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      in World Politics

      The Brexit Deal Presents Opportunities for a New Partnership

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      It was agreed almost at the last minute: The Trade and Cooperation Agreement (TCA) between the European Union and the United Kingdom, signed on December 30, 2020, prevented a no-deal Brexit just one day before the end of the transition period. Four and a half years after the referendum, relations between the EU and its former member state have thus been put on a new footing. It is a considerable achievement of the negotiators on both sides that such a complex agreement was reached despite the adverse conditions.

      Yet the end result, due to the British quest for sovereignty, is a (very) hard Brexit. Although the movement of goods will continue with zero tariffs and zero quantitative restrictions, many new non-tariff trade barriers will arise when compared to single market membership. Services, including finance, are largely excluded from the treaty, and with very few exceptions, the British are leaving European projects such as Erasmus. London has also excluded foreign and security policy altogether from the institutional cooperation with the EU.

      Brexit Trade Deal Brings Temporary, If Not Lasting, Relief

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      Despite the restricted market access, the EU can claim to have achieved the inclusion of comprehensive instruments to ensure fair competition, a level playing field. This includes the possibility of reintroducing tariffs and other trade restrictions should there be a significant divergence in labor or environmental standards in the future. Both sides have achieved their remarkably defensive goals: Boris Johnson gets his hard Brexit, and the EU was able to defend its single market and its standards.

      To Be Built Upon

      The original idea of an “ambitious and deep partnership” between the EU and the UK, however, has fallen by the wayside. In the first few weeks of 2021, the EU and the UK have already squabbled over vaccines and the status of the EU ambassador in London. Nevertheless, if used wisely, the agreement could represent the low point in British-European relations, from which a new partnership emerges after the difficult Brexit negotiations. However, there are five reasons the TCA could enable an improvement in relations.

      First, the trade deal does not mark the end of negotiations between London and Brussels. The agreement itself provides for a review after five years — that is, just under six months after the likely date of the next UK general election — in the course of which relations can also be deepened again. There is also a review clause for the Northern Ireland Protocol in 2024, transition periods for energy cooperation and fisheries, and further talks on data exchange and financial market services in 2021. Similar to Switzerland, there will be almost constant negotiations between the EU and the UK, albeit at a less politically dramatic level than recently. It is precisely this de-dramatization of relations that offers an opportunity to restore trust and improve cooperation.

      Second, the agreement is designed to be built upon. It establishes institutionalized cooperation between London and Brussels with an EU-UK Partnership Council and a number of specialized committees, for example on trade in goods, energy cooperation and British participation in EU programs. It is explicitly designed as an umbrella agreement into whose overall institutional framework further supplementary agreements can be inserted.

      Continued Interdependence

      Third, economic relations will remain important for both sides despite new trade restrictions. The geographical proximity, the close integration of supply and production chains in many economic sectors, and the mutual importance in trade will ensure continued economic interdependence. The EU remains by far the largest export market for the UK, which, in turn, as the second biggest economy in Europe, will also continue to be a major economic partner (and competitor) for the union. Added to this are the level playing field provisions of the TCA, with both partners committing to maintaining existing EU standards as far as they affect trade and investments, and incentives have been created to keep pace with new standards.

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      Fourth, the willingness of both sides to make compromises to avoid a no-deal Brexit paradoxically also clearly revealed the common interests despite the difficult divorce. For example, the TCA declares climate policy to be a shared interest, in which the UK will play a central role in 2021 by hosting the next climate summit together with Italy. Opportunities will also present themselves here for trilateral cooperation with the new US administration. The continued participation of the British in a small number of EU programs, such as the EU’s Copernicus Earth observation program and parts of the data exchange in home affairs and justice policy, is also stronger than expected.

      Fifth, with the combination of the Withdrawal Agreement and the TCA, Northern Ireland has become a shared responsibility of the UK and the EU. In order to keep the border open with the EU member state of the Republic of Ireland, the rules of the EU single market will continue to apply in Northern Ireland, whereas a trade border has been created in the Irish Sea between Northern Ireland and the rest of the UK. Any deviation from EU standards will now require the UK government to weigh not only whether this breaks the level playing field rules — thus allowing the EU to erect trade barriers — but also whether new intra-UK trade barriers with Northern Ireland are created.

      The EU equally has a responsibility in the interests of its member state Ireland to work with the British government to ensure that these complex arrangements work as smoothly as possible so as not to jeopardize peace in Northern Ireland.

