The announcement of the new Australia-UK-US alliance, or Aukus, has had news wires around the world buzzing, not least because of the outrage from the French, whose own submarine deal with Australia was ditched as a result. Recalling his ambassadors from Washington and Canberra, as French President Emmanuel Macron has ordered, is unprecedented. French pique will subside eventually, but European worries about US President Joe Biden acting unilaterally and without consulting them, this time in the context of the Asia-Pacific, will persist.
But all the fireworks have obscured what may be a more significant story. And that was the day after Aukus was announced, China formally applied for membership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP. This free trade agreement between 11 countries on either side of the Pacific is not just about establishing high standards and rules affecting 13.4 per cent of global gross domestic product. It is also the successor to the Trans Pacific-Partnership, or TPP, which was to be the signature achievement of the Obama administration’s “pivot to Asia”.
When it was signed in 2016, Mr Obama was explicit about its purpose: “TPP allows America – and not countries like China – to write the rules of the road in the 21st century, which is especially important in a region as dynamic as the Asia-Pacific.” His successor Donald Trump, however, issued an executive order withdrawing the US from the TPP on his first day in office.
Despite previously speaking favourably about the CPTPP (which the remaining members had to reformulate after the US left), Mr Biden has so far shown no interest in (re)joining. For China now to be applying, with every chance that it will have a hand in “writing the rules of the road” in the region if it is allowed in, is quite the turnaround – and looks like a terrible own goal by the US.
Some doubt China’s intentions in signalling its wish to join the pact. Could it just be a bid to stop Taiwan, which Beijing regards as a renegade province, from trying to get in? Others suggest that the levels of liberalisation and market-driven reforms required by the CPTPP are just too much. “Japan believes that it's necessary to determine whether China is ready to meet its extremely high standards,” the Japanese Economy Minister Yasutoshi Nishimura said last week.
Still others point to serious disputes with current CPTPP members. Australia’s trade minister, Dan Tehan, says his government will oppose any discussions with China until Beijing is willing to discuss the punitive trade sanctions it imposed after Australia’s call for an investigation into the origins of Covid-19 last year. Canada is petitioning China over the detention of two of its nationals, Michael Kovrig and Michael Spavor, which Ottawa deems revenge for Canadian officials arresting Meng Wanzhou, the Huawei CFO, on a warrant from the US.
But these should not be long-term issues, and co-operation on one level can still continue while there are fierce disagreements on others. Witness how China and Australia – along with Japan, New Zealand, South Korea and the 10-member Association of Southeast Asian Nations – are working to bring the Regional Comprehensive Economic Partnership, the world’s biggest regional trade deal, into effect next year.
As to whether Beijing can meet the terms of what Stephen Olson of the Asia-based Hinrich Foundation calls "arguably the highest quality trade agreement ever negotiated", Mr Olson and others say yes. "Exceptions and wide loopholes would ease China’s compliance with the more challenging provisions," wrote Mr Olson in a paper in June. "And in those cases where the stipulated exceptions are insufficient, China has already demonstrated its immense skill in bending, evading and otherwise nullifying trade rules in other agreements."
So assuming China does want in, the question is: who would want or dare to stand in Beijing’s way? And what would be the logic given how closely the region’s economies are already bound to China’s?
All this makes Washington’s lack of interest in the CPTPP seem even more inexplicable. Sure, Mr Biden knows that there is strong domestic opposition to the US joining any more trade pacts on both the left and the right, mainly due to concerns about the possible loss of jobs or the weakening of labour standards and protections. But in the Asia-Pacific – or the Indo-Pacific, the term the US now prefers – the focus appears to be far too much on security, Aukus being just the latest example, and nowhere near enough on what fills rice bowls across the region.
As a Bloomberg editorial put it rather sternly this May: "However loudly US politicians vow to compete with China, they seem happy to quit the field and let Beijing win in one crucial area: trade. If President Joe Biden hopes to build a coalition in Asia to counterbalance China’s rise, he can’t afford such defeatism."
