership, finally, is emphasized as a key to building broad political support needed to achieve substantive reform.
Topic:
International Relations, World Trade Organization, Reform, Trade, and Transatlantic Relations
Political Geography:
Europe, North America, and United States of America

672. The Use of Aid to Counter China's "Djibouti Strategy" in the South Pacific

Author:
John Lee
Publication Date:
03-2019
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
China has gradually militarized its facilities in the horn of Africa (Djibouti) under the pretense of anti-piracy operations and development aid since 2017, which has forced the U.S., France, and Japan to accept a permanent Chinese military presence in the same 14,400 square-mile African territory, where China is now holding live-fire exercises. Dubbed the “Djibouti strategy,” Beijing is now executing this tactic across the South Pacific, one of the most aid-dependent regions of the world. China, one of the highest contributors to Official Development Assistant (ODA) in the South Pacific, uses that tool at first under the guise of aid while actually employing it to shape the islands’ infrastructure to its own strategic military advantage. China is currently building infrastructure capable of dual economic and military use in Fiji, the Cook Islands, Samoa, Tonga, Vanuatu, and other Pacific islands. These projects support China’s aim to break through the First and Second Island Chains, a series of pro-U.S. countries that limit Chinese naval access to the Philippine Sea and Pacific Ocean. Meanwhile, U.S. ODA is deployed inefficiently and inconsistently through 19 separate agencies. The design, delivery, and administration of U.S. development assistance must be reformed. ODA is a national security issue, not just a humanitarian one. The U.S. defense community needs to embrace the strategic potential of ODA and its capacity to strengthen democracies and counter malign influence abroad.
Topic:
International Relations, Foreign Aid, Infrastructure, Alliance, and Soft Power
Political Geography:
Africa, China, Asia, Djibouti, Cook Islands, Samoa, Tonga, Vanuatu, United States of America, Fiji, and South Pacific

673. The Expanding China-Russia Defense Partnership

Author:
Richard Weitz
Publication Date:
05-2019
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
Russia and China’s relationship is increasingly strengthened by arms sales, joint military exercises, and mutual diplomatic support. With growing frequency, the two countries hare expressing joint concern towards “threatening” U.S. military capabilities and security policies. China’s growing ability to deny foreign navies access to waters and airspace is connected to the sophisticated defense platforms provided by Russia. Vladimir Putin and Xi Jinping are seeking a closer defense partnership, which could take the form of integrated military operations, collaboration on battlefield technology, or a joint missile defense system. Through joint military exercises, China is learning from Russia’s military experience in Crimea, gaining operational knowledge on expeditionary logistics and how to protect military bases in foreign countries. In 2021, the Sino-Russian Treaty of Friendship expires. Its renewal could introduce new dynamics to the China-Russian relationship, and the possible inclusion of collective defense provisions like those between the U.S. and Japan.
Topic:
Foreign Policy, Defense Policy, International Cooperation, National Security, Science and Technology, Treaties and Agreements, Bilateral Relations, Partnerships, and Weapons
Political Geography:
Russia, China, Eurasia, Asia, and United States of America

674. Modernizing the Land-Based Leg of the Nuclear Triad: Myths and Facts

Author:
Rebeccah L. Heinrichs and Brandi Jackson
Publication Date:
07-2019
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
Across Democratic and Republican administrations over the past sixty years, U.S. strategists have determined that for the United States, a nuclear triad is the most strategically sound means to credibly deter adversaries. In an increasingly complex threat environment—facing nuclear adversaries and nuclear aspirants with different national objectives, military capabilities, and strategies—a nuclear triad provides the President of the United States with necessary flexibility while accounting for possible changes in adversaries’ capabilities and the geopolitical environment. To remain effective, the U.S. must modernize its Cold War legacy nuclear forces. This booklet is intended to dispel myths surrounding the land-based leg of the nuclear triad and explore the advantages of adopting the ground-based strategic deterrent missile system (GBSD) rather than continuing to recapitalize the aging Minuteman III system.
Topic:
International Relations, Foreign Policy, National Security, Nuclear Weapons, Science and Technology, Military Spending, and Missile Defense
Political Geography:
North America and United States of America