      The trade treaty, which came into being under great pressure, both temporal and political, thus achieves one thing above all — the creation of a foundation on which British-European relationship can be reconstructed. Hard Brexit is now a fact, and the step from EU membership to a third country with a trade agreement has been completed. But negotiations are from over: As neighbors, the EU and the UK will continue to negotiate and renegotiate their relationship in the foreseeable future. It is now up to the political leadership on both sides to determine how this foundation is used. The EU and Germany should be open to building on this foundation with options for deepening cooperation in areas where there were gaps left behind by the TCA due to time or political circumstances.

      *[This article was originally published by the German Institute for International and Security Affairs (SWP), which advises the German government and Bundestag on all questions related to foreign and security policy.]

      The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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      in World Politics

      The US Will Need Turkey to Counter Russia

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      When it comes to the already abysmal Turkish-American relations, Joe Biden’s presidency is being viewed as an ominous train wreck waiting to happen. The president-elect has previously signaled that his administration would “tame” Turkey for policies Ankara has pursued in Syria, Nagorno-Karabakh and the eastern Mediterranean. Moreover, in a sensational video that surfaced last summer, Biden hinted that his administration would provide all necessary tools (with the exception of military equipment) to the Turkish opposition in its endeavor to oust President Recep Tayyip Erdogan, who went ballistic over the revelations.

      To make things worse for bilateral relations, in December 2020, Ankara was slapped with the Countering America’s Adversaries through Sanctions Act for the procurement of the Russian S-400 high-altitude defense system. However, there are mounting signs that the Biden administration will be reluctant to tighten its grip on Turkey, which would compel Washington to find ways to work with Ankara.   

      As Europe Weakens, Turkey Is on the Rise

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      Denouncing President Donald Trump’s denigration of the transatlantic alliance, Biden underscored NATO’s critical role in US national security, writing in Foreign Affairs last year: “To counter Russian aggression, we must keep the alliance’s military capabilities sharp. We must impose real costs on Russia for its violations of international norms.” The reality for the next administration is that Russia cannot be countered without Turkey being on board, given that its combat-proven military is considered to be a valuable NATO pillar and its unique geopolitical location has historically acted as a bulwark against Russia’s expansionist instincts.

      There is the perception that Turkey had drifted into the Russian orbit after the procurement of the S-400 system. However, due to having to frequently work with Moscow, Ankara has single-handedly developed capabilities and has taken steps in the Black Sea region, the South Caucasus and Syria that have proven to be effective in limiting Russian influence.  

      The Black Sea 

      The 2015 Maritime Doctrine of the Russian Federation clearly prioritizes the Black Sea as a pillar of Moscow’s power projection. In the last two decades, Russia has consolidated its Black Sea presence by annexing Georgia’s breakaway Abkhazia region in 2008 and Ukraine’s Crimea, home to the Sevastopol naval base, in 2014. Other strategic locations include the Baltic Sea and the Alaska region of the North Pacific, where American and Russian militaries frequently come dangerously close to physically clashing.

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      Last August, two Russian Su-27s intercepted a US Air Force B-52 strategic bomber over the Black Sea, about which General Jeff Harrigan, commander of US Air Forces in Europe and Africa, warned of possible future mid-air collisions. All things considered, Turkey has the means to limit Russian influence and has displayed resoluteness to not let the Black Sea be turned into “a Russian lake.” 

      In case of Russian aggression, Turkey’s support would be critical to any NATO or US response because of Turkish naval capabilities and responsibility for the straits under the Montreux Convention. The RAND Corporation’s 2018 Black Sea simulation suggests that effective deterrence will require a NATO Black Sea Center of Excellence to be established in Turkey alongside an active use of the Turkish straits. As Sweden’s former Prime Minister Carl Bildt succinctly puts it, “What happens on the Bosporus affects us all.” 

      Turkey has made moves in the Black Sea by establishing robust political and military cooperation with Ukraine. This particularly drew Moscow’s ire given the ongoing conflict between Russian-backed separatists in the Donbas region of eastern Ukraine. Last year, Turkish drone manufacturer Baykar Makina and the Ukrainian defense company Ukrspecexport signed an agreement involving the development and production of “sensitive technologies in defense and aerospace.” Furthermore, Ukraine is poised to purchase 50 Turkish-made Bayraktar TB2 UAVs, which have a proven record of destroying sophisticated Russian-made arms such as S-300, Pantsir C1 and TOR-M.

      The success of the Turkish defense industry in the recent conflict in Nagorno-Karabakh has inspired experts to float the idea that the Ankara-Kyiv military cooperation may very well tip the balance in Donbas and Crimea in favor of Ukraine. Despite the potential of straining relations with Russian President Vladimir Putin, Erdogan has conveyed Turkey’s support for Ukraine’s territorial integrity, a rare area of mutual agreement between Washington and Ankara. Erdogan went so far as to support the Ukrainian Orthodox Church in its row against the Moscow Patriarchate. Finally, Ankara has expressed its full support for the admission in NATO of the Black Sea nation of Georgia, Turkey’s neighbor, a move Putin has declared as a “red line.” 

