It is fair to say that the optimism of early 21st century ‘technopolitics’ – think Barack Obama’s first Presidential victory or the promise of the Arab Spring – long ago gave way to widespread distrust and doubt around the interaction of politics and our online lives.
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China
During a reportedly tense meeting with Secretary of State Antony Blinken on the sidelines of the Munich Security Conference, China’s chief foreign affairs official Wang Yi refused to apologize for the recent balloon incident while also calling the U.S. response “near-hysterical.” The Chinese Foreign Ministry denounced “U.S. hegemony” in a February 20 report covering claimed political, military, economic, technological, and cultural abuses.
China released on February 24 a new position paper calling for peace talks between Russia and Ukraine and an end to unilateral sanctions. China has avoided calling the war an “invasion” and has continued diplomatic and economic ties with Russia. Western officials have warned that China may be considering providing Russia with lethal military assistance, an accusation denied by Beijing. Wang Yi visited Moscow February 22 in a show of support, and Chinese President Xi Jinping is expected to visit Russia later this spring.
Amid these continuing tensions, the State Department has provided no indication Blinken will reschedule his canceled Beijing trip anytime soon, but the March 1 G20 ministerial in New Delhi could provide another venue for the two sides to meet – Chinese Foreign Minister Qin Gang will also attend.
Contact: Ethan Knecht, Pat Sheehy
Plastics
The UN Environment Assembly has made public submissions from countries and stakeholders participating in negotiations to develop a global treaty on plastic pollution, in advance of the second round of negotiations scheduled for May 29 in Paris.
The U.S. submission proposes a mix of legally binding obligations, commitments, and voluntary approaches that “promote the sustainable production and consumption of plastic, increase plastic circularity in a manner that is protective of human health and the environment, and strengthen the environmentally sound management of plastic waste.”
In contrast, the European Union and members of the High Ambition Coalition to End Plastic Pollution have proposed binding requirements to reduce the production of primary plastics (including through taxes, tariffs, fees, production permits and licenses, moratoriums, bans, regulations, and removal of subsidies), as well as to eliminate or restrict specific plastics that are “harmful to the environment and human health, are problematic because they impede
circularity or that have a high risk of release into the environment.”
The EU is accepting comments until April 18 on its proposed Packaging and Packaging Waste Regulation (PPWR), which aims to cut plastic waste by 40% bloc-wide. The draft regulation includes requirements for 100% recyclable packaging by 2030, mandatory recycled content requirements, and bans on “unnecessary packaging” (such as miniature hotel toiletries and plastic produce packaging) and “superfluous packaging” (such as double walls or false bottoms).
The WTO Technical Barriers to Trade (TBT) Committee will host on March 7 a special thematic session on regulatory cooperation between members on plastic regulation.
Contact: Stephen Ziehm
Russia
Following President Biden’s February 20 visit to Kyiv and marking one year since Russia’s invasion, the United States announced on February 24 $9.9 billion in funding for Ukraine’s government, alongside additional weapons and defense support and further sanctions on Russia.
U.S. sanctions include: increased tariffs on Russian goods; blocking sanctions on hundreds of Russian persons, including previously unsanctioned banks, political figures, grain traders, high technology firms, and subsidiaries of Russia’s Rosatom nuclear SOE; new restrictions on the Russian metals and mining sector; and export controls on basic goods.
The European Union on February 23 proposed to renew Ukraine’s preferential trade access but failed to reach consensus on a 10th package of sanctions. Poland and the Baltic states are reportedly pushing for harsher measures than those proposed by the European Commission as Hungary seeks to soften and remove sanctions. Meanwhile, G7 leaders reaffirmed “unwavering support” for Ukraine, and the United Kingdom barred the export of “every item Russia is using on the battlefield.” Ukraine itself imposed sanctions barring all Russian financial firms from its market for 50 years.
Russian leader Vladimir Putin recommitted to the war in his February 21 State of the Nation address, during which he also announced that Russia would exit the “New START” nuclear arms control treaty.
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China
In February 15 remarks at the Brookings Institute, Deputy Secretary of State Wendy Sherman addressed U.S.-China relations, outlining the administration’s strategy as “Invest, align, compete.” She emphasized that the United States will push back against Chinese efforts “that seek to coerce other countries, distort markets, and undermine American workers and businesses” but is open to collaboration on key areas such as “climate, food security, counter-narcotics, [and] global health.”
