Tag Archives: trade agreements

Latest Developments, June 17

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In the latest news and analysis…

War plans
The Telegraph reports on increasing American willingness to get involved in Syria’s civil war, while some US allies remain skeptical:

Reports from The Times on Friday night claimed that 300 US Marines have already been deployed to northern Jordan, along with a Patriot anti-aircraft missile, ahead of plans to arm the rebels.
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Sweden opposed the US move to provide greater military support. Carl Bildt, the foreign minister, warned that the US decision could set off an arms race with Russia, which is already considering whether to supply its advanced S300 air defence systems. ‘I don’t think the way forward is to get an arms race going in Syria,’ he said, ‘There’s a risk that that would undermine the conditions for a political process.’
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The option of enforcing a limited no-fly zone to protect rebel training bases in Jordan, is also being considered, according to US officials. However, the French government indicated that it would be almost impossible to secure the necessary international agreements.

Diplomatic spying
The Guardian reports that British intelligence agencies monitored the computer and phone communications of foreign officials during G20 summit meetings in London in 2009:

“The disclosure raises new questions about the boundaries of surveillance by [Government Communications Headquarters] and its American sister organisation, the National Security Agency, whose access to phone records and internet data has been defended as necessary in the fight against terrorism and serious crime. The G20 spying appears to have been organised for the more mundane purpose of securing an advantage in meetings. Named targets include long-standing allies such as South Africa and Turkey.
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The documents suggest that the operation was sanctioned in principle at a senior level in the government of the then prime minister, Gordon Brown, and that intelligence, including briefings for visiting delegates, was passed to British ministers.”

UK tax havens
Christian Aid and the IF campaign have released a new report underlining the importance of UK-controlled territories to a global financial system that “encourages crime, corruption and aggressive tax avoidance” in poor countries:

“The report reveals that the British Virgin Islands (BVI), Cayman Islands, Bermuda, Gibraltar, Anguilla and Turks and Caicos – all British Overseas Territories – together with the Crown Dependencies of the Isle of Man, Jersey and Guernsey are now the largest source of Foreign Direct Investment in developing countries.”

Making amends
The University of London’s Lutz Oette highlights the importance of the UK’s recent agreement to compensate Kenyan victims of colonial-era torture but calls on the government, which refused to apologize, to make “much more fundamental changes”:

“Given the historical context, this reparation is a small price to pay for a country that greatly benefited from colonialism. Rather than oppose or undermine such claims, the UK – both the government and the public at large – should welcome these developments. They provide an overdue opportunity to confront Britain’s past, to live up to the rule of law and notions of justice, and to show that it respects victims and their suffering. This includes addressing lingering colonial power imbalances.
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The UK government should therefore take immediate steps to make publicly available all records about abuses committed in all former British territories and to cooperate with any interested parties, including survivors’ organisations. Where sufficient evidence is available, the UK should provide adequate reparation to the victims, which should also comprise a full apology.”

Presidential plea
Guinean President Alpha Condé calls on rich countries to do their bit in the global fight against corruption:

“What we need now is the support of developed countries in building a global business climate that permits those who play by the rules to prosper and locks out those who do not. Too many of the world’s finance centres enable the predators who rely on offshore corporate vehicles to mask their identities; loop their finances through offshore jurisdictions; and use prestigious law firms, accountants, financial advisers and public relations firms to give their destructive behaviour a false veneer of respectability.”

Cosmetic CSR
The News Agency of Nigeria reports that an Edo state government official has said that so-called corporate social responsibility projects by oil companies often do little or no good:

“[Orobosa Omo-Ojo, the Commissioner for Special Duties, Oil and Gas] said such actions by oil firms amounted to insulting the sensibilities of their host communities.
‘Most of the CSR projects by oil companies have not amounted to anything tangible to the host communities.
‘Apart from digging one bore-hole here, a three-classroom block there and a cottage hospital somewhere, the host communities have never benefited enough from oil companies.
‘Yet, they extract crude oil from the host communities for over 15 to 20 years and when the oil wells dry up, they move on leaving the community more impoverished than they met them.’ ”

What would Hippocrates do?
The Overseas Development Institute’s Yurendra Basnett calls on G8 countries to prioritize the duty to do no harm when drawing up international trade agreements:

“In the murky and complex areas of standards and technical requirements, there is a thin line between expanding and restricting trade. Most developing countries lacking capacities are likely to find themselves facing costs not benefits. The World Trade Organization ministerial conference follows the G8 later this year and needs to consider updating the rules that govern such agreements. Perhaps the notion that some benefit – but that others are not left worse-off – needs to be established as a minimum when advanced economies enter into such agreements, with the burden of proof placed on members of the exclusive arrangement. At the very least we need to keep an eye on how this plays out for developing economies that are not a part of these agreements.”

