In Geopolitics Today: Friday, March 24th
China Lifts Brazilian Beef Import Ban, US Conducts Strikes in Syria, and other stories.
China Lifts Brazilian Beef Import Ban
According to Brazil's agriculture ministry, Chinese officials have agreed to immediately resume imports of Brazilian beef, just in time for a scheduled meeting between Brazilian President Luiz Inacio Lula da Silva and his Chinese counterpart in Beijing.
China's decision to lift its ban on Brazilian beef is a significant boost for Brazil, as China is its largest export market. The move comes ahead of Brazilian President Luiz Inacio Lula da Silva's visit to China, where he aims to strengthen trade relations and seek new investments. The resumption of trade is also expected to benefit China, which spent $8 billion on Brazilian beef last year, accounting for almost nine percent of its imports from Latin America's largest economy. Lula's visit to China is part of an effort to balance Brazil's ties with its top trading partners amid growing tensions between the United States and China.
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Chad Nationalizes Assets Owned by Exxon Mobil
According to Chad's Ministry of Energy and Hydrocarbons, the country has nationalized all assets and rights of an Exxon Mobil subsidiary, which includes hydrocarbon permits as well as exploration and production authorizations. This move comes after the Chadian government contested the sale of Exxon Mobil's operations in Chad and Cameroon to Savannah Energy, citing discrepancies in the final terms of the deal.
The nationalization of Exxon Mobil's assets in Chad could have serious implications for the region’s energy sector. Exxon Mobil's assets in Chad included a significant stake in the Doba oil project and an interest in the Chad/Cameroon pipeline, which exports crude oil from Chad to the Gulf of Guinea coast. It remains to be seen what actions Exxon Mobil and Savannah Energy will take in response to Chad's nationalization of its assets, and how this will affect the energy landscape in the region.
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Saudi Arabia to Restore Relations with Syria
In a significant development in the Middle East, Syria and Saudi Arabia have reportedly agreed to reopen their embassies after more than a decade of severed diplomatic ties. This move follows Saudi Arabia's recent agreement to re-establish ties with Iran, a key ally of Syrian President Bashar al-Assad. The reopening of embassies marks a substantial step in the normalization of ties between Arab states and Damascus.
The sudden breakthrough in talks between Riyadh and Damascus could signal how the Saudi-Iranian deal may influence other crises in the region, where their rivalry has fuelled conflicts like the war in Syria. The United States, an ally of Saudi Arabia, has opposed other countries' normalization of ties with Assad, citing his government's brutality during the conflict and the need to see progress towards a political solution. However, the UAE has already started normalizing contacts with Assad, while Saudi Arabia has been more cautious in its approach. The Syrian-Saudi talks could potentially lead to a vote to lift Syria's suspension from the Arab League during the next Arab summit in April.
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US Conducts Strikes in Syria
The recent US airstrikes in Syria against targets affiliated with Iranian forces have sparked concern over potential escalation in the region. The airstrikes were authorized by President Joe Biden after a US contractor was killed in a drone attack in Syria. The US military said that the drone was of Iranian origin, and the US response targeted facilities used by groups affiliated with Iran’s Islamic Revolutionary Guard Corps.
The US military's presence in Syria is strategically aimed to counter Iran and support the Kurdish-led forces in the Syrian Democratic Forces. However, Iranian and affiliated forces are also in Syria to support President Bashar al-Assad in his war against US-funded rebel groups. The recent airstrikes mark the latest in a series of attacks between the US military and Iran-backed forces in Syria, including drone attacks on al-Tanf in January and August. The situation remains tense, and there are concerns about the potential for further escalation.
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Venezuela Halts Oil Exports
Crude oil exports from Venezuela have fallen sharply as the government investigates oil contracts with unpaid oil purchase bills in the value of $21 billion.
With crude oil exports all but drying up, the country’s oil-dependent economy is facing further turmoil, and this will have a knock-on effect on global oil prices. Venezuela has relied on its oil exports to forge alliances with countries like Iran, China, and Cuba, who are among the few buyers remaining for its crude oil. These relationships could potentially shift as the situation in Venezuela continues to deteriorate, and buyers look for alternative sources of oil.