Tag Archives: TPP

Pulling out of TPP: the first major foreign policy error of the Trump administration

The Trump administration today pulled out of the 12-nation TPP talks. (123rf / art1980)

Keeping a promise from his 2016 campaign, US president Donald Trump formally pulled the United States out of the Trans-Pacific Partnership today, a 12-nation trade and investment agreement in the works for nearly a decade.

Though the move will win plaudits from both the populist right and the anti-trade left (including Vermont senator Bernie Sanders, the former Democratic presidential candidate) Trump’s move is the first major unforced foreign policy error of the Trump administration. TPP opposition brings together an ascendant protectionist coalition that includes many of Trump’s populist supporters, but also many rust-belt and leftist Democrats and many organized labor officials.

In junking the US role in the TPP, a death knell for the trade accord, Trump has now cleared the way for the People’s Republic of China to set the baseline for trade rules across the Asia-Pacific region, negating hopes from the previous Obama administration to ‘pivot’ the country’s strategic and economic orientation toward the fast-growing region and backtracking on a decades-long bipartisan consensus that the United States takes an open and, indeed, leading approach to the ideal of free trade.

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RELATED: One reason for Americans to support TPP?
Absolving US sins in Vietnam

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Though the general terms of global trade will continue to be governed by the World Trade Organization, regional trade deals allow for countries to deepen trade ties in ways that go beyond the standard WTO rules and to develop strategic alliances.

Trump railed against the TPP from the earliest months of his presidential campaign, arguing that it gave China an unfair advantage:

The TPP is horrible deal. It’s a deal that was designed for China to come in, as they always do, through the back door and totally take advantage of everyone.

But China was never a signatory to the TPP and, indeed, was never party to the 12-country talks that also included stalwart US allies like Australia, New Zealand, Canada and Japan. The US national interest in negotiating and signing an agreement like the TPP would have been to create a trade paradigm in the region that seeks to help US interests in contrast to Chinese interests and, of course, to draw both traditional allies and new allies closer to the United States economically and strategically.

If anything, the TPP provided a framework to protect the United States from Chinese competition. To the extent that American manufacturing jobs have suffered as a result of international trade, and from trade with China, in particular, it has come from the decision in 2000 by a Republican Congress and Democratic president Bill Clinton to grant permanent normal trade relations to China (which had previously been subject to an annual congressional vote) and in 2001 to admit China to the WTO, lessening the ability of the United States to deploy protective tariffs against China.

Continue reading Pulling out of TPP: the first major foreign policy error of the Trump administration

Three ways that Xi Jinping, Davos man, undermined Trump today

Xi Jinping appeared this morning at the World Economic Forum, a first for a Chinese leader, with a full-throated defense of globalization. (Gian Ehrenzeller / European Pressphoto Agency)

Three days before Donald Trump takes office as the most protectionist and nationalist American president since before World War II, and on the same day that British prime minister Theresa May outlined her vision of a ‘hard’ Brexit from both the European Union and the European single market, Chinese president Xi Jinping (习近平) made an audacious claim for China’s global leadership in the 21st century. 

Xi, who delivered a landmark speech at the World Economic Forum in Davos, Switzerland, made that claim by embracing the values that American leaders have globally championed for decades (at least prior to Trump’s rise): a stable world order, free trade among nations and the notion that globalization, for all its faults, makes everyone better off.

Xi’s speech, the first ever by a Chinese leader at the World Economic Forum, is the most high-profile response so far from China’s president to Trump’s election. Despite Xi’s generally measured and cautious prose — he never once mentioned Trump by name — there’s no way to view Xi’s remarks other than as a warning and a rebuke to the rise of populist nationalism and protectionism in the United States and Europe over the last 18 months.

There’s a lot of justified ridicule of Davos as the gathering of self-important global ‘elites,’ but Xi’s speech today is perhaps the most important one that’s ever taken place during the forum.

Opening with a line from Charles Dickens, Xi pledged to keep opening China’s economy to the world, and he committed China to a stabilizing role in the world, including to the Paris accord on climate change, and to reforming the global financial system to smooth its bumpiest elements.

But the key point from Xi’s speech is this: ironically, jaw-droppingly, and likely not for the first time in the Trump era, the head of the world’s largest and most durable Communist Party took to the international stage to defend some of the fundamental principles of global capitalism.

Make no mistake, Xi Jinping is not coming to Davos to embrace those other values that remain a hallmark of what American global leadership projects — individual liberty, political freedom and liberal democracy with broad-based protections of civil and minority rights. Notably, no one today can claim that the People’s Republic of China under Xi enjoys the same political freedoms as Americans and Europeans do.

In 2016, China ranked 176 out of 180 countries in the Reporters Without Borders press freedom index (only Syria, Turkmenistan, North Korea and Eritrea were worse). Under Xi, Chinese censorship of the Internet has worsened, with fewer VPN networks still available to circumvent state controls. Under Xi, political dissent has been less tolerated than at any time in the recent past, even in traditionally liberal Hong Kong. Critics allege that Xi’s wide-ranging anti-corruption campaign amounts to a power grab designed to eliminate Xi’s internal enemies. Taiwan’s rejection of a services trade agreement with Beijing and the election of a nominally pro-independence president in Tsai Ing-wen (蔡英文) have worsened cross-straits relations. China’s east Asian allies are increasingly on alert over Chinese aggression in the South China Sea.

Nevertheless, Xi’s remarks were a consequential turning point for a country that is home to the world’s largest population (1.3 billion) and its second-largest economy, and a sign that China very much expects to take a stronger global leadership role in the years ahead.