First UN war
The Economist wonders whether the United Nations really knows what it is getting itself into with its first ever combat mission in the Democratic Republic of Congo:

“This is the first time that the UN will send its own troops into battle. In the past the Security Council has authorised the use of ‘all necessary force’ but has delegated the fighting to posses from willing nations. In the Korean war the Americans were in command. In Afghanistan and Libya NATO took charge. In Congo, however, the UN itself will be responsible for artillery fire, helicopter gunships—and the inevitable casualties. Should the UN really be doing this?”

Latest Developments, July 19

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Debt speculation
The Guardian reports that the UK’s privy council has ruled that a “vulture fund” cannot collect $100 million on a DR Congo debt that was, before interest, a thirtieth of that amount:

“In an attempt to skirt British law, which bans ‘vulture funds’ from buying poor nations’ debts on the cheap before suing them for 10-100 times the amount paid, [FG Hemisphere’s Peter] Grossman took the case to Jersey, a crown dependency not covered by the UK law.
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Before turning to the Jersey loophole, Grossman’s company had unsuccessfully tried to seize the DRC’s embassy in Washington as a downpayment on the debt.”

Fatal strike
The Globe and Mail reports Canadian-based First Quantum Minerals has temporarily shut down operations at a copper and gold mine in Mauritania due to an “illegal strike” that has already claimed the life of one worker:

“According to local reports, demonstrators clashed with security forces outside the Guelb Moghrein mine over the weekend as workers demanded better pay and conditions. One worker died in the clashes, although further details about the circumstances were muddied amid differing reports.”

Dogs of war
The Daily Maverick reports that a leaked UN document accuses private security companies of violating international arms embargoes against Somalia and Eritrea:

“During the course of the [UN Monitoring Group on Somalia and Eritrea]’s mandate, this highly profitable business has expanded beyond the provision of armed escorts to the leasing of arms, ammunition and security equipment, and the establishment of ‘floating armouries’ that operate in international waters beyond the remit of any effective international regulatory authority. PMSCs are currently holding approximately 7,000 weapons in circulation, which are either owned or leased.”

Deposed despots beware
Reuters reports that the International Court of Justice is expected to hand down a ruling on Friday that could create new legal obligations for countries with exiled former dictators residing on their territory:

“The ruling could worry former rulers like Zine al-Abidine Ben Ali, the Tunisian president overthrown in January 2011 at the start of the Arab Spring and now in exile in Saudi Arabia.
But it could also deter other leaders facing mounting violence at home, such as Syrian President Bashar al-Assad, from going into exile despite promises or guarantees of amnesty.
‘If Belgium is successful, it will mean that third states would be able to oblige states on whose territory an accused war criminal resides to either prosecute such persons or extradite them to a state which can and wishes to prosecute,’ Malcolm Shaw, a law professor at Cambridge University, said in an email.”

Easing pressure
The Independent reports that the UK government is proposing to relax EU sanctions against Zimbabwe, whereas opposition MP Peter Hain is calling for more sanctions:

“Mr Hain said: ‘Let us be clear: Zimbabwean military-controlled blood diamonds are now sold within the EU and almost certainly within the UK, appearing on wedding rings. It is time for jewellery companies to stop hiding behind the façade of the Kimberley Process [to stop diamonds being used to finance military activity] and take responsibility for their own supply chains.’ ”

Let’s make a deal
Reuters reports the US wants a new trade deal with the 5-nation East African Community, comprising Kenya, Tanzania, Uganda, Rwanda and Burundi:

“[US deputy national security adviser for international economic affairs Michael] Froman said the proposal by Obama for a new trade deal was meant to encourage [growing investment in East Africa] and support further EAC integration. The deal would seek to guarantee American investors that they would be treated fairly and that their investments would be secure.
‘It calls for a focus on trade facilitation to reduce the bottlenecks at the border, such as moving to a single border clearance and harmonising customs documentation, to reduce delays and unnecessary costs,’ he said.”

Watering down the ATT
Embassy Magazine reports that opposition MPs are accusing the Canadian government of trying to sabotage the Arms Trade Treaty, currently under negotiation at the UN, by adding loopholes:

[NDP trade critic Don Davies] and other treaty supporters point to the Harper government’s desire not to include the mandatory tracking of ammunition, or detailed reporting on high-volume trades. They say another example of Canada’s attempts to gum up the treaty is Canada’s suggestion that no new money go to the UN to police the agreement’s implementation.
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Mr. Davies attended the first week of negotiations in New York, and said foreign delegations frequently asked him why Canada was trying to weaken the treaty by pushing for ammunition and other items to be exempt.
‘I got a lot of questions on Canada’s official position that not every transaction be recorded,’ he said. ‘They asked how we saw an effective arms trade treaty if from the outset, and by design, there are loopholes built into it.’ ”

Transparency hype
Using the example of Angola, Oxford University’s Ricardo Soares de Oliveira warns that transparency reforms can amount to little more than “upgrades of the status quo”:

“The contribution of the IMF and a number of Angolan technocrats towards macro-economic reform is undeniable. What is missing from the IMF’s assessment is the fact that the reforms have had next to no impact on the elite’s approach to development and the real lives of the poor.
tA lesson of the Angolan reform trajectory is self-evident yet frequently forgotten: transparency is merely a means to an end. By itself the transparency agenda is a technocratic exercise that savvy governments can easily game. You can have an oil-rich state tick all the boxes and come out on the other side without this having any implications whatsoever for the nature of governance and broad-based development.”

