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Ed Webb

Members of new Pompeo task force have previously praised human-rights abusers | PBS New... - 0 views

  • Secretary of State Mike Pompeo announced the formation of the Commission on Unalienable Rights on Monday, saying he hoped it would undertake the most extensive reexamination of what counts as an “unalienable right,” first laid out in a 1948 United Nations document known as “The Universal Declaration of Human Rights.”
  • the new chairperson of the 10-person commission has written in favor of practices that could undermine Pompeo’s stated goal of “ground[ing] our discussion of human rights in America’s founding principles.” Separately, two of the new commissioners are on record defending known human-rights abusers.
  • In making the case for the commission, and the need for a wholesale revisiting of the concept of “human rights,” the State Department actually cited a white paper released by the Chinese Communist Party last year, in which it asserted that it had “blazed a trail of development in human rights that conforms to the national conditions.”
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  • Malinowski said governments like China could take advantage of possible U.S. flexibility to actually further their repressive practices in the name of “economic and social rights,” which is a term China often uses to justify its practices. For example, the State Department says China practices widespread Internet censorship to prevent disruptions to the “economic or social order,” according to the most recent human rights report.
  • Two have previously defended the regimes in Saudi Arabia, the United Arab Emirates and Turkey, all of which stand accused of human rights abuses by international standards.
  • In 2018, commissioner Russell Berman, a Stanford University professor of comparative literature and German studies, downplayed the outcry over the murder of Saudi journalist Jamal Khashoggi, saying the reaction was politically motivated
  • Michael Posner, who served at State from 2009 to 2013. Posner expressed doubt that any one commissioner’s personal views would affect the department’s overall policies, but said that their ruminations on long-standing positions held at each of the agency’s many bureaus could muddle the State Department’s overall message.
  • Asked about Berman’s Khashoggi comments, a senior administration official referred to President Donald Trump’s latest comments about the matter at the G20 summit in Osaka, Japan. During a press conference there, Trump said he was “very unhappy” about Khashoggi’s murder but said “nobody, so far, has pointed directly a finger at the future King of Saudi Arabia,” contradicting the assessment of his own intelligence agency.
  • Last year, another commission member, Hamza Yusuf, praised the UAE, calling it “a country that is committed to tolerance…. This is a country that is committed to civil society. It is one of the safest countries on the earth.” Contrary to Yusuf’s assertion, the UAE also stands accused of numerous human rights abuses perpetrated on its own citizens.
  • The official noted that the commission is part of the Policy Planning Staff, a clearinghouse for independent analysis and advice for the secretary of state, arguing that its position means it will not play a role in policy-making
  • These commissions do not need congressional approval or appropriations of funds. Instead, they are enacted with a “timely notice” in the Federal Register, per a 1972 law, which also says advisory committees may not make policy, leaving such decisions up to the president or “an officer of the federal government.”
  • Some human rights groups and Democratic lawmakers have also expressed concern that the commission’s goal of refocusing on “unalienable rights” is actually an attempt to narrow the rights the government has to protect, including abortion rights and protections for the LGBTQ community.
Ed Webb

The Halkbank Case Should Be a Very Big Deal - Lawfare - 0 views

  • If the New York Times’s story about the Justice Department’s handling of the case of  Turkish bank—and President Trump’s interference in that case—had broken any other week, it would be a very big deal. A week before the election, the country inured to the president’s propensity to abuse law enforcement power, it has barely merited a yawn.  The case is worth your time.
  • Berman’s bizarre firing may have been related to a pressure campaign by Barr and the White House to frustrate a high-profile investigation by Berman’s office. The story of Trump and Barr’s efforts to hamstring the investigation into the Turkish bank, Halkbank, says a great deal about Trump’s abuses of law enforcement, his financial entanglements abroad and his susceptibility to foreign influence.
  • an alleged scheme on the part of the state-owned Turkish bank to evade U.S. sanctions on Iran
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  • The investigation was of great interest to Turkish strongman Recep Tayyip Erdogan, who has sought since 2016 to quash the probe. According to the Times, Erdogan may have come close to succeeding.
