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    Canada and EU sign defense pact amid strained US relations and global instability

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    Canada has signed a wide-ranging defence pact with the EU, as Donald Trump and global instability prompt traditional US allies to deepen their alliances.Canadian prime minister, Mark Carney, on Monday joined European Commission president, Ursula von der Leyen, and head of the European Council, António Costa, in Brussels, where they signed a security and defence partnership, pledged more support for Ukraine, as well as joint work on issues from the climate crisis to artificial intelligence.At a cordial press conference, Carney described Canada as “the most European of the non-European countries” that “looks first to the European Union to build a better world”.Costa spoke in kind: “The European Union and Canada are among the closest allies in the transatlantic space. We see the world through the same lens. We stand for the same values.”Not mentioned was another leader in the transatlantic space: Donald Trump, whose disrespect for old allies appears to have galvanised what was an already healthy EU-Canada relationship.The US president is expected at the two-day Nato summit in the Hague starting on Tuesday, when members of the transatlantic alliance are called to pledge to spend 5% of GDP on defence.Carney, a veteran central banker turned politician, won a stunning victory in April pledging that Canada would not become the 51st US state, a proposal often floated by Trump.He said he had a mandate “to diversify and strengthen our international partnerships” and find new means of co-operation and co-ordination. The summit took place, Carney told reporters, “we might say in a hinge moment of history, a world that is more dangerous and divided, a time where the rules-based international global order is under threat”.The EU-Canada security and defence partnership opens the door to increased Canadian participation in the EU’s fledgling €150bn defence fund, known as Safe. Von der Leyen said the defence partnership meant working on joint capabilities, interoperability and joint procurement, referencing air defence. “The access of Canada to our joint procurement in the European Union, the door is open,” she said.The security pact is a Canadian version of the agreement the EU signed with the British prime minister, Keir Starmer, last month. The bloc already had similar arrangements with six other countries including Norway and Japan, but this is the first with any country in the Americas. The defence pact includes joint work on cyber, maritime and space security, arms control and support for Ukraine.Countries that have a defence and security pact with the EU can take part in joint procurement of weapons funded by the €150bn (£128bn, $173bn) Safe programme, although must negotiate a further technical agreement. Von der Leyen pledged both sides would “swiftly launch talks” on Canadian access to the joint procurement scheme.Carney said the agreement with the EU would help Canada “deliver on our new capabilities more rapidly and more effectively”. Canada has been one of the laggards of the Nato alliance: in 2024 it spent just 1.37% of GDP on defence, well below the 2% set in 2014.The two sides have a €125bn trading relationship, underpinned by the Ceta pact signed in 2016 that abolished 98% of tariffs. The agreement, however, has yet to be ratified by national parliaments in 10 EU member states, including Belgium, France, Italy and Poland, meaning elements of the deal have yet to enter into force.In advance of the meeting Carney and his wife, Diana Fox, Carney visited Schoonselhof military cemetery in Antwerp, where 348 Canadians are buried, “brave young soldiers who ventured across the Atlantic to defend the freedom of Europe”, Carney wrote on social media.The Carneys were accompanied by Belgium’s prime minister, formerly a long-serving Antwerp mayor, Bart De Wever, where they were given a tour of the ceremony and laid wreaths on behalf of Belgium and Canada. The last post was played by one of De Wever’s sons, according to local paper Het Nieuwsblad. More

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      Western leaders call for diplomacy, but they won’t stop this war – they refuse to even name its cause | Nesrine Malik