Following the February 4 U.S. shootdown of a Chinese spy balloon, the administration on February 16 said that other objects shutdown in U.S. airspace over the weekend were not linked to China. President Biden addressed the ongoing situation in a February 16 press conference.
In a February 15 Foreign Ministry briefing, China said it will take measures against U.S. entities related to the downing of the spy balloon but did not specify any details of such measures. Secretary of State Antony Blinken reportedly may meet with his Chinese counterpart on the margins of the Munich Security Conference, in an attempt to deescalate tensions.
Meanwhile, Chinese President Xi Jinping delivered on February 17 a major speech on progress combatting COVID, noting that the government believes it has now “effectively balanced pandemic containment with economic and social development.” Beijing also released the text of Xi’s December 2022 speech to the Central Economic Work Conference, which notably welcomed new foreign direct investment and called for “liberalizing market access for private investment.”
Contact: Ethan Knecht, Pat Sheehy
Latin America
During his first visit to Washington since his return to the presidency, Brazilian President Lula da Silva traveled met with, among others, President Biden, Senator Bernie Sanders (I-VT) and other progressive members of Congress, and the AFL-CIO. In a joint statement, President Biden agreed to visit Brazil sometime in the future and committed to “work with Congress” to provide unspecified funds for Brazil’s Amazon fund.
While the joint statement noted discussions on trade, investment, and supply chains, there was no further announcement of substantive progress on economic cooperation or agreements. The countries agreed to restart the high-level U.S.-Brazil Climate Change Working Group, and U.S. Climate Special Envoy John Kerry will reportedly visit Brazil in the near future.
The Mexican government scrapped its deadline to ban genetically modified corn for animal feed and industrial use, but announced it would still prohibit the herbicide glyphosate and the use of GM corn for human consumption. U.S. Agriculture Secretary Tom Vilsack expressed “disappointment” at the move, and House Ways and Means Committee Chairman Jason Smith (R-MO) and Trade Subcommittee Chairman Adrian Smith (R-NE) sent a letter to Secretary Vilsack and USTR Tai calling for the administration to initiate a formal USMCA dispute.
On February 14, Senator Tom Cotton (R-AR) led a bipartisan letter to Secretary of Commerce Gina Raimondo and U.S. Trade Representative Katherine Tai urging them to take action against an “unsustainable surge of Mexican steel imports.”
Contact: Ethan Knecht, Steve Ziehm
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China
After shooting down a Chinese spy balloon last week, the United States revealed on February 9 that the balloon “was capable of conducting signals intelligence collection operations” and was part of a fleet that had flown over “more than 40 countries across five continents.” Media reports indicate a second object (as yet unidentified) was shot down over Alaska on February 10.
President Biden’s February 7 State of the Union address reiterated that the United States seeks competition, not conflict, with China and emphasized working with China where possible to “advance American interests and benefit the world.” President Biden did refer to Chinese President Xi Jinping by name and defended his actions on the balloon, saying the United States would protect itself if “China threatens our sovereignty” and had done so in this case.
In a rare display of bipartisanship, the House on February 9 voted 419-0 to censure Beijing for its violation of U.S. airspace, but the parties split over assessing the Biden administration’s response. During a February 9 Senate Foreign Relations Committee hearing, Chairman Menendez (D-NJ) called for increased funding to expand U.S. diplomacy and development efforts to counter China in the Indo-Pacific region.
The House Financial Services Committee February 7 hearing on economic threats from China served as a platform to introduce 14 bills, primarily focused on Taiwan and financial threats. The House Armed Services Committee held on February 7 a hearing focused on China’s threat to U.S. national defense.
Contact: Chris Benscher
Buy American
During the State of the Union, President Biden announced he will release “new standards to require all construction materials used in federal infrastructure projects to be made in America.” The administration is expected to release the new proposed rule in the coming weeks. President Biden insisted that new procurement plans guided by a “Buy American” principle would not violate U.S. trade commitments, including the WTO’s Government Procurement Agreement.
The 2021 Build America Buy America Act, enacted as part of the infrastructure bill, already requires that “all iron, steel, manufactured products, and construction materials used in covered infrastructure projects” are made in the U.S., as described by the Commerce Department. There is still significant confusion among industry, federal, state, and local agencies regarding the difference between a construction material and a manufactured product and what manufacturing processes must occur domestically for construction materials.
