A Split Congress Could Impact Midterm Strategy

The two primary ways the new Congress could influence North Korea policy is through investigations and appropriations…

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A split Congress could affect President Trump’s negotiating strategy vis-à-vis North Korea, but the legislative branch’s impact will mostly come at the margins of U.S. policy.

Trump’s control over the two major levers of U.S. pressure on North Korea —sanctions implementation and the military — means that he has significant discretion over negotiations with Pyongyang. By controlling the sources of U.S. pressure, Trump can adjust either and impact negotiations with little concern for what Congress thinks or wants.

Congress does have the ability to prevent either extreme outcome of war or peace, but neither of these seem likely given the current conditions on the peninsula.

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Jamal Khashoggi’s Death Is the Latest Chapter in A 300-Year War

Prominent Saudi journalist Jamal Khashoggi’s suspected murder, and its aftermath, is the latest battle of a 300-year war over Sunni Islam…

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The apparent abduction, and probable murder, of the prominent Saudi journalist Jamal Khashoggi at the Saudi consulate in Istanbul on Oct. 2 unmasked the ugly despotism behind the reformist image of the kingdom’s crown prince, Mohammed bin Salman. 

The U.S./Saudi relationship should be under the microscope like never before following Khashoggi’s probable death. 

Less noticed, however, is the way this scandal revealed a long-running rivalry between the two countries that directly butted heads at the outset: Turkey and Saudi Arabia.

This is a story that goes back to the 18th century. Then, much of what we call “the Middle East” today, including the more habitable part of the Arabian Peninsula, was part of the Ottoman Empire, ruled from Istanbul, then called Constantinople, by a cosmopolitan elite of mainly Turks and Balkan Muslims, including Bosnians and Albanians. The Hejaz, the western region of the Arabian Peninsula that included the holy cities of Mecca and Medina, was revered for religious reasons, but it was a backwater with no political or cultural significance.

In the 1740s, in the most isolated central area of the Arabian Peninsula, called Najd, a scholar named Muhammad ibn Abd al-Wahhab emerged with a fiery call for the restoration of “true Islam.” Wahhab soon allied with a chieftain called Ibn Saud—the founder of the Saudi dynasty.

The First Saudi State they established together grew in size and ambition, leading to a big massacre of Shiites in Karbala in 1801 and the occupation of Mecca in 1803. The Ottomans crushed the Wahhabi revolt in 1812 via their protectorate in Egypt, and Wahhabism retreated to the desert.

Another tumult in Hejaz occurred in 1856 when the Ottomans, thanks to the influence of their British allies, introduced another heretical “innovation”: the banning of slave trade, which was then a lucrative business between the Africa coast and the Arabian city of Jeddah. At the behest of angry slave traders, Grand Sharif Abd al-Muttalib of Mecca declared that Turks had become infidels and their blood was licit. As we learn from the chronicles of Ottoman statesman Ahmed Cevdet Pasha, Turks’ sins included “allowing women to uncover their bodies, to stay separate from their fathers or husbands, and to have the right to divorce.”

These were the changes introduced during the Tanzimat, the great Ottoman reform movement in the mid-19th century by which the empire imported many Western institutions and norms. The Tanzimat allowed the Ottoman Empire to ultimately become a constitutional monarchy with an elected parliament—something still unimaginable in the absolute monarchy of Saudi Arabia. It also allowed the rise of the modern Turkish Republic, where secular law became the norm, women gained equal rights, and democracy began to grow.

Today, admittedly, Turkey became the home of jailed journalists, crushed opponents, hate, paranoia, and a new cult of personality that has been called “Erdoganism.” Yet Erdogan and his fellow Islamists are still Turkey’s Islamists—that is, compared with Saudi Arabia’s elites, they are still operating within a more modern framework that reflects a milder interpretation of Sunni Islam.

