Aletho News

ΑΛΗΘΩΣ

Goodbye ‘Freedom and Democracy’ – Hello ‘Rules-based International Order’

By Paul Carline | OffGuardian | February 2, 2019

The banner and the clarion call of western countries, and their own asserted legitimation – especially when they are engaging in illegal wars and coups – used to be “freedom and democracy”: the precious gift they were generously and selflessly offering to a backward world – or one allegedly in the ‘chains’ of Socialism/Communism. There was “Radio Free Europe”, for example, pushing out western liberal propaganda, primarily against the countries of the former Soviet Union.

The Washington-based “Freedom House” organisation, which claims to be independent, has around 150 staff members in Washington and in ‘field offices’ around the world. Its President is Michael J. Abramowitz, who before joining Freedom House in 2017, was director of the US Holocaust Memorial Museum’s Levine Institute for Holocaust Education. Before that, he was National Editor and then White House correspondent for the Washington Post. He is a member of the Council on Foreign Relations and a former fellow at the German Marshall Fund and the Hoover Institution. He is also a board member of the National Security Archive. The Board of Trustees is chaired by Michael Chertoff, Secretary of Homeland Security under George W. Bush and co-author of the USA Patriot Act.

Since 1972, Freedom House, whose website sports a warm endorsement by none other than Francis Fukuyama, has produced an annual “Freedom in the World” global map (above), which divides the world into countries which are either “free”, “partly free”, or “not free”. The allegedly “free” countries are coloured green, the “partly free” ones a kind of muddy yellow, and the “not free” ones blue.

Its analysis of “freedom” covers “the electoral process, political pluralism and participation, the functioning of government, freedom of expression and belief, rights of association and organization, the rule of law, and personal autonomy and individual rights”. The word ‘democracy’ is not used in the ratings system, nor is it defined anywhere, but the 2018 analysis is headlined “Democracy in Crisis”.

According to Freedom House, in 2018 45% of the world (by country) or 39% (by population) was “free”, 30% (country) or 24% (population) was “partly free”, and 25%/37% “not free”. Countries are rated on a percentage points system. Sweden, which last year joined in the NATO ‘war games’ – despite not being a NATO member – is given a full 100 points, Canada 99, Uruguay 98, both Chile and the UK 94, France a completely undeserved 90, the USA 86 and Israel an unreal 79. By contrast, China scores 14, Iran 17, and Russia a mere 20, while Tibet and Syria are granted only 1 point each (no bias there). Almost incredibly, Ukraine scores 62 – allowing it to be rated as “partly free”! Very oddly, the FAQ section is available in only two languages – English and Ukrainian!

I suspect that the statement by Freedom House’s President, Michael J. Abramowitz, to the effect that: “A quarter-century ago, at the end of the Cold War, it appeared that totalitarianism had at last been vanquished and liberal democracy had won the great ideological battle of the 20th century”, must induce wry smiles – if not outright anger – in many Off-Guardian readers. Abramowitz predictably refers to “the rise of populist leaders who appeal to anti-immigrant sentiment and give short shrift to fundamental civil and political liberties” and describes “newcomer Emmanuel Macron” as a “centrist” who “handily” (interesting choice of words!) won the French presidency.

Depressingly predictable is his comment on China and Russia, which he labels “the world’s leading autocracies” and which he asserts “have seized the opportunity not only to step up internal repression but also to export their malign influence to other countries, which are increasingly copying their behaviour and adopting their disdain for democracy” (emphasis added; no mention of the massive ‘disdain for democracy’ in the USA, UK, and numerous members of the EU).

According to Abramowitz, “Democratic governments allow people to help set the rules to which all must adhere, and have a say in the direction of their lives and work!” If that were true, there would be lots of direct democracy in all those “free” countries. It’s true that there is some ‘direct democracy’, e.g. popular initiatives and referendums, in a few states of the USA and in a few European countries – with Switzerland far and away the best example, followed by Germany at the regional and local levels, thanks to the efforts over decades of its leading pro-democracy organisation “Mehr Demokratie”, which has been trying to have direct democratic rights established also at the national level, which would really allow the people to “help set the rules”. Germany’s “Basic Law” (it doesn’t have a proper constitution for reasons which I cannot go into here but which will be known to many) actually states: “All power derives from the people” (Article 20) and “State power is exercised by the people in elections and referendums” (emphasis added) – but successive governments have refused to enact the laws that would allow state-level referendums, presumably because they fear the “people power” that is the literal meaning of ‘democracy’.

Given subsequent developments, Kofi Annan’s 2001 Nobel Peace Prize acceptance speech now strikes a sour note:

“The obstacles to democracy have little to do with culture or religion, and much more to do with the desire of those in power to maintain their position at any cost. This is neither w new phenomenon nor one confined to any particular part of the world. People of all cultures value their freedom of choice and feel the need to have a say in the decisions affecting their lives”

In the 2002 UNDP World Development Report, Annan re-affirmed the true nature of democracy in these words:

“True democratization means more than elections. People’s dignity requires that they be free – and able – to participate in the formation and stewardship of the rules and institutions that govern them”.

According to Abramovitch’s definition, and that of Kofi Annan, there is zero genuine democracy in the U.K. (a purely representative system – especially one still using an outdated and wholly disreputable FPTP system, with rare referendums arranged by the government, which sets the question – is not a legitimate form of democracy).

We may also ask, in parenthesis as it were, who – if not the electorates – is “helping to set the rules”, for example in Europe specifically. As of July 2017, there were 11,327 registered lobby organisations in the EU, employing some 82,096 people – the equivalent of 50,326 full-time personnel – of which nearly 7,000 have access to the Parliament. In Germany there are around eight lobbyists – representing ‘outside’ interests – for every member of the national parliament – and the lobby registers are voluntary. Only seven countries (France, Ireland, Lithuania, Austria, Poland, Slovenia and the UK) have passed any laws on lobbying.

What is extremely interesting and telling is the general absence of references to ‘freedom and democracy’ by our so-called ‘leaders’. Those words have been replaced in the political lexicon by the now clearly favoured expression “the rules-based international order” – which doesn’t have quite the same ring, or the same connotations, as “freedom and democracy”.

One is forced to ask: whose order? whose rules? If Abramowitz is correct, and since we are privileged enough to live in a country which, if we are to believe its FH rating, is little short of perfect, we the people must have been involved in setting those rules. We should at least have been told what they mean! For example, what does ‘international’ mean in this context? It suggests a global compact – but when it is used it specifically excludes certain countries and regimes which we are led to believe are not part of, or indeed are allegedly trying to undermine, this new ‘order’.

Although the word ‘international’ is often taken to be a synonym for ‘global’ or ‘universal’, its literal meaning is ‘between nations’. The UN has of course long promulgated and endorsed all kinds of ‘universal’ rules (the ICC rules on aggression for instance) – many of which are routinely flouted by the countries which most loudly lay claim to being ‘democracies’ and loyal observers of the “rules-based international order”.

