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781. Re-Energizing Economic Integration between South Asia and East Asia

Author:
Pradumna B. Rana
Publication Date:
08-2018
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
This chapter focuses on economic integration (linkages) between South Asia and East Asia.2 The topic is important for three reasons. First, South Asia-East Asia (SA-EA) trade is a component of South-South trade and could be a useful buffer should North-South trade soften, or populism lead the North to view trade as a “zero-sum” game, as is presently the case in the United States and several countries in Europe. The withdrawal of the United States from the Trans-Pacific Partnership (TPP) in January 2017 and President Trump’s reiteration of his “America First” trade policy at the 2017 APEC meetings in favor of bilateralism and “fair trade” has generated interest in alternate trade policy options in the EA region.
Topic:
Economy, Regional Integration, Trans-Pacific Partnership, and Trade
Political Geography:
South Asia, East Asia, Asia, South Korea, North Korea, and United States of America

782. Japan in the Driver’s Seat? Reshaping the Regional Trade Order without the United States

Author:
T. J. Pempel
Publication Date:
08-2018
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
On January 28, 2018 representatives from eleven countries, following the strong leadership of Japan, agreed to a modified version of the Trans-Pacific Partnership (TPP). This new pact —renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTTP), or TPP-11—was formally signed in Chile on March 8. The treaty will take effect once ratified by at least six member countries. Japan is planning to push the treaty through the Diet within 2018 and anticipating that it will come into force sometime in 2019. The agreement represented a major recovery by the eleven countries following initial expectations that TPP was dead after the election of Donald Trump. Trump, as an early follow through on his xenophobic and unilateral campaign promises, signed an executive order pulling the United States out of the TPP within one hundred hours of his inauguration. With that stroke of his pen, Trump wiped out 10 years of work on the so-called “Pacific” route to regional trade integration, anchored on the U.S. market. It also defied multiple analyses demonstrating the strong economic benefits that TPP would provide for the United States. Turmoil immediately prevailed among the remaining eleven signatories. Japanese prime minister Abe, for example, only weeks after Trump’s election announced, “TPP is meaningless without the U.S.” Singaporean prime minister Lee Hsien Loong argued, “if the TPP does not go ahead, it would be a great loss for the rest of the member economies.” The National Interest was typical in its skepticism about both the survival of TPP and the long-term implications for the Asia-Pacific. In an article entitled “TPP is Dead; Now What?” it observed: “The United States’ withdrawal not only throws away the potential for a trade agreement but may cause countries that expended significant political capital for the TPP to retreat from free trade for the foreseeable future.” That China will be the primary beneficiary of Trump’s withdrawal was a widespread conclusion.5 In fact, as the signing of the CPTPP indicated, all eleven countries were prepared to recommit themselves to the deal and to continue to advance the goals of a liberal trading order in the region.
Topic:
Treaties and Agreements, Economy, Trans-Pacific Partnership, and Donald Trump
Political Geography:
Japan, China, Asia, North America, Korea, and United States of America

783. The Chinese Perception of the U.S.-China-ROK Triangle

Author:
Yun Sun
Publication Date:
08-2018
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
Since being applied to U.S.-Soviet-China trilateral relations after the Sino-American rapprochement in the early 1970s, the notion/theory of “strategic triangles” has been widely used to examine many trilateral relations. The model of “U.S.-China plus one” is popular among students of U.S.-China relations and, consequently, the policy community has witnessed an increasing amount of scholarship on triangles among U.S.-China-India, U.S.-China-Japan, U.S.-China-Russia, and even U.S.-China-Taiwan. Unsurprisingly, this begs the question whether a strategic triangle could be construed and constructed among the United States, China, and South Korea. Generally speaking, despite the trilateral nature of U.S.-China-ROK relations, the Chinese policy community rarely subscribes to the existence of a strategic triangle among the U.S., China, and South Korea. This is not necessarily because South Korea does not carry the same strategic weight as the two great powers, but more importantly is because China does not see South Korea as possessing the strategic autonomy to act as an independent player in the trilateral relations. Although arguably such autonomy might exist in economic and trade relations, on key political and security issues, the Chinese see South Korea as invariably constrained by the U.S.-ROK military alliance and unable to form its own independent national security policy. In writing about the post-Cold War period with an emphasis on geopolitics, Chinese authors do not often treat South Korean policy or Sino-ROK relations as autonomous. Given the great weight given to the U.S. role, it is important, therefore, to take a triangular approach in assessing these writings centered on South Korea. I do so first explaining in more detail why the “strategic triangle” framework does not apply, then examining views on how this triangle has evolved in a period of rising Chinese power relative to U.S. power and fluctuating U.S.-ROK relations as the leadership in Seoul changed hands, and finally returning to the triangular theme to grasp how this shapes China’s understanding of Seoul’s policies with emphasis on the ongoing Moon Jae-in era.
Topic:
International Relations, Diplomacy, Bilateral Relations, and Geopolitics
Political Geography:
China, Asia, South Korea, North America, and United States of America