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U.S.-U.K. Think Tanks Collaborate to Produce the Ideal Free Trade Agreement

The Cato Institute and the Initiative for Free Trade have combined their expertise to lead a new project articulating the elements of the ideal free trade agreement between the US and the UK…

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This week, a collaborative project spearheaded by the Initiative for Free Trade in London and the Cato Institute in Washington, D.C. presents its first fruit. With contributions from policy experts affiliated with 11 U.S. and U.K. think tanks, The Ideal U.S.-U.K. Free Trade Agreement: A Free Trader’s Perspective explains why real free-traders are often skeptical of free trade agreements and includes the proposed text of an agreement that would overcome those concerns

The objective of the project culminating in the publication of this collaborative paper is to persuade policymakers and the public in both countries that a comprehensive bilateral trade and investment agreement removing all barriers to trade across all sectors of both economies without exception is in their best interests and to provide the blueprint of an agreement that would be the most liberalizing FTA in the world.

Many good reasons exist to negotiate and conclude a bilateral trade agreement between the United States and the United Kingdom.

One of the best reasons is that it affords two of the world’s largest economies — both deeply committed to the institutions of free-market capitalism and the rule of law — the opportunity to break new ground and pioneer the rules of a genuinely liberalizing 21st-century trade agreement

The ideal free trade agreement between the United States and the United Kingdom would create greater prosperity through novel, sensible, transparent rules to eliminate costly barriers to trade, stimulate innovation, encourage competition, provide opportunities for all, and incentivize reform-minded governments around the world to join.

As the Trump Administration wraps up renegotiations of agreements with Korea, Canada, and Mexico, the focus of its trade policy should turn toward achieving freer trade and greater economic integration with the United Kingdom. As the U.K. government prepares to repatriate its authority over trade policymaking for the first time in 45 years, concluding and implementing a free trade agreement with the United States should be among its highest priorities.

In many respects, the U.S. and U.K. economies already benefit from a high level of economic integration. U.S. entities are the largest foreign direct investors in the United Kingdom, and U.K. entities account for the largest share of foreign direct investment in the United States. The value of the cumulative cross-border investment stands at nearly $1.3 trillion today with more than 1.1 million Americans working for British companies in the U.S. and nearly 1.5 million Britons working for U.S. companies in the U.K.

The agreement includes provisions that foreclose governments’ access to discriminatory protectionism and obligate the parties to refrain from backsliding. It achieves maximum market barrier reduction and enables the fullest expressions of market integration, while simultaneously preserving national sovereignty to legislate and regulate in ways that do not discriminate against imported goods, services, or capital.

Among the agreement’s many liberalizing features are provisions that:

  • Enshrine the “negative list” approach to liberalization across goods, services, investment, and government procurement, which is conducive to faster, broader, and deeper economic integration
  • Eliminate tariffs on nearly all goods upon entry into force
  • Permit free movement of British and American workers, conditioned on an offer of employment
  • Commit the parties to expedited customs clearance and administrative procedures
  • Mutually recognize professional qualifications and licenses
  • Mutually recognize the efficacy of conformity assessment, and equivalence provisions, which would allow companies to sell and operate in both markets by satisfying either Parties’ regulations in areas where there is agreement as to the objectives of the regulations
  • Are less restrictive on the use of inputs from third countries by lowering “rules of origin” thresholds that must be met to qualify for the agreement’s preferential terms
  • Preclude application of anti-dumping measures between the Parties
  • Preclude the use of investor-state dispute settlement
  • Provide for the accessions to the agreement of other Parties that can demonstrate willingness and capability to meet its market-liberalizing standards

Pakistan Continues to Back Militant Groups

Why does Pakistan continue to sponsor militant groups in the face of considerable U.S. pressure to stop? 

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The United States and the international community have accused Pakistan of sponsoring militant groups in Afghanistan and Indian-administered Jammu and Kashmir for decades—a charge Pakistan vehemently denies. 

Pakistan does, in fact, support three prominent jihadi militant groups in Jammu and Kashmir: the Hizb-ul-Mujahideen, Lashkar-e-Taiba, and Jaish-e-Mohammad, even though these groups are officially banned by the Pakistani government. The United States has also routinely criticized Pakistan for supporting the Afghan Taliban and Haqqani Network (a U.S.-designated terrorist group), both of which frequently attack U.S. troops and coalition forces in Afghanistan.