But we are now seeing a new type of literally ‘inter-national’ agreements being made in Europe, often merely between two governments at a time (with no democratic endorsement by either parliaments or people) and where the suspicion is that this is a new way of hiding from the general public what is really going on in Europe – specifically the step-by-step implementation of the “United States of Europe” project which dates from at least 1946.

There seems to be an undue haste to complete the creation of a unified military establishment that would not be answerable to the individual nation states which are contributing their forces (and infrastructure!) and which would also appear to include a much closer working relationship between military and police forces. Does the urgency have to do with the level of chaos in Europe and the threat – now materialised in the form of the “Yellow Vest” protests – of widespread civil unrest and potentially public revolt?

So Prime Minister Theresa May can pretend to the public that the ‘Brexit’ approved by a majority of voters will take place i.e. that Britain will “come out of” the EU, while at the same time, and largely in secret or behind closed doors in completely undemocratic meetings, the government is committing the entire UK military establishment, step by step, to the new ‘unified European defence establishment’. The UK enters into a special relationship with France (and thereby with the EU). France and Germany have just signed a new treaty – the Aachen Treaty – so does the UK automatically acquire the special relationship with Germany? And will this “two-step” approach eventually link all willing states (one could imagine Hungary, perhaps Italy and Greece also, not being so willing) in the ‘new European order’?

In struggling to understand the “rules-based international order” I found this definition by the RAND Corporation very helpful:

Since 1945, the United States has pursued its global interests through creating and maintaining international economic institutions, bilateral and regional security organizations, and liberal political norms; these ordering mechanisms are often collectively referred to as the international order.

In recent years, rising powers have begun to challenge aspects of this order. This report is part of a project, titled “Building a Sustainable International Order,” that aims to understand the existing international order, assess current challenges to the order, and recommend future US policies with respect to the order.

This report is the first of those and reflects the project team’s attempt to understand the existing international order, including how US decision makers have described and used the order in conducting foreign policy, as well as how academics have assessed the mechanisms by which the order affects state behaviour.

When discussing policy responses to a fraying international order, the first challenge is to understand what we mean by the term. Order has various meanings in the context of international politics, and specific orders can take many forms.1 For the purposes of this project, we conceive of order as the body of rules, norms, and institutions that govern relations among the key players in the international environment. An order is a stable, structured pattern of relationships among states that involves some combination of parts, including emergent norms, rulemaking institutions, and international political organizations or regimes, among others.

– RAND Corporation 2016, Understanding the Current International Order

This more recent observation was both insightful and amusing:

“The rules-based international order is being challenged, quite surprisingly, not by the usual suspects, but by its main architect and guarantor, the US,” Donald Tusk, the president of the European Council, said as the summit meeting got underway in Quebec’s picturesque resort town of La Malbaie on the banks of the St. Lawrence River.

The trans-Atlantic rift manifested itself in a behind-the-scenes debate about the wording of the traditional summit communiqué. The American side objected to including the phrase “rules-based international order,” even though it is boilerplate for such statements, according to two people briefed on the deliberations. The Europeans and Canadians were pushing back, but it remained unclear whether the Trump administration would ultimately sign the statement or be left on its own.

– NYT June 8, 2018 Michael D. Shear

So the ‘rules-based international order’ is, in reality, the expression of America’s “global interests”. Other parties – such as British and other governments – may be allowed to put on the mask of the Eagle, whilst claiming to be on the side of justice, truth, human rights … and yes, democracy. And since it’s a US construct, the US and its allies can feel free to ‘make it up as they go along’.

February 2, 2019 Posted by | Civil Liberties, Deception, Timeless or most popular | , , , | Leave a comment

European firms ‘won’t dare’ use new EU payment system for trade with Iran out of fear of US

RT | February 1, 2019

A new mechanism to allow “legitimate trade” with Iran, which was set up by France, Germany, and the UK this week, doesn’t change anything for European companies, according to independent journalist Luc Rivet.

He told RT that European companies and others cannot feel confident that they could do business with Iran without being subject to US sanctions.

“I don’t know what companies will make use of that mechanism to sell to Iran,” he said, adding that it’s very dangerous for the companies if they are caught working in Iran.

Europe mentions that medical equipment could be sold through this way, says Rivet.

“Who produces this equipment? You think that Siemens will sell to Iran? Never, because they sell to America many other things as well… And Siemens is afraid of losing the American market.”

He explained that an “incredible number of companies” won’t have anything to do with Iran, including the banking sector, the oil and gas sector, and others.

Even small companies will hesitate to sell anything to Iran at risk of being caught, according to Rivet. They can do that through other channels, like via Turkey, he said.

The journalist added: “It’s much easier for Chinese and Russian companies to make deals with Iran. The Europeans are scared in an incredible way. The companies are afraid by ricochet of being in the eye of the storm with the Americans.”

“That’s very dangerous for European companies,” he repeated, adding: “I don’t know anybody who will dare to go with this Instex system.”

February 1, 2019 Posted by | Economics, Wars for Israel | , , | Leave a comment

Newsguard Turns to EU to Push Controversial Ratings System on Tech Companies, Smears MintPress as “Secretly Supported” by Russia

By Whitney Webb | Mint Press News | January 30, 2019

BRUSSELS —  The neoconservative-backed news rating upstart “Newsguard” is now lobbying the European Union to “force the hand” of major U.S.-based tech companies — including Facebook, Google, and Twitter — to integrate its controversial ratings system into the world’s most popular social media platforms and search engines, according to a recent statement made by Newsguard co-CEO Steven Brill during a Tuesday event on “countering online disinformation” hosted by the EU in Brussels.

Brill also announced during his Brussels speech that Newsguard will be fully operational in four EU countries — U.K., Italy, France and Germany — by this April and is hoping to partner with EU-connected and EU-funded fact-checking organizations in order to increase Newsguard’s profits and influence as well as the likelihood of its adoption by major tech companies. Many of those companies have apparently gotten cold feet after concerns were raised about Newsguard’s browser plug-in collecting location and browsing-history information on its users, a practice discovered by independent tech experts who examined the code behind the plug-in. This undisclosed collection of user information was publicly denied by Newsguard despite it clearly being in the code of the plug-in itself.

Newsguard — whose connections to prominent neoconservatives, former government and intelligence officials and powerful PR firms were the subject of a recent MintPress exposé that went viral — has apparently shifted its hopes overseas following domestic backlash within the United States, triggered by critical reporting on the group. Brill, during his brief speech at the EU event on Tuesday, claimed that news sites that have recently criticized Newsguard’s motives — MintPress among them — are “secretly supported” by the Russian government, a claim for which he provided no evidence.