      Caucasus and Syria 

      Turkey’s explicit military and political support for Azerbaijan in its decisive victory against Armenia over the disputed region of Nagorno-Karabakh at the end of last year has propelled Turkey to major-player status in the South Caucasus, traditionally Russia’s backyard. For the first time in more than a century — the last time being the Battle of Baku of 1918 — Turkish military is to be deployed to the South Caucasus after Ankara and Moscow agreed to monitor the ceasefire. The uncomfortable reality for Russia here is, at the end of the day, that soldiers from a NATO member country will be present in its “near abroad.” If Russia had been as strong in the region as it was once believed, it could have singlehandedly navigated the Azeri-Armenian conflict without having to concede to Turkey’s demands.  

      Even more disturbing for Moscow is Turkey’s acquisition of a physical route via Armenian territories to Azerbaijan, which is being dubbed as the Pan-Turkic superhighway, referring to Turkey’s uninterrupted physical link to its ethnic brethren in Azerbaijan and the Turkestan region in Central Asia —  another one of Russia’s post-Soviet satellites. Turkey has, since the fall of the Soviet Union, aspired to establish itself as the leader of the Turkic world. The last thing Moscow would want is to deal with is an ascendant Turkey in Turkestan. As the recent crisis in Kyrgyzstan has shown, Russia may be losing influence there.

      Turkey’s rising influence in the South Caucasus has also raised fears in Iran, home to some 30 million Azeri Turks whose secessionist feelings are now stronger than ever after Azerbaijan’s Nagorno-Karabakh victory. With Turkey’s permanent presence in the South Caucasus, Russia and Iran will have to take Ankara more seriously in their regional calculations, particularly in Syria. All things considered, President Putin appears to have accepted Turkey’s broader role in the Caucasus. When asked about the topic on Russian television, he conceded: “What can I tell you. It’s a geopolitical fallout from the downfall of the Soviet Union.” 

      Embed from Getty Images

      In Syria, as in the Caucasus, Russia has found itself having to work with Ankara. Through a series of accords like the Sochi Agreements of 2018 and 2019, as well as the ongoing Astana Process launched in 2017, Moscow has had to agree (to a certain extent) to concede to Ankara’s demands. Most importantly, Ankara has been able to keep Russia from employing Grozny-style destruction of Idlib province, the last rebel stronghold along Turkey’s border that is home to some 4 million civilians. When 33 Turkish soldiers were killed in an assault by the forces of President Bashar al-Assad last February, Turkey did not hesitate to retaliate by killing hundreds of Russian-backed Syrian army soldiers and destroying countless Syrian tanks and weaponry, which prompted Putin’s plea for a ceasefire agreement with Turkey. 

      If President Biden is serious about containing Russia through reinvigorating NATO, he will need Turkey’s geopolitical standing as well as its military and political clout, both of which have grown exponentially in recent years. The Biden administration will soon have to decide whether US national interests dictate a perpetual punitive approach toward the second-largest NATO member or a better understanding of Turkey’s concerns, particularly when it comes to the Syrian YPG (the Kurdish People’s Protection Units) and the need for a high-altitude missile defense system.  

      Turkey under President Erdogan has grown to be more self-confident. Pushing Ankara away may result in the complete loss of a valuable NATO ally. As James Jeffrey, the former US envoy to Syria, stated, “We really can’t do the Middle East, the Caucuses, or the Black Sea without Turkey.  And, Turkey is a natural opponent of Russia and Iran.” Losing Iran in 1979 cost the United States a strategic foothold in the region. Losing Turkey altogether may cost it Eurasia, where Russia — in tandem with China — has already been steadily building up its standing in defiance of American hegemony.  

      The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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      in US Politics

