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Ed Webb

Thanks to Trump, Iran Is Winning the Battle for the Middle East's Future - 0 views

  • a world undergoing major change, as China, Russia, and regional powers such as Iran seek to supplant U.S. military hegemony.  Nowhere is this shift more apparent than in the Middle East, where the incoherence of the Trump administration’s foreign policy has been on full display. However, these rapid changes also present a lesson on the overreach of past U.S. interventions and an opportunity for the United States to extricate itself from regional conflicts and push local powers toward cooperation.
  • a recent interview aired on Iranian state television with Maj. Gen. Qassem Suleimani, the commander of the Quds Force, an elite unit of Iran’s Islamic Revolutionary Guard Corps.  In the rare interview, reportedly the first given by Suleimani in more than 20 years, the elusive commander outlined the regional landscape leading up to the 2006 Israel-Hezbollah War
  • According to Suleimani, Israel’s goal was to “get rid of Hezbollah forever.” He lamented the “willingness of Arab countries and their discreet announcement of cooperation” with Israel at the time, which he claimed was aimed at “obliterating Hezbollah and changing the demography in southern Lebanon.”
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  • Over the past decade and a half, the wars waged by Washington and its allies against the Iran-led camp have all been unsuccessful. Hezbollah fought Israel to a bloody stalemate in 2006. Iranian influence in Iraq has been consolidated. Iran and its allies have won the Syrian civil war. Meanwhile, the Trump administration’s “maximum pressure” campaign has failed to bring Iran to heel.
  • At a time when Trump is pushing uncompromising unilateralism, the rest of the world has made clear its desire for a rules-based order grounded in multilateralism, as evident in efforts to save the 2015 Iran nuclear deal and the advent of new regional institutions such as the Asian Infrastructure Investment Bank. In the Middle East, the United States and its major European and regional allies no longer share a cohesive, united vision. This is evident not just in Trump’s haphazard approach to the troop withdrawal from Syria but in his drive to undo the Iran nuclear deal.
  • The coalition of Arab states and Israel that the Trump administration had mobilized against Iran now shows serious signs of splintering
  • for the Gulf states, the forecast is clear: The United States is leaving the Middle East. They have long feared losing the U.S. security umbrella, which was at the root of their rage against former President Barack Obama’s diplomacy with Iran. However, after inciting Trump to escalation and conflict with Iran, his refusal to deploy U.S. military power after the aforementioned attacks is spurring a fundamental recalculation of their security strategies
  • the Emirati government has reached a new maritime agreement with Iran and has reportedly sent a senior official to Tehran to improve ties. Even Saudi Arabia, the leader of the anti-Iran bloc, is communicating to Iran a desire for de-escalation and an end to the war in Yemen
  • It in fact makes little sense for the United States to bear most of the cost of securing the Gulf. In a 2010 study, Roger Stern, an economic geographer at Princeton University, found that from 1976 to 2007, the United States spent $6.8 trillion on protecting the oil flow from the Persian Gulf. “[O]n an annual basis the Persian Gulf mission now costs about as much as did the Cold War,” Stern wrote. This expenditure is even more striking given that, in recent years, the United States has received less than 10 percent of Gulf hydrocarbons. In effect, Washington has given the major importers of Gulf energy (i.e., China, India, and Japan) a free ride when it comes to their energy security.
  • push for the creation of a collective security system in the Gulf
  • A Gulf security system could help ease the security dilemmas between Iran, Iraq, and the Gulf Cooperation Council countries through institutionalized forums for regular dialogue and the facilitation of nonaggression pacts. For such a system to be successful in assuming the burden for ensuring the free flow of Gulf energy, it will require external powers, particularly the five permanent members of the U.N. Security Council, the European Union, and the other major importers of Gulf hydrocarbons, to play a helpful role in promoting regional dialogue
  • it was not Suleimani’s victories that led to the current juncture but self-defeating moves by successive U.S. administrations afflicted with hubris and a desire to transform the Middle East
Ed Webb