Another consequence of the growing domestic backlash, as evidenced by Brill’s appearance and the content of his speech in Brussels on Tuesday, is that Newsguard is now seeking to partner with the EU bureaucracy in order to pressure social media and other tech companies to pay Newsguard a hefty licensing fee for use of its “nonpartisan” ranking system.

This would not only ensure a steady stream of income for Brill and Newsguard’s other CEO, Louis Gordon Crovitz, but would also ensure the success of Newsguard’s ultimate ambitions of becoming an involuntary part of the internet browsing experience for citizens of the United States, the Europe Union and beyond.

An unexpectedly uphill battle for the giants’ blessing

As MintPress reported earlier this month, Newsguard aims to soon be “running by default on our computers and phones whenever we scan the Web for news” and has been in talks with “online titans” for several months, having already teamed up with Microsoft. Newsguard’s Microsoft partnership is credited with the ranking system, now available only as a browser plug-in, being pushed onto public library systems and even universities throughout the United States.

Newsguard has since used a series of interviews with mainstream outlets (all of which have received high ratings from the company) to promote its “popularity” by citing a Gallup poll that found that “89% of users of social media sites and 83% overall want social media sites and search engines to integrate NewsGuard ratings and reviews into their news feeds and search results.” However, few of the outlets that reported on the poll and Newsguard disclosed that Newsguard itself and one of its top investors funded the poll, that participants were paid to answer questions, and that the poll’s findings “may not be reflective of attitudes of the broader U.S adult population.”

Despite that, for whatever reason, there remains some resistance from social media giants to adopting Newsguard. Such a response was unexpected by the company’s CEOs Brill and Crovitz, however, given that both — when they announced Newsguard’s formation and raising of $6 million in seed funding last March — stated in several interviews that they anticipated near-immediate offers from major tech companies.

For instance, an interview with Business Insider, Crovitz (who is also a board member of Business Insider) had stated that they expected at least one of “the big tech platforms to sign on as a paying customer in a couple of months,” while Brill was quoted in the same article as stating that “We would not have gone forward [with Newsguard]” without at least some interest from these very platforms. Several mainstream reports on Newsguard have noted that if it does not successfully partner with major social media platforms or search engine companies, it is likely to fail.

The tech companies lack of interest could be explained many ways. One possibility is that Newsguard has drawn criticism from big-name, high-traffic websites it has poorly rated, particularly among conservative outlets like the Daily Mail, Breitbart and the news aggregations site Drudge Report, which has resulted in a steady stream of negative reports about the operation since MintPress’ original exposé was first published on January 9.

Such negative reporting has led to a bombardment of negative comments on Newsguard’s Facebook posts and tweets, as well as low ratings for its browser plug-ins. Mozilla, Firefox’s parent company, was recently accused of deleting many of the 1-star ratings for the plug-in, presumably at Newsguard’s request.

In addition, Facebook’s ”third party fact-checking organization” since December 2016 — the Poynter Institute, itself controversial for being heavily funded by the Bill and Melinda Gates Foundation and the Open Society Foundations — has openly criticized Newsguard.

In a recent article on Newsguard published in Slate, Alexios Mantzarlis, head of the Poynter Institute’s International Fact-Checking Network (IFCN), stated that — while he “appreciates” what Newsguard is trying to do — he found Newsguard’s red-green rating system “reductive,” adding that “it feels like one of those recipes where the ingredients all look right, but then you follow it closely and the result isn’t great.” Mantzarlis brought up the red rating given to Al Jazeera and the green rating given to Fox News as a glaring example of Newsguard’s questionable rankings of news organizations.

Furthermore, internet privacy activists have raised concerns about Newsguard’s plug-in collecting and storing information on the browser history of its users, along with information on the device on which it is installed and geolocation information, among other data.

Though Newsguard has responded to such criticism by stating that it does not share or store the information it collects (the “Trust Us” response), privacy advocates have noted that collecting such information was a choice the company made, not a technical requirement for the stated purpose of the plug-in. It is worth noting that Newsguard’s Crovitz has repeatedly defended illegal NSA surveillance — and the man who oversaw that surveillance operation for several years, former NSA and CIA director Michael Hayden, is on Newsguard’s board of advisors.

These factors and others have led some prominent privacy activists and technologists, such as Mozilla co-founder and former CEO Brendan Eich, to call Newsguard “a bad operation all around.” With prominent technologists like Eich and prominent fact-checkers like Mantzarlis lining up against Newsguard, the company’s plans to integrate smoothly into social media aren’t going as planned.

Leveraging the EU

Brill and Crovitz are apparently growing uneasy that large U.S. tech companies are getting cold feet on incorporating Newsguard into their online products and paying Newsguard’s hefty (yet undisclosed) licensing fee, given that licensing fees are the linchpin that would ensure the company’s profitability.

Slate’s recent article on Newsguard, published last Friday, admits as much. Will Oremus, Slate’s senior technology writer, stated that “whether NewsGuard’s shields become ubiquitous or a footnote in the history of online journalism will depend on the willingness of the large tech platforms to license its product.” Oremus then goes on to note that Brill said during an interview that he is confident that “a European Union agreement, little-known stateside, might help to force their hand. Google, Facebook, Twitter, and Mozilla (maker of the Firefox browser) have all signed on this year to the European Commission’s Code of Practice on Disinformation, which commits them to various measures to tackle false news on their platforms.”

Oremus continues:

If it sounds like an empty bureaucratic gesture, well, it might be. But Brill and Crovitz are counting on it to have teeth, and they’ve been making regular trips [emphasis added] to Brussels to try to persuade these platforms that adopting NewsGuard is their best path toward satisfying the agreement. If this or other arguments fail to convince Big Tech, NewsGuard will fail too.”

Indeed, Newsguard is undeniably looking to the EU to “force the hand” of uneasy tech companies in integrating — and licensing — Newsguard’s ranking system. On Tuesday, Brill made yet another of his “regular trips” to Brussels, this time to participate in an EU-hosted conference titled “Countering online disinformation – Towards a more transparent, credible and diverse digital media ecosystem.” Brill participated in a panel discussion with representatives from European fact-checking organizations, titled “How can the fact-checking community help ensure a fair public debate?”

During his brief speech at the conference (link – speech begins around 5:38:30), Brill used many of the same talking points he has used domestically, touting Newsguard’s ostensible nonpartisanship and “growing popularity” with consumers (yes, he cites only the same aforementioned Gallup poll as evidence).

However, a few minutes into his speech, Brill states the real reason for attending the conference:

I am here to announce that by mid to the end of April, we expect to have hired enough native journalists and enough experienced editors and get the process going so that we will have launched in Italy, Germany, France and the U.K. and will have covered at least 90 percent [of the most visited news websites in those countries].”

In other words, Newsguard Europe is soon to open its doors, showing that the company’s global ambitions are speeding up sooner than many observers had expected.

