Posted By Phil Levy

President Obama flew west, met with Asia-Pacific leaders, and trumpeted his intention to strike a high-standards trade deal with other committed trading partners in the region, the Trans-Pacific Partnership (TPP).

That paragraph could describe either this last weekend or Nov. 2009, when the president first revived the TPP (it was initially launched in Sept. 2008 under the Bush administration and set aside by the new Obama team). Perhaps that's why the story about the weekend's APEC leaders' gathering in Hawaii was buried in the inner pages of the Washington Post and failed to make the front page of the New York Times. The papers may have learned, with this president, to duly note the statements of grand intentions, but to save the gaudy headlines for actual accomplishments.

There has been some movement over the last two years, of course. The nine nations currently involved in the TPP negotiations have been meeting and hammering out a "framework" for the agreement. The Obama administration, over that time, moved from a tentative "intent to engage in discussions" to a full-fledged embrace of the TPP. New countries are now clamoring to join in the negotiations.

But enormous obstacles remain:

  • Core structural issues of the TPP remain undecided. Will the TPP be a ragged quilt of existing agreements stitched together with new patches? Or will it be a new seamless fabric designed to cover existing and future participants? If the latter, it offers two great virtues: simplicity for businesses trying to trade across the region, and a clear high standard that any newcomers will have to meet (think China). But the United States has held out for the former. It already has FTAs with a number of the TPP participants and the idea of refighting all of those market-access battles is daunting for an administration that took almost three years to pass three already-completed FTAs.
  • Will new members make significant commitments? Reports from APEC that Canada and Mexico want to follow in Japan's footsteps as new applicants to the TPP were described as a coup for President Obama. Perhaps. It certainly would heighten the economic significance of the TPP, if and when it is concluded. But the new entrants will make an already elusive agreement even more difficult to reach. Japan is more than reluctant to liberalize its agricultural sector. New Zealand has previously objected to Canada's illiberal approach to dairy imports. It is not hard to imagine an extreme in which one has a very large number of participants who engage in endless talks that never conclude (this has recently been known as "Doha" in the WTO context).
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Posted By Daniel Blumenthal

International Relations theorist Charles Glaser has joined a growing chorus calling for the abandonment of Taiwan. His take on why we should abandon the island is tucked into his "nuanced version of realism" argued on the pages of Foreign Affairs. As do most "abandon Taiwan" arguments, he begins with a "realist" argument for why war between the United States and China is unlikely. Why? Because besides Taiwan, Sino-U.S. interests are compatible.

Parting company with other "pessimistic" realists who believe that "power transitions" -- the historic condition of a rising power challenging the existing hegemon -- more often than not lead to war, Glaser believes that this time it is different. The security dilemma (in pursuing our security we take steps which decrease their security which leads them to take steps which decrease our security, a process that can end in conflict) in the Sino-U.S. case. The task for Beijing and Washington (but mostly Washington) is to trust that each country just wants security, not domination. 

For example, the United States should not fear China's nuclear build-up because of Beijing's limited ability to strike the U.S. homeland. According to this logic, the United States should forego temptations to increase its own nuclear arsenal in response to China's own increases. All China is doing is increasing its security with a second strike capability. In turn, China should not fear U.S. conventional capabilities because most are resident across the Pacific.

But ultimately, the argument goes, it is up to the United States and not China, to make adjustments to its security posture and not exaggerate threats that China poses. The United States is safe because China will never have the means to destroy its deterrent.

Glaser concedes that this theory overlooks the fact that U.S. security alliances could seem threatening to China. Here we get to the nub of his argument. The United States must ask itself how important its security alliances are. Unlike "Neo-isolationists," Glaser, an advocate of "selective engagement," believes that the alliances with South Korea and Japan are important. And the United States could defend those alliances without creating a debilitating arms race if it provides just enough conventional deterrence, plus the threat of nuclear retaliation should those countries come under attack.  

To Glaser, Taiwan is different. China's belief that Taiwan is part of it is non-negotiable, and Beijing and Washington have very different views of what constitutes the status quo across the Strait. The Taiwan dispute has no diplomatic solution and the risks of nuclear war are getting too high, particularly with China's advancing second strike capability. His answer is for the United States to make the necessary "adjustments" and abandon Taiwan.

He acknowledges potential critics who may say appeasement usually whets the appetite of the appeased. But, says Glaser, not all adversaries are Hitler, and China has limited territorial goals. Even if China has more expansive territorial claims, the United States can remediate any military imbalance through a greater conventional presence.