      ‘The perfect target’: Russia cultivated Trump as asset for 40 years – ex-KGB spy

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      Donald Trump was cultivated as a Russian asset over 40 years and proved so willing to parrot anti-western propaganda that there were celebrations in Moscow, a former KGB spy has told the Guardian.Yuri Shvets, posted to Washington by the Soviet Union in the 1980s, compares the former US president to “the Cambridge five”, the British spy ring that passed secrets to Moscow during the second world war and early cold war.Now 67, Shvets is a key source for American Kompromat, a new book by journalist Craig Unger, whose previous works include House of Trump, House of Putin. The book also explores the former president’s relationship with the disgraced financier Jeffrey Epstein.“This is an example where people were recruited when they were just students and then they rose to important positions; something like that was happening with Trump,” Shvets said by phone on Monday from his home in Virginia.Shvets, a KGB major, had a cover job as a correspondent in Washington for the Russian news agency Tass during the 1980s. He moved to the US permanently in 1993 and gained American citizenship. He works as a corporate security investigator and was a partner of Alexander Litvinenko, who was assassinated in London in 2006.Unger describes how Trump first appeared on the Russians’ radar in 1977 when he married his first wife, Ivana Zelnickova, a Czech model. Trump became the target of a spying operation overseen by Czechoslovakia’s intelligence service in cooperation with the KGB.Three years later Trump opened his first big property development, the Grand Hyatt New York hotel near Grand Central station. Trump bought 200 television sets for the hotel from Semyon Kislin, a Soviet émigré who co-owned Joy-Lud electronics on Fifth Avenue.According to Shvets, Joy-Lud was controlled by the KGB and Kislin worked as a so-called “spotter agent” who identified Trump, a young businessman on the rise, as a potential asset. Kislin denies that he had a relationship with the KGB.Then, in 1987, Trump and Ivana visited Moscow and St Petersburg for the first time. Shvets said he was fed by KGB talking points and flattered by KGB operatives who floated the idea that he should go into the politics.The ex-major recalled: “For the KGB, it was a charm offensive. They had collected a lot of information on his personality so they knew who he was personally. The feeling was that he was extremely vulnerable intellectually, and psychologically, and he was prone to flattery.“This is what they exploited. They played the game as if they were immensely impressed by his personality and believed this is the guy who should be the president of the United States one day: it is people like him who could change the world. They fed him these so-called active measures soundbites and it happened. So it was a big achievement for the KGB active measures at the time.”Soon after he returned to the US, Trump began exploring a run for the Republican nomination for president and even held a campaign rally in Portsmouth, New Hampshire. On 1 September, he took out a full-page advert in the New York Times, Washington Post and Boston Globe headlined: “There’s nothing wrong with America’s Foreign Defense Policy that a little backbone can’t cure.”The ad offered some highly unorthodox opinions in Ronald Reagan’s cold war America, accusing ally Japan of exploiting the US and expressing scepticism about US participation in Nato. It took the form of an open letter to the American people “on why America should stop paying to defend countries that can afford to defend themselves”.The bizarre intervention was cause for astonishment and jubilation in Russia. A few days later Shvets, who had returned home by now, was at the headquarters of the KGB’s first chief directorate in Yasenevo when he received a cable celebrating the ad as a successful “active measure” executed by a new KGB asset.“It was unprecedented. I am pretty well familiar with KGB active measures starting in the early 70s and 80s, and then afterwards with Russia active measures, and I haven’t heard anything like that or anything similar – until Trump became the president of this country – because it was just silly. It was hard to believe that somebody would publish it under his name and that it will impress real serious people in the west but it did and, finally, this guy became the president.”Trump’s election win in 2016 was again welcomed by Moscow. Special counsel Robert Mueller did not establish a conspiracy between members of the Trump campaign and the Russians. But the Moscow Project, an initiative of the Center for American Progress Action Fund, found the Trump campaign and transition team had at least 272 known contacts and at least 38 known meetings with Russia-linked operatives.Shvets, who has carried out his own investigation, said: “For me, the Mueller report was a big disappointment because people expected that it will be a thorough investigation of all ties between Trump and Moscow, when in fact what we got was an investigation of just crime-related issues. There were no counterintelligence aspects of the relationship between Trump and Moscow.”He added: “This is what basically we decided to correct. So I did my investigation and then got together with Craig. So we believe that his book will pick up where Mueller left off.”Unger, the author of seven books and a former contributing editor for Vanity Fair magazine, said of Trump: “He was an asset. It was not this grand, ingenious plan that we’re going to develop this guy and 40 years later he’ll be president. At the time it started, which was around 1980, the Russians were trying to recruit like crazy and going after dozens and dozens of people.”“Trump was the perfect target in a lot of ways: his vanity, narcissism made him a natural target to recruit. He was cultivated over a 40-year period, right up through his election.” More

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      in World Politics

      Beware! Populism Might be Bad for Your Health

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      Dresden is one of Germany’s great cities, known worldwide for its meticulously rebuilt historic center, destroyed in one night at the end of World War II. Pre-Christmas shoppers have probably come across a Dresdner Christmas stollen, a bread full of nuts and candied fruit, coated in powdered sugar. Music lovers might have visited the city’s …
      Continue Reading “Beware! Populism Might be Bad for Your Health”
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      in World Politics