784. The U.S.-Japan-ROK Trilateral: Better at Deterrence than Diplomacy?

Author:
Sheila A. Smith
Publication Date:
08-2018
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
Once more, the United States, South Korea, and Japan have confronted a crisis with North Korea. The pattern is now well established. First, there is a provocation—a missile test, a nuclear test, and even worse, the use of force. Next, the United States and its allies in Northeast Asia muster their forces, strengthen their trilateral policy coordination, and sanction the belligerent Pyongyang. The three nations advocate for the accompanying effort by the United Nations Security Council to condemn North Korea’s behavior. Setting aside their political differences, Seoul and Tokyo intensify their military cooperation and Washington calls for greater trilateral unity in confronting a shared security challenge. In 2017, policymakers in Seoul, Washington, and Tokyo found themselves in a similar cycle but with the threat of war ever more real. The dramatic escalation of tensions between President Donald J. Trump and the North Korean leader Kim Jong-un seemed to bring the region to the brink of a second Korean conflict. But today, just as dramatically, an accelerated series of high-level summits suggests that the Korean Peninsula could be on the brink of peace. President Moon Jae-in met with Kim at Panmunjom, and both Kim and Moon stepped across the line of demarcation at the Demilitarized Zone (DMZ) between North and South Korea. The two leaders have embraced a “new era of peace,” with the promise of ending the state of war on the peninsula. Trump has also said he is willing to meet Kim to discuss denuclearization. CIA director Mike Pompeo visited Pyongyang on April 1 to test out that proposition, and as secretary of state, Pompeo had the lead in setting the stage for a meeting in Singapore. The Moon-Kim meeting set up the premise of a negotiated denuclearization process. Trump and Kim will define the contours of that path forward.
Topic:
International Relations, Security, Diplomacy, Nuclear Weapons, and Peace
Political Geography:
Japan, Asia, South Korea, North America, Korea, and United States of America

785. Doubling Down on the U.S.-South Korea Alliance: Olympics Diplomacy Did Not Breach Trust, but TrumpMoon Confidence Is in Jeopardy

Author:
Leif-Eric Easley
Publication Date:
08-2018
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
The U.S.-ROK alliance faced a quickening pace of North Korean provocations in 2016-17, with Pyongyang violating UN Security Council resolutions dozens of times. Those violations included a fourth nuclear test in January 2016, fifth in September 2016, and sixth in September 2017, as well as numerous missile tests of various trajectories from different platforms. North Korea tested intermediate-range missiles overflying Japan and missiles of intercontinental range on lofted trajectories, while developing road-mobile and submarinelaunched ballistic missiles. As policymakers in Seoul and Washington coordinated responses to those provocations, changes in national leadership and domestic political preferences brought into question the bilateral trust the alliance needs to deter conflict, reassure publics, and promote regional cooperation. Elections have consequences, even before votes are cast. Enduring international security alliances are based on shared national interests and a track record of diplomatic commitments and military cooperation. For allies with highly integrated defense policies, such as the United States and South Korea, it is natural for policymakers and citizens to keenly observe the national elections of the other country. Will the next government be a reliable partner, or will it fail to honor existing agreements? Will the incoming leadership improve relations, or will it downgrade cooperation? These questions were being asked before Donald Trump and Moon Jae-in were elected. The search for answers inevitably involves speculation, feeding expectations that are often overly optimistic or pessimistic. Ahead of Trump’s election, his campaign rhetoric questioned the terms and intrinsic value of the alliance to an extent not seen since Jimmy Carter’s 1976 campaign promise to withdraw U.S. troops from the Korean Peninsula. President Moon came to power on the heels of conservative president Park Geun-hye’s impeachment and removal for corruption. Moon’s politics are notably more progressive than Park’s or Trump’s, including a record of pro-engagement policies toward North Korea. Against this backdrop, Kim Jong-un delivered his 2018 New Year’s Day address claiming that North Korea has the ability to hit any U.S. city with a nuclear-armed missile, but that Pyongyang is ready to re-engage Seoul via participation in the Winter Olympics.
Topic:
Security, Diplomacy, Bilateral Relations, Elections, Alliance, Olympics, and Donald Trump
Political Geography:
Asia, South Korea, North America, Korea, and United States of America

786. The Economic Importance of the KORUS FTA: A Case Study of the Korean Beef Market After Renegotiations

Author:
Jin Kyo Suh
Publication Date:
05-2018
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
Beef trade was a major sticking point between the United States and South Korea in ratifying the KORUS FTA. The outcome of the renegotiations that led to the March 2018 agreement in principle did not impact sections pertaining to beef in the agreement, though looking at how beef trade would have been affected should the talks have failed highlights the importance of the agreement to both countries, but particularly the United States. This paper estimates the demand for imported beef in South Korea by source and product by using the production version of the Rotterdam demand system and assesses what the potential impact of U.S. withdrawal from the KORUS FTA would have been on beef trade between the U.S. and South Korea. The results suggest U.S. withdrawal from the KORUS FTA would have resulted in a considerable increase in Australian beef exports to South Korea, largely at the expense of U.S. beef. This is because there is significant price competition between beef imports from the United States and Australia. Furthermore, Korean consumers substitute American beef for Australian beef when the relative price of U.S. beef rises.
Topic:
Economics, Treaties and Agreements, Exports, and Trade Policy
Political Geography:
Asia, South Korea, North America, Korea, and United States of America