In the end, the real danger is a self-fulfilling prophesy, a failure by the United States to realize that its basic goals are compatible with China's. Glaser fears that this is already happening -- the United States is taking a much more competitive military stance because its ability to operate along China's periphery is in danger. According to Glaser, this dilemma has two solutions. The first is for Washington to realize that U.S. interests are changing -- Taiwan is not really vital. And second, the United States should forego the kind of nuclear superiority that could counter China's second strike capability. Problem solved.

This is a fairly conventional international theory argument about the relative stability of Sino-American relations. Glaser is essentially taking a side in an old debate. His innovation is the abandonment of Taiwan, a necessary step to decrease the security dilemma and reveal China's truly limited aims.

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Posted By Tom Mahnken

The past two months have witnessed a series of revelations regarding China's growing military power. In December 2010, Admiral Robert Willard, Commander of U.S. Pacific Command, declared that the aircraft carrier-killing DF-21D anti-ship ballistic missile had achieved initial operating capability. Last month, photographs and video of the J-20 fifth-generation stealth aircraft, a plane considerably more advanced than observers expected of China, appeared on the internet.

On Monday, Ross Babbage, the founder of Australia's respected think tank, the Kokoda Foundation, issued a monograph, Australia's Strategic Edge in 2030 that examined the changing military balance in the Western Pacific and its implications for Australia. It is a report that demands the attention of policy makers in Washington.

Babbage argued that China's aggressive military modernization is rapidly undermining the pillars that have supported American presence in the Western Pacific for more than half a century. As he puts it, "China is for the first time close to achieving a military capability to deny United States and allied forces access to much of the Western Pacific rim." He catalogues China's anti-access efforts, which include cruise and ballistic missiles that can attack ships and fixed targets; a massive investment in cyber-warfare capabilities, with reports of tens of thousands of Chinese cyber intrusions daily; new classes of both nuclear and conventionally powered submarines; a substantial increase in the Chinese nuclear stockpile; a huge investment in space warfare; and a massive increase in fighter bomber and other airborne strike capabilities.

Babbage argued that Australia will need to take drastic action in order to protect its interests in a region increasingly dominated by China. These include acquiring a fleet of 12 nuclear-powered attack submarines (the report hinted at leasing or purchasing Virginia-class SSNs from the United States), developing conventionally armed ballistic and cruise missiles, increasing Australia's investment in cyber warfare, and hosting American forces on Australian soil.

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Posted By Mike Green

After campaigning on the untenable promise that he would meet with leaders like Kim Jong Il without preconditions, President Obama has actually approached North Korea with a firmness that sometimes eluded the Bush administration in its last year. The Obama administration has strengthened trilateral security coordination with Japan and South Korea; implemented tough U.N. Security Council sanctions against the North after its nuclear tests; and rebuffed Chinese pressure for emergency six-party talks in the wake of Pyongyang's unprovoked attacks on South Korea. Given the North's escalating provocations and nuclear cheating and Beijing's dangerous complacency, this is the only strategy that has a prospect of deterring further belligerency and reversing the incentives the North sees in proliferation on the peninsula and beyond.

This past week, however, senior Japanese and South Korean officials are reporting that the administration has begun signaling to them that the United States is ready to "shift back to dialogue" with the North. The Blue House in Seoul now feels under pressure to accelerate its own resumption of North-South dialogue so that U.S.-DPRK talks can get under way (since the administration has rightly stated that it would not get ahead of its ally South Korea's own diplomacy toward Pyongyang). In Tokyo there is an eerie sense of déjà vu at yet another potential swing in the pendulum of U.S. North Korea policy. Both Tokyo and Seoul want some dialogue with the North, and the administration deserves credit for how closely it has coordinated strategy with both capitals. But since the Hu Jintao visit to Washington, the dynamic seems to have shifted from U.S.-Japan-ROK trilateral pressure on China to rein in the North to a new pattern of U.S.-China pressure on Seoul to pick up the pace of engagement (that, at least, is how one senior ROK official put it to me). Given our inconsistent history on North Korea to date, one can understand why our allies would be a bit nervous about where all this might go.   

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Posted By Will Inboden

Australian voters will cast their ballots Saturday to choose potentially their third Prime Minister in nine weeks. Still in a post-putsch daze following Prime Minister Gillard's "et tu, Julia?" ouster of Kevin Rudd in June, the electorate will now decide between either rewarding Gillard and the Labour Party's palace coup with a full term, or starting afresh by choosing the colorful Tony Abbott and a Liberal Party government.

