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Who will threatened sanctions hit most? US-EU-Russia trade in numbers

RT | March 4, 2014

US lawmakers are already threatening Russia with economic sanctions over the crisis in Ukraine. Trade, business, investment, and G8 membership closely link the Russian, American and European economies.

While the West is considering going down the ‘sanction road’, here’s a look at what’s at stake for the markets.

Trade

In terms of billions of dollars, trade is higher between Russia and the EU, but the US remains Europe’s biggest export market.

Net trade between Russia and the US was $38.1 billion in 2013, according to US Chamber of Commerce data. The US exported $11.26 billion to Russia, and imported $26.96 billion worth of goods.

Russia exports more than $19 billion of oil and petroleum products to the United States, as well as $1 billion in fertilizer products, according to Chamber of Commerce data.

“Is Russia going to be cut off from the world? That is very unlikely given what Russia provides to the world, which are oil, gas, raw materials,” Alexis Rodzianko, president of the American Chamber of Commerce in Russia told Reuters.

Russia is very dependent on trade with the EU, as member states account for about 50 percent of total Russian imports and exports. In 2012, trade between the two neighbors reached €123 billion.

One of Russia’s most valuable exports to Europe is something factories and households run on every day: natural gas. Europe imports one-third of its natural gas from Russia, with Germany being the biggest client importing nearly 30 billion euro annually. In 2012, 75 percent of all European imports from Russia were energy.

Many countries in Europe have strategic partnerships with Russia’s state-owned gas giants, Rosneft and Gazprom.

According to Eurostat data, Russia accounts for 7 percent of total imports and 12 percent of total exports in the 28 European Union bloc, making it the regions third most important trading partner, behind the USA and China.

US companies with big Russia presence

Several of America’ biggest companies- Boeing, Cargill, Ford, General Motors, ExxonMobil, to name a few- all have a huge presence in the Russian market.

Boeing’s investment in Russia is deep, as the aerospace carrier sources a considerable amount of steel, titanium, and aircraft parts from Russian companies. Boeing receives about 35 percent of its titanium from state-owned, Rostec. In 2013, Boeing’s deliveries to Russian carriers were valued at $2.1 billion, and the company plans to spend $27 billion in Russia, Bloomberg reports.

“We are watching developments closely to determine what impact, if any, there may be to our ongoing business and partnerships in the region,” Doug Alder, a spokesman for Chicago-based Boeing, told Bloomberg by email.

Last year, Russia was a $11.2 billion market for the US, with heavy trade in automobiles and aircrafts, according to Commerce Department data.

US automakers have a high exposure to Russian markets, so are closely watching US economic actions against Russia. Ford has sold over 1 million automobiles in Russia, and in 2013, sold 105,000 cars. GM, which has a 9 percent market share, sold 258,000. Both companies have shifted production plants from Europe to Russia, which is set to become Europe’s biggest car market by 2016.

ExxonMobil has partnered with Rosneft in exploring the Bazhenov oil field in Western Siberia, a deal that could be worth up to $500 billion. ExxonMobil is planning to build a $15 billion LNG terminal project in the Bazhenov field, and also has joint venture projects set up to explore Black Sea reserves.

Senator Chris Murphy, chairman of the Senate’s subcommittee on Europe, said the sanctions could be extended to Russia’s banks. Russia’s two largest state banks are Sberbank, Europe’s third largest, and VTB. Both banks have a strong industry presence in London, which has indicated it isn’t moving towards the sanctions. A leaked document from Downing Street shows that the UK government doesn’t plan to follow America-led asset freezes or trade restrictions, but are mulling over visa restrictions and travel bans on key Russian politicians.

March 7, 2014 Posted by | Economics | , , , , | 3 Comments

Bringing SOPA to the Trans-Pacific Partnership

Robert Holleyman in the Seat

By Binoy Kampmark | Dissident Voice | March 6, 2014

The machinery to dominate global intellectual property by American fiat was further tightened by the announcement of Robert Holleyman as deputy US trade representative.  President Obama’s announcement is just another reminder of what sources of inspiration are governing the drive by Washington to control the downloading and dissemination of information via the Trans-Pacific Partnership. After all, Holleyman was a former lobbyist of the Stop Online Piracy Act (SOPA), the bill introduced by US Rep. Lamar S. Smith (R-Tx) to gift US law enforcement authorities with the means to combat copyright infringements.