  • a meeting between Trump and Erdogan in 2018, during which Trump declared Halkbank to be innocent and told Erdogan he would, in Bolton’s words, “take care of things.” He then asked Bolton to reach out to then-Acting Attorney General Matt Whitaker on the matter. Later in 2018, after Trump and Erdogan spoke again, the Times reports that the White House told the southern district that the attorney general, the treasury security and the secretary of state would all become more involved in the case. 
  • Mnuchin had already reached out to the Justice Department seeking to scale down the potential fine paid by Halkbank in any settlement, following direct outreach by Erdogan’s son-in-law
  • Whitaker ordered Deputy Attorney General Rod Rosenstein to shut down the Halkbank case—stating, confusingly, that an indictment of the bank could pose risks to U.S. forces in Syria. Department officials opted to simply ignore Whitaker’s request. But after Barr was confirmed as attorney general, he too put pressure on the southern district, pushing prosecutors to allow Halkbank to walk away with only a fine and a limited acknowledgment of wrongdoing—a proposal that Berman reportedly described as “completely wrong.”
  • The first and more nefarious possibility is that the president pressured the Department of Justice to go easy on Halkbank and Erdogan’s cronies in order to protect his own sizable financial interests in Turkey. The second possibility is less horrible, but it’s not exactly reassuring. Perhaps Trump was swayed by Erdogan’s influence to make policy decisions that cut against the prosecutorial interests of his own government
  • no plausible benign explanations for Trump’s conduct here
  • in December 2018, following a call with Erdogan, Trump suddenly reversed course and ordered the complete withdrawal of U.S. troops—a move so unexpected that it ultimately led Secretary of Defense James Mattis and other senior officials to resign in protest. After another intervention by Trump in October 2019, following another call with Erdogan, Turkey was left in control of a broad swathe of Syria’s northern border, including Kurdish areas important to SDF allies of the United States.
  • efforts have continued both through direct engagement between Turkish and American officials and through the hiring of individuals close to the president himself—including, inevitably, his personal lawyer, Rudy Giuliani
  • Trump certainly appears to have come to value what he sees as a personal relationship with Erdogan, lauding Erdogan as “a hell of a leader” and bragging that he is “the only one [Erdogan] will listen to” among NATO allies
  • Trump even invited Erdogan to a meeting at the White House in November 2019, just weeks after slapping (and then removing) sanctions on Turkey for its offensive into northern Syria
  • Trump has a long record of puzzling policy interventions when it comes to Turkey
  • it was just before Trump’s December 2018 Syria withdrawal order that Whitaker suggested that failing to drop the investigation against Halkbank might result to threats to U.S. forces in Syria—an argument that might have channeled threats that Erdogan’s regime was publicly making at the time.
  • he made a cursory review of Erdogan’s memo offering a thin legal theory about US sanctions and impulsively sided with the authoritarian leader over the prosecutors of the southern district
  • The Trump administration has almost entirely declined to criticize Erdogan’s bad-and-worsening record on human rights, as he and his regime have engaged in politically motivated investigations and prosecutions at home and turned a blind eye to atrocities in those parts of Syria under its control
  • The Trump administration has also refused to impose statutorily-required sanctions on Turkey for its purchase of a prohibited Russian missile system, without explanation and despite congressional pressure to do so. 
  • What exactly Trump has gotten in exchange for these positions is far from clear
  • Erdogan’s consistent ability to come out on top in Trump’s policy deliberations is, to say the least, impressive. And here it’s impossible to ignore Trump’s financial interests in the country: according to the Times’s review of Trump’s tax documents, he received profits of at least $2.6 million from business operations in Turkey between 2015 and 2018. And earlier reporting by the Times on Trump’s taxes describes how the Turkish government and business community “have not hesitated to leverage various Trump enterprises to their advantage,” strategically booking Trump properties to host events in efforts to curry favor with the president. 
  • If the president was motivated, in whole or in part, by a desire to curry favor with Erdogan in order to benefit his personal finances, that would be a grave abuse of office and plainly impeachable conduct
  • Trump has already been impeached for abusing his office for private campaign benefit; abuse of office for personal financial enrichment would be even worse.