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      Since the war on Gaza started, the defining dynamic has been of unprecedented anger, panic and alarm from the public, swirling around an eerily placid political centre. The feeble response from mainstream liberal parties is entirely dissonant with the gravity of the moment. As the US joins Israel in attacking Iran, and the Middle East heads toward a calamitous unravelling, their inertness is more disorienting than ever. They are passengers in Israel’s war, either resigned to the consequences or fundamentally unwilling to even question its wisdom. As reality screams at politicians across the west, they shuffle papers and reheat old rhetoric, all while deferring to an Israel and a White House that have long taken leave of their senses.At a time of extreme geopolitical risk the centre presents itself as the wise party in the fracas, making appeals for cool heads and diplomacy, but is entirely incapable of addressing or challenging the root cause. Some are afraid to even name it. Israel has disappeared from the account, leaving only a regrettable crisis and a menacing Iran. The British prime minister, Keir Starmer, has called for de-escalation. But he referred to the very escalation he wishes to avoid – the US’s involvement – as an alleviation of the “grave threat” posed by Iran, all the while building up UK forces in the Middle East.The president of the European Commission, Ursula von der Leyen, underlines the importance of diplomacy while making sure to assert that Iran is the “principal source” of instability in the region. The French president, Emmanuel Macron, had seemed to be inhabiting the real world, warning against the inevitable chaos that would be triggered by regime change in Iran and in repeating the mistakes of the past. But by Sunday France had fallen into line, joining the chorus calling for de-escalation and restraint in vague general terms, and reiterating “firm opposition” to Iran’s nuclear programme.If this seems maddeningly complacent to you, let me reassure you that you are not, in fact, missing something. The war with Iran is very bad news, and introduces a number of profoundly destabilising scenarios: regime change with no day-after plan, leaving a large cadre of armed military and security forces in play; the amassing in the region of western military forces that could become targets and flashpoints; or simply a prolonged war of attrition that would seize up the region and open a large festering wound of anger and militarisation. It’s also – and this is something Israel’s assaults have inured us to – killing hundreds of innocent people. To say nothing of the fact that it is, above all the extant risks, illegal.But most western leaders continue to treat it as just another chapter of unfortunate but ultimately fixed realities of the world to manage. And here is the sinkhole at the heart of the entire response to Israel over the past year and a half – a vacant centre. Trump is Trump. No one is expecting him to have a coherent, brave and stabilising response to Israel. But the problem predates him: a political establishment of ostensibly liberal, reliable custodians of stability that has no moral compass, and no care for the norms it constantly claims to uphold. Under its watch, international and human rights law has been violated again and again in Gaza, the West Bank, Lebanon, Syria and now Iran. Its answer has been to get out of Israel’s way at best, and arm it and provide it with diplomatic cover at worst. Joe Biden’s administration set the tone, and European governments followed. Collectively, they have clung on to a status quo of unconditional support for Israel and, in doing so, shattered the legal and moral conventions that imbued them with any measure of integrity or authority.And yet they still carry on amid the wreckage. Their pronouncements about the importance of diplomacy sound like echoes from an era that has long passed – one before a livestreamed genocide demolished any semblance of a coherent system of international law. What the current moment has revealed is a cohort of regimes fundamentally unsuited to crisis, fit only for management; a crop of politicians whose very role is not to rethink or challenge the way things are, but simply to shepherd geopolitical traffic. Their mandate is indeed to stabilise, but only in the sense of locking in a world order of failing assumptions and hierarchies. It is not to make the world a better place, but to cast a veneer of credibility over why it is necessary that we live in this worse one.This is not to be confused with “pragmatism”. Pragmatism implies a lack of position or vested interest. What is obscured by the language of reluctant engagement is that it is underpinned by beliefs that are defined not by values, but by tribal supremacy. Iran is a country which, in the eyes of a liberal establishment, is never fully sovereign because it has diverged from western interests. It has no right of response when attacked (and in fact, must show restraint when it is). Its people have no right to expect a careful consideration of their future, or indeed the entire region’s. Israel, on the other hand, is a super sovereign, and never culpable.This default position is so naked in its hypocrisy, so ignorant and parochial in its worldview, so clear in its disregard for human life, that it represents a colossal erosion of sophistication in political discourse, and a new low in contempt for the public. Support for Israel can only be defended by facile, logic-defying references to its right to defend itself even when it is the aggressor, and Iran’s “threat to the free world”. Forgive me, but is that the same free world that backed unilateral attacks on four Middle East territories by Israel, a country whose leader is wanted by the international criminal court? At this point, the biggest threat to the free world is itself, which will sacrifice everything to ensure that not a single challenge to its power is allowed to pass.The end result is that such leaders are not only irresponsible, they are unrepresentative, unable and unwilling even to manufacture consent any more. An accelerating nihilism has taken hold. Mandates fray as centrist governments and political parties stray further and further from the public, which in Europe declares a historically low level of support for Israel. In the US (including Trump supporters), a majority opposes involvement in war with Iran. And so the gap between a detached politics and bloody reality widens even further. The managers of western hegemony hurtle into the void, taking all of us with them.

