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Canada will be part of Trump’s new NAFTA – corporate lobbyists on both sides of the border will ensure this

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The announcement last month, the proven fact that the United States and Mexico reached an agreement to interchange NAFTA without Canada surprised trade experts around the world. The deadline for Canadians to affix was set for August 31 on August thirty first stay out in the cold – and hit fresh tariffs.

The news was stunning because negotiators in all three countries had been attempting to broker a new deal for greater than a 12 months, since President Donald Trump implemented his campaign threat demand the abolition or substitute of the North American Free Trade Agreement.

After the deadline passed arbitrarily, with none concessions from Canadians, let alone the finalized deal, Trump again endangered to exclude Canada from the new NAFTA via Twitter.

While his boast included a threat to finish NAFTA altogether, that is all bark and no bite. What trade researchers like me It is evident that Trump has no leverage in these negotiations.

Interest groups on both sides of the border will ensure that Canada is roofed by the agreement – legally, it could be bothersome make a deal that excludes Canadians.

Interest groups often win

In his tweets, Trump said there was “no political necessity to keep Canada in the new NAFTA agreement.” But Canada doesn’t appear to feel any impending doom – and for good reason.

After Trump’s threats – said Prime Minister Justin Trudeau compromise “will depend on whether a very good deal for Canada can be reached in the end. No NAFTA is best than a nasty NAFTA.

As part of my very own research, I even have examined how interest groups influence trade policy, particularly in initiating disputes and litigation inside the World Trade Organization. My work illustrates how countries depend on industry interest groups – and in some cases, corporations themselves – to shape trade policy.

This study draws on the work of Princeton politics professor Andrew Moravcsik, who theorized it countries – especially democracies – represent primarily the preferences of domestic interest groups during international negotiations and will rarely bow to the desires of trading partners.

In other words, governments need to stay in power and be re-elected. To achieve this goal, they need votes and campaign contributions, and corporate and industry interest groups can provide both.

That’s why Trudeau continues to insist that any take care of the U.S. and Mexico will protect Canadian middle-class jobs by protecting domestic milk and poultry production, and that is why he’s pushing for the so-called cultural exemption which protects national television and radio from takeovers by American media conglomerates, will be included in the new NAFTA.

Trudeau and his team of negotiators aren’t going to sing to the tune of Trump’s tweets. Rather, they’re following the standard playbook of political economists: protect those industries and sectors that may also help Trudeau achieve one other federal election victory in 13 months.

Trudeau and Canadian Foreign Minister Chrystia Freeland hold a news conference after attending the NATO summit in Brussels, Belgium.
Reuters/Reinhard Krause

First the Americans

On the other side of the table is Trump.

He he confesses to maintain American interests in mind because it deals with Canada in the ongoing NAFTA negotiations. And he has framed NAFTA as a disaster and an agreement that delivered “the United States…decades of abuse” at the hands of Canada.

Trump hesitates to acknowledge the interdependence of the U.S. and Canadian economies. Both countries need one another.

Canada is the United States the second largest trading partnerwith a complete of greater than USD 673 billion in goods and services across the border in 2017. The U.S. Department of Commerce estimates that exports to Canada support greater than 1.5 million jobs, mostly in border states that elected Trump in the 2016 presidential election.

Take the auto industry for instance: if Canada were excluded from NAFTA, US automotive prices could rise because of it. proposed new tariffs on Canadian cars. And Canadians they’re already discussing boycott American goods if negotiations break down, which could also end in a decline in American automotive sales.

If consumers in Canada and other countries find yourself buying fewer American cars commercial disputes, which can end in layoffs. The possible downward spiral that might result from this affects both the auto industry and trade unions interested o NAFTA without Canada.

And it is not nearly cars. If Canada is kicked out of the new NAFTA, Americans will see: number of industries negatively, from oil production to retail stores to tourism, as Canadians select buy more domestic products to avoid American ones.

Essentially, NAFTA without Canada is a win-win situation. And while Trump may be willing to disregard the wishes of some interest groups with two years left before re-election, most lawmakers in Congress haven’t got that luxury as the midterms approach.