  • this is the type of complex policy decision where it is nearly impossible to establish conclusively improper motives
  • The Halkbank situation is exactly why presidents are expected to abide by ethics rules—including divesting from business interests—and why Trump’s refusal to adhere to the norms of good governance presented serious national security implications from the outset
  • Having taken no effort to avoid the conflict, Trump isn’t entitled to the benefit of the doubt. And notably, those privy to Trump’s actual decisionmaking with respect to Turkey aren’t extending that benefit.
  • brazen financial corruption
  • If he wasn’t seeking financial benefit, then Trump has somehow been persuaded by Erdogan to take actions that contravene his own stated policy goals. A president who is so easily outwitted and susceptible to improper influence is a frightening thing
  • Saudi Arabia and its allies have conducted their own charm offensive, engaging lobbyists and cultivating a notoriously close relationship between Saudi Arabia’s Crown Prince Mohammad bin Salman and Trump’s son-in-law Jared Kushner.
  • it is concerning for a president to be so willing to dictate major aspects of U.S. foreign policy on the basis of his personal preferences, often without even checking them against the views of his advisors or coordinating them through the broader government bureaucracy
  • Turkish officials hired soon-to-be National Security Advisor Michael Flynn to lobby the incoming administration for the extradition of dissident Turkish preacher Fethullah Gulen, whose followers Erdogan blames for the 2016 coup attempt against his regime
  • Berman refused to go along with Barr’s proposed settlement, which he considered to be unethical. Months later, Barr fired Berman—and then lied about the circumstances and reasons why
  • Once again, the president is intervening in an investigation and a prosecutorial decision in a fashion that appears self-interested, appears to cut against stated U.S. policy to the benefit of an authoritarian leader and his interests, and appears influenced by the president’s own business concerns.
Ed Webb

Modern-Day Slavery: The Public Markets Selling Young Girls for $14 | Fast Forward | OZY - 0 views

  • 16 Ugandans who’ve died in the Middle East over just the past year, according to a parliamentary panel report from April this year. These women — all of whom died unnatural deaths after complaining of abuse — are just the most extreme examples of a growing epidemic of an increasingly open, modern slave trade that starts in Uganda’s eastern region and culminates in closed rooms in Gulf nations.
  • Migrant workers from across Africa, South Asia and Southeast Asia have for several years complained of abuse in the Middle East
  • Uganda has emerged as the theater of a double-barreled racket. At fast-spreading weekly markets, some women are promised jobs in the Gulf only to be sold once they get there, while others — many of them girls between the ages of 10 and 18 — are directly and publicly “bought” as slaves in Uganda and then resold in the Middle East, according to Ugandan authorities, Interpol, independent experts, legislators, victims and their families.
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  • more than 9,000 girls and young women are estimated to have been bought at these markets since last year — for as little as 50,000 shillings ($14), according to Betty Atim, a member of Parliament.
  • After 22-year-old Shivan Kihembo died in Oman in October — months after she had been sold there — her father, Patrick Mugume, was asked by his daughter’s “owners” for money if he wanted her body back.
  • migrant laborers from other African countries have suffered human rights violations — and not just in the Gulf but in Southeast Asia too — in recent years that have drawn comparisons with slavery. But what’s different with Uganda, experts say, is the openness with which women are being auctioned in markets alongside domestic animals and household goods.
  • Officially, Uganda has banned its citizens from seeking work in most Middle Eastern countries — barring Saudi Arabia and Jordan — because it doesn’t have any diplomatic agreements on workers’ rights with those nations, says Uganda’s minister of gender Janat Mukwaya.That ban, though, rarely works as a deterrent when there’s a promise of significant economic gain being dangled before the downtrodden, experts say. Uganda has a per capita income of $604, so Nambereke was promised three times what the average citizen earns. It’s also no surprise that the markets where illegal traffickers find women they can dupe or buy are predominantly in eastern Uganda. It’s a part of the country that has seen far lower poverty reduction than other regions, according to the World Bank, with electricity available to only 6 percent of families, compared to 32 percent in the country’s central region. To get around the ban, traffickers take the women across the border into Kenya after fixing up their passports, and then fly them to the Middle East.