675. The Eastern Mediterranean in the New Era of Major-Power Competition: Prospects for U.S.-Israeli Cooperation

Author:
Douglas J. Feith and Seth Cropsey
Publication Date:
09-2019
Content Type:
Case Study
Institution:
Hudson Institute
Abstract:
This is a study of Eastern Mediterranean security and how the United States and Israel can improve cooperation to protect their common interests. The study’s particular focus is the maritime domain. Few things in world affairs survive for millennia. It’s also true that few are ever really new. In the Eastern Mediterranean, what has endured for thousands of years is the strategic attention of great powers. The region retains it today, commanding interest not only from local and regional actors, but also from global players. As Iran works to extend its reach to the Mediterranean, Russia, as it has for centuries, strives to exert its influence across the Middle East. The United States, on the other hand, has been signaling a desire to reduce its involvement in the region. Remarkably, China too has become a player. Its increasing presence in the Middle East reflects commercial and strategic motives and signifies its rise as a force competing for global economic and military predominance. China is at once a security challenge and a close economic partner. It is the world’s major rising and disruptive power and plays a huge role in global trade and investment.
Topic:
International Relations, Foreign Policy, Defense Policy, International Trade and Finance, National Security, Science and Technology, Military Spending, Maritime, and Alliance
Political Geography:
Russia, China, Eurasia, Israel, United States of America, and Mediterranean

676. The Cornerstone and the Linchpin: Securing America’s Northeast Asian Alliances

Author:
Patrick M. Cronin
Publication Date:
10-2019
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
During an era in which strategic gravity is shifting to Asia, the United States cannot be careless in tending to its alliances with Japan and South Korea (the Republic of Korea, or ROK). The three countries face persistent threats from North Korea and from China’s semi-transparent bid for regional hegemony. Meanwhile, rocky relations between Tokyo and Seoul are jeopardizing vital U.S. interests in the Indo-Pacific. The latest disagreement between America’s premier allies raises new questions about alliance strategy, commitment, and burden-sharing. These fissures have become exacerbated as the U.S. pressures allies to increase their contributions to regional security and reciprocal trade. [...] This report seeks to explain why the U.S.-Japan and U.S.-ROK alliance are still a vital means of achieving overlapping strategic interests. At the same time, it also argues that keeping these alliances fit for purpose requires radical change rather than business as usual. Both a rapidly changing security environment and growing intra-alliance squabbling pose dangers that require U.S. leadership. This report concludes with specific ideas for advancing bilateral and trilateral cooperation in the coming months and years, without trying to achieve too much too quickly.
Topic:
International Relations, Foreign Policy, Economics, International Security, and Alliance
Political Geography:
Japan, Asia, South Korea, North America, and United States of America

677. If You Can’t See ’em, You Can’t Shoot ’em: Improving US Intelligence, Surveillance, Reconnaissance, and Targeting

Author:
Seth Cropsey
Publication Date:
11-2019
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
This report tracks the development of naval and maritime intelligence, surveillance, reconnaissance, and targeting (ISR/T) from the Cold War to the present day. It reveals the fluctuating relationship between ISR/T and weapons ranges that have adversely impacted the US Navy’s combat capabilities. While the United States developed longer-range weapons throughout the Cold War and revised tactics and fleet composition to better employ those weapons offensively, the gap that remained between weapons range and targeting information had a negative effect on US Navy combat power. Following the Cold War, while weapons and delivery-system range decreased, ISR/T capacity and capability rose, allowing for precision strikes against ground targets at short and medium range. Finally, the contemporary fleet, facing renewed great power competition, is increasingly receiving long-range strike weapons. However, it lacks the ISR/T complex to identify and hit targets at those ranges in most over-the-horizon combat situations. Second, this report reviews the current ISR/T capabilities to which the US Navy has access, primarily in the Pacific theater, and performs first-order sufficiency analysis to gain an understanding of the impact the current program of record has on operational requirements. Finally, the report concludes with several key recommendations to naval policymakers, civilian and military.
Topic:
Foreign Policy, National Security, Science and Technology, Military Affairs, and Surveillance
Political Geography:
Asia, North America, and United States of America