Most polls show an essentially deadlocked race, with the added wild card of the third party Greens potentially securing enough votes to force a hung parliament or coalition government.  Absent a clear sign from voter surveys, some prognosticators have looked for other sources of insight, such as Harry the Psychic crocodile who picked a Gillard victory. The fact that the purportedly clairvoyant reptile's method of "picking" involves eating a poultry carcass attached to a photo of the candidate's face is decidedly not confidence-inducing. Put it this way -- it is rarely a good thing for a political campaign to be represented by a dead chicken. Especially a dead chicken devoured by a crocodile.

One of the paradoxes of the tight campaign is that conditions in Australia overall are quite good, a fact which would normally hand the ruling government a comfortable victory. Australia has weathered the global economic crisis well, technically avoiding recession by suffering only a single quarter of GDP contraction, with unemployment holding at 5.3%. While some credit goes to the banking sector's avoidance of toxic debt and an adept government stimulus package, Australia's resilient foundations are rooted in the remarkable economic boom and fiscal stability achieved under former Prime Minister John Howard, which contributed to Australia's No. 1 ranking in the 2008 Legatum Prosperity Index.

On economic issues, the electorate's increasingly fond memories of the Howard government likely account for some of the Liberal Party's resurgent appeal. And voter concerns over a return to budget deficits under Labour are real, as are lingering resentments over Rudd's disastrous campaign to push a 40 percent "super-profits tax" targeted at the Australian mining industry, which had been a major driver of the past decade of growth.

Foreign policy issues have played almost no role in the campaign. Nevertheless, nations in the region, and especially the United States, have a substantial stake in the outcome. Australia is one of America's strongest and longest-standing allies, the only nation to have fought alongside the United States in every war of the past century. U.S.-Australia relations under the Obama administration have been cordial though not particularly robust -- and certainly not helped by President Obama's two cancelled visits. In an interview this week with the Diplomat, former Foreign Minister Alexander Downer made the telling comment that "the Obama administration has placed less emphasis on alliances and allies. This means that Australia by its very nature has a lower profile in Washington than we had during the Bush administration, particularly during the Howard years."

However, in recent months the Obama administration has substantially improved its strategic posture in the Asia-Pacific. From the joint naval exercises with South Korea, to stabilizing relations with Japan, to upgrading ties with Vietnam, to serving notice that the United States does not accept China's hegemonic assertions in the South China Sea, the administration seems to have found a new compass in the region. While new partnerships with nations such as India and Indonesia will feature in a successful Asia strategy, America's existing alliances in the region will still serve as the foundation.  

Here is where the U.S.-Australia relationship is indispensable. Both nations share interests and values, and often a common perspective on pressing regional and global issues -- whether the war against jihadist terrorism, China's growing assertiveness (even using Fiji -- yes, Fiji -- as a proxy), democracy and human rights promotion, maritime security, free trade, or energy security. America has no stronger ally in the region. Whatever the outcome of tomorrow's elections, they represent an opportunity for the Obama administration to reinvigorate ties with this enduring alliance partner.

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Posted By Phil Levy

By Phil Levy

In Tokyo, President Obama spoke out in favor of trade. It was not exactly the much-heralded Trade Speech, in which he would lay out a detailed agenda and soothe U.S. public fears that he himself had helped to arouse. Instead, this talk was addressed to an Asian audience, but it offered some tantalizing new details and a near embrace of some free trade agreements. The President said:

Continued integration of the economies of this region will benefit workers, consumers, and businesses in all of our nations. Together, with our South Korean friends, we will work through the issues necessary to move forward on a trade agreement with them. The United States will also be engaging with the Trans Pacific partnership countries with the goal of shaping a regional agreement that will have broad-based membership and the high standards worthy of a 21st century trade agreement.

Rather than drawing inspiration from the president's oratory, as U.S. and European audiences often had, Asian leaders greeted the president's trade stance with skepticism. As the Financial Times reported:

Lee Kuan Yew, Singapore's first prime minister and a regional elder statesman, said the US risked economic exclusion from Asia unless it reversed its protectionist stance. ...

Najib Razak, Malaysia's prime minister, ... told the Asia Pacific Economic Cooperation summit in Singapore that progress on trade liberalisation was "imperative" for global recovery. "The thing I liked about President Bush's foreign policy is that he was very pro-free trade. I hope the same message will be repeated."

- some evidence that the Bush administration did not entirely neglect Asia for eight years.