It’s hard for me to assume that Congress will support NAFTA without Canada, regardless of who controls the House in January 2019.

Three will not be a crowd

The idea of ​​scrapping NAFTA completely is absurd in my view because industries on both sides of the border won’t tolerate it and Congress won’t support it.

Trump can also be subject to legal restrictions. One sec was awarded to him authorizing Congress to renegotiate NAFTA on an expedited basis, it only allows Trump to ask lawmakers to approve an agreement with an up-or-down vote that covers all three countries. If current negotiations fail and Trump presents Congress with only a trade take care of Mexico, the process will be slow and will be significantly stalled — especially if there’s a change on top of things of the House.

Given that manufacturing interests were supporters of NAFTA in 1994 and proceed to profit from the treaty today, North Americans can expect that whatever replaces this agreement will proceed with Canada well into the future, regardless of how long it takes these negotiations.


This article was originally published on : theconversation.com
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International

Grattan on Friday: Oil prices could be where Middle East crisis collides with Australia’s cost of living crisis

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Angry, accusatory exchanges over the war within the Middle East have dominated federal politics this week. But for many abnormal voters the difficulty stays “out there.”

Leaving aside the minorities directly affected – Jews frightened by anti-Semitism, the Muslim community, those with families in Lebanon and elsewhere – it’s a tragedy with no tangible connection to their each day lives.

But on Thursday, Treasurer Jim Chalmers warned that the foreign crisis could directly translate right into a domestic cost of living crisis through the worth of oil.

At midweek, the worth of oil was 11% lower than a 12 months ago but 7% higher than per week and a half ago, Chalmers said at a news conference.

The Treasury estimates that if prices were 10% higher for the entire 12 months, it would cut back Australia’s GDP by 0.1% and increase the Consumer Price Index by 0.4 percentage points.

Nothing is for certain in the approaching months, however the potential implications are clear. Consumers would feel the results of higher oil prices at gas stations.

ACCC chair Gina Cass-Gottlieb and treasurer Jim Chalmers at a press conference on Thursday.
Mick Tsikas/AAP

The Reserve Bank will even watch the possible trajectory of oil prices along with all other indicators relevant to its rate of interest decisions. This comes against the backdrop of the federal government being desperate for an rate of interest cut (or two) before the elections.

While the rise in fuel prices (hitting businesses and families) wouldn’t be the federal government’s fault, it could be blamed.

According to the Labor Party, there may be currently a disconnect between, on the one hand, the partisan political heat generated by the war within the Middle East and, on the opposite hand, the shortage of public engagement on the difficulty.

Voters aren’t focused on the Middle East

Labor sources say focus groups conducted this week with swing voters showed that the majority people aren’t closely following events within the Middle East.

In addition, they’re generally satisfied with the federal government’s position and don’t feel that the crisis is distracting them from the cost of living (which is separate from how they think the federal government is dealing with the cost of living).

This is consistent with this week’s results Necessary surveywherein 56% said they were satisfied with the federal government’s response to the war between Israel and Gaza. Another 30% thought the federal government was too supportive of Israel; 14% thought he was too harsh towards Israel.

With the exception of some directly invested people, the Middle East crisis is unlikely to vary votes.

In the interior political struggle, Dutton tries to use the conflict to portray the Albanians as weak. This is a giant nod to the difficulty itself, although the prime minister and his government are generally seen as having lost their way.

While Dutton tries to define Albanian negatively, Albanese tries to make Dutton an even bigger goal.

NBN sale is a distraction

And so on Wednesday, the Prime Minister, shortly before hopping on a plane to attend the ASEAN-Australia summit in Laos, spoke personally in regards to the regulations put in place to make sure the NBN stays in public hands.

If the Coalition fails to vote for the bill, it means it is going to sell the NBN, Labor has argued. It was a crude attempt at intimidation that was easy to identify. The Coalition is just not suggesting it might sell the NBN, and if it did, would most individuals care? Either way, Labor originally planned to denationalise the NBN. Dutton ridiculed this tactic.

