Britain-EU relations: Europe's trust in Britain has gone. We're now a problem, not a partner - by Raphael Behr

The pandemic is landing well-aimed punches on the already bruised relationship between Britain and the European Union. A dispute over vaccine supplies threatens to bring blunt instruments of trade war down on delicate national feelings. Not in the darkest hours of Brexit negotiations did either side imagine that supply-chain management would so quickly become a matter of life and death.

At a summit later this week, European leaders will discuss a possible ban on exports to the UK from an AstraZeneca plant in the Netherlands. There is frustration in Brussels that millions of vaccine doses have gone overseas (mostly Pfizer ones) and none have come over in return. The UK responds that it cannot be blamed for moving earlier, signing better contracts and generally getting its immunising act together faster.

Tory MPs say Brussels is lashing out in jealousy. Vaccination is something Boris Johnson’s government is doing well, and the EU is floundering. That has less to do with Brexit than is claimed by triumphant ministers, but as propaganda the point is irresistible: there is nothing else to trumpet as a benefit of detachment from the continent, and winning the vaccination race resonates with voters grateful for jabs.

Read more at: Europe's trust in Britain has gone. We're now a problem, not a partner | Brexit | The Guardian

EU-US Relations: The Total Failure of the Militarization of U.S. Foreign Policy and the consequences for the EU - by RM

The fall of the Soviet Union handed the U.S. a unique opportunity, as the surviving superpower, to lead the world toward a period of greater cooperation and conflict resolution through the use of diplomacy, global organization, and international law. This great opportunity to change US foreign policy doctrine was completely squandered by successive US presidents, who chose "the stick above the carrot" and consequently making the world a more dangerous place today.

The differences between the foreign policies of the EU, based on cooperation, trade , the environment,and Human Rights, and that of the United States became especially aparent during the Trump Administration, when Europe started staking out separate, clashing positions, on everything, from telecommunications to energy. The EU and US both issued sharp disagreements on the basic building blocks of foreign relations—namely, how the international system should work. French President Emmanuel Macron seized the spotlight, and sent the hearts of European federalists aflutter, by calling for “a European way” while raising the possibility of a French-led European nuclear deterrent, a precondition for any true independence from the United States.

If opinion polls are to go by, we are already separated. Nowhere is this felt more acutely than in Germany, the most important country in Europe. In January, Pew Research released a poll showing that 57 percent of Germans hold an outright unfavorable view of the United States. A few months earlier, in September, the European Council on Foreign Relations reported that 70 percent of Germans want their country to remain neutral in any conflict between Moscow and Washington.

For some European, Anglo-Saxon capitalism is seen as ruthless and rootless, mowing down the social order in the service of individual greed. For others, the United States’ dominance of the West breeds resentment, especially in an era of globalization, when even the slightest shocks from across the Atlantic hit the EU's bottom line or derail its diplomacy.

With the US Biden Administration in charge soon, the overall relationship between the two Transatlanic Super Power partners certainly will get off to a better start, but the US administration must certainly not expect that the status quo is re-established. Take note America, your former "lap dog" now considers itself an independent partner with its own voice.

EU-Digest

EU-US Relations: EU ‘troublemakers’ back Trump over Biden in US election

ivergences on the managing of the rise of China or Europe’s need to do more for its own security are likely to remain, whoever is the next man in the White House. What would change is the tone as Biden, a convinced transatlanticist, believes the US can only play this role in dialogue with its partners.

Under Trump, Washington and Europe clashed on a number of issues, ranging from foreign policy or trade to environment, digital, and agriculture. Washington and Brussels even disagreed over how to handle the COVID-19 pandemic.

The EU is waiting for the results of the elections to impose $4 billion in compensatory tariffs on US exports, in response to Washington subsidies to Boeing. Brussels wants to try to find a negotiated solution and cancel US tariffs on $7.5 billion worth of European products, an option that could be on the cards if Biden is the winner.

Tensions, however, are expected to continue if Trump remains in the White House. The new EU Trade commissioner, Valdis Dombrovskis, expressed his willingness to find a fresh start with his administration when he took over in October. But he also warned that there is no room for more piecemeal agreements like the lobster deal to facilitate the bilateral trade.