      Nesrine Malik is a Guardian columnist More

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      in US Politics

      Iran says diplomacy with US only possible if Israeli aggression stops

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      Iran’s foreign minister, Abbas Araghchi, has said that his country is ready for more diplomacy with the US only if Israel’s war on his country is brought to an end “and the aggressor is held accountable for the crimes he committed”.After several hours of talks with European foreign ministers in Geneva on Friday, there was no sign of a diplomatic breakthrough – or a resumption of negotiations with the US.Araghchi said: “Iran is ready to consider diplomacy once again and once the aggression is stopped and the aggressor is held accountable for the crimes committed. We support the continuation of discussion with [Britain, France, Germany and the EU] and express our readiness to meet again in the near future.”Late on Friday, Donald Trump said he was unlikely to press Israel to scale back its campaign to allow negotiations to continue.“I think it’s very hard to make that request right now. If somebody is winning, it’s a little bit harder to do than if somebody is losing, but we’re ready, willing and able, and we’ve been speaking to Iran, and we’ll see what happens,” he said.Araghchi said he was willing to continue talks with his European counterparts since they have not supported Israel’s attacks directly. But he said Iran was “seriously concerned over the failure of the three countries to condemn Israel’s act of aggression” and would continue to exercise its right to “legitimate defence”.He also said Iran’s capabilities, including its missile capabilities, are non-negotiable, and could not form part of the talks, a rebuff to the French president, Emmanuel Macron, who in an earlier statement said they should be included in the talks.With Israeli diplomats and military commanders warning of a “prolonged war”, the route to direct talks between the US and Iran remains blocked, leaving the European countries as intermediaries.After Friday’s talks between Araghchi and his British, French and German counterparts, the UK foreign secretary, David Lammy, said: “This is a perilous moment, and it is hugely important that we don’t see regional escalation of this conflict.”The French foreign minister, Jean-Noël Barrot, said there “can be no definitive solution through military means to the Iran nuclear problem. Military operations can delay it but they cannot eliminate it.”The talks are being held against the backdrop of Trump’s threat that the US could launch its own military assault on Iran within a fortnight – a step that would probably turn the already bloody war into a full-scale regional conflagration.European diplomats said they came to talks to deliver a tough message from the US secretary of state, Marco Rubio, and special envoy, Steve Witkoff: that the threat of US military action is real but that a “diplomatic pathway remains open”.But without direct talks between the US and Iran it is hard to see how an agreement can be reached to curtail Iran’s nuclear programme in a way that satisfies the US headline demand that Iran must never have a nuclear bomb.Trump suggested that European efforts would not be enough to bring any resolution. He said: “Iran doesn’t want to speak to Europe. They want to speak to us. Europe is not going to be able to help in this.”The European ministers said they had expressed their longstanding concerns about Iran’s expansion of its nuclear programme, “which has no credible civilian purpose and is in violation of almost all provisions in the nuclear deal agreed in 2015”.The EU’s foreign policy chief, Kaja Kallas, said: “Today the regional escalation benefits no one. We must keep the discussions open.”Earlier on Friday, Macron said the European offer to end Israel’s war would include an Iranian move to zero uranium enrichment, restrictions on its ballistic missile programme and an end to Tehran’s funding of terrorist groups.The proposals were surprisingly broad, spanning a range of complex issues beyond Iran’s disputed nuclear programme, and appeared likely to complicate any solution unless an interim agreement can be agreed.One proposal recently aired is for Iran to suspend uranium enrichment for the duration of Donald Trump’s presidency. The concept of uranium enrichment being overseen by a consortium of Middle East countries – including Iran, Saudi Arabia and the United Arab Emirates – remains on the table.Macron, already accused by Trump of publicity seeking this week, set out a daunting agenda. “It’s absolutely essential to prioritise a return to substantial negotiations, including nuclear negotiations to move towards zero [uranium] enrichment, ballistic negotiations to limit Iran’s activities and capabilities, and the financing of all terrorist groups and destabilisation of the region that Iran has been carrying out for several years,” he said.In the previous five rounds of talks, the US insisted that Iran end its entire domestic uranium enrichment programme, but said it would allow Iran to retain a civil nuclear programme, including by importing enriched uranium from a multinational consortium.Iran claims that as a signatory to the nuclear non-proliferation treaty, it has an absolute legal right to enrich uranium, a position neither the European nor American powers have endorsed. In the past, European negotiators have proved more adept than their US partners in finding compromises, including the temporary suspension of domestic enrichment, a principle Tehran reluctantly endorsed between 2003 and 2004. More

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      in Elections

      Medically Assisted Dying Closer to Legalization After Vote by UK Lawmakers

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      British lawmakers on Friday confirmed their support for assisted suicide for some terminally ill people, after months of scrutiny that followed an initial vote last year.British lawmakers on Friday approved plans to introduce medically assisted dying for terminally ill patients in England and Wales, advancing what would be one of the biggest social changes seen in Britain in decades.After a debate that was at times emotive and fraught but remained respectful in tone, legislators supported the proposal by a vote of 314 to 291.The vote on Friday was the second time lawmakers have approved the idea of medically assisted dying, after an initial vote in November of last year that was followed by months of scrutiny and debate in parliamentary committees. The issue has provoked deep division in and beyond the British Parliament.The bill passed by just 23 votes on Friday, significantly lower than last year, when the majority was 55. That may reflect concerns recently expressed by some medical professionals and organizations about the practicality of the legislation.The bill now goes to the unelected second chamber of the Parliament, the House of Lords. While the Lords can amend legislation, the fact that the bill has the support of elected lawmakers means that it is very likely to become law.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      in US Politics