  • Because they’re traveling to countries they’re barred from legally working in, even those women who initially went thinking they were getting employed are scared to try and reach out to authorities, experts say. And their host countries — in a region not known for its defense of human rights of migrants — have little incentive to prioritize concerns for these slaves over those of nations that legally send workers there. And so the slavery mounts — as do the deaths
  • Authorities are also recording cases of abuse from countries where Ugandans are legally allowed to work such as Jordan, Juliet Nakiyemba died at the age of 31 in October. A postmortem showed her kidneys had been removed prior to her death.
  • the government is passing the buck around and hasn’t been able to stop the practice. Minister of State for Foreign Affairs Henry Oryem Okello says the ministry of labor needs to act to arrest traffickers. Mugisha says the ministry of labor has asked local governments to step in with legal remedies. And the country’s labor commissioner, Lawrence Egulu, concedes that Uganda’s law against human trafficking is routinely violated but has no clear answer as to why the government hasn’t been able to put a stop to it.
  • Herbert Ariko, the MP of the eastern Uganda region where most of these slave markets are located, says he’s drafting a law aimed at enhancing the punishment for human traffickers — currently 15 years in prison. Nonprofits such as the Uganda Association of External Recruitment Agencies are demanding that the government enter into worker-safety agreements with all Middle Eastern countries. The archbishop of the Anglican Church in Uganda, Stanley Ntagali, is also critical of the government’s inaction. “The government should ensure that the rights of children are respected and the act of selling them in markets is brought to an end,” he says.
Ed Webb

The Turbulent World of Middle East Soccer: Saudi Arabia rolls the dice with bid for New... - 0 views

  • Saudi Crown Prince Mohammed bin Salman has rolled the dice with a US$ 374 million bid to acquire storied British soccer club Newcastle United. If approved by Britain’s Premier League that nominally maintains a high bar for the qualification of aspiring club owners, Prince Mohammed would have demonstrated that he has put behind him an image tarnished by Saudi conduct of a five-year long war in Yemen, the 2018 killing of journalist Jamal Khashoggi, systematic abuse of human rights and, more recently, the kingdom’s badly-timed oil price war with Russia.
  • the kind of financial muscle that allows it to acquire trophies that enable it to project itself in a different light and garner soft power rather than financial gain at a time of a pandemic and global economic collapse.
  • Aramco, the Saudi national oil company, was reported to be talking to banks about a US$10 billion loan to help finance its acquisition of a 70% stake in Saudi Basic Industries Corp (SABIC). The deal would pour money into the Public Investment Fund (PIF), the kingdom’s sovereign wealth fund.
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  • The acquisition would mimic the 2017 purchase of celebrated soccer star Neymar by Qatar-owned Paris St. Germain for US$277 million intended to demonstrate that the Gulf state was unaffected by the then several months-old Saudi-UAE-led economic and diplomatic boycott.
  • a decision by the Premier League to reject the acquisition of Newcastle would be perceived as yet another of Prince Mohammed’s self-inflicted public relations fiascos that include multiple failed attempts to position the kingdom as a powerhouse in international soccer governance
  • Prince Mohammed is betting that the Premier League at a time of economic crisis and with Britain needing to forge new trade relationships in the wake of its departure from the European Union may not want to slam the door on a wealthy investor and/or jeopardize British relations with the kingdom.
  • Saudi Arabia responded in 2018 to Canadian criticism of the kingdom’s human rights record by withdrawing its ambassador and freezing all new trade and investment transactions. German criticism of a failed Saudi attempt to force the resignation of Lebanon’s prime minister led that same year to a de facto downgrading of diplomatic relations and reduced trade.
  • The League has tightened its criteria to test potential club owners on their integrity and reputation. The criteria include ensuring that a potential owner has not committed an act in a foreign jurisdiction that would be a criminal offence in Britain, even if not illegal in their own country.
  • Supporters of the acquisition argue that it bolsters Prince Mohammed’s reforms in a soccer-crazy country and reaffirms his push to break with the kingdom’s austere, inward-looking past. They reason further that it will bolster investment in Newcastle and surroundings at a time of impending economic hardship.