Why does Pakistan continue to sponsor militant groups in the face of considerable U.S. pressure to stop? This question has plagued U.S.-Pakistan relations for decades.

President Trump has rebuked Pakistan, inflaming an already tense relationship when he tweeted about decades of U.S. aid to Pakistan with “nothing but lies & deceit” in return. The Trump administration subsequently reduced security and military aid to Pakistan, campaigned to add Pakistan to an intergovernmental watchlist for terrorism financing, and imposed sanctions on seven Pakistani firms involved in prohibited nuclear activities.

Unfortunately, these policies are unlikely to be effective in changing Pakistan’s behavior. Pakistan’s military establishment and intelligence agencies consider militant sponsorship an important mechanism for maintaining Pakistan’s sovereignty and national identity. Pakistan’s civilian institutions, too, have evolved to facilitate militant sponsorship by routinely legitimizing expansive executive powers, limiting judicial oversight, and violating civil liberties in the name of the national interest. Pakistan’s civilian and military institutions, therefore, are much more closely aligned on matters of state sponsorship of militant groups than most U.S. policymakers and academics think, and therefore less susceptible to outside pressure.

However, the pervasiveness of militant sponsorship should not deter the United States from pursuing a productive relationship with Pakistan.

The United States and Pakistan have a shared interest in ending the war in Afghanistan. This objective will continue to elude Washington unless policymakers better understand the motivations behind Islamabad’s support for militant groups in Afghanistan and Kashmir. Therefore, policymakers should focus less on trying to change Pakistan’s security policies and instead find ways to leverage its existing strategic perspective in pursuit of U.S. interests.

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A Change in Trade Relations?

How will President Trump’s meeting with European Commission President Jean-Claude Juncker impact U.S. trade policy?

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Yesterday, European Commission President Jean-Claude Juncker met with President Trump at the White House to talk about trade. Afterwards, to the surprise of many (including me), they held a press conference at which they said positive things about the U.S.-EU trade relationship. Then later, President Trump had five positive tweets about the meeting. It was more amicable than anything we’ve seen in U.S. trade policy for many months.

But obviously, positive tweets only get you so far. What does all this mean in terms of substance? That’s hard to say.

While the parties did agree on a couple key points that looks promising — including working towards “zero tariffs, zero non-tariff barriers, and zero subsidies” on non-auto industrial products — it’s not clear how this will develop or if a permanent change in approach is possible. 

Regardless, one day of trade peace is nice after months of harsh rhetoric and escalating tariffs. 

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There’s No Military Solution for Afghanistan

Afghans have endured 40 years of uninterrupted war, and there is no plausible argument that war will soon end…

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In a new paper, a former U.S. commander in Afghanistan argues that America’s longest war is unwinnable, in part because Afghanistan is stuck in a cycle of trauma and violence brought about by four decades of uninterrupted conflict.

Erik Goepner, Cato visiting scholar and retired U.S. Air Force colonel whose assignments included unit commands in Afghanistan and Iraq, rigorously analyzed the impact that 40 years of uninterrupted war has had on the population of Afghanistan.

He contends that the country is caught in a vicious cycle whereby war causes trauma, which drives more war. Goepner concludes that there is little America can do to substantially improve the situation in Afghanistan, and recommends America withdraw its military forces. In addition, any future military planning and intelligence estimates should consider the state of a population’s mental health.

In order to statistically measure the level of trauma within the country, Goepner created the “Trauma Index,” which takes into account traumatic events in the form of torture, rape, death, and other atrocities associated with war.

Unsurprisingly, the average Afghan has experienced extremely high-levels of trauma. An Afghan adult has experienced seven traumatic events, on average, compared to one to two for a European and one to three for an American adult. As a result of the trauma caused by persistent and pervasive violence, Afghans have a post-traumatic stress disorder rate of 50 percent, by some estimates.