UAE and the Horn of Africa: A Tale of Two Ports - 0 views

  • On February 22, Djibouti seized control of the Doraleh Container Terminal from its joint owner and operator, the Dubai-based DP World. The seizure was not wholly unexpected and was the culmination of Djibouti's deteriorating bilateral ties with the United Arab Emirates and a lost legal battle with DP World to renegotiate the terms of the port concession that gave it a 33 percent equity stake in 2006. The London Court of International Arbitration Tribunal ruled against Djibouti's claims, lodged in 2014, that DP World paid bribes in order to secure the 30-year concession
  • Doraleh opened in 2009 and is the only container terminal in the Horn of Africa able to handle 15,000-ton container ships. It quickly became the most important entrepot for the region's largest country and economy, Ethiopia, which was rendered landlocked by Eritrea's independence in 1993. Ethiopia receives around 97 percent of its imports through Doraleh — around 70 percent of the port's activity — in what has become an unacceptable strategic reliance on a neighbor
  • the increasingly complex dynamics animating the geopolitics, and the more localized politics, being shaped by the competition among aspiring regional powers of the Middle East — particularly Gulf Arab states and Turkey — and China for influence in the Horn of Africa
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  • A year after DP World finalized an agreement with the semiautonomous region of Somaliland to develop a $442 million commercial port in Berbera, Ethiopia inked a deal with the port operator and Somaliland's government to acquire a 19 percent stake in the port. There are reportedly plans for DP World to upgrade the connectivity infrastructure linking Berbera to the Ethiopian border that would allow Addis Ababa and potentially greater East Africa to reduce their sole dependence on Djibout
  • The intra-Gulf Cooperation Council crisis has added another destabilizing variable, as countries, parties, and elites in East Africa have been forced to choose sides
  • Along with the competition by outside players has come greater leverage for Horn of Africa countries, whose elites have long been adept at playing external patrons off one another. Ethiopia has to some degree succeeded in diluting Abu Dhabi's reliance on its enemy, Eritrea, by supporting its plans for the Berbera port. In 2015, after losing access to Djibouti for military operations, the UAE constructed a base in the coastal Eritrean city of Assab, which has been vital to its operations in southern Yemen. By supporting the UAE's military and commercial infrastructure plans in Somaliland, Ethiopia — the Horn of Africa's largest and most powerful country — also contributed to the fracturing of Somalia by encouraging the de facto consolidation of Somaliland's independence
  • In Sudan, the UAE and Saudi Arabia have led efforts to rehabilitate President Omar Bashir in the international community by lobbying for U.S. sanctions on Sudan to be lifted. Bashir agreed to cut ties with Iran and send troops to fight for the Saudi-led coalition in Yemen
  • Bashir also agreed to lease Turkey the Red Sea island of Suakin for development. Though Turkey has denied it, concerns quickly arose that Ankara planned to build a new military base on the island, which would be its second in the Horn of Africa with the first in the Somali capital of Mogadishu.
  • The confidence with which Horn of Africa elites are pursuing their own interests at the risk of angering new patrons underscores the high stakes for the participants in this so-called "new scramble for Africa," and also their long-term intent. Djibouti in particular emerged over the past decade as a strategic focal point next to the Bab el-Mandeb shipping lane, existential for the flow of Gulf energy to Europe and goods between Asia and Europe. It has leveraged its location for lucrative basing deals for current and emerging world powers alike. The United States, China, Japan, Saudi Arabia, and former colonial ruler France all have bases in Djibouti.
  • the UAE's longer-term interests — as well as those of its competitors — are economic and strategic. The country is working to make itself an essential component of China's Belt and Road Initiative and secure Dubai's Jebel Ali as the key logistics and trade hub linking Asia to Africa via DP World infrastructure, in the face of competition by a glut of new ports built by rivals with similar ambitions in Iran, Pakistan, Oman, and elsewhere along the Horn of Africa
  • ports projects in Rwanda, Mozambique, Algeria, and Mali
  • State-backed and private investors from the UAE have invested in a wide range of non-energy sectors, from finance and banking to construction, tourism, food, entertainment, and agri-business
  • The UAE is also trying to make the nature of its engagement more attractive for African governments and private sector partners: Rather than following the path of China, which has been perceived negatively as following a pseudo-colonial model in Africa, it is looking more toward the Turkish model. Investments such as DP World's in Somalia or military bases come with packages of infrastructure investment, training, and education for workers and security forces, as well as inducements such as greater numbers of visas to the UAE
  • Food and water security continues to be an important interest for the UAE and other Gulf countries in East Africa. Emirati companies are seeking to avoid the political pitfalls that have caused past investments in land for food production to fail. Privately owned Al Dahra Holding, which owns farmland in Africa, claims to use a 50-50 sharing formula for produce with local companies and hires local workers
Ed Webb