Contact: Chris Benscher
Central America
Vice President Harris announced a new Central America Forward framework under the Partnership for Central America (PCA), prioritizing goals in key areas like agriculture, digital access, education and training, and infrastructure.
The framework also identifies several new steps the administration is taking to support private sector investments in the region, including: the creation of a U.S. Government Northern Central America Investment Facilitation Team; increased access to DFC’s financing for private sector-led projects; the establishment of USAID workforce development programs; and the publication of a Business-Enabling Environment Action Plan. The U.S. Export-Import Bank also announced that it is looking to use its tools to support the Central America Forward initiative.
In Nicaragua, the Ortega regime unilaterally released more than 200 political prisoners, who were stripped of their citizenship and then deported to the United States. The State Department called the move a “constructive step” and said it “opens the door to further dialogue.”
Contact: Ethan Knecht
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Ukraine
Ukrainian President Volodymyr Zelenskyy is hosting on February 3 in Kyiv the EU-Ukraine Summit with EU Commission President Ursula Von der Leyen, Council President Charles Michel, and other senior bloc leadership in attendance. Zelenskyy announced a reform action plan aiming to align Ukraine with EU economic approaches (including in industry, agricultural, energy, digital services, transport, financial, [and] customs issues) and said Ukraine’s goal is to begin EU accession negotiations before the end of 2023. EU leaders, while generally supportive of Ukraine’s EU aspirations, have cautioned that the process cannot be rushed.
The EU announced a seventh defense assistance package worth €500 million and a new €45 million training assistance measure for Ukrainian personnel. The United States announced new security assistance, including air defense and counter-drone capabilities, armored infantry vehicles, and ammunition for previously transferred systems. The U.S. actions are collectively valued at $2.175 billion.
Contact: Pat Sheehy
China
Secretary of State Antony Blinken postponed his planned visit to Beijing following reports of a Chinese blimp U.S. officials described as an “espionage platform,” seen flying over U.S. nuclear facilities in Montana. Chinese authorities claimed the aircraft is a wayward “civilian airship used for research, mainly meteorological, purposes.” While the Defense Department said the blimp posed little current risk, State Department officials characterized the overflight as a “clear violation of our sovereignty, as well as international law…”
Blinken’s visit had been intended to lay groundwork for a meeting between Presidents Joe Biden and Xi Jinping, which may now also be delayed. The episode may inflame sentiments in both countries and could advance the timetable for a variety of U.S. measures aimed at countering China.
Contact: Pat Sheehy, Ethan Knecht
Forced Labor
The United States on February 3 took the significant step of removing a ban on imports of palm oil from the largest Indonesian producer, Sime Darby. The ban was put in place in 2020 due to indicators of forced labor at the firm’s plantations. U.S. Customs and Border Protection (CBP) lifted restrictions after Sime Darby provided information about reform of its labor practices and evidence it no longer produces palm oil using forced labor. Of particular note, Sime Darby reimbursed workers $20 million in “recruitment fees,” paid to secure employment with the firm. The fees contributed to a scenario that CBP Executive Assistant Commissioner AnnMarie Highsmith described as “debt bondage.”
The Department of Homeland Security also released its annual report on human trafficking. The report details, among other issues, broader DHS efforts on forced labor in FY2022.
Contact: Pat Sheehy
South America
In a wide-ranging interview preceding his February 9-10 visit to Washington, Brazilian President Lula da Silva said priorities for conversation with President Biden include the U.S.-Brazil bilateral trade relationship, U.S.-Mercosur relations, climate and the environment, and the war in Ukraine. In contrast to his predecessor’s relatively isolationist stance, Lula outlined a more aggressive and active Brazilian foreign policy, including his desire to form a group of neutral countries to seek a peaceful conclusion to the war in Ukraine. Lula also hopes Brazil can act as a mediator with Cuba and Venezuela.
German Chancellor Scholz traveled to Brazil, Argentina, and Chile as the EU and Mercosur look to ratify their long-stalled free trade agreement and ahead of an EU-Latin America summit this July. Scholz signed agreements on mining and climate change cooperation with Chile and on economic cooperation with Argentina. Rebuffing Scholz’s attempts to use the trip to rally support for Ukraine, Brazil and Argentina declined to send arms, and Chile pledged only to support Ukraine’s reconstruction after the war’s conclusion.
Contact: Ethan Knecht
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EU Council Meeting (Brussels), February 9-10
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AN Irish communications firm has won a major international award for a worldwide campaign to combat Russian misinformation over its…
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