  • Supporters only need to look at Manchester where the United Arab Emirates’ acquisition of Manchester City more than a decade ago has benefitted not only the club but the city too.
  • supporters of Newcastle are likely to welcome the financial injection and departure of the club’s unpopular current owner, Mike Ashley, and ignore condemnation of the deal by human rights activists, including Amnesty International, as “sportswashing, plain and simple.”
Ed Webb

Will the U.S.-Saudi Arabia Relationship Ever Reach a Breaking Point? - 1 views

  • Again and again, the unlikely partners would fall out—usually over the Arab-Israeli conflict, much later over the 9/11 attacks. But the fundamental bargain struck by U.S. President Franklin D. Roosevelt and then-King Ibn Saud in the waning days of World War II that consummated the U.S.-Saudi relationship 75 years ago would never break
  • lawmakers in oil states such as Texas, Louisiana, North Dakota, and Alaska accuse Saudi Arabia of waging “economic warfare” and have drafted legislation to immediately pull out U.S. troops and furl up a decades-old U.S. security umbrella that has protected the vulnerable Saudi state
  • many in Washington are coming to question the very fundamentals that have underpinned a very special bilateral relationship for 75 years—essentially, U.S. security to ensure the free flow of Saudi oil and Saudi support for U.S. designs in the Middle East
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  • Today’s tensions stem, in many ways, from the original foundations of the odd-couple relationship: an oil-for security bargain that always sought, but never fully managed, to bridge the divide between a liberal democracy and a conservative religious monarchy
  • Some experts believe U.S.-Saudi ties will ultimately weather the storm, as they always have, because of the need for a large, wealthy, and anti-Iran anchor for U.S. interests in the Middle East
  • “But we don’t need the Saudis anymore—this comes in a very different geopolitical environment than previous crises.”
  • Saudi Arabia was one of the only countries in the world that continued to receive U.S. Lend-Lease aid after the end of the war.
  • essentially underwriting the security of an oil-rich desert sheikdom to keep oil supplies flowing—and to keep the Soviets out of the Middle East.
  • Roosevelt had met Ibn Saud hoping for Saudi support for a Jewish homeland in the Middle East, which the king vehemently opposed, and the U.S. president—in Saudi eyes—gave his word not to press the matter. But Truman, Roosevelt’s successor, eventually supported the creation of Israel, sowing years of distrust and cries of betrayal in Saudi Arabia
  • “In my conversations with the king, the crown prince, and the deputy crown prince, they favored the effort to halt Iran’s nuclear weapons program. But they wanted more: They wanted us to push on Iran’s actions in Iraq, Syria, and Yemen, and we didn’t do that.”
  • The Iranian revolution, as well as an assault that same year on the Grand Mosque in Mecca, terrified Saudi leadership, who saw how vulnerable their own position was. The revolution, by removing the shah and creating permanent enmity with the United States, left Saudi Arabia as America’s main linchpin in the Middle East, all the bad blood from the oil embargo notwithstanding
  • Fearful of being toppled by religious radicals, Saudi leaders embraced a much more conservative line and empowered hard-line religious leaders in their own country, the first steps toward a decadeslong program to export the austere Wahhabi brand of Islam particular to the kingdom. Soon, wealthy Saudis, including one Osama bin Laden, started funding the Muslim mujahideen who were fighting the Soviet invasion of Afghanistan that began the same year as the Iranian revolution. Two decades later, that Saudi lurch toward a harsher official line on religion would end up creating the biggest crisis yet in the special relationship.
  • “The relationship never really recovered from 9/11,”
  • the George W. Bush administration, despite vehement Saudi objections, decided to invade Iraq to topple Saddam Hussein. Saudis feared that would open the door to greater Iranian influence on their doorstep, as in fact happened.
  • In the end, the United States and Saudi Arabia patched up the dispute, and the oil embargo ended by the spring of 1974. But the scars it left were deep and long-lasting, permanently damaging Saudi Arabia’s image in American popular opinion, and leaving deep-rooted fears that the Saudis could and would use their oil weapon to damage U.S. interests—a fear that has persisted even though the nature of the Saudi oil threat has changed.