Looking ahead to the election 12 months, the 2025 parliamentary calendar was released this week. It has a two-week meeting in February and pencils within the March 25 budget, which might trigger a May poll. This, of course, doesn’t rule out earlier (March) elections, although Albanese has often said that he’s planning a pre-election budget.

Either way, we’re already in the center of an election campaign. In Tuesday’s club, Albanese spoke for the second time recently in regards to the agenda for the second term.

Announcements like confetti

Announcements fall like confetti, especially those regarding the cost of living. Supermarkets are under intense attack. Introducing his merger reform laws on Thursday, Chalmers said any supermarket merger would be scrutinized, regardless of whether it fell under the brand new arrangements.

Current polls show that the more than likely election result for embittered voters will be a hung parliament with a minority Labor government.

Albanese told the club he was focused on winning a majority government. Dutton knows that if the Coalition cannot win, the more crossbenchers it could actually force Labor to rely on, the more unstable a second-term Labor government will be.

Both sides have so much to do before the actual campaign.

Key points of the Labor Party’s legislative program weren’t only not introduced, but went unnoticed – for instance, regarding gambling promoting, restrictions on young people on social media and election financing.

The most significant bills are stuck in parliament – especially on housing, where the Greens may eventually reach an agreement, but are prolonging all difficulties.

On the opposite hand, the Coalition adopted a minimal policy. He provided minimal details in his controversial nuclear energy plan, notably refusing to stipulate costs. You cannot keep the whole lot until the last minute.

Will the campaign even matter?

When the formal campaign comes, what difference will it make?

There is an old saying: “You can’t fatten a pig on market day.” In other words, the election result may be decided long before the actual campaign.

What do the last three elections (2016, 2019, 2022) tell us in regards to the importance of a proper campaign? In each case the result was small and limited to a number of seats.

In 2022, there was probably nothing Morrison could have done in recent weeks to save lots of the day – to make use of one other farm metaphor, his goose was cooked. Either way, he ran a nasty campaign.

In 2016, Prime Minister Malcolm Turnbull had just returned home; Turnbull’s flawed campaign maximized the number of seats lost.

In 2019, when Bill Shorten seemed almost certain to steer Labor to victory, its defeat could have been sealed within the campaign itself, although the heavy political burden was at all times going to place Labor in a precarious position.

In 2022, Albanese was deemed a poor campaigner. Aware of this, Labor strategists will do the whole lot they will to ensure that he’s fully prepared for “I have no idea” questions (to which he hesitated last time) and other threats which will spontaneously arise.

Dutton’s area of expertise is negativity, his natural style is attack. But more will be needed in these final weeks.

One of the challenges of delaying the publication of policies is that loopholes can slip through the cracks, making mistakes more likely.

Dutton remains to be a great distance from establishing himself as a flexible alternative prime minister. Indeed, his current approach to the Middle East, completely lacking in nuance, raises questions on how he would deal with the complexities of foreign policy overall. This didn’t make me optimistic.

This article was originally published on : theconversation.com
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What does Israel and its neighbors want now that total war is approaching in the Middle East – podcast

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The Middle East is dangerously near total war. In the yr since Hamas’ October 7 attacks on Israel, thousands and thousands of individuals have been displaced from their homes in Gaza, Israel, the West Bank and now Lebanon, and tens of 1000’s have died.

After Israel killed Hassan Nasrallah, the leader of the Iran-backed Hezbollah militia, Iran fired a barrage of ballistic missiles against Israel on October 1. As the world waits to see Israel retaliate, the Israeli army continues to attack Hezbollah in southern Lebanon and Beirut.

In this episode Weekly Conversations podcast, we check with two Middle East experts, Mireille Rebeiz and Amnon Aran, to find out about the strategic calculations each Israel and its neighbors are making at this terrifying moment for the region.

Mireille Rebeiz is director of Middle Eastern studies at Dickinson College in Pennsylvania, USA, and an authority on Hezbollah. He says that since announcing its manifesto in 1985, Hezbollah has at all times positioned itself “in opposition to the existence of the state of Israel.”

She reaffirmed her commitment to the Palestinian cause. She reaffirmed her commitment to the Iranian revolution and Shiite ideology.