The demise of the dollar - Business News, Business - The Independent - 0 views

  • The plans, confirmed to The Independent by both Gulf Arab and Chinese banking sources in Hong Kong, may help to explain the sudden rise in gold prices, but it also augurs an extraordinary transition from dollar markets within nine years.
  • a risk of deepening divisions between China and the US over influence and oil in the Middle East. "Bilateral quarrels and clashes are unavoidable," he told the Asia and Africa Review. "We cannot lower vigilance against hostility in the Middle East over energy interests and security."
  • World Bank president Robert Zoellick. "One of the legacies of this crisis may be a recognition of changed economic power relations,"
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  • In a clear sign of China's growing financial muscle, the president of the European Central Bank, Jean-Claude Trichet, yesterday pleaded with Beijing to let the yuan appreciate against a sliding dollar and, by extension, loosen China's reliance on US monetary policy, to help rebalance the world economy and ease upward pressure on the euro.
  • The current deadline for the currency transition is 2018.
  • Iran announced late last month that its foreign currency reserves would henceforth be held in euros rather than dollars. Bankers remember, of course, what happened to the last Middle East oil producer to sell its oil in euros rather than dollars. A few months after Saddam Hussein trumpeted his decision, the Americans and British invaded Iraq.
    • Ed Webb
       
      Fisky always has been prone to alarmism. Iran is a much tougher target than Iraq. But if even some of what he reports here is true, economic power relations are indeed about to shift. And the move away from dollars for oil trading has been predictable for some time.
Ed Webb

Trump Administration Is Bypassing Arms Control Pact to Sell Large Armed Drones - The Ne... - 0 views

  • The Trump administration announced on Friday that it would allow the sale of advanced armed drones to other nations and bypass part of an international weapons export control agreement that the United States helped forge more than three decades ago.
  • Missile Technology Control Regime
  • circumventing one part of the pact could undermine the agreement in general and encourage other nations to selectively ignore or reinterpret clauses that they find inconvenient
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  • United States has relied on the agreement to help constrain global exports of missile technology to nations it views as security threats because of their nuclear programs, notably North Korea and Iran
  • Several Middle Eastern nations, including Saudi Arabia and the United Arab Emirates, are eager to buy drones capable of carrying large payloads. Both those countries have waged a devastating air war in Yemen that has led to thousands of civilian deaths.
  • “This reckless decision once again makes it more likely that we will export some of our most deadly weaponry to human rights abusers across the world,” he said. “This is yet another reckless move by an administration fixated with eliminating the international cooperation that has made the United States and other countries safer for decades.”
  • A Chinese company, Chengdu Aircraft Industry Group, has developed a drone, the Wing Loong II, that has the same abilities as the MQ-9 Reaper, made by General Atomics, based in San Diego.This year, General Atomics stepped up its lobbying efforts to persuade the government to allow sales of the Reaper, whose export is effectively banned by the requirement of a “strong presumption of denial” in the pact, a congressional aide said.
  • Trump administration, though, has shown disdain for the concept of international agreements and has withdrawn from several major ones
  • In May 2019, Secretary of State Mike Pompeo bypassed a congressional freeze on sales of $8.1 billion of arms to the two countries with an emergency declaration that whose legality is in question.
  • Arms exports, particularly to Gulf Arab nations, have led to some of the biggest clashes between the Trump administration and Congress
  • Officials in the State Department and Pentagon who work on nonproliferation issues have pushed back internally on efforts by other officials to bypass the ban in the agreement, which covers drones capable of carrying at least 500 kilograms, or over 1,100 pounds, of weapons over 300 kilometers, about 186 miles. Those officials and some lawmakers argue that other countries or companies can copy the technology once they are in possession of the drones and start making their own.
  • Besides countries in the Middle East, ones in East Asia and Central and Eastern Europe are likely to ask to buy the drones. Reuters reported last month that the United States was considering bypassing the agreement to sell larger drones.
  • Missile Technology Control Regime was established in 1987 by the United States, Canada, Germany, France, Italy, Japan and Britain to stop the proliferation of nuclear weapons. The pact, which now includes 35 member nations, restricts the exports of missiles and their components. It has been credited with slowing down missile development programs in countries like Egypt and Iraq.
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