      Addressing the Fragile Limits of Female Autonomy

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      On October 22, 2020, the United States co-sponsored a Geneva Consensus Declaration on Promoting Women’s Health and Strengthening the Family. However, despite its name, this declaration states that “in no case should abortion be promoted as a method of family planning.” While it doesn’t legally impact access to abortion in the United States, it bars …
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      in US Politics

      Biden presses Putin on election interference and Navalny arrest in first call

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      The US and Russia have agreed to extend an arms control treaty limiting their deployed nuclear warheads after Joe Biden’s first phone call as president with Vladimir Putin.At the same time, Biden took a firm position on Russian actions that Donald Trump largely ignored, raising concerns about the poisoning and arrest of the opposition leader, Alexei Navalny, warning Putin that the US supported Ukraine against Russian “aggression”, complaining about Russian interference in last year’s US presidential election, and the “Solar Winds” cyber-attack on US government agencies last year.Biden challenged Putin on US intelligence reports that Russia had offered bounties to the Taliban and other extremist groups in Afghanistan for the killing of US soldiers.The White House account of the call said: “President Biden made clear that the United States will act firmly in defense of its national interests in response to actions by Russia that harm us or our allies.”The White House spokeswoman, Jen Psaki, said that Biden had also expressed opposition to the Nord Stream natural gas pipeline, as being a “bad deal” for Europe, one example of continuity with the Trump and Obama administrations.The Biden team is seeking to take a tougher line on Russia’s violations of human rights and international law while seeking to make progress on arms control with Moscow, which crumbled under the Trump administration.The two leaders formally exchanged notes extending the 2010 New Start agreement by five years, assuring the survival of the last remaining arms control treaty between the US and Russia in the wake of the Trump era.The extension was agreed just 10 days before New Start was due to expire. It keeps in place a limit of 1,550 deployed strategic warheads on either side, imposes limits on delivery systems, and enforces verification and transparency measures, helping ensure the two biggest nuclear weapons powers do not take each other by surprise.According to the White House the two leaders also talked about re-establishing a regular “strategic stability dialogue” between senior officials, at which frictions in the relationship, and possible new arms control agreements, could be discussed.The Kremlin’s readout of the conversation said that “the presidents expressed their satisfaction with the exchange of notes of extension of the New Start, which happened today”.“In the coming days the parties will complete all the necessary procedures to ensure that this important international legal mechanism for the mutual limitation of nuclear missile arsenals functions in the future,” the Kremlin account said.The Kremlin’s account described the conversation as “frank and businesslike” – a turn of phrase often used to describe tense discussions.It added that the two leaders had also discussed the Open Skies treaty, another arms control agreement allowing transparency through mutual aerial surveillance, which Trump also withdrew from, and from which Moscow has said it was also preparing to leave.Biden and Putin discussed the 2015 nuclear deal with Iran, which Trump left but Biden has said he is willing to rejoin, and the conflict in Ukraine between the government there and Russian-backed separatists. Putin, now dealing with his fifth US president, restated his proposal for a summit of the five permanent members of the UN security council.Dmitri Trenin, the director of the Carnegie Endowment’s Moscow Centre, tweeted that: “[The] Putin-Biden phone conversation today promises no reset, but suggests a degree of predictability to the badly strained relationship. Confrontation needs to be managed safely.”The change in course in US foreign policy is likely to accelerate after the Senate confirmed the appointment of Antony Blinken as secretary of state on Tuesday, one of his first actions was to co-sign a statement with other G7 foreign ministers condemning the poisoning and arrest of Navalny and the mass detention of protesters and journalists.The statement said the G7 ministers “call upon Russia to adhere to its national and international obligations and release those detained arbitrarily for exercising their right of peaceful assembly”.At the UN, the acting US ambassador announced another sharp break with Trump-era policy, the restoration of diplomatic ties with the Palestinian Authority and renewing aid to Palestinian refugees as part of its support for a two-state solution to the Israel-Palestinian conflict. Trump, a close ally of the Israeli prime minister, Benjamin Netanyahu, had broken US ties with the Palestinians.The Biden team has said its first foreign policy goal would be to repair relations with allies and global institutions ruptured by Trump. The state department said on Tuesday it would “thoroughly review” sanctions the Trump administration imposed on the prosecutors office of the international criminal court (ICC), over investigations it launched into war crimes committed by all parties in Afghanistan, and by Israeli and Palestinian forces in the West Bank, Gaza and East Jerusalem.“The United States shares the goals of the ICC in promoting accountability for the worst crimes known to humanity. At the same time, the United States has always taken the position that the court’s jurisdiction should be reserved for countries that consent to it, or that are referred by the UN security council,” a state department spokesperson said.“Much as we disagree with the ICC’s actions relating to the Afghanistan and Israeli/Palestinian situations, the sanctions will be thoroughly reviewed as we determine our next steps.” More