Read more at: EU ‘troublemakers’ back Trump over Biden in US election – EURACTIV.com

China-US relations: Arrest Meng Wanzhou, executive of Huawei, not favorable to improving relations China - US

Huawei arrest: China demands release of Meng Wanzho

Note EU-Digest: Meng Wanzhou was arrested in Canada at the request of the US, who wants her extradited to US because of business dealings Huawei has with Iran. For those who might have forgotten - the US (Trump Administration) unilattery broke off relations with Iran, when the Trump Administration pulled out of the International Nuclear Agreement, signed between Iran and many other nations around the world, including the EU and the US. Hopefully Canada (Trudeau) will show some "backbone", by not extraditing her to the US, specially since all the other co-signers of the International Nuclear Agreement, including the EU and Canada, are still respecting the agreement with Iran.

 

Read more at 

http://www.bbc.co.uk/news/business-46465768

Middle East: Iran - US Relations: Donald Trump bullies rest of world they must choose between trade with US or Iran - by Bethan McKernan

European companies should still be able to trade with Iran despite new US sanctions, according to minister of state for the Middle East, Alaistair Burt.

Donald Trump tweeted “anyone doing business with Iran will NOT be doing business with the United States”.

The EU has launched a “blocking statute”, designed to allow companies within the bloc to sue the Trump administration, if they are adversely affected by US sanctions, and has encouraged member states to continue trading with Tehran.

This EU legislation should protect businesses in member states who do not wish to break off economic ties with Tehran despite the reinstatement of US sanctions which came into effect on Tuesday, Mr Burt told the BBC.

“If a company fears legal action taken against it and enforcement action taken against it by an entity in response to American sanctions then that company can be protected as far as EU legislation is concerned,” added Mr Burt.

Read more: Donald Trump says rest of world must choose between trade with US or Iran | The Independent

EU does not agree with Trump Administration proposal as to new sanctions against Iran

Trump Administration burning Climate and Iran agreements

The European Union has not agreed  to Trump Administration proposed new sanctions against Iran amid fears that punishing Tehran for its missile program would not stop US President Trump from abandoning a separate nuclear deal.

The EU is eager to safeguard the nuclear pact, under which Tehran agreed to curb its ambitions for at least a decade, but Trump has been a fierce critic.

Commenting on the EU foreign ministers meeting in Luxembourg, Free University of Brussels political scientist Firouyeh Nahvandian said that economic ties between some European countries and Iran are much more important than damaging reports on Iran's human rights record by the United Nations or the European Parliament.

Trump has threatened not to extend U.S. sanctions relief on Iran related to the nuclear agreement.

The deal sees the West mostly lifting extensive sanctions in exchange for Iran curbing its nuclear program

EU-Digest

US Political System: A week that reveals how rotten today’s Republican Party (US Political System) is - by Jennifer Rubin

Disaster: level explosive

President Trump has had more-scandalous weeks. He has had weeks with more bombshell bad-news stories. But no week has matched this one in revealing the moral and intellectual rot at the center of the GOP. Pandemic intellectual dishonesty and celebration of uncivilized conduct now permeate the party and its support in the conservative ecosystem. Consider what we saw and learned this week:

• Trump in Saudi Arabia disclaims any concern for human rights.
• Trump bullies NATO allies in public (and physically shoves one leader).
• Trump’s budget is built on a rickety scaffold of math errors, economic nonsense and fantasyland predictions.
• Trump’s advisers defend massive cuts to the safety net, coupled with huge giveaways to the rich.
• The Congressional Budget Office score, which the House did not require before voting on a mammoth health-care bill, confirms that GOP leaders falsely claimed they protected people with preexisting conditions.
• Trump’s lawyers contemptuously swat away a request for information relating to his receipt of foreign monies, finding that it is too impractical to abide by his own promise and the Constitution.
• Trump has nothing but praise for thuggish autocrats, including Philippine President Rodrigo Duterte.
• Trump continues to pursue a Muslim ban, repeatedly struck down by the courts as bigotry disguised under the cloak of national security.
• A GOP congressional candidate, conclusive evidence suggests, attacks a reporter and apparently lies about it (he later apologizes for actions he denied less than 24 hours earlier), but party leaders do not repudiate him or demand that he withdraw.
• Jared Kushner, the beneficiary of egregious nepotism, now is a focus of the FBI’s Russia investigation, bringing a once-in-a-lifetime scandal one step closer to the presidency.
• Sean Hannity is forced to stop propagating a detestable hoax about a young man’s murder; Fox News after a week withdraws the original false report without much explanation or an apology.