In three key ways, Xi challenged Trump’s world view even before the incoming US president has taken the oath of office. Xi’s gauntlet comes just days after Trump blasted both NATO and the European Union in interviews over the weekend, alienating traditional US allies across the continent and stirring anxiety over the future of the trans-Atlantic alliance. Continue reading Three ways that Xi Jinping, Davos man, undermined Trump today

Anti-Russia, pro-trade former journalist Freeland is Canada’s new foreign minister

Chrystia Freeland transitioned only four years ago from journalism to politics, but she’s now Canada’s top diplomat. (Facebook)

If there’s a polite Canadian way to let Donald Trump just what Canada’s government thinks of the incoming US president with just over a week before his inauguration, it must certainly be this:

Promoting to the rank of foreign minister — Canada’s chief diplomat and the key official tasked with US relations — a former journalist who has championed free trade, who last year finalized a landmark free trade agreement between Canada and the European Union and whose writings on Ukraine and Russia’s illegal annexation of Crimea so offended Russian officials that they placed her on a sanctions list and banned her from setting foot on Russian soil.

Meet Chrystia Freeland.

Like prime minister Justin Trudeau, Freeland is technically very new to elective politics, entering the House of Commons after winning a by-election in Toronto only in 2013. But also like Trudeau, she’s spent her entire adult life steeped in Canadian and global politics.

As recently as last week, Freeland held up Canada as country open to both immigration and trade and a bulwark against rising populism and protectionism in the United States and Europe. As Trump prepares to take power to the south, and as a Conservative MP, Kellie Leitch, tries to win her own party’s leadership with an anti-immigrant and anti-elite message, voters haven’t lost faith in Trudeau’s approach. His post-election honeymoon is continuing into its 15th month, as the Liberal Party continues to enjoy a wide double-digit polling lead.
Continue reading Anti-Russia, pro-trade former journalist Freeland is Canada’s new foreign minister

Trump boosts Nehlen in August 9 primary vs Paul Ryan

Paul Ryan, speaker of the House of Representatives, faces a unique primary challenge on August 9. (Facebook)
Paul Ryan, speaker of the House of Representatives, faces a unique primary challenge on August 9. (Facebook)

Don’t look now, but House speaker Paul Ryan may have just one week to salvage his career.USflag

OK, that might be hyperbole, but the longtime Wisconsin representative is facing perhaps the stiffest challenge of his nearly two-decade career in elective office.

For the better part of a decade, Ryan has been the face of movement conservatism in the United States. From the beginning of the Obama administration, Ryan quickly filled a role as something of the dean of conservative policymaking on Capitol Hill, earning for himself a reputation as a radical intellectual of the American right, who would routinely propose budgets that would so drastically reshape taxes and spending in the United States, even his predecessor as House speaker, Newt Gingrich — no shrinking violet on the American right — dismissed some of his ideas as ‘right-wing social engineering.’

Nevertheless, Ryan’s ascent in American politics is stunning. He served as Mitt Romney’s running mate in 2012; had the Romney-Ryan ticket won that election, Ryan would have played an important role in formulating economic policy for the Romney administration. Reluctantly — very reluctantly — Ryan agreed to run for House speaker last year after John Boehner stepped down and the frontrunner, House majority leader Kevin McCarthy, suddenly dropped out.

In many ways, Ryan’s has been a fairy-tale rise in American politics and, even today, he is a plausible future president in 2020 or beyond.

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RELATED: A brief history of Republican speakercide

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That may be changing, however, in the age of Trump.

By all appearances, Ryan was already facing an uncomfortably tough primary challenge from local businessman Paul Nehlen. But that challenge became a bit tougher on Sunday evening, when Republican presidential nominee nudged supporters toward Nehlen via Twitter:

On Monday, Trump refused to endorse Ryan in his primary, openly mocking the House speaker with the same kind of equivocating language that Ryan used in May when he refused to endorse Trump for the presidency:

Trump praised the House speaker’s underdog opponent, Paul Nehlen, for running “a very good campaign.” Trump said that Ryan has sought his endorsement, but that as of now he is only “giving it very serious consideration.”

“I like Paul, but these are horrible times for our country,” Trump said. “We need very strong leadership. We need very, very strong leadership. And I’m just not quite there yet. I’m not quite there yet.” Trump’s refusal to back Ryan represents an extraordinary breach of political decorum and signals that the Republican Party remains divided two weeks after a national convention in Cleveland staged to showcase party unity.
Continue reading Trump boosts Nehlen in August 9 primary vs Paul Ryan

Can Hillary Clinton become America’s Mutti?

Former US secretary of state Hillary Clinton might find in German chancellor Angela Merkel a role model in the era of Trump (State Department)
Former US secretary of state Hillary Clinton might find in German chancellor Angela Merkel a role model in the era of Trump (State Department)

In 2008, US president Barack Obama won the largest Democratic mandate in a generation, in part, by pledging to change the tone in Washington.USflag

But in 2016, after eight years of increasingly bitter and partisan posturing, it’s Obama’s one-time rival, Hillary Clinton, who now has the opportunity to transcend the hyper-partisanship that began with the divided government under her husband’s administration in the 1990s.

Donald Trump’s hostile takeover of the Republican Party laid bare the long-growing schism among various Republican constituencies. Currently, the two living former Republican presidents (George H.W. Bush and George W. Bush), the party’s most recent presidential nominee (former Massachusetts governor Mitt Romney), its one-time 2016 frontrunners (former Florida governor Jeb Bush, Wisconsin governor Scott Walker, Texas senator Ted Cruz and Florida senator Marco Rubio) and the Republican in the highest-ranking elected official — speaker of the House (Wisconsin congressman Paul Ryan) — have all refused to endorse Trump.

