In Geopolitics Today: Wednesday, July 19th
Erdoğan's UAE Visit Yields $50.7 Billion in Deals, Algeria and China Strengthen Ties with 19 Cooperation Agreements, and other stories.
Erdoğan's UAE Visit Yields $50.7 Billion in Deals
Turkish President Recep Tayyip Erdoğan's visit to the UAE resulted in the establishment of a high-level strategic council and agreements worth $50.7 billion between the two countries. This comes as part of Turkey's efforts to improve relations with former regional rivals, including the UAE, and attract foreign funds to revitalize its economy amidst a foreign-currency crisis. The agreements focus on diversifying the UAE-Turkey Comprehensive Economic Partnership Agreement (CEPA) and encompass areas such as trade, investment, space, defence development, energy, and natural resource projects.
The implications of these agreements are significant for both countries and the broader region. For Turkey, the visit represents an opportunity to boost economic ties and secure foreign investment, aiding its economic recovery efforts. Establishing a strategic partnership with the UAE opens doors for increased trade and business opportunities, especially in areas related to energy and defence. For the UAE, the agreements offer avenues to diversify its economic partnerships beyond traditional allies and establish new trade and investment opportunities in Turkey. Moreover, the improvement in relations with Turkey could serve the UAE's interests in enhancing regional stability and influence.
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China Adapts Foreign Policy Amid Shifting Alliances
Facing global challenges, China is recalibrating its foreign policy to navigate the complex international landscape. The recent NATO summit's criticism of China's coercive policies underscores the rising tensions between China and Western countries. In response, Beijing is adopting a more proactive and confident diplomacy. China recognizes the importance of Asia for its security and economic interests, leading to increased diplomatic efforts with ASEAN countries and a push to adopt the Regional Comprehensive Economic Partnership across the region.
Another critical aspect of China's shifting foreign policy is its strategic partnership with Russia. While Beijing may be concerned about Russia's actions in Ukraine, China remains determined to stand with its ally. Russia's significance lies in its role as an energy supplier and military technology partner, making it essential for China to maintain a stable relationship. By presenting itself as a neutral party and focusing on consolidating its influence in Central Asia, China seeks to navigate the complexities of its ties with Russia while avoiding isolation in the face of US-led alliances and security groups. Additionally, China is projecting itself as a global leader, offering its models of global governance through initiatives like the Global Security Initiative and leveraging multilateral institutions such as the Shanghai Cooperation Organisation and BRICS.
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Water and Environmental Concerns at the Centre of Turkish-Iraqi Ties
Turkey's President Recep Tayyip Erdoğan's re-election has put water and related environmental concerns at the forefront of Turkish relations with Iraq. Iraq is facing significant challenges due to climate change, leading to water scarcity and environmental degradation in its southern and central regions. The Tigris and Euphrates rivers, originating in Turkey, are critical sources of water for Iraq, making water a crucial aspect of the bilateral relationship. The issue of water availability and management has become increasingly complex, overshadowing other issues such as security, trade, energy, and regional geopolitics.
Iraq's water crisis has far-reaching implications for Turkish-Iraqi relations. Turkey's Southeastern Anatolia Project, which involves building dams on the Tigris and Euphrates rivers, has led to a significant drop in water flow to Iraq. Ankara's use of water as an instrument of pressure further complicates the relationship, affecting not only the Shia-dominated south but also Sunni and Kurdish communities. Iraq's limited options to influence Turkey's water policy have prompted efforts to entice Turkey through trade and investment opportunities. However, deep-rooted challenges and competing interests are likely to keep the Turkish-Iraqi relationship highly complex and unbalanced.
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Japan and France Conduct First-Ever Joint Fighter Jet Drill
Japan and France are set to hold their first-ever joint fighter jet drill in Japan, signalling a significant milestone in their defence and security ties. The exercise, scheduled for July 26 to 29, involves the Japanese Air Self-Defense Force and the French Air and Space Force conducting air combat training using their respective fighter jets. The joint drill showcases France's commitment to expanding deployments in the Indo-Pacific and is part of the broader Pégase 2023 mission, involving French military aircraft deploying to countries in the region.
The joint exercise between Japan and France reflects a growing trend of Japan seeking to enhance defence ties with NATO member states in response to China's growing power and increasing military activities in the region. As China's assertiveness and military build-up raise concerns among neighbouring countries, Japan is actively engaging in military drills with Germany, India, and now France to strengthen its defence partnerships. The exercise also highlights France's interest in maintaining its role as an important stakeholder in Indo-Pacific security, with many overseas territories and a commitment to ease tensions between China and the United States.
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Algeria and China Strengthen Ties with 19 Cooperation Agreements
During Algerian President Abdelmadjid Tebboune's official visit to China, 19 cooperation agreements were signed between Algiers and Beijing, covering various sectors such as aerospace, agriculture, energy, railway transportation, science and technology, education, sports, telecommunications, and trade. The visit aimed to strengthen bilateral relations, with discussions focusing on developing renewable energy.
The strategic importance of Algeria to China, given its location on the Mediterranean Sea, has deepened their relations, which date back to the late 1950s when Algeria sought independence from France. In 2014, the two nations upgraded their ties to a comprehensive strategic partnership, making gas-rich Algeria the first Arab nation to form such a partnership with China. In their statement on Tuesday, both sides emphasized the need for close political and security cooperation. President Tebboune expressed Algeria's willingness to deepen its partnership with China to assist the country's economic development. Moreover, China has welcomed Algeria's aspiration to join BRICS and expressed support for its endeavours to achieve this goal, signalling a further alignment of their interests and objectives.
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Colombia's Expanding Nickel Production Offers Economic Potential
Colombia's push to expand and diversify its mining industry by exploiting critical minerals, particularly nickel, holds significant potential for the country's economy. The Cerro Matoso mine is currently the sole nickel mining operation, with Colombia ranking as the tenth-largest holder of nickel reserves globally.
The government's focus on mining development, underscored by a proposed new Mining Law, signals a commitment to increasing the production of strategic minerals like nickel. The United States, a key trade partner, is poised to benefit from increased nickel imports from Colombia, especially as demand for critical minerals rises. Colombia's ambitions to expand its mining industry, particularly in nickel production, present both economic opportunities and challenges. With the Cerro Matoso mine as the sole nickel mining operation, Colombia's focus on developing strategic minerals like nickel is evident through proposed legislation. However, as the country moves forward with mining expansion, it must carefully balance economic growth with environmental and social responsibilities to ensure sustainable development and protect local communities and the environment.