      I grew up on American food. Trust me, it’s the last thing Europe needs | Alexander Hurst

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      All over European media, the take seems to be similar – that the EU is “under pressure” to conclude some sort of deal with the US in order to avoid Donald Trump’s 9 July deadline for the unilateral imposition of broad tariffs. What might be on the table in the attempt to secure that? In early May, the EU trade commissioner, Maroš Šefčovič, was already suggesting that a deal to increase purchases from the US could include agricultural products – a possibility that seems to remain even though Šefčovič later clarified that the EU was not contemplating changing its health or safety standards.Since I have failed to Abba (“Always be boldly acronyming”) and don’t have anything as good as Taco (“Trump always chickens out”) – coined by the Financial Times columnist Robert Armstrong – at the ready, I’ll simply reach for the easy line: opening the door even slightly to more US food imports into the EU would leave a bad taste in all our mouths. Trump’s hostage-taking approach to trade should not be rewarded, certainly not with something that hits as close to home as food does.“The European Union won’t take chicken from America. They won’t take lobsters from America. They hate our beef because our beef is beautiful and theirs is weak,” declared the US commerce secretary, Howard Lutnick, in April. Laughter aside, every time I go back to the US I become a vegetarian for the duration of my trip – even though US grocery store vegetables are themselves generally big, blemish-free and bland. Why? Call me paranoid, but I simply don’t want to ingest the same growth hormones that Lutnick’s “beautiful” meat probably contains traces of and that are banned in the EU.Growing up in Ohio, I experienced the full force of US food culture. It was the 90s, which meant that margarine was most definitely in and butter was out; an example that highlights how processed everything took root, including – in my vegetarian family – highly processed meat alternatives. The people around me meant well, but how do you fight a system that, from top to bottom, was designed to push high fructose corn syrup into practically everything (and most worryingly into school lunches)?To be fair, all of this has since generated a domestic backlash, but there’s an intense amount of momentum behind it still: almost without fail, I find that the standard sugar level in the US soars far beyond what I now find appealing. Even in places I wouldn’t expect to find added sugar at all, like pizza.And why would the Trump administration’s full-scale savaging of the US government’s administrative and regulatory capacity, including the Food and Drug Administration, increase anyone’s trust that what US regulation does exist is actually being followed?Some of you are perhaps rolling your eyes, thinking: Alexander Hurst, a naturalised French citizen, has gone full “chauvin”; converts are the worst. Except it’s not just me. There is an entire internet subgenre of content extolling the virtues of French butter, or involving Americans who come to France and realise that this is what peaches, or strawberries, really taste like.Beyond the question of whether or not Europeans want to eat US agricultural output, a hypothetical trade deal would involve hugely negative climate impacts. The distance that food travels already accounts for 20% of global agriculture-related emissions pollution, and Europe’s share in imported agriculture emissions is already high. We need to be reducing it, not adding to it through foodstuffs carted unnecessarily across the Atlantic.How can we ask European farmers to accelerate their transition to regenerative agriculture (which offers the potential to drastically reduce agriculture emissions) if, at the same time, they are being undercut by US producers who face far lower regulatory standards?“Europe already produces and grows everything it could possibly need. The last thing we want to see circulating is hormone-pumped beef or chlorinated poultry,” says Lindsey Tramuta, the author of The Eater Guide to Paris. “Even beyond the goods themselves, there’s the issue of distance: why bring food over from the US if Europeans can get their needs met from much closer to home?”Yannick Huang, who manages the Vietnamese restaurant Loan in Paris’s Belleville neighbourhood, agrees. “At a time when we’re trying to do organic, local, it’s pointless to want to import anything from the US,” he told me. Huang, who is obsessive about ingredient quality, only serves French beef. To him, US agriculture comes tainted with the connotation of “GMOs and other problems”.Hold on, you might say. Isn’t it inconsistent to oppose Trump’s tariffs while also promoting food protectionism? Fair point: it’s hard to find a “one size fits all” approach to globalisation. It has harmed some workers in wealthy economies while also reducing the gap between low-income nations and high-income ones. No country on Earth has a fully self-contained advanced semiconductor manufacturing supply chain, and in sectors where globalisation has become excessive, it might be even more economically harmful to roll back. None of that, though, means that things that have resisted becoming fully global should all of a sudden be opened up – food most of all.Ramzi Saadé is a Lebanese-Canadian chef whose Paris restaurant, Atica, is dedicated to a fiercely regional approach to haute cuisine. But taking his diners on a voyage of discovery doesn’t mean his food has to go on one too; despite focusing on first Basque, and now Corsican cuisine, he sources almost all of his ingredients from the area surrounding Paris. For a lamb dish involving 13 different elements, only the nepeta, a Corsican herb, had travelled, he said. “Is my role today to bring you Japanese culture via wasabi flown to Paris?” Saadé asked. “No, my role is to explain to you that it’s grated this way and put on fish for this reason, and I can do that with wasabi from France.”I couldn’t help but think that it’s actually far more interesting to do it his way – to interpret a cuisine rather than attempt to transpose it.We are what we eat. A cuisine is a medium of communication; it is, indelibly, tied up with the stories we tell about who we are. Perhaps that’s why it’s so disturbing to see food held hostage, or weaponised, in the pursuit of economic or geostrategic goals.Europe’s intense and varied regionality is an enormous part of how it eats and therefore what it is. Opening the market to mass penetration by US agriculture would, little by little, nibble away at that richness. It’s the kind of proposition that, if it ever makes it out of the kitchen, should be sent back straight away.