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RELATED: That transcending ideology thing from 2008?
Merkel did it. Obama hasn’t.

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Despite the promise that the coming general election will be nasty, even by the recent standards of American politics, Clinton, if she’s nimble enough, can become a unifying and moderate figure who can work with both Republicans and Democrats. If Trump loses as badly as polls suggest he might, the Republican Party will be a shambles on November 8. The fight for Senate control was always a toss-up, and a Trump debacle could endanger even Republican control of the House of Representatives.

Increasingly, the debate in world politics is tilting away from traditional left-right discourses, replaced by a much darker fight, for the first time since the 1930s, between populist nationalism and globalist internationalism — and not just in the United States, but everywhere from the Philippines to the United Kingdom. In that fight, Ryan (and Bush and moderate Republicans) have much more in common with Clinton and the officials who will lead a Clinton administration than with Trump.

Make no mistake, if Clinton wins the presidency in November, she’s not going to form a German-style ‘grand coalition’ with Ryan and leading Republicans. Postwar German politics operates largely on consensus to a degree unknown in American (or even much of European) politics. Still, German chancellor Angela Merkel has already paved the way for how a successful Clinton presidency might unfold, and Clinton advisers would be smart to figure out, as the campaign unfolds, how to position Clinton as a kind of American ‘Mutti.’ Clinton is already reaching out to moderate Republican donors, but the challenge goes much deeper — to become a kind of acceptable figure to both blue-state and red-state America.

It’s not clear that Clinton has the same political skill to pull off in the United States what Merkel has done in Germany.

But it’s a rare opportunity, nonetheless, if she can.  Continue reading Can Hillary Clinton become America’s Mutti?

Philippines considers both presidential strongman, Marcos restoration

Fists in the air, Rodrigo Duterte is leading the polls to become the next president of the Philippines. (Facebook)
Fists in the air, Rodrigo Duterte is leading the polls to become the next president of the Philippines. (Facebook)

It’s hard not to think of Rodrigo Duterte as the Donald Trump of the Philippines.philippines

But in truth, he’s more like Joseph Arpaio — a conservative, tough-on-crime kind of guy willing to do whatever it takes to clean up his city, human rights or the justice system be damned.

At age 71, ‘Rody’ Duterte, who has served for a total of 22 years as mayor of Davao City, has vaulted to a lead in the polls to become the leading presidential choice among voters in the Philippines when they go to the polls on May 9. It’s an election in which Philippines might turn from liberalism to illiberalism not only by electing a Duterte presidency, but also by supporting the restoration of the Marcos family — the son of Ferdinand Marcos, the country’s autocratic ruler from 1965 to 1986, is running for the vice presidency as well.

Duterte is a presidential candidate with tough talk on crime, corruption

Known domestically as the ‘punisher,’ Duterte is not a man to cross. He brags about killing criminals, especially drug dealers, with his own gun, taking extrajudicial justice into his own hands where he sees fit. He openly admitted last November to killing three rapists and kidnappers in Davao City, and he said last week that he would kill his own kids if he found out they were using drugs. Duterte has trekked across the country delivering a fiery nationalist stump speech, often with his fist raised in the air, a variant of which serves as his campaign logo. It’s not a subtle appeal Duterte is making to supporters, who also casually refer to him as ‘Duterte Harry.’

For the United States, the Philippines figures heavily in the growing US strategic and military interest in the Pacific Rim, and the outgoing Obama administration hopes that, in particular, the Trans-Pacific Partnership (TPP) will draw the Philippines closer to the United States and further, economically speaking, from China. Today, officials in the administrations of both outgoing US president Barack Obama and outgoing Philippine president Benigno ‘NoyNoy’ Aquino III view the growing cooperation as mutually beneficial.

In no uncertain terms, a Duterte victory next Monday in the presidential election would make US-Philippine relations much more difficult.

It’s not a small matter. The Philippines is the world’s 12th-most populous country, with 103 million people and growing.

Davao City, the fourth largest in the country, lies in the far tropical south, and Duterte has presided over its transformation from a hub for communist and left-wing radicals to a case study in law and order. In a country where everyone seems to be worried most about corruption and crime, Duterte and reports of how he’s tamed Davao City over 20 years in power have captured the national zeitgeist. Elected to national office just once (18 years ago) throughout his  decades-long career, Duterte can also style himself as an outsider, relatively speaking. Like most politicians in the Philippines, Duterte comes from an influential family — his father was an attorney and a former governor of what used to be Dávao province.

But that’s where the similarity to most Philippine politicians ends.

Braggadocio about personally killing drug dealers in Davao City and his ‘take no prisoners’ approach to anti-crime efforts have touched a chord with voters. Reporters questioned him when he kicked off his campaign last December about organizing death squads and killing over 700 people; Duterte responded (only half-jokingly) that he had killed more like 1,700 people. Continue reading Philippines considers both presidential strongman, Marcos restoration

Fujimori’s daughter leads as Peru faces June presidential runoff

Keiko Fujimori is set to win with ease the first round of Peru's presidential election on Sunday. (Facebook)
Keiko Fujimori is set to win with ease the first round of Peru’s presidential election on Sunday. (Facebook)

In 2011, Peruvian author Mario Vargas Llosa famously compared the choice his country’s electorate faced as a choice between AIDS and cancer.Peru Flag Icon

Five years later, one of those choices from that election, Keiko Fujimori, the daughter of Peru’s former authoritarian president (now serving in prison for corruption), now leads the country’s April 10 vote by double digits. Ollanta Humala, who defeated Fujimori five years ago, once feared as a militarist left-wing firebrand and a chavismo sympathizer, is leaving office widely derived and haunted by corruption, even after hewing to a middle-road path.