They were referring particularly to the CPTPP, and added, correctly: "Countries that want to reduce their economic dependence on China are less likely to try if the US isn’t offering an alternative." And it truly isn’t. Western countries keep talking about substitutes for China’s Belt and Road Initiative, such as the "Build Back Better World" or BW3 launched by the G7 in June, but when it comes to specific funding or concrete achievements, there is very little to show by comparison.
“As the United States works to restore its credibility and influence around the world and compete with China, it cannot afford to consign itself to the sidelines and let others hammer out the rules that will shape the future of the global economy,” wrote Wendy Cutler, vice president at the Asia Society Policy Institute and a former US trade negotiator, earlier this month.
By taking no steps to rejoin the CPTPP and watching China begin the process of applying, that is exactly what Mr Biden’s administration is doing. Quite what his old boss Barack Obama would have to say about the potential remaking of his cherished Asia policy pivot – to Beijing’s advantage – doesn’t bear thinking about. Perhaps it would be kinder not to ask him.
Everything Now
Arcade Fire
(Columbia Records)
Terror attacks in Paris, November 13, 2015
- At 9.16pm, three suicide attackers killed one person outside the Atade de France during a foootball match between France and Germany
- At 9.25pm, three attackers opened fire on restaurants and cafes over 20 minutes, killing 39 people
- Shortly after 9.40pm, three other attackers launched a three-hour raid on the Bataclan, in which 1,500 people had gathered to watch a rock concert. In total, 90 people were killed
- Salah Abdeslam, the only survivor of the terrorists, did not directly participate in the attacks, thought to be due to a technical glitch in his suicide vest
- He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France
SPECS
Engine: 4-litre V8 twin-turbo
Power: 630hp
Torque: 850Nm
Transmission: 8-speed Tiptronic automatic
Price: From Dh599,000
On sale: Now
TICKETS
Tickets start at Dh100 for adults, while children can enter free on the opening day. For more information, visit www.mubadalawtc.com.
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
The biog
Favourite book: Homegoing by Yaa Gyasi
Favourite holiday destination: Spain
Favourite film: Bohemian Rhapsody
Favourite place to visit in the UAE: The beach or Satwa
Children: Stepdaughter Tyler 27, daughter Quito 22 and son Dali 19
Scoreline:
Barcelona 2
Suarez 85', Messi 86'
Atletico Madrid 0
Red card: Diego Costa 28' (Atletico)
The studios taking part (so far)
- Punch
- Vogue Fitness
- Sweat
- Bodytree Studio
- The Hot House
- The Room
- Inspire Sports (Ladies Only)
- Cryo
How much do leading UAE’s UK curriculum schools charge for Year 6?
- Nord Anglia International School (Dubai) – Dh85,032
- Kings School Al Barsha (Dubai) – Dh71,905
- Brighton College Abu Dhabi - Dh68,560
- Jumeirah English Speaking School (Dubai) – Dh59,728
- Gems Wellington International School – Dubai Branch – Dh58,488
- The British School Al Khubairat (Abu Dhabi) - Dh54,170
- Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
Shubh Mangal Saavdhan
Directed by: RS Prasanna
Starring: Ayushmann Khurrana, Bhumi Pednekar
Honeymoonish
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The 12
England
Arsenal, Chelsea, Liverpool, Manchester City, Manchester United, Tottenham Hotspur
Italy
AC Milan, Inter Milan, Juventus
Spain
Atletico Madrid, Barcelona, Real Madrid
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
THE SPECS
Engine: AMG-enhanced 3.0L inline-6 turbo with EQ Boost and electric auxiliary compressor
Transmission: nine-speed automatic
Power: 429hp
Torque: 520Nm
Price: Dh360,200 (starting)
if you go
The flights
Etihad and Emirates fly direct to Kolkata from Dh1,504 and Dh1,450 return including taxes, respectively. The flight takes four hours 30 minutes outbound and 5 hours 30 minute returning.