As Newsguard has done in the U.S., Brill also noted that “we [Newsguard] are now talking to library systems here in Europe” and that Newsguard hoped to partner with “the fact checkers on this stage.” The other fact-checking organizations on that panel included representatives from the Poynter Institute’s IFCN, which, as previously mentioned, has recently criticized Newsguard’s rating system; the European Broadcasting Union (EBU), the world’s “largest community of public service [read government-funded] media organizations in the world,” whose members include the BBC, France24 and Deutsche Welle; and the EU government- and Google-funded “disinformation observatory” SOMA.

It is currently unclear whether Newsguard has partnered with any of these organizations or is involved in talks to do so. However, Brill’s stated desire to partner with fact-checkers supported by and also funded by the EU government shows that Newsguard Europe is interested in protecting establishment corporate and state-funded media outlets — much as it has in the United States, where Newsguard has targeted independent media sites, particularly those with an “anti-establishment” leaning.

Obviously not a first choice

Given Brill’s recent announcement and his recent statements regarding Newsguard’s shift across the Atlantic, the question then becomes — will it work? Will Brill and Crovitz be able to use the EU’s Code of Practice on Disinformation to pressure Google, Facebook, Twitter, and Mozilla — all of whom signed the code last fall — to follow in Microsoft’s footsteps and adopt Newsguard?

On Tuesday, the European Commission commented on the initial reports by Google, Facebook, Twitter and Mozilla on their efforts “to fight fake news.” In a statement, the commission wrote:

There has been some progress, notably in removing fake accounts and limiting the visibility of sites that promote disinformation. However, additional action is needed to ensure full transparency of political ads by the start of the campaign for the European elections in all EU Member States.”

Those elections will take place in May.

As noted by Forbes, the commission will perform a comprehensive assessment at the end of 2019 and “should the results prove unsatisfactory … [the commission] may propose further actions, including of a regulatory nature.” In other words, the commission is threatening tech companies with government regulation if the results of their efforts to fight “fake news” are considered “unsatisfactory” by EU bureaucrats.

If Newsguard is able to partner with groups that are EU-connected and funded like the EBU and SOMA, that conflict of interest alone could be enough to have Newsguard integration promoted by the EU as a “satisfactory” step towards meeting the requirements of the Code. In addition, Newsguard’s ties to one of the largest advertising firms in the world, the French-based Publicis Groupe, could also help it win EU support.

Indeed, Brill showed a subsection of the Code that fits neatly with Newsguard’s stated mission and its description of its own activities during his Tuesday speech. He highlighted the Code’s Commitment 11.D “Empowering Consumers,” which states:

Such transparency should reflect the importance of facilitating the assessment of content through indicators of the trustworthiness of content sources, media ownership and verified identity. These indicators should be based on objective criteria and endorsed by news media associations, in line with journalistic principles and processes.”

Yet, despite EU threats and Brill’s presentation to EU officials and tech company representatives on Tuesday, social media platforms like Facebook seem intent on resisting Newsguard. For example, Facebook, in an effort to pre-empt the commission’s response to its efforts and the “disinformation” conference Tuesday, announced at a Monday press conference in Brussels that it plans to create an “independent content oversight board with the power to overturn company decisions on user posts,” to be composed of 40 “technology and human rights experts free of commercial influences,” who will be selected by Facebook for inaugural three-year terms.

Though it is doubtful that the EU will find Facebook’s new “content oversight board” to be “satisfactory” over the course of the year, it shows that Facebook is willing to try all sorts of alternatives to Newsguard, despite Brill and Crovitz’s heavy lobbying of the popular yet beleaguered social media platform.

Newsguard critics are all Kremlin mouthpieces?

Newsguard’s ambitions seem to be hitting more roadblocks than expected in the U.S., leading the group to turn their attention to unelected EU bureaucrats and to cultivating alliances with establishment media organizations and fact-checkers in Europe in order to pressure U.S.-based tech companies to license its ranking system.

A clear factor in creating this scenario for Newsguard has been initial critical reporting from MintPress and other subsequent reports from various outlets such as RT and Breitbart. Brill, during his Tuesday speech, made his disdain for these reports clear and attempted to write off  all critical reporting on Newsguard as being “secretly supported” by the Russian government. During a short Q&A session following his speech on Tuesday, Brill briefly donned his tinfoil hat and lamented “this sustained attack we’ve been getting from RT and Sputnik for the last 10 days and all of the various websites that they kind of secretly support [emphasis added] in the United States.”

RT’s initial report on Newsguard cited MintPress as having broken the story, and Sputnik’s coverage focused on MintPress’ article as well as a radio interview the author of this article did with a Sputnik radio program a few days after the report had been published. As a consequence, Brill implied on Tuesday that MintPress is “secretly supported” by RT and Sputnik, a bold-face lie that had first been circulated in a January 15 report by Folio that had insinuated that MintPress was a “Kremlin-linked outlet.” Folio was eventually forced make the following clarification after being contacted by MintPress Editor-in-Chief Mnar Muhawesh:

A social media headline on this story, mentioning “Russian-linked news media,” was a reference to RT and Sputnik News. MintPress News is an independent, Minnesota-based news outlet.”

Newsguard and the establishment media it seeks to protect have now made it clear that not only are they unconcerned with the actual opinions of U.S. adults regarding their platform and ranking system, they are also willing to smear any news outlet that points out their numerous conflicts of interest and troubling ambitions as “Kremlin-linked.” The only “evidence” for that smear is absurdly based on the fact that RT and Sputnik have reported on the topic. The hypocrisy is glaring given that RT and Sputnik both regularly write articles based off of stories that were first published by establishment, “green-rated” U.S. outlets; yet, those outlets are not implied as receiving “secret support” from the Russian government by association.

The absurdity of these smears, along with Newsguard’s push to hammer out a deal with EU bureaucracy over the heads of tech companies and global internet users, show growing concern among Newsguard executives and their investors that their project could fail despite their best efforts. Indeed, if they have already resorted to deleting poor reviews for their browser plug-in, it certainly — as one FireFox user noted — “seems like a desperate move.”

Whitney Webb is a staff writer for MintPress News and a contributor to Ben Swann’s Truth in Media. Her work has appeared on Global Research, the Ron Paul Institute and 21st Century Wire, among others. She has also made radio and TV appearances on RT and Sputnik. She currently lives with her family in southern Chile.

January 30, 2019 Posted by | Civil Liberties, Deception, Fake News, Full Spectrum Dominance, Mainstream Media, Warmongering, Timeless or most popular | , , , , | Leave a comment

Moscow slams EU’s ‘arbitrary’ chemical-weapons sanctions, threatens to retaliate

RT | January 22, 2019

Russia has threatened to respond to “freshly invented” punitive measures imposed by the EU over the Skripal poisoning. Moscow says it’s an arbitrary punishment that disrespects established non-proliferation norms.