This is the state of the GOP (and the US political system) — a refuge for intellectual frauds and bullies, for mean-spirited hypocrites who preach personal responsibility yet excuse the inexcusable.

Note EU-Digest: One can not only blame the Republicans for this political mess, but must also include Democrats and voters in general for creating it.   This is not business as usual, it is the recipe for disaster and the collapse of Western Democracy as we know it.

Read more: A week that reveals how rotten today’s Republican Party is - The Washington Post

EU - when will the EU sit up and smell the roses when it comes to its relations with the US - by RM

EU-US Relations on collision course

When President Trump sits around the table with his policy advisors you can be sure that the EU is not on top of the agenda.

Just compare last weekends state visit of Chinese President Xi Jinping to the Trump Estate in Palm Beach Florida to the "sober, cold shoulder" reception by Trump given to European Heads of State, Angela Merkel and Theresa May in Washington DC.

That probably says it all as to how President Trump ranks Europe in his thought process.

Trump has also said that he trusts German Chancellor Angela Merkel and Russian President Vladimir Putin equally. Does that imply that the United States will pursue a policy of equidistance between the EU and the Kremlin?

Everything is possible .

It is not an idle question. Trump has made it obvious that established partnerships, alliances, rules, and protocols mean little to him. In his tweets, he rants about the media, attacks independent judges, targets individuals and companies, and belittles international organizations.

But even though the US under Trump is now a very unattractive ally for Europe, writing off the US as a European partner – which some in Europe would like to do sooner rather than later – would probably be a major mistake.

In the meantime, maybe Mr. Trump and his advisors should start to read-up on how important the EU and the US are to  each others economic well being.

• Total US investment in the EU is three times higher than in all of Asia.
• EU investment in the US is around eight times the amount of EU investment in India and China together.
• EU and US investments are the real driver of this EU-US  transatlantic relationship, contributing to growth and jobs on both sides of the Atlantic. It is estimated that a third of the trade across the Atlantic actually consists of intra-company transfers.
• The transatlantic relationship also defines the shape of the global economy as a whole. Either the EU or the US is the largest trade and investment partner for almost all other countries in the global economy.
• The EU and the US economies account together for about half the entire world GDP and for nearly a third of world trade flows.

Nevertheless, it is also very important for the EU to realize, if they haven't already, that they can't continue to be a "lackey" of the US, having to say "how high", whenever  the US says "jump". .

But first,  before issuing an avalanche of "directives", the EU Commission, which has been running a pretty colorless "operation", should set itself a primary goal, which is to get all the member countries of the EU running in the same direction.This is not the case at present.

They can do this by initiating some basic changes as to how the EU operates, in order to make it more homogeneous and people friendly including:

* Having the President of the EU Commission, who is presently appointed,  instead elected by popular vote in all EU member states.
* Develop an independent foreign policy for the EU, which is not aligned with any other country's foreign policy.
* Develop an independent EU Military defense force, which includes a central EU command and is not aligned with any other foreign military force.  

It is  no secret that NATO (which includes many EU member states)  and which was initially intended, after WW2, to protect Europe from Soviet aggression during the cold that followed, was gradually expanded by the US into a US government policy controlled global strike force.

Its purpose being to support US foreign policy in military operations around the world.

For the past past 16 years, however, mainly focusing on Afghanistan and the Middle East.

So far the results of these NATO military operations in Afghanistan and the Middle East (Iraq, Syria, Libya) have been a complete disaster.

In the meantime, NATO and US military campaigns in the Middle East over these past 16 years have also resulted in hundreds of thousands of people killed, created millions of displaced persons, flooding the EU and Turkey with refugees,and created major economic and social hardship.