678. China’s Economic Slowdown: Root Causes, Beijing’s Response and Strategic Implications for the US and Allies

Author:
John Lee
Publication Date:
12-2019
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
This monograph attempts to argue and/or demonstrate three main points. First, it looks at why there were credible fears about the stability and viability of the Chinese economy — especially the financial and banking system — leading up to the end of the Twelfth Five Year Plan (2011–15), and what these were. To understand why Beijing was so concerned, the monograph draws out the serious structural problems that were leading inevitably to a permanent slowdown from the double-digit growth rates of the first three decades of reform. Second, the monograph looks at what occurred from 2015 to the present, and how China apparently overcame its economic difficulties. In fact, it has not overcome its problems, but deferred them to a future time in ways that only its unique authoritarian political economy is able to do.Third, it is clear the Communist Party is not passively awaiting an unhappy economic fate in connection with its mounting imbalances and domestic economic dysfunction. In many respects, its leaders have been highly creative in seeking solutions that do not entail a weakening of the party’s hold on economic power. On the contrary, the party has been busily shaping and pursuing grand strategic policies such as the Belt and Road Initiative (BRI) and Made in China 2025 (MIC 2025) to solve or alleviate many of its domestic political-economic problems. This monograph argues that these and other outward-focused initiatives stem most fundamentally from Chinese weaknesses and vulnerabilities but are being remade and recast into initiatives that will strengthen the position of the CCP domestically, ensure greater resilience for its political economy, and advance its ambitious strategic and international objectives at the same time. In summary, it is about the Communist Party cleverly transforming domestic vulnerability into grand strategy and using economic approaches to gain pre-eminence and “win without fighting.”
Topic:
International Relations, Foreign Policy, National Security, Geopolitics, Economy, Belt and Road Initiative (BRI), and Strategic Competition
Political Geography:
China, Asia, North America, and United States of America

679. Driving Growth and Innovation in the Food Industry: Lessons from the Automobile Industry’s CAFE Standards

Author:
Hank Cardello
Publication Date:
12-2019
Content Type:
Working Paper
Institution:
Hudson Institute
Abstract:
Poor dietary patterns are the leading cause of noncommunicable disease in the U.S., and they are creating a significant burden on the economy and on quality of life. Diet-related disease is having a large impact on health outcomes among children and adults, leading to increasing healthcare costs, which has led to a focus on regulatory measures to curb the rising tide. Regulation has largely focused on the U.S. food system, as it provides low-cost, calorie-dense foods, which have been linked to a substantial increase in calories in the food supply and excessive calorie consumption. Substandard eating habits are linked to a number of health conditions, such as diabetes and obesity. Diabetes rates in the U.S. have more than tripled since 1970, and nearly 40 percent of adults are categorized as having obesity. The cost to the healthcare system is significant, and a myriad of health issues are linked to its pervasive spread in the country. Particularly concerning are increasing obesity rates among children, amidst continued public health interventions at the local, state, and national levels. Public health officials continue to advocate for additional regulation to shift dietary patterns. Policy efforts have ranged from voluntary commitments by the food industry to government-driven regulations such as taxes on sugar-sweetened beverages and package-labeling provisions. Most of the government regulatory approaches to date have been piecemeal, typically led by local government bodies and focusing on a specific type of food or beverage for taxation, or tending to address a particular component, such as food package labeling. For example, Berkeley, CA passed a sugar-sweetened beverage tax in 2014, and the FDA has mandated changes to food labels to increase transparency about calories and added sugars. This paper seeks to open the discussion on a broader policy approach to reduce excessive consumption of calories, sugars, saturated fats, and sodium, which are linked to conditions such as diabetes, obesity, cardiovascular disease, and certain cancers. It will do this by exploring Corporate Average Fuel Economy (CAFE) standards, an automobile industry “cap and trade” regulatory model.
Topic:
Economics, Food, Governance, Culture, Regulation, Economic growth, Innovation, Public Health, Society, and Obesity
Political Geography:
North America and United States of America

680. China’s Recent Engagement in Latin America and the Caribbean: Current Conditions and Challenges

Author:
Enrique Dussel Peters
Publication Date:
06-2019
Content Type:
Working Paper
Institution:
The Carter Center
Abstract:
Since the beginning of the 21st century, China’s presence in Latin America and the Caribbean (LAC) has been substantial in practically all socio-economic fields: cultural, bilateral and multilateral political issues, as well as trade, foreign direct investments, academic exchanges, and other areas. The main objective of this document is to analyze the effects of China’s presence in the region in terms of sustainable and long-term development, as well as its incidence in its relationship with the United States. Thus, the document will include a diagnostic to understand some of the specificities of the LAC-China socio-economic relationship, followed by the conclusion with a series of proposals. The first section of the paper will examine five issues that are relevant to understand general and specific topics about the China-LAC relationship: 1) general geostrategic and diplomatic topics to understand current tensions between the United States and China; 2) China’s proposal of a globalization process; 3) the concept of “new triangular relationships” and LAC’s challenges given increasing tensions between the United States and China; 4) particular developments and structures in trade, foreign direct investment, financing and infrastructure; and 5) the institutional framework between LAC and China. The second part of the paper focuses on a series of recommendations attempting to deepen and extend the China-LAC relationship and integrating the United States in it.
Topic:
International Cooperation, Bilateral Relations, Foreign Direct Investment, Culture, and Multilateral Relatons
Political Geography:
China, Asia, Latin America, North America, and United States of America