Indeed, Holleyman’s own blurb as an author for The Huffington Post considers him as “one of the 50 most influential people in the intellectual property world”, an individual who “was instrumental in putting into place the global policy framework that today protects software under copyright law.”  Such is the nature of mislabelled internationalism – Washington’s policy by another name.

Holleyman has also been heavily involved as a former president of the Business Software Alliance, a body representing the main software vendors including Apple, IBM, and Microsoft. Through the consortium, Holleyman unintentionally put the problems of SOPA, and its sister legislation, PROTECT-IP, in the bright spotlight. He found himself fighting, at least for a time, a losing battle. Protest against them was extensive, with January 18, 2012 featuring the “largest online protest in history”. Congress took heed, shelving the bills. The vendors pondered the next move.

SOPA’s reach would have been global, enabling US law enforcement the means to target websites and individuals outside its jurisdiction. The carceral provisions of the bill were also hefty – five year prison terms for downloading unauthorised content.

It would have also been a rather formidable mechanism to insinuate censorship into the Internet. The legislation would allow the content provider or the US Justice Department to block sites hosting material supposedly in breach of copyright. Having such a provision would effectively overburden internet service providers to err on the side of caution and “over-block” material. If ever you want to enshrine censorship, a fine way of doing so is frightening the hosts into censoring themselves.

The secret negotiations of the TPP have proven to be a feast of select company. The negotiators themselves, such as Stefan Selig, nominee for under-secretary for international trade at the Commerce Department, have a direct line to the Bank of America. Selig’s accounts have been inflated to the tune of $9.1 million in bonus pay and $5.1 million in incentive pay. Happy is the bank that can sue for diminished assets and target governments in courts of law.

The clubbable ones are the software demons who have been “cleared” to have briefings, some 700 “stakeholders”. The “cleared advisors” also represent groups such as the Pharmaceutical Research and Manufacturers of America, the Entertainment Software Association, and the Recording Industry Association of America.

While the premise of having such vendors involved is ostensibly to protect innovation, the converse is true. The world of innovation does not matter to those who claim they have the ideas and want to protect them at cost. That is a recipe for sloppiness and envy.

The anti-democratic slant in the TPP process has also impressed itself upon observers. The press, and even members of Congress, have been kept at bay. Till parts of the treaty were published by WikiLeaks, elected officials could only view the document on visiting the Trade Representative Office. They would not be able to reproduce or transcribe it.

While SOPA and its twin PIPA were shelved indefinitely, the Obama administration has decided to shop in other forums to enforce some of their provisions. One way of doing so is through the faulty premise of free trade, which is simply another way of making some trade freer than others. The American firm features prominently in that guise of freedom.

Aspects of the leaked intellectual property chapter of the TPP so far indicate a model with SOPA trimmings. Provisions, for example, holding ISPs liable for hosting copyright infringement, have been preserved. The life of certain, corporate-owned copyrights will also be extended. In other words, this is SOPA by stealth, a process that “could not [be] achieved through an open democratic process.”

The fact that the Obama administration has also sought to sideline Congress in the debate is indicative of that. As Henry Farrell observed, “The United States appears to be using the non-transparent Trans-Pacific Partnership negotiations as a deliberate end run around Congress on intellectual property, to achieve a presumably unpopular set of policy goals.”  Senate Democrats have been mindful of their shrinking role, and have blocked the president’s attempt to obtain “fast-track authorisation”.

The effect of such authorisation would give the administration scope to limit congressional consultation while using its prerogative powers. Congress would become, in effect, a chamber of marionettes. Appointments such as Holleyman’s show little change of heart away from that policy. The copyright vanguard, along with the dance of secrecy, is digging its heels in.

Binoy Kampmark was a Commonwealth Scholar at Selwyn College, Cambridge. He lectures at RMIT University, Melbourne and can be reached at: bkampmark@gmail.com.