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      in US Politics

      Netflix still several steps ahead in strategy for wooing subscribers

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      Only Frank Underwood could amass as much power in such a short space of time. Nearly eight years after Netflix used House of Cards as the launch of its global empire, the streaming service announced last week that it now had more than 200 million subscribers. The pandemic has hastened the company’s transformation from a debt-laden digital upstart into an essential part of the TV landscape in homes across the world.In 2013, when Netflix’s first original series made its debut, the company had 30 million (mostly US) subscribers. This was six years after it moved from being a DVD-by-post business to a streaming pioneer. Since then it has added 170 million subscribers in more than 190 countries and its pandemic-fuelled results last week sent Netflix’s market value to an all-time high of $259bn.Last year proved to be the best in the company’s history, even as a new wave of deep-pocketed rivals attempt to deprive it of its streaming crown. Accustomed to operating in battle mode, Netflix added a record 37 million new subscribers as lockdown prompted viewers to alleviate housebound cabin fever with fare including The Crown, Bridgerton and The Queen’s Gambit.Last week it reported that in 2020 the amount it earned from subscribers exceeded what it spent – to the tune of $1.9bnBut Netflix’s pioneering low-price, binge-watching approach to driving growth has come at a cost. Year after year the need to spend billions on ever-increasing numbers of films and TV shows in order to keep and attract subscribers has weighed on its balance sheet, if not its share price. With a Netflix subscription a fraction of the cost of a traditional pay-TV service, average revenue per user is low. This is great for growth but means the company has to keep on topping up its content budget to fulfil its binge-watching promise to fans. A few billion here and there has spiralled to $16bn in long-term debt and a further $19bn in “obligations” – essentially payments for content spread out over a number of years.Analysts have been split over Netflix’s grow-now-pay-for-it-later strategy, but the company finally appears to have proved the naysayers wrong. There was a symbolic announcement in its results last week: it reported that in 2020, free cashflow was positive – which means that the amount it earns from subscribers exceeds what it spends on content, marketing and other costs – to the tune of $1.9bn.Part of the reason for this was that Netflix’s content spend fell – from $14bn to $12bn – as a result of production stoppages caused by lockdowns, but it was a turning point nevertheless. It has taken 23 years since its humble beginnings as a DVD rental company in California for the Netflix machine to reach the point of sustainability.The firm’s decision in 2013 to invest heavily in original productions has proved critical – and prescient. It sensed, correctly, that its success would prompt the suppliers that it was licensing shows from to eventually keep them for their own services. In the past 18 months, HBO Max, Sky-owner Comcast’s Peacock and AppleTV+ have joined longer-term rival Amazon Prime Video in vying for subscribers.Reed Hastings, Netflix’s co-chief executive, acknowledges this second wave in the streaming wars, particularly noting the “super-impressive” performance of Disney+, which has become the third global force in streaming behind Amazon. In just 14 months since its launch, the service, powered by franchises including Star Wars TV spin-off The Mandalorian, Marvel films and Frozen 2, has amassed 87 million subscribers four years sooner than forecast. Last month, Walt Disney+ announced a doubling of its content budget and tripled its forecast of subscriber numbers by 2024.However, new rivals have yet to dent the dominance of Netflix, which reported adding 8.5 million subscribers in the fourth quarter, and revealed that 500 TV titles were in the works and a record 71 films would premiere this year. Some doubters had raised concerns that Netflix’s debt-fuelled growth was a financial house of cards. But its foundations look solid now.Nissan’s ‘edge’ over rivals is no vote for BrexitLeaving the EU without a deal would have been an act of economic self-sabotage nearly unrivalled by a developed economy. Carmakers’ relief that a deal was reached on Christmas Eve was palpable. Nissan’s glee became clear last week, with chief operating officer Ashwani Gupta repeatedly declaring that the Brexit deal had given the Japanese carmaker a “competitive advantage”.Nissan had looked through the complex new rules of origin governing trade between the UK and the EU. Parts and finished cars that cross the Channel will not attract tariffs if a certain proportion of their components are from either the UK or the EU. Nissan’s cars already comply with the rules.Crucially, this applies to high-value batteries, which a partner company builds in Sunderland, in a factory next door to Nissan’s. Other companies are not so well-placed and must rely instead on imports from east Asia. For them the Brexit deal has started a scramble to secure batteries from Europe – if they want to sell into the UK – or hope that untested UK companies can build gigafactories to supply them.However, the Japanese carmaker’s statement should not be mistaken for a “vote of confidence”, as Boris Johnson managed to do. Gupta acknowledged that the UK’s departure from the EU had brought new costs, though these were “peanuts” for a company of Nissan’s scale. They may not be so negligible for exporting entrepreneurs, a breed that will probably become rarer as non-tariff barriers increase for would-be traders with the EU.Furthermore, “competitive advantage” is a double-edged compliment. Nissan will gain on UK and EU rivals which do not source batteries locally. Even if it is less of a burden than those carried by competitors, a handicap – in this case increased trade friction with the UK’s biggest market – is still a handicap.A new president is not a panaceaIt would be a mistake to allow the relief that has accompanied Joe Biden’s victory in the US presidential election to become something close to euphoria and, consequently, freight the new US president with expectations that are unachievable.The next decade is looking troubled and fractious even now that Donald Trump’s hand is no longer on the tiller of the world’s largest and most powerful economy. From a global perspective, there is the assessment of climate economist Lord Stern that the next 10 years will be crucial if we are to reach net zero carbon emissions by 2050.China, for 30 years a convenient supplier of low-cost goods to the global economy, is becoming more authoritarian and looking to use its spheres of influence in Asia and Africa to quell complaints by international bodies about the way it treats Uighur Muslims and Hong Kong protesters. To make matters worse, populations in the west and in China are ageing and struggling to provide a decent standard of living for younger members of society.In the UK, Brexit reintroduces a welter of red tape into the trading arrangements this country has with its biggest commercial partner, the EU, and will depress average household incomes over a long period. So despite the relief in many corners of the globe that greeted Biden’s inauguration, there is reason to worry.But there are grounds for hope too. The pressure to address the climate emergency is growing rapidly and politicians all over the world are at last taking notice. The 26th UN climate change conference in Glasgow, scheduled for November, could mark a seismic shift in action. And Biden showed how inclusive he plans to be with his roster of inauguration acts, from the stalwart Republican country singer Garth Brooks to 22-year-old African American poet Amanda Gorman.It was telling that Biden said he wanted to build bridges. It will be difficult, but on the issue of climate change, if on nothing else, that must include China. More