The accusations that gave rise to the sanctions “don’t stand up to criticism,” the Russian Foreign Ministry said in a statement. “We reserve the right to retaliatory measures in response to this unfriendly act.”

On Monday, Brussels used its new powers against four Russian nationals over the March 2018 poisoning of double agent Sergei Skripal and his daughter Yulia in the UK.

Alexander Petrov and Ruslan Boshirov (named in the sanctions ruling as Russian intelligence agents Alexander Mishkin and Anatoliy Chepiga) were subjected to a European asset freeze and a travel ban, along with Igor Kostyukov, the head of Russia’s main intelligence directorate (the GRU), and his deputy, Vladimir Alekseyev.

The EU also sanctioned five Syrians who it claims were involved in the Damascus government’s chemical-weapons program.

“It’s notable that among the first subjects to be added to the EU’s ‘chemical’ restrictions list are citizens of Russia and Syria – two countries that (unlike, for example, the US) have ensured the complete destruction of their chemical weapons arsenals under OPCW control,” said the Foreign Ministry.

Moscow has repeatedly denied any involvement in the Skripal poisoning and offered to help with the investigation. London has not provided any conclusive proof of Russian involvement.

The EU Council adopted a new regime of restrictive measures on October 15, 2018. Under the new regulations, the EU reserves the right to sanction persons and entities it deems to be involved in the development and use of chemical weapons, without seeking the opinion of the UN Security Council.

January 22, 2019 Posted by | Economics, Wars for Israel | , , | Leave a comment

Soros, Fake News & Italian Media: Journalist Reveals Plot to Put Rome Under Austerity

Sputnik – January 20, 2019

Sputnik Italia contributor Alessio Trovato investigates the purpose of George Soros’ recent closed-door meeting with European Commission vice-president Frans Timmermans, and broader campaign to convince Brussels to put Italy under the supervision of the ‘troika’ (the European Central Bank, the EC and the International Monetary Fund).

George Soros, a sworn enemy of the present right-populist coalition government in Rome, has been on something of a mission to put Italy under austerity, with Italian media reporting on such efforts going back to at least 2011. Last October, in an explosive interview for Italian TV, former Prime Minister Mario Monti revealed that Soros had called him at the height of the European sovereign debt crisis eight years ago, urging Italy to accept ‘assistance’ from the IMF to dig out from under its debt problem. Monti refused at the time, saying following Soros’ advice would have turned Italy into another Greece.

On November 26, 2018, in a meeting in Brussels with Timmermans, along with a representative of EC President Jean-Claude Juncker, Soros was again assumed to have brought up the debt issue, with Italian media speculating heavily regarding the vague comments of an EC spokesperson, who said only that they “cannot confirm or deny whether Italy’s budget was discussed.”

Meanwhile, Sputnik Italia contributor Alessio Trovato writes, Soros’ Open Society Foundations has been cutting paychecks “to a considerable number of journalists and influencers whom (surprise) constantly refer to him as a ‘benefactor’ and ‘spontaneously’ support all of his campaigns, including his support for migration, mondialism, Russophobia and colour revolutions.”

A big part of the problem, according to Trovato, is that the mainstream media continues to completely ignore Soros’ activities, or to report on them only with reluctance, even as the billionaire seeks to interfere in democratic processes and the internal affairs of sovereign nations.

Soros’ Agents in Mainstream Media vs. Italy’s National Interest

“Even journalists who do not receive ‘favours’ from the magnate are either incapable of saying anything on this subject or prefer not to do so,” Trovato wrote. “Hence we come to the case of Ivo Caizzi, Luciano Fontana and Federico Fubini, who are likely to become a classic in the annals of Italian journalism, and show the battle for journalistic independence being waged inside the mainstream media.”

Late last year, Caizzi, the Brussels correspondent of Italy’s highly influential Corriere della Sera newspaper, leaked internal email communications accusing Fubini, the paper’s chief economics commentator, and Fontana, its executive director, of publishing ‘Fake News’ in November about ‘inevitable sanctions’ against Italy for its violation of EU budget legislation. In reality, Rome managed to avoid sanctions, reaching a compromise deal with Brussels in December. However, reports of imminent sanctions from a respectable mainstream newspaper are thought to have threatened the country’s economic stability.Last week, Caizzi wrote an open letter to his employers, asking them to respond to several serious questions in the interests of the newspaper, his fellow journalists, and readers. In the editorial, the journalist asked whether editor-in-chief Fontana’s behaviour has been corrected, and whether it would be appropriate for Fontana to limit himself to expressing his personal opinions to editorials, op-eds and comments. Caizzi asked whether reports of ‘imminent sanctions’ could have adversely affected the financial markets and played in the hands of speculators (who, incidentally, include Soros) betting on the Italy’s destabilization, the collapse of the country’s stock market, and the growth of yields on Italian government obligations.

“Can we hope that in 2019, Corriere will return to its motto of ‘providing independent and high-quality information and ensuring maximum reliability of the news from the first to the last page?” Caizzi asked.

Commenting on the editorial, Trovato suggested that “even the rebellious Caizzi” did not comment on two issues which “he is certainly aware of.”

Specifically, Trovato noted, “Soros met Frans Timmermans behind closed doors in Brussels [in November]. The 88-year-old Soros is not one to head off to Brussels for no reason. If he is talking to someone, it means he has something to ask, or offer. Mr. Timmermans is not just anybody, but the so-called ‘spitzenkandidad’, the lead candidate for the presidency of the European Commission in the event of victory for the socialists and the democrats in the upcoming elections to the European Parliament. What did they talk about? A trifle –Soros seems to have asked Timmermans to take measures so that the European Commission rejects the Italian tax maneuver to allow the troika to be brought to Italy. In effect, Soros essentially asked Juncker’s deputy… to turn Italy into the same kind of hostage to the EU as Greece. In this sense, [Corriere’s reporting] turned Italian media into a sort of fifth column, preparing the markets for the upcoming speculative moves from the inside.”

Secondly, the journalist noted, Federico Fubini is a member of the European Advisory Board of the Open Society Foundations, and, ironically, on the European Commission’s ‘expert group on Fake News’.

“The point is, how can one believe that Europe is struggling against Fake News when it also produces it? Can we believe in the impartially of information published thanks to the ‘donations of generous and disinterested benefactors’?” Trovato asked.

Ultimately, the Sputnik Italia contributor noted, “our only chance for survival lies in being aware of what’s going on and in our own analytical skills. Discuss, doubt and check everything – otherwise you will never understand who you’re up against. Maybe it’s a troll – an agent of the Kremlin, or perhaps someone funded by the Open Society, the Aspen Institute, the Bilderbergs, the Atlantic Council, the CIA, Mossad, the FSB, a proponent of the troika trojan horse, or just about anyone else. Never trust! Even those who tell you not to believe anyone!”