  • “King Abdullah was very respectful and liked Obama personally, but there were things they couldn’t understand,” said Westphal, who was present for three of Obama’s record four trips to Saudi Arabia. “‘Why are you supporting Maliki, who is essentially handing over his country to the Iranians? How can you not depose Assad?’”
  • Since 1979, Saudi leaders had seen Iran as the gravest threat to the region and their own security, and U.S. efforts to reach a nuclear deal while seemingly letting Iran continue its destabilizing behavior in the region unsettled the Saudis.
  • “There’s no question that the Arab Spring unsettled the U.S. relationship with the Saudis. For them, the U.S. response [to calls for reform in the Arab world] was way too sympathetic, and the relationship cooled,”
  • Saudi leaders famously rolled out the red carpet, and a glowing orb, for Trump’s first overseas trip as president. It seemed a surprising about-face after Trump’s attacks on Muslims, and repeated attacks on Saudi Arabia, on the campaign trail, when he accused the kingdom of carrying out 9/11, criticized it for sponging off American protection, and threatened an economic boycott. Saudi leaders were happy to overlook Trump’s comments, eager to forge ties with an untested and unorthodox president before other foreign leaders could. “Washington is like Rome in the Roman Empire, and we are like a satellite state—you pay homage to the emperor,” Shihabi said. “You could put a monkey in the White House, and we’d pay homage.”
  • The playbook that has reliably worked since 1945 to ground the bilateral ties in personal relationships with the president now seems to be backfiring. Mohammed bin Salman, reviled by many in Congress for his alleged role in the Khashoggi killing, as well as other continued human rights abuses inside Saudi Arabia and in Yemen, is seen as being exceptionally close to Kushner and Trump. Riding the coattails of a historically unpopular, already-impeached president isn’t the best way to improve Saudi Arabia’s image.
  • Despite decades of close economic ties and military and counterterrorism cooperation, Saudi Arabia never seemed to plant deep roots in the United States that would institutionalize the relationship beyond kings, generals, and presidents. This meant when tensions flared up between the two countries, Riyadh didn’t have many outside allies to come to its defense in Washington
  • Mohammed bin Salman’s foreign-policy excesses: the disastrous war in Yemen, the bizarre virtual kidnapping of Lebanon’s prime minister to pressure Iran and Hezbollah, and an embargo on Qatar, its small neighbor and a key U.S. military partner. At home, there was the regular drumbeat of reports on human rights violations, plus a $100 billion shakedown on wealthy political rivals to consolidate power under the guise of an anti-corruption campaign.
  • As long as they’ve been a country—they’re so young—they really don’t know what their place in the world would be like without the backing of the United States,”
  • Unlike in 1973, when Saudi Arabia used the oil weapon to jack up oil prices and hurt the United States, this time crashing oil prices did the trick. U.S. shale producers need oil prices above $40 a barrel to break even; the Russian-Saudi price war sent the price of oil to $25 and then into the single digits, ensuring a wave of bankruptcies and economic hardship from Texas to North Dakota.
  • “The Saudis have a deep problem with the Democrats, and that’s been clear for a long time. Now they have spoiled their relationship with Republicans,”
  • In the summer of 2019, when Iranian attacks on oil tankers near the Persian Gulf threatened the flow of oil, Trump’s response was to tell allies such as Japan and South Korea to protect their own ships, questioning why the United States should continue to carry out a mission it’s done for decades unless other countries coughed up cash. That fall, key Saudi oil facilities were attacked, allegedly by Iran, knocking out 5 percent of global oil production in a matter of minutes. The U.S. response, other than a Trump tweet, was to do nothing.
  • The bitter recriminations during this spring’s oil price war, coming on the heels of the Khashoggi murder, the continued war in Yemen, and other Saudi missteps, give many observers reason to believe that the relationship is due for a fundamental rethink.