Though Humala will step down with as poor of an approval rating as his most recent predecessors, the biggest surprise of his presidency is that he ultimately chose to follow a center-right, business-friendly path in line with the past two decades of Peruvian governance. Humala will leave office, to the dismay of his one-time left-wing supporters, as a defender of neoliberal economics who stood, often with the force of Peru’s military, against striking workers and miners across the country. Though Humala himself is a former army officer, he failed to contain the growth of Sendero Luminoso (Shining Path), a Maoist guerrilla operation that’s made modest gains in southern Peru over Humala’s administration, despite its near eradication a generation ago.

As of February, Humala has also been implicated in Brazil’s widening corruption inquiry, amid allegations from Brazilian police that Humala may have taken bribes from Odebrecht, a Brazilian construction firm. His wife, Nadine Heredia, who once harbored ambitions of succeeding Humala herself, is also under investigation for corruption.

It’s no wonder that, once again, in an election year, Peruvians are looking for a change.

A referendum on a father’s complex legacy

Fujimori, for her part, has positioned herself well since the last election. The frontrunner to win Sunday’s presidential, she is nevertheless unlikely to secure the presidency outright. More likely, Fujimori will face the second-placed candidate in a June 5 runoff.

Still, the prospect of an easy double-digit win for Fujimori spawned a wave of popular protest across the country this week, a sign of the tumult that might follow in the two-month runoff campaign as anti-Fujimori forces coalesce behind a single challenger. Nearly 30,000 flooded the streets of Lima, Peru’s capital, earlier this week in opposition to her candidacy. Protesters worry that a Fujimori victory (either now or in June) will restore the same authoritarianism and corruption that marked the decade of rule under her father, Alberto Fujimori, between 1990 and 2000.

Despite Keiko’s best efforts, the June runoff is likely to become a referendum on her father’s legacy.
Continue reading Fujimori’s daughter leads as Peru faces June presidential runoff

An interview with El Paso-area Congressman Beto O’Rourke

Congressman Beto O'Rourke has been representing the El Paso area in the U.S. House of Representatives since January 2013. (Rod Lamkey / Getty Images)
Congressman Beto O’Rourke has been representing the El Paso area in the US House of Representatives since January 2013. (Rod Lamkey / Getty Images)

As part of a reporting trip to El Paso and Ciudad Juárez earlier last month, I spoke with El Paso’s congressman, Beto O’Rourke, by telephone, on January 27. The transcript follows below, and it encompasses essentially the entire interview with the congressman, a member of the Democratic Party and a former member of the El Paso city council. Congressman O’Rourke has represented Texas’s 16th district since January 2013.USflagtexas flagMexico Flag Icon

You will be able to read my piece on El Paso and Juárez — and how their interconnectivity belies the rhetoric of Donald Trump — shortly. But the more wide-ranging and thoughtful interview with Congressman O’Rourke is also worth a read, given that we touched on many topics, including Trump, the history of the El Paso-Juárez region, the US ‘war on drugs,’ income inequality in an international context and the Democratic primary battle between former US secretary of state Hillary Clinton and Vermont senator Bernie Sanders.

Kevin Lees: Thanks for talking to me today.

Congressman Beto O’Rourke: My pleasure.

KL: How much time do we have?

BOR: I have right now about 30 minutes.

KL: So when are you headed back to Washington?

BOR: Monday, and you probably know this, but we were supposed to be there this week.

KL: You missed a snowstorm!

BOR: I know! [small talk continues]

BOR: I’m interested in people’s impression of El Paso. We have a very large military installation here. And there are somewhere around 30,000 to 32,000 active duty service members, most of whom are not from El Paso. And you hear what they thought when they found out they were going to be posted to El Paso, which is almost always negative, and then [you hear] what their actual experience was when they got here, is almost always positive. In part because they really assumed and feared the worst, and so starting from such a low point it can only get better once they got here. But it is really beautiful. We’re in the Rocky Mountains, which people don’t expect when they are in Texas. Where the US and Mexico, and then Texas and New Mexico and Chihuahua all meet. There‘s no other place that I’ve ever been that is as extraordinary. I haven’t been everywhere in the world, but I’ve been to a lot of places, it’s really beautiful.

A view of El Paso and the Rocky Mountains from the US-Mexican border. (Kevin Lees)
A view of El Paso and the Rocky Mountains from the US-Mexican border. (Kevin Lees)

KL: And the culture is really a very bespoke culture, a sort of hybrid between American and Mexican culture. Its own borderlands kind of thing, where everyone sort of has a foot in two different countries. It’s very special to me. I thought it was a lot of fun.

BOR: I don’t know if you Snapchat at all, but we’re trying to connect with people to broadcast their views, information exclusively from Snapchat. Which apparently is big for a lot of people 14- to 24-year olds. And I’m trying to use it to show people what it is when they think about this region. So I used it for a run today along the Rio Grande and the Upper Valley of El Paso, and I kind of took a shot and posted it of ‘Over here is El Paso, this is Del Ray where Mexico, New Mexico, and Mexico all connect; this is a neighborhood in Juárez; all in one shot.’

It really kind of blows people’s minds when they see that or realize that we really are either at the end of the world, or the beginning of the world in terms of what your world is. Either the back door to the United States or the front door to the United States. Front door or back door to Latin America.