The mental illness, substance abuse issues, and diminished impulse control that stems from trauma have resulted in an Afghan society in which violence has been normalized. “Making matters worse,” Goepner writes, “Afghans have no real opportunity to receive professional care. Researchers have reported that Afghanistan’s mental health services are ‘nonexistent,’ that there is an ‘acute shortage’ of qualified providers, and that the general situation is one in which ‘chronic mental illness has been left unattended in Afghanistan for decades.’”

Goepner also discusses additional drivers of conflict in the country. He argues that ineffective security forces, low opportunity costs for rebel recruitment, and sanctuary for rebels in neighboring Pakistan create the “opportunity for rebellion,” while grievances against the corrupt and incompetent government and financial incentives from the illicit opium trade provide the motivation to rebel. Goepner contends that for the United States to help the situation in Afghanistan it must remove its military footprint and instead pursue policies that incentivize a more-effective, less-corrupt Afghan government.

Goepner succinctly summarizes the challenges facing Afghanistan, writing that “Thanks to 40 years of uninterrupted war, Afghans suffer from extremely high rates of post-traumatic stress disorder and other mental illnesses, substance abuse, and diminished impulse control. Research shows that those negative effects make people more violent toward others. As a result, violence can become normalized as a legitimate means of problem solving and goal achievement, and that appears to have fueled Afghanistan’s endless war. Thus, Afghanistan will be difficult, if not impossible, to fix.”

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The Myth of a Post-1945 “Liberal World Order”

According to one popular view, the U.S. used its power and idealism for more than 70 years to create a security and economic order that transformed the world, and that is now being threatened by President Trump. Not exactly… 

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Recent political tumult and the election of Donald Trump to the U.S. presidency have driven anxious commentators to lament the collapse of a post-1945 “liberal world order.”

Nostalgic for the institution building and multilateral moment of the early postwar era, they counsel Washington to restore a battered tradition, uphold economic and security commitments, and promote liberal values.

On closer inspection, while it is true that the postwar world was more prosperous and peaceful than what came before, the claim that a unitary “liberal order” prevailed and defined international relations is both ahistorical and harmful.

It is ahistorical because it is blind to the process of “ordering” the world and erases the memory of violence, coercion, and compromise that also marked postwar diplomatic history. It loses sight of the realities and limits of the exercise of power abroad, the multiplicity of orders that arose, and the conflicted and contradictory nature of liberalism itself.

While liberalism and liberal projects existed, such “order” as existed rested on the imperial prerogatives of a superpower that attempted to impose order by stepping outside rules and accommodating illiberal forces.

“Liberal order” also conflates intentions and outcomes: some of the most doctrinaire liberal projects produced illiberal results.

This nostalgia is harmful because framing the world before Trump in absolute moral terms as a “liberal order” makes it harder to consider measures that are needed to adapt to change: the retrenchment of security commitments, the redistribution of burdens among allies, prudent war-avoidance, and the limitation of foreign policy ambitions. It also impedes the United States from performing an increasingly important task: to reappraise its grand strategy in order to bring its power and commitments into balance.

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Bolton is a Bad Omen for U.S. Foreign Policy

Americans who voted for Donald Trump believing he would be disinclined to start new wars should be puzzled by his decision to tap John Bolton as his third national security adviser. The rest of us should be concerned…

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President Trump’s new national security advisor, John Bolton, is an effective communicator of extreme hawkish views — views that almost entirely reject serious diplomacy.

Bolton’s claim to fame was when he served as the U.S. ambassador to the U.N. under the George W. Bush administration. Bolton was correct in calling for U.N. reforms (such as voluntary contributions over mandatory financing), but his disdain for the organization ultimately hurt U.S. soft power.

Bolton has been one of the most reliably hawkish voices in American politics in recent memory. Above all, he wants war.