Latest Developments, July 12

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Migrant deaths
Reuters reports that 54 people have died of thirst while trying to cross illegally from Libya to Italy by boat, leaving only one survivor:

“The incident is the latest in a long series of disasters which have killed thousands of migrants attempting to reach southern Europe from North Africa in small, unstable and frequently overcrowded boats.
According to the UNHCR, around 170 people have died this year trying to reach Europe from Libya. Around 1,300 have reached Italy by sea since the beginning of 2012 and another 1,000 people have reached Malta.”

Account closures
The CBC reports that TD Bank has decided to close the accounts of a number of Iranian-Canadians, citing the need to comply with sanctions against Iran:

“ ‘It’s…given no explanation as to why this has happened and made some cryptic reference to the sanctions. But anytime they’ve sought some further explanation, they’ve been stonewalled and treated very, very badly,’ [according to the Iranian Canadian Congress’s Kaveh Shahrooz.]
He couldn’t say exactly how many people have been affected. He said at this time it appears TD is the only bank sending out these letters.”

Democratic deficit
The US is “not seen as promoting democracy in the Middle East,” according to a survey conducted by the Pew Research Center in Lebanon, Turkey, Egypt, Tunisia, Jordan and Pakistan:

“The U.S. receives mixed reviews in Tunisia. Overall, 45% have a favorable and 45% an unfavorable view of the U.S. However, President Barack Obama gets mostly poor marks – 57% say they have little or no confidence that Obama will do the right thing in world affairs. And there is no consensus among Tunisians about how the U.S. has handled the political changes taking place in their country – 31% believe the American response has had a positive effect, 27% say it has been negative, and 25% volunteer that the U.S. has had no impact.”

Criminalizing bank fraud
Michel Barnier, the EU commissioner in charge of financial reform, plans to table new rules that would make it a criminal offense to manipulate benchmarks such as Libor:

“ ‘We need to draw lessons from the Libor case,’ a spokesman for Barnier said. ‘We intend to close the regulatory gap in our proposed market-abuse legislation by including the direct manipulation of market indexes such as Libor.’
As it stands, the market-abuse proposal, which is now being negotiated with the European Parliament and EU member governments, defines insider dealing and market manipulation as criminal offences and lays down minimum penalties.”

No to EO 79
ABS-CBN News reports that environmental groups in the Philippines have three major objections to the country’s new mining rules:

“First, they say it promotes the unconstitutional overriding of local environmental codes that prohibit destructive mining operations in their area.
Second, it allegedly disenfranchises legitimate small-scale miners in favor of multinational companies, validating some 1.1 million hectares of existing mining applications and operations.
Third, it contents itself with a so-called piecemeal increase in mining administrative fees instead of collecting a “rightful” share from taxes and revenues.”

Subsitence threatened
Sherpa reports that it and four other NGOs have lodged a complaint with the Organisation for Economic Co-operation and Development over the activities of tire giant Michelin in the southern Indian state of Tamil Nadu:

“The development of this land, from a rural to an industrial zone, caused, in total, the destruction of 450 hectares of communal forest that surrounded the village and supported agricultural and pastoral activities, thereby depriving the people of their primary means of subsistence. Moreover, the land leased to Michelin is located in a watershed that feeds three natural lakes that irrigate Thervoy village and are the principal source of water for agriculture in the area.
And yet, since the start of the project, local residents have been mobilized, have demonstrated peacefully and have taken the state of Tamil Nadu to court on several occasions. Indeed, this project is violating the rights of 1,500 families living in Thervoy and threatens their subsistence. 18 other villages are also impacted directly by the construction of infrastructure necessary for the site.”
[Translated from the French.]

Private prisons
Bloomberg reports that the Canadian government is considering using the services of private companies to run certain aspects of the country’s prisons, prompting an opposition politician to accuse the ruling Conservatives of “opening the door to privatization”:

“If Canada turned to the private sector, it would follow countries such as the U.S., U.K. and Australia that have relatively larger prison populations.
There are 209 prison facilities managed by private companies worldwide, with 181 in the U.S., according to data from the Association of Private Correctional and Treatment Organizations. There were 44 privately-run facilities in the U.S. in the late 1980s, according to research by Management and Training Corporation, a closely held company that manages prisons.”

EU-Africa trade
Ten year-old trade negotiations between Africa and the EU are unlikely to bear fruit unless they are guided by a fundamental shift in thinking, according to the European Centre for Development Policy Management’s Sanoussi Bilal:

“Africa does not need a trade deal with Europe to grow, though it might help. What Europe and Africa both need, however, are stronger relations based on a more equal footing, where legitimate economic and political interests are openly acknowledged, not couched in benevolent, somewhat paternalistic, rhetoric on ‘development’.”