KL: One of the things that you realize when you are in El Paso and Juárez is the two cities function as sort of each other’s yin and yang in some ways. In what ways do you consider El Paso and Juárez the same city? Continue reading An interview with El Paso-area Congressman Beto O’Rourke

Vietnam’s ruling Communists set to elect leadership after public power tussle

The general secretary of Vietnam's Communist Party, Nguyen Phu Trong (left) is seen to have fended off a challenge from outgoing prime minister Nguyen Tan Dung (right). (CTV)
The general secretary of Vietnam’s Communist Party, Nguyen Phu Trong (left) is seen to have fended off a challenge from outgoing prime minister Nguyen Tan Dung (right). (CTV)

Though we normally think of the Communist-ruled Vietnam as an autocratic country, it too has politics — and it even has elections.vietnam

Vietnam’s messy politics have been on a rare, full display over the course of the past month in the lead-up to this week’s 12th party congress of the Communist Party of Vietnam (Đảng Cộng sản Việt Nam). Vietnam’s ruling party will elect a central committee of between 160 and 180 members, a smaller politburo of 16 members and, from among the politburo’s ranks, the party’s general secretary, Vietnam’s president and Vietnam’s prime minister.

It’s as if the United States were selecting, in one eight-day period, the American president, vice president, executive cabinet chiefs and congressional leadership, in a secret conclave of elite gatekeepers.

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RELATED: One reason for Americans to supprt TPP?
Absolving US sins in Vietnam.

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But it is also a series of elections among discrete actors with divergent interests, and that’s led to some high-stakes politicking in the last month. Though just 1,510 delegates are voting in the current party congress, they represent a membership of 4.5 million Vietnamese. That’s just a fraction of the 91.7 million people that comprise Vietnam’s population, but it’s notable that the selection process has left some room for surprise.

The most audacious, perhaps, has been the tussle for power at the top, with outgoing prime minister Nguyễn Tấn Dũng gunning for the most powerful position — general secretary. The current general secretary, Nguyễn Phú Trọng, however, has been less than enthusiastic about ceding the role after just five years in the office, and international analysts had thought Dũng’s elevation as general secretary more likely than not throughout 2015.

Given that Dũng is essentially term-limited as prime minister, the only options for him seemed to be up — or out.

So after a series of internal machinations, Dũng seems now out of a job — and out of both of the central committee and the politburo after a decade serving as prime minister. An unofficial rule that Vietnam’s top party brass retire after age 65 means that both Trọng (age 71) and Dũng (age 66) were never likely to remain long at the top echelons of party leadership. But it’s a disappointment for a man that businessmen and global outsiders, in particular, had come to regard as the best of Vietnam’s ruling Communists.

In his decade as prime minister, Dũng developed a reputation as relatively reformist and pro-Western. His tenure coincided with a wave of liberalization both at home and in Vietnam’s international relations. Shortly after taking power in 2006, Dũng oversaw Vietnam’s formal accession to the World Trade Organization, and he has been a leading proponent of Vietnam’s participation in ongoing negotiations to conclude the Trans-Pacific Partnership, which could bring greater economic development and middle-class job opportunities to Vietnam, a country that still depends on much of its income from coffee (it’s the world’s largest exporter), rice and cheap manufacturing.

Though the country also resolved a long-simmering border dispute with China, Dũng has generally improved US-Vietnamese bilateral relations in a bid to contain China’s influence, and Trọng himself even traveled to Washington for the first time since the two countries ended their bloody Cold War-era conflict in the mid-1970s. US president Barack Obama is even expected to visit Hanoi in May, one of the highlights of his final year in office.

Hard-line conservatives within Vietnam’s ruling party may be thrilled to see Dũng sidelined, which clears the way for Trọng’s reelection as general secretary, though even that is not certain until the party congress ends on Thursday. It’s reasonable to expect that Trọng may not serve until the next party congress expected in 2021, when he will be 76 years old.

But Dũng’s reputation as a reformer has always been somewhat less than consistent. Reforms during Dũng’s premiership did not extend to political liberalization, and internet censorship worsened with new regulations in 2013 forbidding online discussion of political events. While Vietnam today feels less like an authoritarian police state than North Korea or even the People’s Republic of China, Dũng’s government cracked down on dissidents and democracy activists in several high-profile incidents. Moreover, Dũng has championed large, public-sector behemoths that critics have argued facilitate widespread corruption within the party system — corruption that, they allege, also extends to the prime minister’s family. Indeed, Dũng’s star dimmed somewhat in 2010 after a state shipbuilding company, Vinashin, was nearly bankrupted amid allegations of profits being skimmed for personal gain.

But for a country as opaque as Vietnam, with one of the world’s few old-school communist governments, Trọng’s apparent resilience could be a signal for the country’s future policy direction. It may mean that Vietnam’s ruling elites believe even limited reforms under Dũng were too much and too soon, though TPP accession will require Vietnam to lock in its commitment to rule-of-law reforms and the kind of deeper liberalization and privatization that it has so far shunned.

Or it may mean that the delegates didn’t want to deliver too much power to a prime minister who’s been developing a growing profile for a decade as the country’s most respected leader abroad and who could wield extraordinary power as general secretary, thereby upsetting the balance in Vietnam’s government-by-consensus model.

Or it may mean that party leaders do not want to promote someone whose relatively hawkish tone on China has pulled Vietnam closer to the United States and away from their mutual Communist allies to the north. After all, China still wields significant economic influence over Vietnam.

Or it may mean that delegates and the central committee are eager to pass the leadership (including, eventually, the top position of general secretary) to a younger generation, just as Dũng’s rise in 2006 marked a transition to a postwar generation of party officials.

Or it may mean very little at all, other than a contest of personalities. Given the decades-long push to open Vietnamese markets on ‘Chinese-style’ state capitalist lines, the most likely outcome is that neither Trọng’s reelection or Dũng’s victory means much to Vietnam’s long-term trajectory.

One of four current deputy prime ministers, Nguyễn Xuân Phúc is expected to take the premiership later this week.
One of four current deputy prime ministers, Nguyễn Xuân Phúc, is expected to take the premiership later this week.