  • as long as the United States continues to view Iran as a major threat, close relations with Saudi Arabia will have a strong appeal
Ed Webb

Under Sisi, firms owned by Egypt's military have flourished - 0 views

  • Maadi is one of dozens of military-owned companies that have flourished since Abdel Fattah al-Sisi, a former armed forces chief, became president in 2014, a year after leading the military in ousting Islamist President Mohamed Mursi.
  • In interviews conducted over the course of a year, the chairmen of nine military-owned firms described how their businesses are expanding and discussed their plans for future growth. Figures from the Ministry of Military Production - one of three main bodies that oversee military firms - show that revenues at its firms are rising sharply. The ministry’s figures and the chairmen’s accounts give rare insight into the way the military is growing in economic influence.
  • Some Egyptian businessmen and foreign investors say they are unsettled by the military’s push into civilian activities and complain about tax and other advantages granted to military-owned firms
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  • In 2016, the military and other security institutions were given exemptions in a new value-added tax (VAT) law enacted as part of IMF-inspired reforms. The law states that the military does not have to pay VAT on goods, equipment, machinery, services and raw materials needed for the purposes of armament, defense and national security.The Ministry of Defense has the right to decide which goods and services qualify. Civilian businessmen complain that this can leave the system open to abuse. Receipts for a cup of coffee at private sector hotels, for example, add 14 percent VAT. Receipts at military hotels do not. Employees at the military-owned Al-Masah Hotel in Cairo told Reuters that no VAT was charged when renting venues for weddings and conferences.
  • The Ministry of Military Production is projecting that operating revenues from its 20 firms will reach 15 billion Egyptian pounds in 2018/2019, five times higher than in 2013/2014, according to a ministry chart. The ministry does not disclose what happens to the revenues. The chairmen of two of the firms said profits go to the ministry or are reinvested in the business.
  • “I don’t want to be a local shop. I want to be a company that has the capacity to export and compete internationally.”
  • Egypt’s military, the biggest in the Arab world, has advantages.It enjoys financial support from Saudi Arabia and the United Arab Emirates, staunch supporters of Sisi since he toppled the group they see as a threat to the Middle East, the Muslim Brotherhood. Western powers see Cairo as a bulwark against Islamist militancy. Egypt receives $1.3 billion in military aid annually from the United States alone.
  • The chairmen of two military engineering companies, Abu Zaabal Engineering Industries Co and Helwan Engineering Industries Co, said in recent years it had become much easier to access financing through the Ministry of Military Production.
  • The Ministry of Military Production signed a memorandum of understanding with China’s GCL Group last week to build a solar panel factory worth up to $2 billion. The military has taken over much of the construction of intercity roads from the Ministry of Transport and now controls the toll stations along most major highways.
  • Economists and investors say reforms tied to a $12 billion three-year IMF program signed in Nov. 2016 should lay the ground for economic expansion. But foreign investors are still shying away from Egypt, apart from those focusing on the more resilient energy sector. Non-oil foreign direct investment fell to about $3 billion in 2017 from $4.7 billion in 2016, according to Reuters calculations based on central bank statistics.  
  • foreign investors were reluctant to invest in sectors where the military is expanding or in one they might enter, worried that competing against the military with its special privileges could expose their investment to risk. If an investor had a business dispute with the military, the commercial officer said, there was no point in taking it to arbitration. “You just leave the country,” he said.
  • Among projects the Ministry of Military Production announced in 2017 was a plan to plant 20 million palm trees with an Emirati company and build a factory to make sugar from their dates. It agreed with a Saudi company to jointly manufacture elevators. The military inaugurated the Middle East’s biggest fish farm on the Nile Delta east of Alexandria.
  • In 2015, the defense minister issued a decree exempting nearly 600 hotels, resorts and other properties owned by the military from real estate taxes
  • Military companies receive an exemption from import tariffs under a 1986 law and from income taxes under a 2005 law. Cargoes sent to military companies do not have to be inspected.
  • At bustling Cairo squares, people line up to buy subsidized meat and other food handed out from trucks sponsored by the military. Sisi said he had instructed the military to enter the market “to supply more chicken to push down prices.”Some disagree with such measures on the grounds the military’s mission is to protect the country from external threats.“We have reached a point where they are competing even with street vendors,”
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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