January 20, 2019 Posted by | Corruption, Deception, Economics, Fake News, Mainstream Media, Warmongering, Russophobia | , , , | Leave a comment

EU approval of glyphosate weed killer was based on ‘plagiarized’ Monsanto studies, report finds

RT | January 15, 2019

EU regulators based a decision to relicense the controversial glyphosate-based Monsanto weed-killer on an assessment which was heavily plagiarized from agri-chemical industry reports, a cross party group of MEPs has revealed.

The MEPs commissioned the investigation after the Guardian reported that Germany’s Federal Institute for Risk Assessment (BfR) had copy-and-pasted tracts from Monsanto studies into its safety assessment for the weed killer. The European Food Safety Authority (EFSA) then based its recommendation that glyphosate was safe based on that very report.

The results of the investigation were published just hours before a parliamentary vote on tightening scrutiny on the approval of pesticides. The cross-party report said that BfR had given the “deliberate pretence” of independent assessment, but in reality was “only echoing the industry applicants’ assessment.”

The scale of plagiarism was “extremely alarming” according to Green MEP Molly Scott Cato. The study found that more than 50 percent of the chapters were plagiarized, including whole pages of text.

Bayer, which bought Monsanto for $63 billion last year, is dealing with more than 9,300 lawsuits from people claiming that the company’s glyphosate-based weed killers caused their cancers. The World Health Organization has classified glyphosate as a probable human carcinogen.

Adding to the company’s woes, a French court on Tuesday decided to cancel the authorization to market RoundUp Pro 360, a Monsanto weed killer product which contains glyphosate. Filings showed that regional court in Lyon ruled to cancel the market authorization for the product, saying the approval, which had been granted by French environment agency ANSES in 2017, had not taken potential health risks into consideration.

The court said that “scientific studies and animal experiments” showed that RoundUp Pro 360 is a “potentially carcinogenic product for humans, suspected of being toxic for human reproduction and for aquatic organisms.” ANSES has not yet commented on the ruling. French President Emmanuel Macron had previously pledged to outlaw it completely in France by 2021.

Bayer has defended the product, however, citing other regulatory rulings which found glyphosate to be safe and the company is appealing a court decision in the US which awarded $78 million in damages to a plaintiff in California.

In 2018, two studies showed that the best-selling herbicide was showing up in food products for both humans and animals. Researchers at Cornell University found the substance in all 18 dog and cat food brands surveyed — including one product which was certified as GMO-free.

The other study found glyphosate in all oat-based cereals and foods tested. One variant of Quaker Oatmeal Squares, for example, contained nearly 18 times the levels of glyphosate considered acceptable.

Glyphosate is off-patent and also marketed by dozens of other companies around the world.

January 15, 2019 Posted by | Deception, Science and Pseudo-Science | | Leave a comment

The War on Populism

CJ Hopkins | Consent Factory | January 10, 2018

Remember when the War on Terror ended and the War on Populism began? That’s OK, no one else does.

It happened in the Summer of 2016, also known as “the Summer of Fear.” The War on Terror was going splendidly. There had been a series of “terrorist attacks,” in Orlando, Nice, Würzberg, Munich, Reutlingen, Ansbach, and Saint-Étienne-du-Rouvray, each of them perpetrated by suddenly “self-radicalized” “lone wolf terrorists” (or “non-terrorist terrorists“) who had absolutely no connection to any type of organized terrorist groups prior to suddenly “self- radicalizing” themselves by consuming “terrorist content” on the Internet. It seemed we were entering a new and even more terrifying phase of the Global War on Terror, a phase in which anyone could be a “terrorist” and “terrorism” could mean almost anything.

This broadening of the already virtually meaningless definition of “terrorism” was transpiring just in time for Obama to hand off the reins to Hillary Clinton, who everyone knew was going to be the next president, and who was going to have to bomb the crap out of Syria in response to the non-terrorist terrorist threat. The War on Terror (or, rather, “the series of persistent targeted efforts to dismantle specific networks of violent extremists that threaten America,” as Obama rebranded it) was going to continue, probably forever. The Brexit referendum had just taken place, but no one had really digested that yet … and then Trump won the nomination.

Like that scene in Orwell’s 1984 where the Party switches official enemies right in the middle of the Hate Week rally, the War on Terror was officially canceled and replaced by the War on Populism. Or … all right, it wasn’t quite that abrupt. But seriously, go back and scan the news. Note how the “Islamic terrorist threat” we had been conditioned to live in fear of on a daily basis since 2001 seemed to just vanish into thin air. Suddenly, the “existential threat” we were facing was “neo-nationalism,” “illiberalism,” or the pejorative designator du jour, “populism.”

Here we are, two and a half years later, and “democracy” is under constant attack by a host of malevolent “populist” forces …. Russo-fascist Black vote suppressors, debaucherous eau de Novichok assassins, Bernie Sanders, the yellow-vested French, emboldened non-exploding mail bomb bombers, Jeremy Corbyn’s Nazi Death Cult, and brain-devouring Russian-Cubano crickets. The President of the United States is apparently both a Russian intelligence operative and literally the resurrection of Hitler. NBC and MSNBC have been officially merged with the CIA. The Guardian has dispensed with any pretense of journalism and is just making stories up out of whole cloth. Anyone who has ever visited Russia, or met with a Russian, or read a Russian novel, is on an “Enemies of Democracy” watch list (as is anyone refusing to vacation in Israel, which the Senate is now in the process of making mandatory for all U.S. citizens). Meanwhile, the “terrorists” are nowhere to be found, except for the terrorists we’ve been using to attempt to overthrow the government of Bashar al Assad, the sadistic nerve-gassing Monster of Syria, who illegally invaded and conquered his own country in defiance of the “international community.”

All this madness has something to do with “populism,” although it isn’t clear what. The leading theory is that the Russians are behind it. They’ve got some sort of hypno-technology (not to be confused with those brain-eating crickets) capable of manipulating the minds of … well, Black people, mostly, but not just Black people. Obviously, they are also controlling the French, who they have transformed into “racist, hate-filled liars” who are “attacking elected representatives, journalists, Jews, foreigners, and homosexuals,” according to French President Emmanuel Macron, the anointed “Golden Boy of Europe.” More terrifying still, Putin is now able to project words out of Trump’s mouth in real-time, literally using Trump’s head as a puppet, or like one of those Mission Impossible masks. (Rachel Maddow conclusively proved this by spending a couple of hours on Google comparing the words coming out of Trump’s mouth to words that had come out of Russian mouths, but had never come out of American mouths, which they turned out to be the exact same words, or pretty close to the exact same words!) Apparently, Putin’s master plan for Total Populist World Domination and Establishment of the Thousand Year Duginist Reich was to provoke the global capitalist ruling classes, the corporate media, and their credulous disciples into devolving into stark raving lunatics, or blithering idiots, or a combination of both.