What we will know by the end of the week, when the party congress concludes on January 28, is the following:

  • the new members of the politburo, expected to see significant turnover due to the retirement of many of the current members now over age 65;
  • the new prime minister, perhaps another young reformer, though the frontrunner for now seems to be Nguyễn Xuân Phúc, age 61, a current (if low-ranking) member of the politburo, one of four deputy prime ministers and not particularly close to Dũng;
  • a new president (today it’s a mostly ceremonial role) to replace the retiring Trương Tấn Sang; and
  • whether Trọng will stay on as general secretary, though we will not necessarily know about any deals that could see Trọng step down between now and the expected 13th party congress.

Those appointments, which will be duly ratified by Vietnam’s National Congress later this year as a formal matter, will not necessarily tell us so much about where Vietnam may or may not be headed. But the extenuated tussle between Dũng and Trọng, far more open and public than any before it (and more public than any fight for the Chinese Communist Party’s leadership, for example) shows that there is real political competition in Vietnam, even at its top levels.

Harper’s legacy is the birth of a modern 21st century Canadian conservatism

Outgoing prime minister Stephen Harper is the only leader that Canada’s modern Conservative Party has ever known. (Facebook)

Next week, for the first time since 2002, Stephen Harper will neither be Canada’s prime minister nor opposition leader. Canada Flag Icon

At the same time that Stephen Harper was on stage conceding defeat to Liberal leader Justin Trudeau, he announced (via a statement) that he would indeed be stepping down as leader of the Conservative Party, a position that he has held since 2003 when the party first came into being.

In the days ahead, the Conservative Party will decide how to appoint a caretaker interim leader pending a full leadership election to choose the party’s second leader.

Harper leaves behind a mixed legacy, like any prime minister.

For Canada’s conservatives, Harper wasn’t just a three-term prime minister, though his nine-year tenure will be longer than all but five prime ministers in Canadian history. He’s the tribune who led the Canadian right out of the wilderness of opposition and the man who brought the Canadian west back into the national conversation that had focused too long on Toronto commercial matters, constitutional crises, bilingualism and appeasing the Quebeckers.

In retrospect, it’s amazing that it took just three years for Harper to take power after engineering the December 2003 merger between his Canadian Alliance, the upstart prairie and western movement that brought a more full-throated, US-style, socially conservative attitude to national politics, and the more troubled Progressive Conservative Party. By the 2000s, the PCs were a relic of the eastern elite, and the party never fully recovered from the 1993 election, when it lost all but two seats in the House of Commons.

Incredibly, as the Conservative Party looks to choose Harper’s successor in the weeks and months ahead, he is the only leader that the current Conservative Party has known — not counting, of course, the two living former Tory prime ministers Joe Clark and Brian Mulroney, neither of whom ever completely warmed to the Calgarian warrior from the west.

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RELATED: Live-blogging Canada’s election results

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At just 56 years old, Harper certainly didn’t look or act like a leader (or prime minister) in a hurry for retirement. He looked mostly like someone who believed, until too late, that leftist and moderate voters would split between the Liberals and the New Democratic Party (NDP), giving the Conservatives yet another path to government by plurality vote. To his misfortune (and to the NDP’s), that didn’t happen.

Post-election reports reveal that Harper was considering a pledge not to seek a fifth term after 2015. But having only won his first majority government in 2011, Harper might have easily stuck around to run for a fifth mandate if he’d survived October 19. But in shooting for a fourth consecutive term, Harper knew well that he was facing long odds attempting to repeat what only Conservative John Macdonald and Liberal Wilfrid Laurier accomplished before.

Coupled with the onset of a mild economic recession, it was always an uphill fight for Harper. He can walk away from the election result with his head held high, having remade Canadian conservatism and nudged Canada toward greater fiscal responsibility, more enthusiasm for free trade and presided over a generally more unified Canadian entity.  Continue reading Harper’s legacy is the birth of a modern 21st century Canadian conservatism

Nine things to watch as Canada’s next Trudeau era begins

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Defying expectations in August that pitted the Liberal Party in third place at the beginning of the election campaign in August, Justin Trudeau has now won a clear majority government and a mandate for change in Canada’s 42nd federal election.Canada Flag Icon

So what does that mean for Canada, for US-Canadian relations and for Canada’s role in the world in the weeks and months ahead?

Here are nine policy areas to keep an eye on as Trudeau begins the rapid transition to 24 Sussex Drive, appoints a cabinet and tackles a full agenda of issues that could dominate what will likely be a full four-year term with the kind of parliamentary mandate that should make it much more easier than Trudeau ever expected to enact his policy preferences.

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Climate change. As the Paris summit on climate change approaches in November, Canada’s government will go from being one of the most skeptical participants at the conference to one of the most enthusiastic supporters of action to reduce carbon emissions. Keep an eye on Stéphane Dion, the former Liberal leader from 2006 and 2008 and a former environmental minister, to play a vocal and supportive role. Nevertheless, global climate change policy is mostly set by the G-2 — i.e., the United States and China. So Trudeau’s role at the summit, while productive, will be more about style than any actual substance. Joyce Murray, a popular left-wing MP and British Columbia’s former environmental minister, who was the runner-up to Trudeau in the 2013 Liberal contest, is also a rising star to watch on environmental matters.