Last but not least, the turmoil surrounding these wars  in the Middle East also resulted in the birth of the so-called Islamic State, which in reality is an assortment of former Iraqi soldiers, disturbed Islamic radicals and young indoctrinated Islamic fanatics from Europe and other parts of the world who have made terrorism their trade mark around the globe.   

Unfortunately, there is very little time left for the EU to change cours in this turbulent world..

The EU  must be warned, however, that if they fall apart into smaller states again, these individual states will become "chopped meat" in serving US, Russian and Chinese interests and ambitions to obtain global dominance

If BREXIT wasn't a wake-up call, Mr. Trumps foreign policy "tap-dance" with Russia and China certainly is a signal for the EU Commission to sit up straight and smell the roses.

EU-Digest

Netherlands -Turkey: Economics of the standoff between Turkey and the Netherlands - by Altay Atli

 Mark Rutte and Recep Tayip Erdogan in the better days

As the diplomatic squabble between Turkey and the Netherlands continues to fester, concerns are raised about whether — and to what extent — the tensions will harm bilateral relations, particularly in economics where the two countries have robust trade and investment connections.

For Turkey, the Netherlands offers a large and expanding export market. Trade between the two countries has roots in the 17th century when the Ottomans exported wool and cotton (later tobacco as well) to the Netherlands and imported clothes and linen in return. Commerce between the two
countries remained strong into modern times; in 2016 the bilateral trade volume was US$6.6 billion.

The Netherlands is the 10th largest export destination for Turkey, and perhaps more importantly from the Turkish perspective, it is also a fast-growing market. Last year Turkish exports to the Dutch market amounted to $3.6 billion, against $3 billion in imports. And while the annual increase in imports was 3.4%, exports expanded much faster, at 13.8%. For the Turkish economy, which is suffering an acute current-account deficit, the increasing trade surplus with the Dutch is a precious commodity.

On the other side of the equation, Turkey is and has always been a favored destination for Dutch investment. A process that started in 1930 when the Dutch company Philips set up shop in the newly established Republic of Turkey has reached new levels since then, making the Netherlands by far the largest source of foreign direct investment in Turkey today. According to data by the Turkish Central Bank, Dutch investment stock in Turkey was $22 billion in 2016, compared with $11.2 billion in US investments in second place, and $9.8 billion from Austria in third place.

Turkey is home to 2,700 companies funded by Dutch capital. This figure includes those transnational companies registered in the Netherlands for legal and tax-related purposes. This sizeable Dutch involvement in the Turkish economy benefits both sides. For Dutch multinationals such as Unilever, ING Bank, Philips, Perfetti, Royal Dutch Shell and Philip Morris, Turkey is not only a favorable production base but also a lucrative market and a trading and logistics hub for access to the Middle East and North Africa, Balkans, Caucasus and Central Asia. More Dutch investment is set to come to Turkey, such as the recent purchase by Vitol Group of the Turkey-based fuel products distribution company Petrolofisi for $1.47 billion. Investment needs a stable political climate, and the diplomatic spat between Turkey and the Netherlands doesn’t help.

It is also worth nothing that while the amount of Turkish investment in the Netherlands is considerably smaller, there are several large Turkish firms that have set up subsidiaries enabling access to the larger EU market.

For the past week, Dutch pundits have been commenting that Turkey is more dependent on the Netherlands, so possible sanctions imposed by Ankara would only mean “shooting themselves in the foot.” Turkish authorities have imposed political sanctions over the Dutch government’s refusal to allow Turkish ministers to meet with members of the Turkish diaspora there, including halting high-level political discussions between the two countries and the closing of Turkish airspace to Dutch diplomats. But Ankara has carefully ruled out economic sanctions. Turkey’s economics minister, Nihat Zeybekçi said: “If we take these steps, both sides would be hurt.” Ömer Çelik, minister of EU affairs said the Dutch business community, which is “investing in Turkey, doing commerce and generating employment” is “certainly not a part of this crisis,” and “Dutch investment in Turkey is by no means under risk.”