One might have expected Obama's vague statements in favor of the Doha trade talks, moving forward with South Korea, and engaging with the mysterious Trans Pacific Partnership to have at least created a warm glow about U.S. sentiments. After all, similarly vague statements about avoiding protectionism and supporting the WTO garnered kudos at G-20 summits in London and Pittsburgh earlier this year.

Whether the APEC leaders were more discriminating than other audiences, cared more about trade, were more astute in their reading of American trade politics, or had just learned from past experience, they seemed unsatisfied. Perhaps with recent disputes fresh in their minds, they seemed to ask, "where's the beef?" And they were right to worry.

The global trading system has not been lacking in kindly thoughts and well wishes. It's been lacking in strong leadership and specific proposals. Fingers have been pointing at the Obama administration. The Doha global trade talks that were declared essential in the G-20 sessions have been foundering. Last month, the European Union and Brazil criticized the United States for failing to put forward specific demands. This month, WTO Director General Pascal Lamy commented that "the U.S. is proving to be slow in reaching a clear and articulated negotiating position." If it were translated from the excessively cordial language of international diplomacy, that remark would likely be unprintable in a family publication.

Ostensibly, the Korean FTA is unacceptable to President Obama and Congressional Democrats because the Koreans have had the audacity to intervene in their auto market. Korea, as a major trading nation, has not been as pliable as other U.S. FTA partners and has made clear in the past that they are not interested in renegotiating the agreement with the United States. Instead, Korea has just concluded a similar agreement with the European Union that will put American exporters at a disadvantage in the Korean market.

The novelty in the president's announcement concerned the Trans Pacific Partnership (TPP) and was sufficiently obscure to leave many people scratching their heads. In fact, the United States had already joined TPP talks with Brunei, Chile, New Zealand, and Singapore late in 2008 under President Bush's direction. Obama's announcement in Tokyo seemed to indicate a lifting of his administration's suspension decision from earlier this year: small wonder that it received a tepid response. Even had the President wholeheartedly embraced a TPP deal, that would not have meant much on its own, since the United States already has FTAs with Chile and Singapore. Brunei's entire annual GDP is roughly $20 billion, which is less than the U.S. government has poured into Citigroup.

The reason to care about the TPP was its potential to serve as a platform for serious integration throughout Asia. For a region that places a high value on trade, the Asia-Pacific has had a great deal of difficulty finding the right path toward liberalization. APEC has made trade pledges in the past, but the group has a very diverse membership and likely cannot serve as the vehicle for a high-standards regional FTA. More promising was the idea that if Australia and Japan were coaxed into joining a sophisticated TPP, the resulting FTA might then have opened its doors to any other Pacific nation willing to accept its terms. Unfortunately, the Obama administration has given no indication that it's willing to lead such an ambitious undertaking

A prerequisite for a serious U.S. trade policy would be new trade negotiating authority for the president, which the Obama administration has not even requested from the Congress. For any of these trade initiatives to advance would require persistent and detailed effort of a sort we have yet to see. Obama may be a Pacific president, but he has not been a very specific president. Asian leaders last week were asking for more than platitudes.

MANDEL NGAN/AFP/Getty Images

Posted By Christian Brose

By Christian Brose

Australia has released a pretty far-reaching and extraordinary defense white paper that is getting a lot of attention, and raising a lot of questions about the future of great power politics in the Pacific. Here is Andrew Schearer writing today in the Wall Street Journal Asia:

Asia has long looked to the United States to underwrite two critical public goods: free trade and security. Now there is anxiety in the region about its continuing willingness and ability to so, and governments are looking for ways to adapt. For the latest example, look no further than Australia's defense policy paper, released on Saturday.

Westhawk was on top of this early (as always). Here is his rundown of what Canberra has committed itself to:

1) Doubling Australia's submarine fleet with next-generation submarines,

2) Replacing Australia's surface combatants with new-generation warships,

3) Expanding Australia's amphibious lift capacity,

4) Purchasing 1,100 protected combat vehicles of various types for the Army,

5) Replacing the Army's helicopter fleet with latest-generation aircraft,

6) Improving the training and equipping of Australia's special operations forces,

7) Acquiring 100 F-35 fifth-generation strike-fighter aircraft,

8) Upgrading and expanding airlift, air early warning, and air refueling capabilities,

9) Acquiring long-range strategic strike land-attack cruise missile inventories,

10) Upgrading ISR capabilities across the force,

11) Acquiring cyber and electronic warfare capabilities,

12) Acquiring independent space mission assurance capabilities,

13) Exploring the development of missile defense capabilities to defend troops in field and Australia's population and key infrastructure.