Economic policy. At the start of the campaign, the traditionally more centrist Liberals advanced a tax policy to the left of the New Democratic Party (NDP) by promising a middle-class tax cut to be paid for by slightly higher taxes on those who earn roughly more $200,000 annually. During the campaign, as Canada officially slipped into a shallow recession, Trudeau doubled-down by pledging to engage in deficit spending over the next three years to stabilize Canada’s economy, protect jobs and boost infrastructure. It was this move, again outflanking the NDP (whose leader Thomas Mulcair promised to maintain the Conservative Party’s devotion to balanced budgets), that may have convinced voters that Trudeau, and not Mulcair, represented the most striking contrast with Conservative prime minister Stephen Harper.

Ralph Goodale, a former finance minister under Paul Martin; Bill Morneau, a 52-year-old newcomer first elected last night from the Toronto’s business world and Scott Brison, a former Progressive Conservative MP who defected to the Liberals over a decade ago, could all be leading contenders for finance minister. Continue reading Nine things to watch as Canada’s next Trudeau era begins

Why a Liberal-NDP coalition in Canada feels inevitable

NDP leader Thomas Mulcair and Liberal leader Justin Trudeau partipicate in a March 2014 forum. (Jean Levac / Ottawa Citizen)
NDP leader Thomas Mulcair and Liberal leader Justin Trudeau partipicate in a March 2014 forum. (Jean Levac / Ottawa Citizen)

Roughly speaking, there are three plausible outcomes from tonight’s Canadian federal election.Canada Flag Icon

The first, increasingly likely (with a final Globe and Mail poll giving the center-left Liberal Party a lead of 39.1% to just 30.5 for the Conservative Party), is an outright Liberal majority government. It’s a prospect that no one would have expected a few days ago and certainly not when the campaign began with Liberal leader Justin Trudeau stuck in third place. But as the Liberals have pulled support from the New Democratic Party (NDP) and possibly even from the Conservatives in the final days of the campaign, they just might make it to the 170 seats they’ll need to form a government without external support.

The second, increasingly unlikely, is a Conservative win. No one expects prime minister Stephen Harper to win a majority government again nor anything close to the 166 seats he won in the 2011 election (when the number of House of Commons seats was just 308 and not yet the expanded 388). Under this scenario, Harper would boast the largest bloc of MPs, even though an anti-Harper majority of NDP and Liberal legislators would be ready to bring down Harper’s shaky minority government on any given issue. Despite a growing Liberal lead, there’s some uncertainty about the actual result. That’s because Canada’s election is really 338 separate contests all determined on a first-past-the-post basis. In suburban Ontario, throughout British Columbia and in much of Québec, where the NDP is most competitive, left-leaning voters could split between the NDP and the Liberals, giving the Conservatives a path to victory with a much smaller plurality of the vote. (In the waning days of the campaign, several groups have tried to urge strategic voting to make sure the anti-Harper forces coalesce on a riding-by-riding basis).

The safest prediction is still a Liberal minority. For a party that currently holds just 34 seats in the House of Commons after former Liberal leader Michael Ignatieff’s 2011 disaster, a plausible increase of 100 seats would be a massive improvement, validating the Liberals’ decision to coronate Trudeau as the party’s last saving grace. Despite the NDP’s loss of support, it is still expected to have some resiliency in British Columbia and Québec. Getting to 170 from 34 might just be a step too far, but it’s certainly no failure if Trudeau falls short in just one election cycle.

What seems clear from the trajectory of Canada’s 42nd election campaign is that Canada’s two parties of the center-left easily attract in aggregate over 50% of the vote in national polling surveys. Together, their lead over the Conservatives isn’t even close. Over the past month, as the Liberals have gained support, it’s chiefly come at the expense of the NDP, which was winning many more of those centrist and left-leaning voters at the beginning of the campaign:

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As the Liberals gained, the NDP correspondingly lost support, indicating that the fluidity in the election has come from anti-Harper voters shopping for the most attractive alternative. Continue reading Why a Liberal-NDP coalition in Canada feels inevitable

How the hope of Canada’s first NDP government dissolved

After next week's election, polls show that Thomas Mulcair will not only fall short of becoming prime minister; he may no longer be the official opposition leader. (Facebook)
After next week’s election, polls show that Thomas Mulcair will not only fall short of becoming prime minister; he may no longer be the official opposition leader. (Facebook)

After leading the polls in July, August and much of September, the New Democratic Party (NDP) now seems likely to place third after next Monday’s election.Canada Flag Icon

Much of the NDP’s fall is attributable to the corresponding rise of support for the Liberal Party under the leadership of Justin Trudeau, who spent much of the summer languishing in third place. Not so long ago, Mulcair appeared the favorite among Canadian voters to become the next prime minister. Today, however, polls suggest he will not only fall short of government, he’ll fall back from opposition leader to third-party status.

How did the NDP end up in such a strong position, as recently as a month ago, and how did it and its leader, Thomas Mulcair, squander such a historic opportunity?

If you’re just tuning in, the conventional wisdom goes something like this: Continue reading How the hope of Canada’s first NDP government dissolved

One reasons for Americans to support TPP? Absolving US sins in Vietnam.

FILE - In this June 8, 1972 file photo, crying children, including 9-year-old Kim Phuc, center, run down Route 1 near Trang Bang, Vietnam after an aerial napalm attack on suspected Viet Cong hiding places as South Vietnamese forces from the 25th Division walk behind them. A South Vietnamese plane accidentally dropped its flaming napalm on South Vietnamese troops and civilians. From left, the children are Phan Thanh Tam, younger brother of Kim Phuc, who lost an eye, Phan Thanh Phouc, youngest brother of Kim Phuc, Kim Phuc, and Kim's cousins Ho Van Bon, and Ho Thi Ting. (AP Photo/Nick Ut)
The iconic June 8, 1972 photo that shows 9-year-old Kim Phuc after an aerial napalm attack on suspected Viet Cong forces. (AP Photo/Nick Ut)

There are a lot of reasons to be cynical about the Trans-Pacific Partnership.USflagvietnam

Like most multilateral trade deals, it seems to bring with it all of the ‘warts and barnacles’ that always seem to accompany these kinds of trade deals:

  • Complex enforcement mechanisms (like ISDS) sometimes seem to threaten to override national sovereignty.
  • Agreements too often fail to address poor labor and environmental standards in the developing world and, when they do, enforcing more equal standards is difficult.
  • Ignoble compromises over intellectual property force higher prices for life-saving drugs throughout the developing world and benefit Hollywood at the expense of locally produced culture.
  • In a globalized world where the World Trade Organization reduced many tariffs to nearly zero over the last half-century, free trade deals too often fail to liberalize non-tariff barriers to trade, at least to the extent that proponents might prefer, especially in the most highly protected industries like agriculture and services.