      Alexander Hurst is a Guardian Europe columnist More

    • 213 Shares106 Views

      in US Politics

      I grew up on American food. Trust me, it’s the last thing Europe needs | Alexander Hurst

      by

      All over European media, the take seems to be similar – that the EU is “under pressure” to conclude some sort of deal with the US in order to avoid Donald Trump’s 9 July deadline for the unilateral imposition of broad tariffs. What might be on the table in the attempt to secure that? In early May, the EU trade commissioner, Maroš Šefčovič, was already suggesting that a deal to increase purchases from the US could include agricultural products – a possibility that seems to remain even though Šefčovič later clarified that the EU was not contemplating changing its health or safety standards.Since I have failed to Abba (“Always be boldly acronyming”) and don’t have anything as good as Taco (“Trump always chickens out”) – coined by the Financial Times columnist Robert Armstrong – at the ready, I’ll simply reach for the easy line: opening the door even slightly to more US food imports into the EU would leave a bad taste in all our mouths. Trump’s hostage-taking approach to trade should not be rewarded, certainly not with something that hits as close to home as food does.“The European Union won’t take chicken from America. They won’t take lobsters from America. They hate our beef because our beef is beautiful and theirs is weak,” declared the US commerce secretary, Howard Lutnick, in April. Laughter aside, every time I go back to the US I become a vegetarian for the duration of my trip – even though US grocery store vegetables are themselves generally big, blemish-free and bland. Why? Call me paranoid, but I simply don’t want to ingest the same growth hormones that Lutnick’s “beautiful” meat probably contains traces of and that are banned in the EU.Growing up in Ohio, I experienced the full force of US food culture. It was the 90s, which meant that margarine was most definitely in and butter was out; an example that highlights how processed everything took root, including – in my vegetarian family – highly processed meat alternatives. The people around me meant well, but how do you fight a system that, from top to bottom, was designed to push high fructose corn syrup into practically everything (and most worryingly into school lunches)?To be fair, all of this has since generated a domestic backlash, but there’s an intense amount of momentum behind it still: almost without fail, I find that the standard sugar level in the US soars far beyond what I now find appealing. Even in places I wouldn’t expect to find added sugar at all, like pizza.And why would the Trump administration’s full-scale savaging of the US government’s administrative and regulatory capacity, including the Food and Drug Administration, increase anyone’s trust that what US regulation does exist is actually being followed?Some of you are perhaps rolling your eyes, thinking: Alexander Hurst, a naturalised French citizen, has gone full “chauvin”; converts are the worst. Except it’s not just me. There is an entire internet subgenre of content extolling the virtues of French butter, or involving Americans who come to France and realise that this is what peaches, or strawberries, really taste like.Beyond the question of whether or not Europeans want to eat US agricultural output, a hypothetical trade deal would involve hugely negative climate impacts. The distance that food travels already accounts for 20% of global agriculture-related emissions pollution, and Europe’s share in imported agriculture emissions is already high. We need to be reducing it, not adding to it through foodstuffs carted unnecessarily across the Atlantic.How can we ask European farmers to accelerate their transition to regenerative agriculture (which offers the potential to drastically reduce agriculture emissions) if, at the same time, they are being undercut by US producers who face far lower regulatory standards?“Europe already produces and grows everything it could possibly need. The last thing we want to see circulating is hormone-pumped beef or chlorinated poultry,” says Lindsey Tramuta, the author of The Eater Guide to Paris. “Even beyond the goods themselves, there’s the issue of distance: why bring food over from the US if Europeans can get their needs met from much closer to home?”Yannick Huang, who manages the Vietnamese restaurant Loan in Paris’s Belleville neighbourhood, agrees. “At a time when we’re trying to do organic, local, it’s pointless to want to import anything from the US,” he told me. Huang, who is obsessive about ingredient quality, only serves French beef. To him, US agriculture comes tainted with the connotation of “GMOs and other problems”.Hold on, you might say. Isn’t it inconsistent to oppose Trump’s tariffs while also promoting food protectionism? Fair point: it’s hard to find a “one size fits all” approach to globalisation. It has harmed some workers in wealthy economies while also reducing the gap between low-income nations and high-income ones. No country on Earth has a fully self-contained advanced semiconductor manufacturing supply chain, and in sectors where globalisation has become excessive, it might be even more economically harmful to roll back. None of that, though, means that things that have resisted becoming fully global should all of a sudden be opened up – food most of all.Ramzi Saadé is a Lebanese-Canadian chef whose Paris restaurant, Atica, is dedicated to a fiercely regional approach to haute cuisine. But taking his diners on a voyage of discovery doesn’t mean his food has to go on one too; despite focusing on first Basque, and now Corsican cuisine, he sources almost all of his ingredients from the area surrounding Paris. For a lamb dish involving 13 different elements, only the nepeta, a Corsican herb, had travelled, he said. “Is my role today to bring you Japanese culture via wasabi flown to Paris?” Saadé asked. “No, my role is to explain to you that it’s grated this way and put on fish for this reason, and I can do that with wasabi from France.”I couldn’t help but think that it’s actually far more interesting to do it his way – to interpret a cuisine rather than attempt to transpose it.We are what we eat. A cuisine is a medium of communication; it is, indelibly, tied up with the stories we tell about who we are. Perhaps that’s why it’s so disturbing to see food held hostage, or weaponised, in the pursuit of economic or geostrategic goals.Europe’s intense and varied regionality is an enormous part of how it eats and therefore what it is. Opening the market to mass penetration by US agriculture would, little by little, nibble away at that richness. It’s the kind of proposition that, if it ever makes it out of the kitchen, should be sent back straight away.