Not too shabby. And this from the government of Mandarin-speaking, left-wing Prime Minister Kevin Rudd, no imperialist war-monger he.

Schearer, in his Journal piece, is troubled by this, and I think he anticipates the reaction of some U.S. conservatives:

[I]t's clear that if the Obama administration does not show it is serious about maintaining the U.S. military presence in Asia, Australia may end up with no choice but to get serious about strengthening its military defenses, even beyond what is in the policy paper. "Smart power" has its place, but U.S. allies in Asia would feel more secure if America backed reassuring rhetoric with real military muscle.

But why is it a bad thing for our allies to strengthen their defenses? Absent some major surprise, the relative decline of U.S. power seems like a pretty sturdy long-term trend, and we shouldn't do anything to catalyze it further than recent events may have already -- say, by assuming that future conflicts will necessarly look like our present ones or that the old axiom of power abhorring vacuums won't apply to new great powers. That said, I see the Australian white paper as a reason to be optimistic that America's relative decline can be managed in a smart way that leaves us in a good strategic position. Westhawk puts his finger on one reason why:

If the Australian defense ministry can reach these conclusions, why shouldn't the Japanese, South Korean, Taiwanese, Indonesian, Vietnamese, Singaporean, Indian, and Russian defense ministries also formulate these same planning assumptions?.... The greatest loser from such a chain reaction would be China.

I'd go even further. The United States should want the Indians, and the Japanese, and the South Koreans, and the Indonesians to reach the same conclusions. We should actively encourage them to reach the same conclusions. And that goes for our NATO allies as well. (The Russians, not so much.) We should work to get more and more of America's like-minded allies investing in the capabilities to shoulder a greater share of our collective defense. And to that end, the perception that the "unipolar moment" is passing can actually play in our favor, as will the fact that China's "peaceful rise" remains an open question at best.

This is not an argument for America to retrench -- to send the signal to our partners that they are free-riders who need to be weened off a dependence on U.S. power. To the contrary, it's a reason to do even more with our Pacific allies and to expand our joint capabilities. The rise of potentially aggressive great powers creates a natural incentive for their wary neighbors to provide more for their own defense, and I think we actually further that trend by showing a greater resolve to do so ourselves.

Less clear is whether what is true for Australia (and perhaps other Asian powers) will also be true for, say, Europe. But that's a whole other problem.

Posted By Aaron Friedberg

By Aaron Friedberg

Henry Kissinger once described his time in government this way:

Sometimes it feels as if you were in one of those movies, sitting on the track in front of an express train. The train is bearing down on you. You know what to do if you did not have ten other things that needed doing first. You are praying that the train somehow will miss and you will not get hit.

When he takes office next Tuesday, Barack Obama is going to find trains bearing down on him from all sides: conflict in Gaza, unfinished wars in Iraq and Afghanistan, terrorist threats, a brewing confrontation between India and Pakistan, Iran on the brink of acquiring nuclear weapons, and an unresolved global economic crisis of unprecedented proportions.

With so many urgent problems to contend with, the new administration will have precious little time to devote to a more distant, but fast-approaching challenge that may yet turn out to be the biggest of them all: the ongoing shift in world wealth and power towards Asia and, in particular, the rise of China. Here’s a report, released this week, that’s designed to help. In it, my co-author Dan Blumenthal of the American Enterprise Institute and I (drawing on the conversations of an outstanding working group) describe the key features of “An American Strategy for Asia.”

As regards China, we argue that, even as it continues its long-standing policy of economic and diplomatic engagement, the United States is going to have to step up its efforts to maintain a favorable balance of power in East Asia. Towards this end we advocate the further strengthening of our existing bilateral alliance and quasi-alliance relationships, the creation of new multi-lateral mechanisms for promoting strategic cooperation among Asia’s democracies, and some significant improvements in U.S. capabilities to offset China’s ongoing military buildup. We conclude that: “The United States and its regional friends and allies have among them more than ample resources to ensure their security. But if they fail to deploy them in an effective and purposeful way, they will find themselves on the wrong end of a rapidly shifting balance of power.” 

While it struggles to meet other, more immediate challenges, the Obama administration must find the time, energy and, hardest of all, the resources, to deal with this one as well.

Shadow Government is a blog about U.S. foreign policy under the Obama administration, written by experienced policy makers from the loyal opposition and curated by Peter D. Feaver and William Inboden.

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