The trains
Numerous trains link Kolkata and Murshidabad but the daily early morning Hazarduari Express (3’ 52”) is the fastest and most convenient; this service also stops in Plassey. The return train departs Murshidabad late afternoon. Though just about feasible as a day trip, staying overnight is recommended.
The hotels
Mursidabad’s hotels are less than modest but Berhampore, 11km south, offers more accommodation and facilities (and the Hazarduari Express also pauses here). Try Hotel The Fame, with an array of rooms from doubles at Rs1,596/Dh90 to a ‘grand presidential suite’ at Rs7,854/Dh443.
How to keep control of your emotions
If your investment decisions are being dictated by emotions such as fear, greed, hope, frustration and boredom, it is time for a rethink, Chris Beauchamp, chief market analyst at online trading platform IG, says.
Greed
Greedy investors trade beyond their means, open more positions than usual or hold on to positions too long to chase an even greater gain. “All too often, they incur a heavy loss and may even wipe out the profit already made.
Tip: Ignore the short-term hype, noise and froth and invest for the long-term plan, based on sound fundamentals.
Fear
The risk of making a loss can cloud decision-making. “This can cause you to close out a position too early, or miss out on a profit by being too afraid to open a trade,” he says.
Tip: Start with a plan, and stick to it. For added security, consider placing stops to reduce any losses and limits to lock in profits.
Hope
While all traders need hope to start trading, excessive optimism can backfire. Too many traders hold on to a losing trade because they believe that it will reverse its trend and become profitable.
Tip: Set realistic goals. Be happy with what you have earned, rather than frustrated by what you could have earned.
Frustration
Traders can get annoyed when the markets have behaved in unexpected ways and generates losses or fails to deliver anticipated gains.
Tip: Accept in advance that asset price movements are completely unpredictable and you will suffer losses at some point. These can be managed, say, by attaching stops and limits to your trades.
Boredom
Too many investors buy and sell because they want something to do. They are trading as entertainment, rather than in the hope of making money. As well as making bad decisions, the extra dealing charges eat into returns.
Tip: Open an online demo account and get your thrills without risking real money.
Results
Women finals: 48kg - Urantsetseg Munkhbat (MGL) bt Distria Krasniqi (KOS); 52kg - Odette Guiffrida (ITA) bt Majlinda Kelmendi (KOS); 57kg - Nora Gjakova (KOS) bt Anastasiia Konkina (Rus)
Men’s finals: 60kg - Amiran Papinashvili (GEO) bt Francisco Garrigos (ESP); 66kg - Vazha Margvelashvili (Geo) bt Yerlan Serikzhanov (KAZ)
HUNGARIAN GRAND PRIX RESULT
1. Sebastian Vettel, Ferrari 1:39:46.713
2. Kimi Raikkonen, Ferrari 00:00.908
3. Valtteri Bottas, Mercedes-GP 00:12.462
4. Lewis Hamilton, Mercedes-GP 00:12.885
5. Max Verstappen, Red Bull Racing 00:13.276
6. Fernando Alonso, McLaren 01:11.223
7. Carlos Sainz Jr, Toro Rosso 1 lap
8. Sergio Perez, Force India 1 lap
9. Esteban Ocon, Force India 1 lap
10. Stoffel Vandoorne, McLaren 1 lap
11. Daniil Kvyat, Toro Rosso 1 lap
12. Jolyon Palmer, Renault 1 lap
13. Kevin Magnussen, Haas 1 lap
14. Lance Stroll, Williams 1 lap
15. Pascal Wehrlein, Sauber 2 laps
16. Marcus Ericsson, Sauber 2 laps
17r. Nico Huelkenberg, Renault 3 laps
r. Paul Di Resta, Williams 10 laps
r. Romain Grosjean, Haas 50 laps
r. Daniel Ricciardo, Red Bull Racing 70 laps
MATCH INFO
Uefa Champions League quarter-final, second leg (first-leg score):
Manchester City (0) v Tottenham Hotspur (1), Wednesday, 11pm UAE
Match is on BeIN Sports
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