Many people associate Bolton with neoconservatives thanks to his hawkishness and his prior service during the George W. Bush administration, but while Bolton shares the neoconservative tendency to use military force as a tool of first resort, he doesn’t necessarily share their enthusiasm for democracy promotion.

Bolton has written that the U.S. political debate is essentially between the “Americanists” and “Globalists,” where globalists favor multilateralism over U.S. interests.

He believes that launching a pre-emptive strike against North Korea is legal, the only way to stop Iran from building a nuclear weapon is to “bomb Iran,” and the U.N. is irrelevant. He was also in favor of ousting Saddam Hussein, a decision he continues to stand by, and helped build a faulty case of Saddam possessing weapons of mass destruction.

Bolton’s appointment and other changes within the administration indicate three things:

1. President Trump has taken a hard-line approach to foreign policy. What that really translates into is a foreign policy of coercion and military tactics over negotiations and diplomacy.

2. The president’s hard-line approach is informed by problematic — and questionable — causal links. For example, the president believes that enhanced interrogation techniques work, and produce useful intelligence. In his first State of the Union address, the president declared that the notorious U.S. detention center at Guantanamo Bay, Cuba, will remain open to ensure that “hundreds of dangerous terrorists” are not released. Yet, “Gitmo” has served as a recruiting tool for al-Qaida and its various affiliates while scientists and interrogators alike agree that torture doesn’t work. Similarly, the president continues to falsely link immigration with terrorism, a view shared by Bolton.

3. The president wants to surround himself with yes men (and women). The president’s dismissal — and disdain — of expert knowledge has been obvious during his first year. While Bolton and the president may not agree on everything, they are both inclined to ignore expertise.

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Trade War With China Is Bad for the U.S.

For the second time in a month, President Trump has levied restrictions on a vast swath of imports and investment from China. That’s bad news for the US…

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The cause for today’s measures is behavior that the U.S. Trade Representative has characterized as rampant, sustained theft of U.S. intellectual property by Chinese entities and the Chinese government. Although allegations — and the evidence supporting those allegations—that China routinely transgresses in the realm of intellectual property have been accumulating for many years, it does not follow that the appropriate response is to restrict trade and investment. In fact, the collateral damage inflicted by those restrictions will be widespread.

President Trump’s “remedies” are likely to raise production costs for U.S. businesses, diminish U.S. productivity, squeeze real household incomes, reduce the revenues of U.S. farmers and other export-dependent industries targeted by Chinese retaliation, exacerbate tensions with China and other countries adversely affected by the restrictions, and hasten the demise of the rules-based trading system.

The appropriate response to China’s infractions would be to use the evidence collected as the basis for a formal complaint at the World Trade Organization. By circumventing the WTO under the premise that its rules are inadequate to discipline China, and invoking a law that is incompatible with U.S. obligations under the WTO rules, President Trump has delivered a vote of no confidence in a system that has served U.S. interests well for 70 years. That’s bad news for American producers and consumers.

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Trump’s Trade Policy Is The Opposite of “Draining the Swamp”

Last week, President Trump told an audience of steel and aluminum executives that he would impose tariffs of 25% on steel and 10% on aluminum, and that these tariffs would last “for a long period of time”… 

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When it comes to trade, President Trump is going directly to special interests (i.e. business executives), and giving them favors at the expense of the rest of the country. That’s about as far from draining the swamp as it could possibly get.

President Trump seems to truly believe in his cause, and it may take actual implementation and subsequent failure of a protectionist trade policy to cure him of his misconceptions. Nevertheless, there is still time to push back. As of right now, these tariffs are just words. Trump said some things, but no action has been taken. As a result, it is worth it for everyone to make their case against these actions.

Other governments can make clear to the Trump administration how serious they are by announcing possible retaliatory measures now. Congress can assert its constitutional power over trade, through direct communication with the White House, and even through legislation designed to take back some power it had previously delegated to the executive branch. And the broader business community needs to make clear to the administration how badly it could be hurt by this.

There has been lots of talk of “trade wars” recently. This may be the start, but let’s keeping fighting for peace nonetheless.

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