March 7, 2014 Posted by | Civil Liberties, Corruption, Deception, Full Spectrum Dominance, Progressive Hypocrite | , , , , , | Leave a comment

GCHQ Oversight Tribunal Has To Ask GCHQ’s Permission To Reveal GCHQ’s Wrongdoing

By Glyn Moody | Techdirt | March 7, 2014

One of the key themes to emerge in the debate about surveillance is the oversight of the agencies involved, and to what extent it is effective. In the US, that has been put into stark relief by news that the committee that is supposed to keep an eye on the spies was itself spied upon. And now over in the UK, we learn that things are just as bad when it comes to the equivalent oversight body, the Investigatory Powers Tribunal (IPT). Its powers sound impressive:

The Tribunal can investigate complaints about any alleged conduct by, or on behalf of, the Intelligence Services – the Security Service (sometimes called MI5), the Secret Intelligence Service (sometimes called MI6) and GCHQ (Government Communications Headquarters).

The scope of conduct the IPT can investigate concerning the Intelligence Agencies is much broader than it is with regard to the other public authorities. The IPT is the only Tribunal to whom complaints about the Intelligence Services can be directed

Unfortunately, the IPT’s credibility as the public’s watchdog for the intelligence services has just been seriously undermined by the following information published by The Guardian :

A controversial court that claims to be completely independent of the British government is secretly operating from a base within the Home Office, the Guardian has learned.

The Investigatory Powers Tribunal, which investigates complaints about the country’s intelligence agencies, is also funded by the Home Office, and its staff includes at least one person believed to be a Home Office official previously engaged in intelligence-related work.

It gets worse:

the IPT will not say whether GCHQ had disclosed the existence of its bulk surveillance operations, which attempt to capture the digital communications of everybody — including those people who complain to the tribunal.

Nor will it disclose whether it has issued any secret ruling on the lawfulness of those operations, on the grounds that the rules under which it operates stipulate that it cannot do so without the permission of GCHQ itself. It has not sought that permission on grounds it knows it would not be given.

So the body tasked with overseeing GCHQ has to get GCHQ’s permission before it can reveal any wrongdoing by GCHQ, which it doesn’t bother doing when it knows it would be refused. Isn’t oversight a wonderful thing? Follow me @glynmoody on Twitter or identi.ca, and +glynmoody on Google+

March 7, 2014 Posted by | Deception, Full Spectrum Dominance | , | Leave a comment

Nukes Now

Obama Worse Than Reagan

By Steve Breyman | CounterPunch | March 6, 2014

Heads-up, veterans of the nuclear freeze movement in the US, the anti-Euromissile campaigns in Western Europe, and the various anti-nuclear weapons efforts in New Zealand, Australia and Japan. Incoming.

We spent much of the eighties resisting Ronald Reagan’s new Cold War, and his new nuclear weapons of all shapes and sizes. We pushed back against his giant ‘defense’ budgets and countered his harrowing rhetoric. We knew Star Wars was a scam, and the MX missile a danger. We grimaced at his appointments to key policymaking positions, and scoffed at his insincere arms control efforts.

In the end, we prevailed (after a sort). We get much of the credit for preventing planetary incineration that seemed frighteningly close at the time (Gorbachev deserves some too). Professional activists, Plowshares heroes, and a handful of stalwart others stayed in the anti-nuclear weapons movement trenches. Although nukes were not abolished with the end of the Cold War, most of the rest of us nonetheless moved on to fight other evils, and to work on one or more better world construction projects.

It’s time to return. President Obama released his FY 2015 budget on Tuesday, March 4. Ready for this? It asks for considerably more money (in constant dollars) for nuclear weapons maintenance, design and production than Reagan spent in 1985, the historical peak of spending on nukes: $8.608 billion dollars, not counting administrative costs (see graph below). The Los Alamos Study Group crunched the numbers for us.
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Next year’s request tops this year’s by 7%. Should the President’s new Opportunity, Growth and Security Initiative be approved, yet $504 million more would be available for warhead spending. The OGSI is $56 billion over and above the spending agreed to in the December 2013 two-year budget (unlikely to pass given that it’s an election year, would be paid for by increased taxes on the retirement funds of the rich, and reduced spending in politically dicey areas like crop insurance).

Increased lucre for the nuclear weapons complex maintains Obama’s inconsistency on the Bomb. He wrote his senior thesis at Columbia on the arms race and the nuclear freeze campaign. Two months after his first inauguration, he uttered these words in Prague: “So today, I state clearly and with conviction America’s commitment to seek the peace and security of a world without nuclear weapons.”