      Alexander Hurst is a Guardian Europe columnist More

    • 138 Shares145 Views

      in US Politics

      Trump’s ‘revenge tax’ could threaten foreign investment into US, analysts say

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      Foreign investment into the US could be threatened by Donald Trump’s new “revenge” taxes, analysts have warned.A provision within the president’s One Big Beautiful Bill Act will allow the US to apply higher taxes on foreign individuals, businesses and investors connected to jurisdictions that impose “unfair foreign taxes” on US individuals and companies.Companies listed on the London Stock Exchange could choose to avoid the measure by redomiciling in New York.Section 899, as it is called, classes digital service taxes and “diverted profits taxes” as unfair, along with any taxes that target US entities. It would allow US authorities to impose an additional tax starting at 5% and increasing by five percentage points annually, up to 20%.Max Yoeli, a senior research fellow in the US and the Americas programme at Chatham House, says section 899 “threatens to further alienate foreign investors”.It could chill investment into the US by calling into question its “fundamental openness”, he added.The Italian bank UniCredit agrees that section 899 could further damage foreign investor sentiment towards US dollar-denominated assets. It could backfire on the US, it says, given the large amount of domestic assets held by foreigners.“The list of countries that would fall into this category is long and encompasses most European countries, including Italy and Germany,” UniCredit told clients, saying that foreign investors had more than doubled their holdings of US assets over the past decade.“Not only would this additional tax serve to finance corporate tax reductions, but it would also likely be used as a negotiating tool for the US in trade deals, especially as Republicans seem willing to withdraw from the global minimum tax framework.”View image in fullscreenUniCredit also fears the dollar’s safe haven status could be undermined if there are fresh tax disputes between the US and other countries.The One Big Beautiful Bill Act was passed by the US House of Representatives last month. The Senate is yet to approve the bill, with the White House setting a deadline of 4 July.George Saravelos, the global head of FX research at Deutsche Bank, warned last month that section 899 could allow the US administration to transform its trade war into a capital war by “explicitly using taxation on foreign holdings of US assets as leverage to further US economic goals”.UK companies could certainly fall foul of section 899, as Britain operates a digital services tax aimed at tech multinationals, and a diverted profits tax designed to clamp down on tax avoidance by multinationals.skip past newsletter promotionafter newsletter promotionGoldman Sachs has calculated that UK corporates are “particularly exposed” to section 899, as roughly 30% of the revenues of companies listed on the FTSE 100 are generated in the US.However, as companies that are majority-owned by US shareholders are exempt, City bosses may consider moving their stock market listing to New York, to dodge section 899.“This ownership dynamic not only mitigates tax risk but also reinforces the strategic case for relisting in the US, where investor bases are deeper and more aligned with US revenue exposure,” the Goldman Sachs analysts said.According to Goldman, the large UK companies with the most significant exposure to the US, and who are not majority-owned by US investors, are the media group Pearson, the business services group Experian, the pest control business Rentokil and the pharmaceuticals manufacturer Hikma.Ashtead Group, Compass and Melrose also generate a large proportion of their sales stateside, but as they have majority US ownership they should be exempt from section 899.French companies could also be at risk, as Paris operates a digital services tax on the revenues that large tech companies generate in France. More

