Nuclear Issues

Last May, Chinese solar panel manufacturer LONGi signed an agreement with Saudi trading company El Seif Group to establish large-scale solar manufacturing infrastructure in Saudi Arabia. The deal came several months after the Trump administration's imposition of global tariffs on imports of Chinese solar panels and cells.

If the intended aim of the new round of U.S. sanctions were to change Iran’s behavior, it already has. Just not the behavior the Trump team had in mind—Iran abandoning its pursuit of pro-market economic reforms. President Hassan Rouhani, who was elected twice, in 2013 and 2017, on a platform of liberal economic reforms, has piece by piece put aside his reform agenda. Because of the economic havoc wreaked by the re-imposition of U.S. sanctions, he finds himself in the odd position of overseeing price controls, punishing commodity hoarders, subsidizing imports of a variety of goods, including mobile phones, and has lost the most liberal members of his economic team

President Donald J. Trump’s tweet this weekend that the U.S. might terminate all trade with countries doing business with North Korea was widely derided on the grounds of realism. Given that 90 percent of North Korea’s trade is with China, the tweet was little more than a veiled threat to terminate all U.S. trade with Beijing, ending a bilateral trade relationship valued at $650 billion a year. It would, as many correctly pointed out, mean economic disaster for North Korea -- and also for the U.S.

"The partial budget blueprint released by the White House recently will put U.S. leadership in science and technology at serious risk if Congress goes along. In addition to the obvious damage that would result from the proposed $5.8 billion cut at NIH, the $2 billion cut in applied energy R&D, the $900 million cut in DOE’s Office of Science, the abolition of ARPA-E, and the research cuts at NOAA and EPA, a less immediately obvious potential casualty would be U.S. scientific cooperation with a wide variety of other countries on a wide variety of topics."

The new US president will be operating on a very weak political foundation, is very unlikely to be able to deliver the results he has promised to key constituencies, and seems likely to take dangerous gambles in the international arena. This makes it probable that a cycle of growing disillusion, disappointment and disapproval will set in within a year.

Following a brief market plunge, the President-elect’s speech on Tuesday night was more conciliatory than many expected and emphasised his commitment to infrastructure investment. Investors have, on balance, concluded that the combination of a shift to very expansionary fiscal policy and major reductions in regulation in sectors ranging from energy to finance to drug pricing will raise demand and reflate the American economy.

As the policy community prepares to assess an agreement between the U.S. and its P5+1 partners and Iran, Senate Foreign Relations Committee Chairman Bob Corker asked me to review the history of analogous agreements for lessons that illuminate the current challenge. In response to his assignment, I reviewed the seven decades of the nuclear era, during which the U.S. negotiated arms-control treaties, including the Non-Proliferation Treaty of 1968; strategic arms limitation talks and agreements from SALT to New Start; the North Korean accord of 1994; the agreements that helped eliminate nuclear weapons in Ukraine, Kazakhstan, and Belarus in the early 1990s; and the pact that eliminated the Libyan nuclear weapons program in 2003.

Among many lessons and clues from this instructive history, five stand out

When China’s economic output eventually surpasses America’s some time in the next decade, it will be the first time since the reign of George III that the world’s largest economy belongs to a country that is not western, not English-speaking and not a liberal democratic state. Yet, in the asymmetric world that is emerging, the US will remain the dominant military force. The fulcrums of economic and military power are separating. Can these changes in the distribution of power occur peacefully?

"With the current partisan debate on Iraq raging in Congress, it is time to consider the reality there and consequent United States' options as they truly are, not as many wish."

In 1962, President John F. Kennedy famously predicted that "by 1970, there may be 10 nuclear powers instead of four and, by 1975, 15 or 20." Today, there are just 8. Why?