The Pentagon’s 2010 Nuclear Posture Review promised to avoid “new military missions or . . . new military capabilities” for nuclear weapons (don’t laugh, you’d be surprised how imaginative those guys can be). 2011 was even better: Obama signed the New START Treaty. It limits the number of operationally deployed nuclear warheads to 1550, a 30% decrease from the previous START Treaty, signed in 2002. New START also lowered limits on the number of launch platforms — ICBMs, ballistic missile launching subs, and nuke-equipped bombers.

At the same time, his State Department refuses—under first Hilary Clinton and now John Kerry—to present the Comprehensive Test Ban Treaty to the Senate for ratification out of timidity over expected resistance (never mind that the US has essentially figured out ways to circumvent the Treaty’s spirit if not letter; the CTB was once the ‘holy grail’ for arms control and disarmament advoates).

That same State Department refrains—under both Hilary Clinton and John Kerry—from getting tough with Pakistan over its years-long obstruction of United Nations-sponsored negotiations over a global ban on the stuff needed to make bombs. (Pakistan is the country building them faster than any other; how about: ‘we’ll ground the killer drones in exchange for a fissile material cut-off?’). And Obama now wants to outspend Reagan on nuclear weapons maintenance, design and production.

Winding down nuclear weapons spending, and eventually abolishing the things (for which no negotiations are underway) has been the right thing to do since the first bomb exploded in the New Mexico desert in 1945. State Department support for the coup in Ukraine and the resultant saber rattling (echoes of August 1914?) make it as urgent as ever.

Steve Breyman was 2011-12 William C. Foster Visiting Scholar Fellow in the Euro-Atlantic Security Affairs Office of the Bureau of Arms Control, Verification and Compliance at the US Department of State where he worked fruitlessly on reforming nuclear weapons policy.

March 7, 2014 Posted by | Militarism, Progressive Hypocrite, Timeless or most popular, War Crimes | , , , , | Leave a comment

Hillary Clinton: Playing a Dog-Eared “Hitler” Card

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By Norman Solomon | War is a Crime | March 7, 2014

The frontrunner to become the next president of the United States is playing an old and dangerous political game — comparing a foreign leader to Adolf Hitler.

At a private charity event on Tuesday, in comments preserved on audio, Hillary Clinton talked about actions by Russia’s President Vladimir Putin in the Crimea. “Now if this sounds familiar, it’s what Hitler did back in the ’30s,” she said.

The next day, Clinton gave the inflammatory story more oxygen when speaking at UCLA. She “largely stood by the remarks,” the Washington Post reported. Clinton “said she was merely noting parallels between Putin’s claim that he was protecting Russian-speaking minorities in Crimea and Hitler’s moves into Poland, Czechoslovakia and other parts of Europe to protect German minorities.”

Clinton denied that she was comparing Putin with Hitler even while she persisted in comparing Putin with Hitler. “I just want people to have a little historic perspective,” she said. “I’m not making a comparison certainly, but I am recommending that we perhaps can learn from this tactic that has been used before.”

Yes indeed. Let’s learn from this tactic that has been used before — the tactic of comparing overseas adversaries to Hitler. Such comparisons by U.S. political leaders have a long history of fueling momentum for war.

“Surrender in Vietnam” would not bring peace, President Lyndon Johnson said at a news conference on July 28, 1965 as he tried to justify escalating the war, “because we learned from Hitler at Munich that success only feeds the appetite of aggression.”

After Ho Chi Minh was gone, the Hitler analogy went to other leaders of countries in U.S. crosshairs. The tag was also useful when attached to governments facing U.S.-backed armies.

Three decades ago, while Washington funded the contra forces in Nicaragua, absurd efforts to smear the elected left-wing Sandinistas knew no rhetorical bounds. Secretary of State George Shultz said on February 15, 1984, at a speech in Boston: “I’ve had good friends who experienced Germany in the 1930s go there and come back and say, ‘I’ve visited many communist countries, but Nicaragua doesn’t feel like that. It feels like Nazi Germany.’”

Washington embraced Panama’s Gen. Manuel Noriega as an ally, and for a while he was a CIA collaborator. But there was a falling out, and tension spiked in the summer of 1989. Deputy Secretary of State Lawrence Eagleburger said that drug trafficking by Noriega “is aggression as surely as Adolf Hitler’s invasion of Poland 50 years ago was aggression.” A U.S. invasion overthrew Noriega in December 1989.