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      in US Politics

      ‘No way to invest in a career here’: US academics flee overseas to avoid Trump crackdown

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      View image in fullscreenEric Schuster was over the moon when he landed a lab assistant position in a coral reef biology lab at the Scripps Institute of Oceanography (SIO). The 23-year-old had recently graduated with a bachelor’s degree in nanoengineering from the University of California, San Diego, into a fiercely competitive job market. He felt like he’d struck gold.But the relentless cuts to scientific research and attacks on higher education by the Trump administration have turned what felt like a promising academic future into unstable ground.“There are several labs, both at our institution and around the US, that have essentially just sent everyone home because they have no money,” Schuster said, expressing concern not just for oceanography but for all fields of scientific research. The multi-pronged attacks have “been seriously detrimental to just about everyone”, he said.Though Schuster is grateful for his position, he is in a constant state of worry about whether it will still exist tomorrow. UCSD, which SIO is a part of, told the Guardian that the Trump administration has ended or frozen roughly $90m in grants from the National Institutes of Health and the National Science Foundation. Nearly 200 other grants are facing delays. SIO researchers have noted that the “vast majority” of their funding comes from the government.Schuster has decided he’s not going to stick around to see if he will lose his job.View image in fullscreenHe’ll be starting his graduate studies this fall in France with a European University Networks (EUN) program, a transnational alliance of higher education institutions. He plans to stay outside of the US after to continue his career.“It’s a grab bag that anyone you’re talking to has had decreased funding, or lost almost all of their funding, or is having trouble continuing their funding,” he says.“That, along with the pretty pervasive and growing anti-science establishment narrative … have been strong motivators to look elsewhere,” Schuster said.Schuster is one of many budding academics reflecting what could become a significant American brain drain, sending the brightest minds in the country to flee the US and take their scholarly endeavors elsewhere. Historically, the US has attracted top talent from around the world, but the moves by the Trump administration may have reversed these conditions in record time.Research institutions are feeling the strain from funding cuts from some of the biggest grant-making bodies in the world. The National Science Foundation (NSF) funds about 25% of federally backed basic research at US universities, but Trump’s proposed budget would cut over $5bn, or 57%, from its budget, chopping it from roughly $9bn down to $3.9bn. The US National Institutes of Health would lose about 40% of its budget compared to last year.But those cuts aren’t the only cause for anxiety. Nerves throughout the scholarly community are also on edge given what is widely perceived as a historic attack on academic freedom through administration assaults against universities such Columbia and Harvard University under the guise of rooting out antisemitism and diversity, equity and inclusion programs. Dozens more universities are waiting for their turn.‘The situation is just too volatile’A recent Nature survey revealed that approximately 75% of US-based scientists are contemplating relocation, with early-career researchers and PhD students particularly inclined toward opportunities in Canada, Europe and Australia.Valerio Francioni is one of them. A 32-year-old Italian citizen who moved to the US after getting his PhD at the University of Edinburgh, Francioni is now a postdoctoral research scientist at the Massachusetts Institute of Technology studying neuroscience.International students have faced nonstop chaos in the past few months, from visa suspensions to the attempted deportations of several students who expressed support for Palestinians. Last month, the Trump administration ordered US embassies worldwide to immediately stop scheduling visa interviews for foreign students as it prepares to implement comprehensive “social media screenings” for all international applicants.View image in fullscreen“As an international, there’s just no way that you can invest safely into a career here right now, there’s just no way to plan ahead. The situation is just too volatile to feel that you’re making a safe investment by being here,” Francioni said.A recent report from the Economist suggests that international students (and some domestic) are losing interest in American PhD programs. Searches for US PhD programs on the website FindAPhD fell 40% year on year in April, while interest from students in Europe has fallen by 50%. Data from another website, Studyportals, shows a decrease in interest for domestic PhDs among Americans, and a rise in interest for international programs compared to the previous year.Though his own visa has not been affected yet, Francioni plans to leave the US once his run at MIT is finished. He had wanted to stay in Boston – it’s a great place for people in the neurotech field, he says, and his American partner is there. But his calculus has changed in the past few months.Kristina, originally from Sweden, is grappling with the same questions. A mathematics professor at a university in the north-east US, Kristina requested that only her first name be used and her institution not be named over concerns of retaliation by the Trump administration.“Right now, I think that everyone who’s not a citizen feels that we cannot express our opinions,” Kristina said.She’s been in the US for 25 years, but does not have US citizenship. She is now debating whether to stay or leave. To her, the question is a moral one, whether to leave for safety or stay to “fight for a more democratic future”.View image in fullscreenEmmanuel Guerisoli, a French and Italian academic with a PhD in sociology and history, moved to the US in 2010 to pursue a masters in sociology. He is now finishing a postdoc at the Zolberg Institute on Migration and Mobility at the New School.Guerisoli is concerned about being targeted by Ice because of discussions he has led in class on the war in Gaza. He was offered a tenure-track position at a different institution, he said, but it was quickly rescinded, which he was told was due to the Trump administration’s funding cuts.He gave up on applying to academic jobs in the US and decided to move to Argentina this summer, where the dread of Immigration and Customs Enforcement (Ice) agents knocking down his door will not follow him every day.“It’s not just that you’re being questioned on your political beliefs, but any type of critical or academic engagement on certain topics that go beyond the realm of just politics are being targeted,” he said.“Even if the state department renews my visa, I would be concerned about teaching courses the way I have done it in the past,” he said.Filling the voidScholars at Risk, which assists academics facing political pressure, saw this coming.“The recent policies have created a tremendous amount of anxiety,” Robert Quinn, the group’s executive director, said. He worries the loss will have ripple effects far beyond campus.“When a big economic contributor gets disrupted, that’s going to begin to affect everybody relatively quickly in those communities,” Quinn said. “Beyond that is the effect on public health. If we look at the cutting of the research pipeline, that means fundamentally cutting off access to services and medicines and treatments that affect every American who happens to get sick.”Quinn says that Scholars at Risk is working on ways to support US academics exploring foreign opportunities.Several other countries are jumping in to fill the void, and have already begun courting American academics.The European Union has pledged €500m (around $556m) over the next two years to become a prime destination for displaced scientists. France’s president, Emmanuel Macron, announced $113m for a national program to bring in American researchers, and Aix-Marseille University separately announced Safe Place for Science, a three-year, $16.8m program to attract 15 American scientists working in climate, health and astrophysics.A university spokesperson previously told the Guardian that more than 60 applications have been received, 30 of them coming within the first 24 hours.View image in fullscreenMeanwhile, Denmark is fast-tracking 200 positions for American researchers. In a widely shared Instagram post, the head of the Danish chamber of commerce directly invited American scientists to consider Denmark, “a place where facts still matter”.Sweden’s education minister held a roundtable of university leaders to strategize on attracting frustrated US talent, and publicly called for American scientists to relocate.Canadian institutions are following a similar path. The University Health Network in Toronto and associated foundations are investing CA$30m ($21.5m) to bring in 100 early-career scientists from the US and beyond. Meanwhile, the University of British Columbia reopened graduate applications in April specifically to accommodate interested US students.Carter Freshour, a 22-year-old US citizen, had just begun his masters program in business at the Thunderbird School of Global Management in Arizona when Trump took office.As soon as the attacks on higher education began, he dropped out of the program out of fear of the direction the country is heading. He is now in the process of moving to Madrid, where he will finish his business degree, and then plans to move to Portugal.“I don’t want to live in a country that does not abide by the laws that they have set in stone,” Freshour said. “It has deeply troubled me, the direction that the United States is going.” More