But, seriously, all that actually happened back in the Summer of 2016 was the global capitalist ruling classes recognized that they had a problem. The problem that they recognized they had (and continue to have, and are now acutely aware of) is that no one is enjoying global capitalism … except the global capitalist ruling classes. The whole smiley-happy, supranational, neo-feudal corporate empire concept is not going over very well with the masses, or at least not with the unwashed masses. People started voting for right-wing parties, and Brexit, and other “populist” measures (not because they had suddenly transformed into Nazis, but because the Right was acknowledging and exploiting their anger with the advance of global neoliberalism, while liberals and the Identity Politics Left were slow jamming the TPP with Obama and babbling about transgender bathrooms, and such).

The global capitalist ruling classes needed to put a stop to that (i.e, the “populist” revolt, not the bathroom debate). So they suspended the Global War on Terror and launched the War on Populism. It was originally only meant to last until Hillary Clinton’s coronation, or the second Brexit referendum, then switch back to the War on Terror, but … well, weird things happen, and here we are.

We’ll get back to the War on Terror, eventually … as the War on Populism is essentially just a temporary rebranding of it. In the end, it’s all the same counter-insurgency. When a system is globally hegemonic, as our current model of capitalism is, every war is a counter-insurgency (i.e., a campaign waged against an internal enemy), as there are no external enemies to fight. The “character” of the internal enemies might change (e.g., “Islamic terrorism,” “extremism,” “fascism,” “populism,” “Trumpism,” “Corbynism,” et cetera) but they are all insurgencies against the hegemonic system … which, in our case, is global capitalism, not the United States of America.

The way I see it, the global capitalist ruling classes now have less than two years to put down this current “populist” insurgency. First and foremost, they need to get rid of Trump, who despite his bombastic nativist rhetoric is clearly no “hero of the common people,” nor any real threat to global capitalism, but who has become an anti-establishment symbol, like a walking, talking “fuck you” to both the American and global neoliberal elites. Then, they need to get a handle on Europe, which isn’t going to be particularly easy. What happens next in France will be telling, as will whatever becomes of Brexit … which I continue to believe will never actually happen, except perhaps in some purely nominal sense.

And then there’s the battle for hearts and minds, which they’ve been furiously waging for the last two years, and which is only going to intensify. If you think things are batshit crazy now (which, clearly, they are), strap yourself in. What is coming is going to make COINTELPRO look like the work of some amateur meme-freak. The neoliberal corporate media, psy-ops like Integrity Initiative, Internet-censoring apps like NewsGuard, ShareBlue and other David Brock outfits, and a legion of mass hysteria generators will be relentlessly barraging our brains with absurdity, disinformation, and just outright lies (as will their counterparts on the Right, of course, in case you thought that they were any alternative). It’s going to get extremely zany.

The good news is, by the time it’s all over and Trump has been dealt with, and normality restored, and the working classes put back in their places, we probably won’t remember that any of this happened. We’ll finally be able to sort out those bathrooms, and get back to paying the interest on our debts, and to living in more or less constant fear of an imminent devastating terrorist attack … and won’t that be an enormous relief?

#

Photo: Zakaria Abdelkafi – AFP

January 10, 2019 Posted by | Progressive Hypocrite, Russophobia, Timeless or most popular | , , , , | Leave a comment

France Moves To Ban All Protests As PM Announces Major Crackdown On Yellow Vests

By Tyler Durden – Zero Hedge – 01/09/2019

France is signaling it’s making preparations for a massive new crackdown on the gilets jaunes or “yellow vests” anti-government protests that have gripped the country for seven weeks. A new law under consideration could make any demonstration illegal to begin with if not previously approved by authorities, in an initiative already being compared to the pre-Maiden so-called “dictatorship law” in Ukraine.

In the name of reigning in the violence that has recently included torching structures along the prestigious Boulevard Saint Germain in Paris, and smashing through the gates of government ministry buildings, the French government appears set to enact something close to a martial law scenario prohibiting almost any protest and curtailing freedom of speech.

Prime Minister Edouard Philippe presented the new initiative to curtail the violence and unrest while targeting “troublemakers” and banning anonymity through wearing masks on French TV channel TF1 on Monday. He said the law would give police authority crack down on “unauthorized demonstrations” at a moment when police are already arresting citizens for merely wearing a yellow vest, even if they are not directly engaged in protests in some cases.

PM Philippe said the government would support a “new law punishing those who do not respect the requirement to declare [protests], those who take part in unauthorized demonstrations and those who arrive at demonstrations wearing face masks”.

Philippe’s tone during the statements was one of the proverbial “the gloves are off” as he described the onus would be on “the troublemakers, and not taxpayers, to pay for the damage caused” to businesses and property.

“Those who question our institutions will not have the last word,” he added.

However, if anything the protests have grown fiercer in response to any police crackdown or violence against demonstrators. Should all protests be banned under the new law, it could be the start of more violent riots gaining steam, as what began Nov. 17 as anger over fuel tax hikes has now turned into rage at President Emmanuel Macron and policies that seem to favor the urban elite.

Other yellow vest inspired protests previously broke out across Europe, and in perhaps a sign of things to come a video from The Netherlands of a woman pushing her baby in a stroller being arrested by police apparently for merely wearing a yellow vest is going viral.

In the video, police confront the woman in what appears a quiet neighborhood far away from any visible protest. Police were photographed alongside the baby on the street as the mother was dragged away.

Image via journalist Sotiri Dimpinoudis

With the French prime minister now announcing coming draconian measures banning all protest, this is precisely the horrific scene that could begin to be repeated across France and the EU.

In total at least six people have died and over 1,400 people injured during the French protests, with thousands arrested weekly, according to international reports. Over the weekend some 50,000 protesters continued demonstrating in multiple cities, leading to significant clashes in Paris, Bordeaux and Rouen. A number of commentators have noted that though there appear fewer demonstrators compared to December, there appears a serious uptick in violent acts on the part of both demonstrators and police response.

January 9, 2019 Posted by | Civil Liberties, Solidarity and Activism | , , | Leave a comment

EU agrees sanctions against Iranian intelligence service over ‘assassination plot’ – Danish FM

RT | January 8, 2019

The European Union has agreed to enact sanctions against the Iranian intelligence service over its alleged “assassination plots on European soil,” the Danish foreign minister has tweeted.

Specific details in relation to potential new European sanctions against Iran are unclear; nor is it known whether they are close to being implemented. Foreign ministers of EU member states had reportedly agreed to consider sanctions in response to the supposed Iranian plot at a meeting in mid-November.

In late October, Danish security forces said they had arrested a man who was allegedly plotting to assassinate the leader of the Danish branch of an Iranian Arab separatist movement. Tehran denied the accusations as “hostile” and said they were in line with the “enemies’ plots” to undermine Iranian-European relations.