In early August 1990, the sudden Iraqi invasion of Kuwait abruptly ended cordial relations between Washington and Baghdad. The two governments had a history of close cooperation during the 1980s. But President George H. W. Bush proclaimed that Saddam Hussein was “a little Hitler.” In January 1991, the U.S. government launched the Gulf War.

Near the end of the decade, Hillary Clinton got a close look at how useful it can be to conflate a foreign leader with Hitler, as President Bill Clinton and top aides repeatedly drew the parallel against Serbia’s president, Slobodan Milosevic. In late March 1999, the day before the bombing of Kosovo and Serbia began, President Clinton said in a speech: “And so I want to talk to you about Kosovo today but just remember this — it’s about our values. What if someone had listened to Winston Churchill and stood up to Adolf Hitler earlier?”

As the U.S.-led NATO bombing intensified, so did efforts to justify it with references to Hitler. “Clinton and his senior advisers harked repeatedly back to images of World War II and Nazism to give moral weight to the bombing,” the Washington Post reported. Vice President Al Gore chimed in for the war chorus, calling Milosevic “one of these junior-league Hitler types.”

Just a few years later, the George W. Bush administration cranked up a revival of Saddam-Hitler comparisons. They became commonplace.

Five months before the invasion of Iraq, it was nothing extraordinary when a leading congressional Democrat pulled out all the stops. “Had Hitler’s regime been taken out in a timely fashion,” said Rep. Tom Lantos, “the 51 million innocent people who lost their lives during the Second World War would have been able to finish their normal life cycles. Mr. Chairman, if we appease Saddam Hussein, we will stand humiliated before both humanity and history.”

From the Vietnam War to the Iraq War, facile and wildly inaccurate comparisons between foreign adversaries and Adolf Hitler have served the interests of politicians hell-bent on propelling the United States into war. Often, those politicians succeeded. The carnage and the endless suffering have been vast.

Now, Hillary Clinton is ratcheting up her own Hitler analogies. She knows as well as anyone the power they can generate for demonizing a targeted leader.

With the largest nuclear arsenals on the planet, the United States and Russia have the entire world on a horrific knife’s edge. Nuclear saber-rattling is implicit in what the prospective President Hillary Clinton has done in recent days, going out of her way to tar Russia’s president with a Hitler brush. Her eagerness to heighten tensions with Russia indicates that she is willing to risk war — and even nuclear holocaust — for the benefit of her political ambitions.

March 7, 2014 Posted by | Mainstream Media, Warmongering, Timeless or most popular | , , , , | 5 Comments

Forgetting His Own History: William Hague Once Understood How Not to Handle a Black Sea Crisis

By Mark Almond | CroixBlog |  March 6, 2014

“All the assumptions on which… this policy [was]

based turned out to be wrong…. British domestic

opinion would prove hard to persuade that seeking

the return… of a fortress on the Black Sea merited

the risk of a war with Russia.”

William Hague on the Anglo-Russian Crisis (1791)[1]

Oxford historian, Mark Almond, recalls the lessons from history once taught by Foreign Secretary, William Hague, in his study of Pitt the Younger’s mishandling of what he called the “Ochakov fiasco” in 1791.

The current imbroglio over Crimea may be America’s first crisis with Russia in the Black Sea, but it is not Britain’s. Even the Crimean War (1854-56) was not Britain’s first face-off with Russia. More than two hundred years ago as the French Revolution convulsed Western Europe (rather as the Arab Spring has sent shock waves across the Mediterranean), Catherine the Great expanded her hold on the Black Sea coast by seizing Ochakov, not far from the new city of Odessa. Under the supervision of the exiled French Duc de Richelieu who acted as governor, the Tsarina’s architects would soon erect as a naval base to match Sebastopol across the Black Sea in the Crimea which she had already annexed in 1783.

With her major rival, France, apparently rendered impotent by revolution since 1789, William Pitt’s Britain seemed the only superpower – at least to itself. Whitehall was as convinced in 1791 as the White House seems to be today that a combination of global reach via the Royal Navy with the City of London’s financial hegemony would both cause the Tsarina to back off and the other European states to fall into line behind Britain’s demand that Russia retreat from its southern Ukrainian conquests from the waning Ottoman Empire.