787. A Way Out of the North Korean Labyrinth

Author:
Stephen Blank
Publication Date:
03-2018
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
The sudden announcement of a North Korea-U.S. summit in March 2018 upended all previous diplomacy concerning North Korea’s nuclear program. In return for a bilateral presidential summit, Pyongyang has agreed to suspend testing of its nuclear and missile programs and accepted the continuation of scheduled U.S.-South Korea exercises as planned. While this unexpected development reduces tensions and opens up a political path to a solution on the Korean Peninsula, it also imparts increased urgency for a well-conceived U.S. diplomatic strategy so that the summit and any ensuing negotiations lead to positive outcomes for Washington and Seoul and the other interested parties, thus ensuring its sustainability. In this context, the author advances an assessment of the current situation and a proposal for a U.S. program that could reduce military tensions in and around Korea, lead to the stabilization of a new and legitimate equilibrium in Northeast Asia, and advance shared American, South Korean, and Japanese objectives.
Topic:
International Relations, Security, Foreign Policy, Weapons, and Denuclearization
Political Geography:
Asia, South Korea, North Korea, North America, Korea, and United States of America

788. The US Withdraws From The UN Human Rights Council

Author:
Veronika Bílková
Publication Date:
07-2018
Content Type:
Working Paper
Institution:
Institute of International Relations Prague
Abstract:
In mid-June 2018, the US announced its withdrawal from the UN Human Rights Council. It sat in the Council for the third time since the establishment of the organ in 2006. This time, however, it left its three-year mandate (2017–2019) unfinished. The paper analyses the four main arguments that the US put forward to justify its withdrawal from the Council. It shows that while some of the arguments have some merit, none is truly convincing. The paper also warns against any re-assessment of the current Czech candidacy to the Council.
Topic:
Human Rights, International Law, and United Nations
Political Geography:
North America, Czech Republic, and United States of America

789. The Stupendous US Record Gets Suppressed

Author:
Amity Shlaes
Publication Date:
03-2018
Content Type:
Special Report
Institution:
Center for Social and Economic Research - CASE
Abstract:
In recent years, the consensus regarding the American past has slipped leftward, and then leftward again. No longer is American history a story of opportunity, or of military or domestic triumph. America’s has become, rather, a story of wrongs, racial and social. Today, any historical figure who failed at any time to support abolition, or, worse, took the Confederate side in the Civil War, must be expunged from history. Wrongs must be righted, and equality of result enforced. The equality campaign spills over into a less obvious field, one that might otherwise provide a useful check upon the non-empirical claims of the humanities: economics. In a discipline that once showcased the power of markets, an axiom is taking hold: equal incomes lead to general prosperity, and point toward utopia. Teachers, book club presidents, and especially professors withhold any evidence to the contrary. Universities lead the shift, and the population follows. Today, millennials, those born between 1982 and 2000, outnumber baby boomers by the millions, and polls suggest that they support redistribution specifically, and government action generally, more than their predecessors. A 2014 Reason/Rupe poll found 48 percent of millennials agreeing that government should “do more” to solve problems, whereas 37 percent said that government was doing “too many things.” A full 58 percent of the youngest of millennials, those 18-24 when surveyed, held a “positive” view of socialism, in dramatic contrast with their parents: only 23 percent of those aged 55 to 64 viewed socialism positively.
Topic:
Government, Markets, History, Economy, Economic growth, Tax Systems, Free Trade, and Welfare
Political Geography:
North America and United States of America

790. Threat Multiplier: The Growing Security Implications of Climate Change: A Conversation with Sherri Goodman

Author:
Sherri Goodman and Eli Stiefel
Publication Date:
07-2018
Content Type:
Journal Article
Journal:
Fletcher Security Review
Institution:
The Fletcher School, Tufts University
Abstract:
Sherri Goodman is an experienced leader and senior executive, lawyer and director in the fields of national security, energy, science, oceans and environment. She is a Senior Fellow at the Woodrow Wilson International Center and CNA (Center for Naval Analyses), and a Senior Advisor for International Security at the Center for Climate and Security. At CNA, Goodman also served as Senior Vice President and General Counsel and was the founder and Executive Director of the CNA Military Advisory Board, whose landmark reports include National Security and the Threat of Climate Change (2007), and National Security and the Accelerating Risks of Climate Change (2014), Advanced Energy and US National Security (2017), and The Role of Water Stress in Instability and Conflict (2017), among others. Previously, she served as the President and CEO of the Consortium for Ocean Leadership. From 1993-2001, Goodman served as the first Deputy Undersecretary of Defense (Environmental Security).
Topic:
Security, Climate Change, Energy Policy, Environment, and Geopolitics
Political Geography:
Global Focus and United States of America