Economic sanctions between Turkey and the Netherlands don’t seem likely at the moment, but longer-term threats remain. First, even if no sanctions are imposed, the significant loss of confidence caused by recent events will take a toll on bilateral economic relations for some time.
Second, the sizeable Turkish diaspora in the Netherlands, as well as the relatively smaller Dutch community living in Turkey, will face uncertainty, and this will have an economic impact too. An estimated 400,000 Turks live in the Netherlands, according to a diaspora association, and there are 25,000 businesses with Turkish owners, most of them smaller enterprises. Many of these companies are doing business with Turkey, and they are negatively affected by the current dispute between the two governments. So is the much smaller Dutch community in Turkey. But it is equally active in the economy, especially in the tourism sector. Declining tourist numbers will hurt Turkish and Dutch operators alike, and it might take some time to recover to pre-crisis levels of business.

Third, the diplomatic spat is likely to have a negative effect on efforts to revise the Turkish-EU Customs Union. The union, which took effect in 1996, is outdated, failing to catch up with the requirements of today’s global trade. Ankara and Brussels had begun talks to improve the deal, but the current circumstance is likely to overshadow attempts based on economic rationality.

This week Turkish football team Beşiktaş played the Greek side Olympiakos in the European cup. The Turks won 4-1 helped by two goals from Ryan Babel, the Amsterdam-born Dutch striker. Turkey and the Netherlands have links that are closer than many realize, and it will benefit both to keep them intact.

Read more: Economics of the standoff between Turkey and the Netherlands | Asia Times

EU-Canada relations: In counter to Trump, Trudeau says EU and Canada must lead the world economy - by Dan Alexe

Canadian prime minister Justin Trudeau addressed the European Parliament in Strasbourg, marking the adoption by MEPs of the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union.

“Make no mistake about it, this is an important moment,” he said.

Trudeau said the whole world benefited from a strong European Union and that the bloc and his country needed to lead the international economy in challenging times.

With the passage of their trade deal, Canada and the European Union offer a counter to Trump, who has withdrawn from the Trans-Pacific Partnership (TPP) and wants to rework the North American Free Trade Agreement.

Trudeau told the European Parliament that the Union was an unprecedented model for peaceful cooperation in a speech that marked his distance from both the United States under new President Donald Trump, who has questioned the value and future of the bloc, and from Britain, which has voted to leave it.

On Wednesday the European Parliament approved CETA, with 58 % of members voting to adopt the deal.

The final vote saw most of the members representing Europe’s centrist parties voting in favour, with opposition from members representing left-leaning socialist and Green as well as right-wing, nationalist parties.

Of the 695 members present in the 751-seat legislature, 408 voted in favor, 254 against and 33 abstained.

For Canada the Comprehensive Economic and Trade Agreement (CETA) is important to reduce its reliance on the neighboring United States as an export market.
 

For the EU, it is a first trade pact with a G7 country and a success to hail after months of protests at a time when the bloc’s credibility has taken a beating from Britain’s vote last June to leave.

Trudeau will next travel to Berlin, where he will meet with German President Joachim Gauck and Chancellor Angela Merkel. 

Read more: In counter to Trump, Trudeau says EU and Canada must lead the world economy

Brexit Vote Britain Should Not Receive Any Favors From EU, Say 53 % Of EU Citizens Polled

Britain: "Up the creek without a paddle"

An opinion poll published on Friday, found the majority of voters in Germany, France, Sweden and Finland think the UK should not receive any favours when negotiating a post-Brexit trade deal.

Germans and the French were the most opposed to offering Britain a "generous deal" that pays tribute to Britain's role as a neighbour and "important trading partner", according to the YouGov survey.

In both countries, 53 per cent of respondents said it should not expect any favours, compared to 27 per cent who said the EU should offer Britain a "generous deal".

As one EU parliamentarian said: "let's see who they will blame now for their problems - they can't have your cake and eat it also !".

EU-Digest

Greece: Putin Arrives In Greece On First Visit To EU This Year

Russian President Vladimir Putin has arrived in Greece on his first visit to the European Union this year as the bloc weighs whether to extend sanctions against Russia amid continuing tensions over Moscow's intervention in Ukraine.