Rebeiz claims that Iran’s military goals are entirely consistent with those of Hezbollah and traces them to the United States’ destabilization of Iraq.

When Iraq descended into full chaos and war (it), he allowed Iran to interfere with Iraq and gave a giant voice to the conservative Shia voices.

This was followed by the 2011 Syrian Civil War, during which Hezbollah stepped in to defend Bashar al-Assad’s regime.

This is a domino effect – expansion from Iran, through Iraq, through Syria, to Lebanon. And this is clearly visible in Iran’s military goals, that are ultimately the expansion of Iranian ideology in the region. Honestly, I’d say that at this point there is an try to hide behind the Palestinian cause to realize this goal.

Israel elections

Amnon Aran is Professor of International Relations at City St George’s, University of London, UK, and an authority on Israeli foreign policy. For Israel, Aran says, the last 12 months have been described as an “existential moment” that determined the war in Gaza and now Lebanon.

When the query arose of easy methods to reply to this existential threat, it was largely based on what I actually have called elsewhere a type of entrenchment, which effectively means that Israel makes peace only in exchange for peace. Any diplomatic settlement should be depending on and subject to a good military balance of power vis-à-vis Israel and the fact that Palestinians in the West Bank, and now the Gaza Strip, will remain under Israeli occupation for the foreseeable future.

Aran says there is fierce debate in Israel about what to do now. One side follows the considering of former Israeli Prime Minister Naftali Bennett, who reached X in early October say that: “Israel now has its best chance in 50 years to change the face of the Middle East.” This camp argues that given the weakening of Hezbollah, this is the moment to attack Iran’s nuclear facilities.

On the other hand, Aran says, in the military community they oppose attacking Israeli nuclear facilities and as an alternative give attention to weakening Hezbollah as much as possible. The reasoning of this camp is as follows:

After a yr of an extended and very difficult conflict, the next query is: you might be actually entering a war, probably on 5 – 6 fronts, including a really large country of 90 million people, Iran, with a really wealthy history, and you might be actually entering a very recent a phase that can be quite prolonged.

To hear the full interviews with Mireille Rebeiz and Amnon Aran, take heed to The Conversation Weekly podcast.


This article was originally published on : theconversation.com
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The long-awaited war in the Middle East has arrived. In this way, Israel can now respond to Iran

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When Iran fired greater than 180 ballistic missiles at Israel this week in retaliation for the Israeli killings of Hamas and Hezbollah leaders, some were surprised by Tehran’s decisive response.

Israeli Prime Minister Benjamin Netanyahu immediately announced his country would retaliate brutally at a moment of its selecting. When his security cabinet met for a nightly meeting, he said: “Whoever attacks us, we will attack him.”

The Biden administration stands firm convicted Iran’s aggression and repeated his own commitment to defend Israel. The White House said Iran would face “serious consequences” regardless that President Joe Biden he called for refraining from attacks regarding Iran’s nuclear facilities.

So what might Israeli retaliation appear like, and is a full-scale war between Iran and Israel, or maybe even the United States, likely at this point?

The regional war is already underway

Regional war isn’t any longer inevitable – it has already arrived. The conflict that began in Gaza almost a 12 months ago has spread across the Middle East, with Israel fighting countries and groups removed from its borders. This also has global consequences.

As this week’s Iran strike shows, the conflict has turn out to be a direct confrontation between Israel and its Western allies, on the one hand, and Iran and its proxies, backed by Russia and China, on the other.

Washington played a key role in supply Israel has military aid and diplomatic cover, while Moscow does he promised send fighter jets and air defense technology to Iran. It also buys Iranian weapons for its own war in Ukraine, supplying them to Tehran much needed money.

Moreover, Israel is currently engaged on many fronts.

First, the war continues in Gaza, where over 40,000 Palestinians have died. Hamas has been reduced to a poorly functioning guerrilla organization, but still retains some control over the displaced Palestinian population.

In West BankThe Israel Defense Forces (IDF) conducts military operations counteract growth in terrorist attacks, driven by Iranian weapons and funds directed to local fighters.

