U.S. Trade Allies Retaliate | Spain's Rajoy Ousted | Italy's Populist Government

Council on Foreign Relations Newsletter If you are unable to see the message below, click here to view. June 1, 2018 Daily News Brief   TOP OF THE AGENDA Prospects for Trade War Swell as U.S. Allies Retaliate Canada, Mexico, and the European Union announced retaliatory tariffs on U.S. products in response to steep U.S. metal duties that went into effect today. The EU trade commissioner called the U.S. move (VOA), which includes a 25 percent tariff on steel and a 10 percent tariff on aluminum, "a bad day for world trade." The bloc plans to impose tariffs on $7.2 billion worth of U.S. products. Mexico said it will impose duties on U.S. steel (BBC) and some food products, while Canada announced tariffs of up to 25 percent on $13 billion worth of U.S. products. Canadian Prime Minister Justin Trudeau called the U.S. tariffs, which the White House said would enhance national security and support American workers (NYT), an affront to the U.S.-Canada relationship (Hill). ANALYSIS "For the first time in generations, we've really thrown out the rule book with our best trading partners," Rufus Yerxa of the National Foreign Trade Council said in an interview with the New York Times. "The U.S. grand strategy for multiple generations has been premised on the idea that we are going to collaborate with rich and powerful allies that our enemy doesn't have and that this will advance American national security in a variety of ways," CFR's Stephen D. Biddle said in an interview with CNBC. "There can be no better way to make America—and American manufacturing—great again than to start to rebuild those communities of America most harmed by the forces of globalization. These new facilities will stand as shining testimony to the success of tough trade actions, smart tax policies and targeted worker-training programs," writes White House trade advisor Peter Navarro in USA Today. PACIFIC RIM Australian Bank to Face Criminal Cartel Probe The Australia and New Zealand Banking Group (ANZ) will face criminal charges related to the sale of $2.5 billion worth of its shares in 2015 (Guardian), Australia's consumer watchdog said. Deutsche Bank and Citigroup are also expected to face charges. MYANMAR: Two UN agencies reached an agreement with Myanmar in which they will be granted access to Rakhine State (AP) to facilitate the return of Rohingya refugees. The United Nations and United States have called a crackdown by the Myanmar military against Rohingya there ethnic cleansing. This CFR Backgrounder looks at the Rohingya humanitarian crisis. SOUTH AND CENTRAL ASIA Caretaker PM Sworn In Ahead of Pakistani Elections Retired judge Nasirul Mulk was sworn in as a caretaker prime minister as the lower house of parliament was dissolved (Dawn) ahead of July 25 general elections. The move marks just the third time that Pakistan's National Assembly completed its five-year term (AP). KAZAKHSTAN: President Nursultan Nazarbayev is expected to sign into law a bill that would allow him to lead the country's security council for life (RFE/RL). Critics of the bill say it is a means for Nazarbayev to hold onto power after leaving office. MIDDLE EAST AND NORTH AFRICA U.S. to Oppose UN Resolution on Palestinian Protections U.S. Ambassador to the United Nations Nikki Haley said she will veto a Kuwait-drafted Security Council resolution (France24) that calls for providing protections to Palestinians in Gaza after more than one hundred Palestinians were killed by Israeli forces in recent weeks. Haley called the resolution "grossly one-sided." IRAQ: The New York Times said it will return to the Iraqi embassy in Washington thousands of the self-proclaimed Islamic State's internal documents that its journalists obtained in Iraq after first digitizing all the documents (Al Jazeera). SUB-SAHARAN AFRICA Zimbabwean Leader Touts Possible U.S. Foreign Investment President Emmerson Mnangagwa said a major U.S. company told his government that the Trump administration will turn a blind eye (Zimbabwe Herald) to sanctions imposed on the country in the early 2000s over human rights abuses that have hampered foreign investment (VOA). In Foreign Affairs, John Rapley looks at Zimbabwe under Mnangagwa. BURKINA FASO: Lawmakers voted to remove the death penalty (AP) from the country's penal code following lobbying by Amnesty International and activists in the Catholic church. EUROPE Spanish Prime Minister Ousted in No-Confidence Vote Mariano Rajoy became the country's first prime minister to be forced from office by a motion of no confidence, with lawmakers voting 180–169 to remove him (Politico) on Friday. Socialist Pedro Sanchez, who launched the motion, is expected to take his place. ITALY: A government backed by the antiestablishment Five Star Movement and far-right Northern League is expected to be sworn in today (Guardian) after President Sergio Mattarella agreed to the parties' slate of ministerial nominees, including political newcomer Giuseppe Conte for the role of prime minister. In Foreign Affairs, Erik Jones discusses Italy's revolt against the European Union. AMERICAS NATO Chief Looks to Boost Alliance With Colombia NATO Secretary-General Jens Stoltenberg, hosting Colombian President Juan Manuel Santos in Brussels yesterday, said the alliance could benefit from the country's expertise (Tolo) in peace negotiations with rebel groups as it looks toward a similar process in Afghanistan. Colombia became a NATO partner country last May. BOLIVIA: A Florida federal judge overturned a verdict (BBC) finding former Bolivian President Gonzalo Sanchez de Lozada, along with his defense minister, responsible for the deaths of dozens of protesters in 2003. Both men live in the United States (AP). UNITED STATES NAFTA Talks Imploded Due to U.S. Demands, Trudeau Says Canadian Prime Minister Justin Trudeau said no one in his position would agree to a U.S. demand (WaPo) to include a five-year sunset clause in a new version of the North American Free Trade Agreement (NAFTA). U.S. Vice President Mike Pence said a planned meeting with Trudeau this week is contingent on the Canadian leader accepting the provision. Experts discuss the future of NAFTA on the President's Inbox podcast.         Council on Foreign Relations — 58 East 68th Street — New York, NY 10065 CFR does not share email addresses with third parties. Forward This Email | Subscribe to CFR Newsletters | Unsubscribe - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -  

From: dailybrief@e.cfr.org

Date: June 01, 2018 at 10:12PM