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      in World Politics

      When Will Boris Johnson Be Committed?

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      The UK has finally cast off all its shackles and is ready to assert its freedom under the creative leadership of Boris Johnson, the man who made Brexit happen. Things are a little complicated for the moment, but once COVID-19 can be tamed, British creativity will find its cruising speed.

      Brexit has been official only since January 1, 2021. It’s far too soon to expect any concrete results. Creative leadership needs a little bit of time to get going. Faced with a challenge, Britain’s creative managers will do the first thing all creative managers do, especially those with a sense of how the law works. They will search for loopholes and storm their way through them. Rest assured, Johnson’s government is already hard at work.

      One example is the “working time directive,” an initiative, as reported by the Financial Times, that will rescind the 48-hour workweek limitation imposed by European law. This new directive is part of a promised “post-Brexit overhaul of UK labour markets.” This reform in the name of improved productivity theoretically violates the last-minute agreement signed a month ago with the EU but, apparently, there’s a loophole. The EU will have the right to protest only if it can “demonstrate the changes had a material impact on competition.” Let them try. That will keep the bureaucrats busy and it will take years to begin to make the case.

      How Global Britain Confronts the Asian Century

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      The government claims this measure will help both businesses and workers in the UK, but Ed Miliband, Labour’s shadow business secretary, begs to differ: “In the midst of the worst economic crisis in three centuries, ministers are preparing to tear up their promises to the British people and taking a sledgehammer to workers’ rights.”

      Another example concerns the post-colonial habit of wealthy nations that have for decades been shipping their plastic waste to poor countries. Karen McVeigh in an article for The Guardian, “’Loophole’ will let UK continue to ship plastic waste to poorer countries,” describes how the post-Brexit UK is “failing to honour its promise to curb shipments of plastic waste to developing countries.” This is all the more astonishing as Johnson’s Conservative Party, in a brave attempt to prove its ecological credentials, had taken a firm position condemning the practice. McVeigh writes: “Britain will continue to allow plastic waste to be exported to developing countries, despite a Tory party manifesto commitment to banning the practice, and promises of no regression of environmental standards post-Brexit.”

      Today’s Daily Devil’s Dictionary definition:

      Commitment:

      A solemn promise intended to be kept unless it turns out to be costly or inconvenient.

      Contextual Note

      The point of a party’s manifesto has never been to define an ambitious legislative program that it intends to pass, but rather to give an idea of how its members imagine a utopian society might look. That’s what interests voters during an election campaign. It proves that the party has what can be called “a vision,” which has become a standard political commodity that can be fabricated practically instantly by experienced spin doctors.