Meanwhile, Iran’s other proxy groups, Shiite militias in Iraq and Syria, and Houthis rebels in Yemen proceed to launch rocket and drone attacks on Israel. Both Israel and the US have done this he hit back with the Houthis in Yemen.

However, the most significant battle is going down in Lebanon. On October 8, 2023, the day after the Hamas rampage in southern Israel that left 1,200 people dead and over 200 Israelis abducted to Gaza, Hezbollah began firing rockets and other weapons at Israel without provocation, in solidarity with Hamas. This forced greater than 60,000 Israelis near the border to flee their homes.

An Israeli armored vehicle moving near the border with Lebanon.
Atef Safadi/EPA

Two weeks ago, Israel took a decisive step. Netanyahu reportedly ordered the detonation of hundreds of booby traps pagers and walkie-talkies utilized by Hezbollah out of fear that the operation was ongoing risk of exposure.

The IDF then conducted an enormous air campaign geared toward reducing Hezbollah’s estimates arsenal rockets, rockets and drones.

Then the ground one fired invasion to Lebanon, targeting positions fortified by Radwan Hezbollah’s elite forces. The goal is to prevent Hezbollah from invading northern Israel and repeating the October 7 Hamas atrocities there.

Up to 1,000,000 Lebanese were forced to do this they run away from their homes consequently of Israeli actions.

Lebanese people are sleeping on the streets.
Displaced Lebanese sleeping on the streets of Beirut.
Abbas Salman/EPA

Israel’s Counterattack Options

And now Iran has turn out to be directly involved in the fight against its own countries launching ballistic missiles into Israel this week, allegedly targeting military bases. advanced Israeli missile defense systems, assisted by the US, Jordan and other countries, intercepted most of the missiles. Several landed in Israel with shrapnel killing one Palestinian in the West Bank.

It was Iran’s second direct attack on Israel in recent months. First resulted in limited Israel retaliation regarding the Iranian air defense system allegedly protecting the nuclear facility in Isfahan.

The full scope and consequences of Israel’s retaliation this time remain unknown at the time of writing.

One scenario that deeply worries Tehran is that Israel, in concert with the US, could goal its critical infrastructure. This may include communication and transport networks, financial institutions and the oil industry (particularly enterprise facilities). financing mechanism from the powerful Islamic Revolutionary Guard Corps). This could create chaos in Iran, threatening the survival of the regime.

Although forcing regime change in Tehran could be extremely difficult, Iranian leaders will not be taking any probabilities. Apparently that is what happened willing Supreme Leader Ayatollah Ali Khamenei to a secure location to prevent any assassination attempts.

Iran’s rapidly expanding nuclear program stays the crown jewel of the Iranian regime, which the United States and its allies say serves as a front for its chasing atomic bombs.

Iranian leaders may now fear that Israel and the United States could seize the opportunity to seriously destroy their nuclear infrastructure, as some have long called for conservative voices in Both countries. But Biden does calling as an alternative for a “proportionate” response.

Destroying Iran’s air defense systems can be considered an option to signal to the regime that it can turn out to be “blindsided” in the event of any future attack on Israel. Other possibilities are also on the table.

Portrait of murdered Hezbollah leader Hassan Nasrallah in Tehran.
An enormous portrait of murdered Hezbollah leader Hassan Nasrallah in Tehran.
Vahid Salemi/AP

Narrow window for Israel

In an attempt to ease tensions, Iranian officials rushed decided the desire to end hostilities after a missile attack.

However, the conflict has come full circle. Hamas believed that Israel would fall after the attack on October 7, 2023. However, Israel as an alternative responded with a devastating war in the Gaza Strip, eliminating most of Hamas’ capabilities but additionally causing widespread casualties and destruction.

Similarly, Hezbollah and Iran’s decisions to strike against Israel proved to be grave miscalculations, underestimating Israel’s determination to retaliate with overwhelming consequences.

The ball is now in Israel’s court. While any retaliation must have in mind the incontrovertible fact that the IDF is already stretched across multiple fronts, Iran’s “axis of resistance” has also never seemed more vulnerable.

Israel has a narrow window to deal a serious blow to it – and Netanyahu is unlikely to miss this moment.

This article was originally published on : theconversation.com
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