Hillary Clinton, who often championed the TPP when she served as the Obama administration’s secretary of state, came out against the trade deal last week, citing the protections for pharmaceutical companies and the lack of mechanisms that deal with potential currency manipulation. Those are odd reasons, though, as many analysts have noted, and her opposition comes after sustained support for the trade deal when she was in office. If anything, the protections for drug companies are far lower than those companies sought (just five to eight years of protection instead of the 12 years that the United States originally wanted). Moreover, currency manipulation has never particularly been an issue of focus in multilateral trade deals, and it’s doubtful that the US government could have won any serious concessions on currency, even if it tried.

Generally speaking, even if you dislike the TPP’s ‘warts and barnacles,’ there’s still a strong theoretical basis for freer trade. But there’s an even more important reason to support the TPP.

Vietnam.

No country stands to gain more from the benefits of free trade and liberalization than Vietnam. As Tyler Cowen eloquently wrote in April for Marginal Revolution:

It has large numbers of state-owned enterprises, and its policies toward such enterprises could use more transparency and predictability, as indeed TPP would bring.  Most generally, Vietnam is not today a free country.  Bringing Vietnam into TPP would further ensure their attachment to a broadly liberal global trading order.  TPP also would bring free(r) labor unions to Vietnam.

Other analysts agree, and there’s a growing consensus that Vietnam will be among the top winners if TPP becomes a reality. With tariffs on garments and footwear set to fall to zero under the TPP, Vietnamese exports will get a boost in the United States at the expense of China and even other free-trade partners like Mexico, because labor costs are still lower in Vietnam. That will help Vietnam maintain its advantage for low-cost manufacturing, even as multinational companies look to even lower labor costs in Laos and Cambodia. Moreover, despite challenges ahead, a widely cited analysis by the Petersen Foundation identified Vietnam as the country with the most to gain from the TPP:

Vietnam would face significant challenges in implementing an agreement that requires stringent disciplines in areas such as labor and government procurement. It also faces tough challenges in maintaining a macroeconomic environment that permits adjustment and encourages long-term investments. But overall, Vietnam’s participation in the agreement is well-founded.

TPP will, accordingly, increase the diversity of Vietnam’s trading partners and reduce its economic reliance on China. When the Obama administration talks about the benefits of TPP in strategic or even military terms, this is one of the most important points — TPP will lessen China’s hold on the southeast Asian economy, at least in the short term, both to the benefit of countries like Vietnam (as well as Malaysia and even more developed countries like Japan and Singapore).

Greater trade between the United States and Vietnam, and greater trade between Vietnam and the European Union, pursuant to another free-trade agreement concluded earlier this year, is expected to increase foreign direct investment in Vietnam, which could help develop a more high-tech and services-based economy and a more educated workforce.

Moreover, arguably no country in the world has suffered more at the hands of US incompetence during a war that today seems as pointless as it was brutal. From the My Lai massacre to carpet-bombing and the gratuitous use of napalm, the US-led war in Vietnam in the 1960s and the 1970s didn’t even accomplish its goal of keeping south Vietnam free of communism. The Cold War mentality at the time skewed the nature of Ho Chi Minh’s original struggle, initially more about self-determination and nationalism than about communist ideology. No one today would argue that the war was worth the sacrifices of US forces, the South Vietnamese or the North Vietnamese.

Vietnamese president Trương Tấn Sang met with US president Barack Obama at the White House in July 2015. (White House)
Vietnamese president Trương Tấn Sang met with US president Barack Obama at the White House in July 2015. (White House)

With TPP, the United States has a chance to ameliorate some of those harms. It was Clinton’s husband who restored normal relations with Vietnam in 1995, and it was Republican George W. Bush who facilitated Vietnam’s WTO entry in 2007. Pulling Vietnam, through TPP, into the global mainstream economy is the next logical step in reducing poverty in a country that’s growing at an estimated 6% this year, and Goldman Sachs, for example, predicts that the Vietnamese economy will surge from $186 billion (the world’s 55th largest) to $450 billion by 2025, making it the world’s 17th largest.

Continue reading One reasons for Americans to support TPP? Absolving US sins in Vietnam.

Obama’s error? Prioritizing TPP over TTIP

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I write tomorrow for The National Interest that the Obama administration made a deep strategic error in allowing the fight for trade promotion authority become dominated by the Trans Pacific Partnership when the Transatlantic Trade and Investment Partnership would have been an easier sell. USflagEuropean_Union

Now, given the difficult fight to win fast-trade promotion authority, momentum may be shifting against both the TPP and the TTIP, especially in Europe, where leftists in the European Parliament are having second thoughts. The ramifications of the Obama administration’s strategic choice will linger far into the next administration, whether Republican or Democratic.

I argue that TTIP would have been an easier (and better) trade deal for three reasons. Continue reading Obama’s error? Prioritizing TPP over TTIP