      The European Union had already taken an initiative on the question of plastic waste. The Tories vociferously claimed to agree with it and announced their commitment to implementing it. The European law became applicable at the beginning of this year. It requires the banning of “all non-recyclable plastic waste being shipped to developing nations from 1 January.” 

      One of the reasons both the Europeans and the British Tories found this so convincing is that, apart from the catastrophic effects on the environment of the countries to which the waste is shipped, much of the plastic ends up polluting the oceans and seas of the world, including those that surround the isle of Britain. Now that the UK is nothing but an island, there is a selfish reason for the reform. But, as the world should now realize, selfish environmental reasons rarely trump selfish monetary reasons.

      The government’s lawyers have taken a lesson from the recent legal history around the issue of sexual assault. They have drafted a condition that makes everything acceptable, so long as it is consensual. It even has a name: “prior informed consent.” In other words, the UK is committed to respecting the idea that “no means no.” McVeigh offers the details: “UK exports will now be made under a new system of ‘prior informed consent’, under which the importer has to agree to accept the waste, and has the opportunity to refuse it.”

      Historical Note

      The FT article quotes a government spokesperson, who clearly believes in Britain’s future vocation as an innovator that may serve as a model for others. It may fall short of a return to empire, but some people still remember the cultural leadership of the UK in the 1960s and 1970s. That was when the UK offered the world The Beatles, The Rolling Stones, Carnaby Street, Monty Python, the Skinheads and punk rock. As per the British government, “Leaving the EU allows us to continue to be a standard-setter and protect and enhance UK workers’ rights.” 

      As they have done for the past four years, the Johnsonite Tories see this as a turning point not only in the history of the British Isles, but a major event in world history. European standards were unbearably bureaucratic and led to sclerosis. The new deregulated standards of the UK are flexible and innovative, the stuff of a shining future.

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      Some may feel that this sounds like an appeal to the past, to the Thatcher years. That would be understandable coming from Margaret Thatcher’s party. But in terms of its capacity to produce plastic waste, the UK has no need to return to the glories of the past. It is already a leader. “Britain is one of the biggest producers of plastic waste in the world, second only to the US.” With 67 million inhabitants, the UK represents a little more than one-fifth of the population of the United States. Holding second place in such a competitive world is quite an accomplishment.

      The article lists some of the countries to whom Britain exports its waste: Malaysia, Pakistan, Vietnam, Indonesia and Turkey. Finding a way to take advantage of poor countries is baked into British imperial culture. A Greenpeace political campaigner complained that “creating a loophole to allow the dumping of our plastic trash on environments and communities bodes very badly. This is not leadership, it’s failing to do the bare minimum.” What Greenpeace fails to appreciate is that, like limits on working hours, this measure is meant to make British businesses more competitive. Reducing the amount of plastic sold to consumers might hurt sales and profit margins.

      The government makes the case that this is nothing more than a big misunderstanding. A spokesperson for the Department for Environment, Food and Rural Affairs confirmed the government pledge “to ban the export of all plastic waste to non-OECD countries.” Promises are for the future, not the present. After all, there was no precise timetable on the pledge. Instead, the department confirmed that “it had commissioned research to better understand existing UK plastic waste recycling capacity and would consult in due course on how to deliver its manifesto commitments.” Research by bureaucracy takes time. That was one of the main reasons Boris Johnson wanted to leave the European Union. Its bureaucracy made it difficult to expedite important business.

      The problem Karen McVeigh cites is, therefore, clearly exaggerated. Even though Europe managed to get the law in place for the first day of this year, the much more efficient decision-making of a liberated, unbureaucratic Britain will only need several more months, years or, who knows, decades. After all, research is complicated and expensive, especially when you’re on your own and have to rely on your limited resources.

      What the UK government wants us to understand is that the commitment is there. That should be enough. It will remain there with the same firm intention to carry it out until the date that the policy can be put into effect, whenever that may be, if, of course, no other unexpected event prevents that from occurring. In which case it will be reconsidered, more research will be conducted and subsequently a new commitment for future action will be announced.

      *[In the age of Oscar Wilde and Mark Twain, another American wit, the journalist Ambrose Bierce, produced a series of satirical definitions of commonly used terms, throwing light on their hidden meanings in real discourse. Bierce eventually collected and published them as a book, The Devil’s Dictionary, in 1911. We have shamelessly appropriated his title in the interest of continuing his wholesome pedagogical effort to enlighten generations of readers of the news. Read more of The Daily Devil’s Dictionary on Fair Observer.]

      The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More