The European Commission, while backing Denmark’s accusation and condemning Tehran, has urged member states to not let it impact the JCPOA Iran nuclear deal of 2015. The US, which unilaterally pulled out of the agreement in May 2018, simply praised Denmark for arresting an “Iranian regime assassin.”

US President Donald Trump’s administration has been cracking down on Iran, accusing it of sponsoring terrorism and violating international obligations. It has repeatedly warned the EU against maintaining trade with Tehran, but Europe has so far been determined to keep JCPOA alive, and is working on a mechanism to bypass American sanctions.

The target of the alleged plot was a local leader of the Arab Struggle Movement for the Liberation of Ahvaz (ASMLA), the Danish Foreign Ministry said at the time. ASMLA, pushing for a separate Arab state within Iran, is classified as a terrorist organization by Tehran.

Tehran has blamed ASMLA for the September 28, 2018 attack on a military parade in Ahvaz, which left 30 people dead and 70 injured. ASMLA denied responsibility, blaming the attack instead on a splinter group within the movement.

January 8, 2019 Posted by | Economics, Wars for Israel | , , | Leave a comment

India sequesters Iran ties from US predatory strike

(Iran’s Chabahar Port)
By M. K. BHADRAKUMAR | Indian Punchline | January 2, 2019

India has done well to put in place the nuts and bolts of a payment mechanism for its trade and investment transactions with Iran against the backdrop of the US withdrawal from the Iran nuclear deal (known as the Joint Comprehensive Plan of Action) in May last year followed by the imposition of sanctions against Iran. The US had threatened to bring Iran’s oil trade to zero by the end of 2018 but ultimately pragmatism prevailed and major importing countries such as India were given 6-month ‘waivers’ in November.

Delhi has utilised this interregnum to sequester India-Iran economic relations as far as possible from the vagaries of the Trump administration’s Iran policies. How far Delhi sensitized Washington in advance about its Iran strategy we may never know, but the overall approach suggests a quiet determination to safeguard Indian economic (and political) interests from suffering collateral damage without, at the same time, displaying any strategic defiance of the US in the foreign-policy domain. The Indian diplomacy has been successful here so far.

Broadly, the Indian government has revisited the strategy adopted by the UPA leadership in similar circumstances of US sanctions against Iran and in the light of past experience, finessed a payment mechanism that dispenses with the use of American dollar in India-Iran economic transactions thereby bypasses the cutting edge of the US sanctions. Indeed, the impetus to do so is far more keenly felt today than under the UPA government because India-Iran economic relationship is transforming phenomenally and assuming strategic importance under the Modi government, especially with the operationalization of the Chabahar Port project.

Arguably, the Modi government is showing far greater grit in comparison with the timid attitude by the previous UPA government in asserting India’s strategic autonomy to advance the India-Iran partnership notwithstanding the hostile policies of Washington toward Iran, which are in the nature of forcing a ‘regime change’ in Tehran. Interestingly, the Indian approach is also impervious to the continued Israeli and Saudi intrigues against Iran, although the Modi government has significantly boosted India’s relations with these two Middle East countries.

The Indian policy toward relations with Iran under the deepening shadow of US sanctions has evolved in three carefully measured stages through the month of December. Needless to say, this wouldn’t have been possible without mutual trust and understanding in the relationship characterized by close consultations through diplomatic channels. In the first stage, it came to be known that in early November the two countries signed an agreement to the effect that India will import crude oil from Iran using a rupee-based payment mechanism and that 50 percent of those payments will be used for exporting items by India to Tehran.

Accordingly, India’s government-owned UCO Bank (which has no exposure to the US) was designated to handle this mechanism. In a third stage, in continuation of the above, the Ministry of Finance in Delhi issued an order in end-December exempting the National Iranian Company (NIOC) which exports crude to India from paying a steep ‘withholding tax’ to the Indian authorities. This order issued on December 28 will have retrospective effect from November 5 so that an amount of $1.5 billion that Indian refiners had accumulated as outstanding payments to NIOC could be released. Under Indian laws, the income of a foreign company that is deposited in an Indian bank account is subject to a withholding tax of 40 percent plus other levies, leading to a total take by the authorities of 42.5 percent.

Suffice to say, the door is open, Iran will now be able to use the rupee funds for a range of expenses–including imports from India, the cost of its missions in the country, direct investment in Indian projects, and its financing of Iranian students in India. It can also invest the funds in Indian government debt securities. The tax exemption order, though, only refers to crude oil. That means it does not apply to imports of other commodities, such as fertilizer, liquefied petroleum gas and wax. It appears that the scope of the use of funds will ensure balanced bilateral trade, which is traditionally in Iran’s favour.

On December 31, the two countries announced that their banking transactions mechanism is ready for operation.

Interestingly, India is leapfrogging many other countries that have been talking about similar payment mechanisms with Iran bypassing the US sanctions. The most glaring instance is of the European Union’s much-vaunted proposed mechanism of the Special Purpose Vehicle (SPV), which has not arrived yet. Brussels had vowed to establish the SPV “before the end of the year (2018) as a way to protect and promote legitimate business (of European companies) with Iran,” to quote the EU foreign policy chief Federica Mogherini.

Clearly, Delhi is not waiting to take the cue from other capitals that may harbor grave reservations over the US sanctions against Iran. Equally, Tehran’s willingness to accept for payments the Indian rupee (which is not traded on international markets) bears testimony to its great desire to sustain a beneficial relationship with India notwithstanding the US pressure on Delhi to severely cut back on economic ties with Iran.

All in all, Delhi seems to be preparing for the long haul. The fact of the matter is that politically, it is an increasingly tall order for the present Iranian leadership to continue with its adherence to its share of the 2015 Iran nuclear deal without any infringement or breach in the face of the failure on the part of the European leaders to deliver on their promise that in return Iran will be compensated through steps such as the EU maintaining and deepening economic relations with Iran, the continued sale of Iran’s oil and gas, effective banking transactions with Iran, the further provision of export credit and development of the SPVs in financial banking, insurance and trade areas and so on.

The ground reality is that the European leaders failed to deliver on their promises to Tehran and Iran has been left to fend for itself under the most savage and unlawful economic and political pressure by Washington. Simply put, while Europe claims that the Iran nuclear deal is of strategic importance, it is unwilling or reluctant to invest in its own strategic interests. The Iranian Foreign Minister Mohammad Zarif aptly summed up the European dilemma in a recent remark that you cannot swim without getting wet. Delhi may have shown that where there is a strong political will, there is always a way forward.

Without doubt, the operationalization of the Chabahar Port a week ago dramatically changes the India-Iran strategic calculus. Where words are not adequate to describe it, a look at the map showing India’s new Silk Road will do. Its geopolitical ramifications are profound. Ironically, Chabahar may eventually bring not only India and Iran but the US as well on the same page. Much lies in the womb of time.

January 2, 2019 Posted by | Economics | , , , | Leave a comment