Putin arrived in Athens on May 27 to begin a two-day visit. He is due to meet Greek President Prokopis Pavlopoulos and Prime Minister Alexis Tsipras for energy and investment talks later in the day.

Putin's visit -- his first to the EU since December -- comes as the bloc's leaders are to discuss next month whether to renew sanctions on Russia's banking, defense, and energy sectors that expire in July.

British Prime Minister David Cameron said on May 27 that the leaders of the Group of Seven (G7) economic powers have agreed that sanctions imposed against Russia over its actions in Ukraine must be extended next month.

“The G7 has agreed on the vital importance of sanctions rollover in June,” Cameron said following a two-day G7 summit in Japan. “Ukraine is the victim of Russian-backed aggression. We must never forget that fact.”
German Foreign Minister Frank-Walter Steinmeier on May 27 floated the possibility of a "step-by-step" reduction of EU sanctions against Russia if there is progress on implementing peace accords on Ukraine.

"I hope that by the end of June there will be progress and then we can see if we can reduce the sanctions step by step, or if we stay with the measures we have right now," Steinmeier told reporters in Tallinn.

Read more: Putin Arrives In Greece On First Visit To EU This Year

Netherlands-Iran: Dutch begin looking for trade opportunities in Iran - by Janene Pieters

Now that the economic sanctions against Iran are lifted, Dutch companies are starting to look for trade opportunities with the Middle Eastern country. Although Minister Lilianne Ploumen of Foreign trade warns that companies will still face obstacles in Iran, there is much expectation for the opening of the market, broadcaster NOS reports.

“Iran’s economy is simply too large to ignore, with the oil, gas and financial reserves”, former ambassador in Tehran and business consultant Ronald Mollinger said to the broadcaster.

Iran was an important trading partner for the Netherlands in the past. In 2009 and 2010 the Netherlands imported nearly a billion euros in mineral resources from the country. Exports to Iran amounted to almost 600 million euros. But the economic sanctions against the country put a stop to this. Now that the sanctions are lifted – even though part of them were only conditionally lifted – there is a great desire to strengthen those bonds again, according to NOS.

Iran has the second largest gas reserves and the fourth largest oil reserves in the world. There are also many opportunities for the agricultural industry and water management.

Shell already indicated that it wants to return to the country. Dredging company Boscalis showed interest in building ports in Iran. Greenhouse builder Van der Hoeven already explored possibilities of becoming active in the Iranian agricultural sector.

Minister Ploumen of Foreign Trade and Development Cooperation warns that companies should not expect to immediately and without problems set up shop in Iran. “It will take some time before Iran is reconnected to the international payment traffic”, she said to NOS.



 “A number of sanctions that were proclaimed in the past due to human rights violations in Iran also remain intact. It will therefore give limitations.” She also warned that the sanctions can be put back in place if the country does not cut back on its nuclear activities as agreed with the international community.



Read more Dutch begin looking for trade opportunities in Iran - NL Times

EU-US Relationship: The Atlantic Alliance needs a facelift - by RM

Everyone seems ton be in total agreement that the US and the EU (Europe) share a lot of common values going back all the way to the American war of independence and the majority of the people on both side of the pond hope it will remain that way. 

Europe and the US need to support each other in these ideals - even though if we look at the US  reasons for helping out Europe in times of need, for instance during the first and second world war, this support also came because of US self interest.

If the Nazi's had won the war in Europe they would also become a direct threat to the existence of the US.

A similar situation developed during the the cold war with the Soviet Union.

What some visionary Europeans are suggesting today is that times have changed. Even though the basic principles on a large number of issues, including human rights are still common ideals in the US and the EU, there are also many areas of disagreement..

These including: but are not limited to, foreign policy, the environment, privacy rights, trade, financial laws, military alliances (NATO), and agricultural safety standards.

In other words - what is good for America is not necessarily good for the EU.

The EU needs to do some basic homework as to figuring out what needs to be achieved from within if the EU wants to become a truly independent world  player and this brain-storming must also include developing a new framework for the Atlantic Alliance with the US.

It is high time this happens, before the more than 500 million inhabitants of the EU lose faith in this greatest European political project ever undertaken in history.


EU-Digest