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      Trump is Pushing Allies Away and Closer Into Each Other’s Arms

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      Important U.S. allies are trying to bolster their ties as the Trump administration shifts priorities and reshapes the world order.New trade deals. Joint sanctions against Israel. Military agreements.America’s closest allies are increasingly turning to each other to advance their interests, deepening their ties as the Trump administration challenges them with tariffs and other measures that are upending trade, diplomacy and defense.Concerned by shifting U.S. priorities under President Trump, some of America’s traditional partners on the world stage have spent the turbulent months since Mr. Trump’s January inauguration focusing on building up their direct relationships, flexing diplomatic muscles and leaving the United States aside.This emerging dynamic involves countries such as Britain, France, Canada and Japan — often referred to by international relations experts as “middle powers” to distinguish them from superpowers like the United States and China.“These are industrialized democracies, allies of the United States, supporting multilateral rules and institutions,” said Roland Paris, a professor of international relations and the director of the Graduate School of Public and International Affairs at the University of Ottawa.“And as the international order has been disintegrating, and the United States has been indicating that it’s less willing to underwrite it, what we’ve seen is a shift in the role of middle powers,” he added.That role, Professor Paris said, is characterized by the pursuit of “opportunistic and self-interested initiatives that are still collaborative,” including a slew of smaller agreements over trade and defense involving European countries and Canada.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More