Convinced of that the West could cow the East with its combination of advanced military technology and commercial wealth even in a theatre so far from its sources of power and so close to Catherine’s, William Pitt turned the Ochakov issue into a first-rate crisis by demanding Russia withdraw or else.

But when push came to shove, the British government’s assumption that everyone in Europe would fall into line behind its bellicose approach proved as illusory as the sanctions-first strategy-later approach of David Cameron’s government today. The echoes of today’s crisis are obvious – except it seems to the author of an excellent biography of the Younger Pitt described as a “fiasco”.

Britain’s Foreign Secretary, William Hague, set out a succinct account of Britain’s over-reach in 1791 back in 2002 when he was in the political wilderness. His diplomacy, albeit as the junior partner of the USA, suggests that he has forgotten everything about what lessons might be derived from Whitehall’s past performance in the great game for influence in the Black Sea region.

The EU summit in Brussels on 6th March, 2014, should have had painful echoes of Pitt’s brutal learning curve in 1791. Don’t trust the private assurances of “allies” that they will cut off their noses to spite Russia’s face, nor believe over-optimistic British diplomats telling you that everyone is on board and the Russians are too militarily weak and economically backward to face up to a Western challenge in their own backyard.

Looking back two centuries later, Hague described how the Old Etonian prime minister of the day presumed that his European partners would fall into line behind London’s publicly-proclaimed policy to sanction Russia for its occupation of Ukraine’s Black Sea coast. But Europe’s capitals were far from firmly resolved to incur Catherine the Great’s wrath:

“While Prussia joined in pressing the British demands, the Dutch were unwilling to risk a war, the Swedes demanded a subsidy, the Spanish were not prepared to help and the Austrians became markedly less cooperative and were actually playing a double game with the Russians.”

Pitt’s majority in the House of Commons sank because he could not persuade MPs why they should risk a war “for a faraway fortress of which they had never before heard.” Because the Russians had not harmed a hair on a British head in 1791, public opinion like Parliament could not get its mind around the need for military threats. Pitt complained that emotions were not running high enough to overrun his MPs scepticism about war in the Black Sea. Raison d’état did not cut much ice in Britain: “They can be embarked in a war from motives of passion, but they cannot be made to comprehend a case in which the most valuable interests of the country are at stake.” Maybe, but the mercantilist elite which provided so many MPs then had a very good understanding of self-interest and could be ruthless about asserting Britain’s interests when they made pounds-and-pence sense. What they could not be won over to was a war for alleged strategic interests well beyond their commercial reach and in fact against a major trading partner like Russia.

Rather as phone intercepts have embarrassed Victoria Nuland – “F*ck the EU” – and Catherine Ashton over the apparently pro-opposition “snipers” in Kiev, so in 1791 the Russian acquisition of British establishment inside information from Robert Adair, an ally of Pitt’s bête-noire Charles James Fox, revealed to Catherine II’s government that – surprise, surprise – the British had been making contradictory promises to Austria and Turkey to keep them both on board – so both drifted away from London on the news.

Pitt had to back down, but, in a lesson for the blundering Bullingdon Club bully[2] in 10 Downing Street today, a colleague noted, “He hoped means might be found to manage matters so as not to have the appearance of giving up the point.”[3]

Diplomacy is often best when it provides a smokescreen for a retreating from a foolish policy. Maybe if William Hague could act like his hero Pitt, he could persuade the White House to declare Vladimir Putin’s permission of a referendum on the future of Crimea to be a triumph of Western ideals to spread democracy and so a sign of Russia’s climb-down! But don’t expect too much: Hague like his American patrons has approached real-time crises with an open mouth, so thinking first before shooting the West in the foot would require reflecting on his own experience as well as remembering the history which appears under his name.

[1] See William Hague, William Pitt the Younger (Harper Perennial: London, 2005), 285.

[2] Cameron’s main unilateral sanction has been to kick away the UK government’s crutch from our para-olympians going to Sochi for the Winter Games this weekend.

[3] Quoted in Hague, William Pitt, 287.

March 7, 2014 Posted by | Timeless or most popular | , , , , , | Leave a comment