Wednesday 22 September 2021

Johnson/Biden: Trade Deal dead in the water

 

This reminds me of couples that go around denying that their marriages are in trouble. We have never been so happy, they say. This is before the next morning announcement indicating that they have agreed to bring their marriage to an amicable conclusion.

This was said to be a meeting about climate, but right at the beginning the British Prime Minister indicated that there is not going to be a bilateral trade agreement in the foreseable future.

Reading between lines, I reckon that the beginning was not the best of beginnings, starting with an unilateral American withdrawal that left its NATO partners buffled. After that, came the announcement of a deal regarding nuclear submarines that only benefits the USA despite the fact that UK was the middleman. On top of that, it damaged the relationship with France. A UK politician tried to rest to dimish the importance of the damage caused by saying that in the last ten years Britain and France have coordinated their military with French officers in charge of British units and Britsh officers in charge of French units and so forth. Ten years are ten years, but in politics 24 hours is a lot and much of what has happend regarding AUKUS should not be underestimated. 

The rise of energy prices due to a rise of energy consumption will not make choices any easier. If gas prices and oil prices go up, coal is a natural component of the energy mix that cannot be left behind. Joe Biden can talk about financial support to be offered to poorer countries to support towards more environmentally friendly economies, but reality tells you fossil fuels will continue to be the first choice for many for many years to come.

The choice between diesel and nuclear was a logical choice to make. Firstly, it is about not using fossiel fuels and, secondly, it is about operational capabilities. While diesel vessels depend on regular refuelling, nuclear vessels can operate continuously for at least 25 years. The decision was rational, but the way it was implemented created divisions that could have been avoided. The jobs that would have been maintained or created in France will now go to the USA. USA's submarines are all nuclear so it will not be too difficult to produce a few more. In any case, it is expected that the new submarines will become operational by the year 2030, as long as there are no delays. As a British politician explained, this is not about real military capabilities in the short term. The idea is to send a message to China about the determination to prevent a Chinese military escalation in Asia Pacific.

A journalist asked who was more of a priority in terms of talking about US/UK relations: Joe Biden or Kamala Harris? In the USA, people are already talking about the American mid-term elections due to take place in November 2022 when all 435 seats of the House of Representatives and 34 or a 100 seats in the Senate will be up for election. What happens from now until the Mid-Term Elections will determine if Biden ends or does not end as a lame duck President during his first term in office.



 

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