Monday, 3 February 2014

From “Pivot” to ‘US-European Union Free Trade Agreement’: United State’s Decelerating Economy and its Geo-Political downfall.



   June 2013 (published in the ThirdConcept, an international Journal of Ideas)                                                                                      
The American announcement of ‘Asia Pivot’ in 2011, which was officially pronounced by then Secretary of State, Hillary Clinton by publishing an article in Foreign Policy Magazine titled “America’s Pacific Century”, it has brought an alarming signals in the circles of geo-strategists not only in Asia-Pacific region but also in Europe as well.[i] United States has been a stabilizing factor in both geo-political and geo-economic terms in Europe in the post 2nd World War period and Europe has always contemplated on US vis-à-vis its economic and political security is concerned. The US has been financing the Europe to recover from the shakes of 2nd world war in the form of Marshal Plan.[ii] Notwithstanding, the given argument that Europe has much recovered in all respects, but the fact cannot be denied that US had its own interests in bringing the stability in Europe as it was then critical to US security paradigm, keeping in view the ex Soviet Union factor and its influences in Europe.
The post world war globe has dramatically changed since the end of Cold War and downfall of Soviet Russia. The strategies of American policy makers are also showing visible signs of new preferences and moods. The US has realized that Asia will be a dominating factor in geo-politics and global economy in the twenty first century, thereby, US has accordingly molded its foreign policy preferences. “The future of politics will be decided in Asia, not Afghanistan or Iraq, and the United States will be right at the centre of the action” underlined by the former US Secretary of State Hillary Clinton, thus made an alarming signal to European States in the form of ‘Asia Pivot’ that US will invest its diplomatic-cum-economic investment in Asia Pacific than elsewhere.[iii] It is more significant as Asia Pacific promises future economic opportunities and therefore, US will calculate its preferences between Europe and Asia.
Under the Obama Administration, the United States has made a major shift towards Asia and the Asia-Pacific region in general. “For the United States, this reflects a broader shift. After a decade in which we fought two wars that cost us dearly, in blood and treasure, the United States is turning its attention to the vast potential of the Asia Pacific region,” Mr. Obama said during his trip to Australia last year in November.[iv] The new focus on this region reflects a fundamental truth that the United States has been, and always will be, a Pacific nation, he said. “Asian immigrants helped to build America, and millions of American families, including my own, cherish our ties to this region. From the bombing of Darwin to the liberation of Pacific islands, from the rice paddies of Southeast Asia to a cold Korean Peninsula, generations of Americans have served here, and died here so democracies could take root; so economic miracles could lift hundreds of millions to prosperity,” Mr. Obama said. “Here, we see the future. As the world’s fastest-growing region and home to more than half the global economy the Asia Pacific is critical to achieving my highest priority, and that’s creating jobs and opportunity for the American people,” the US President said. With most of the world’s nuclear power and some half of humanity, Asia will largely define whether the century ahead will be marked by conflict or cooperation, needless suffering or human progress, Mr.Obama said during his Australia trip. “As President, I have, therefore, made a deliberate and strategic decision as a Pacific nation, the United States will play a larger and long-term role in shaping this region and its future, by upholding core principles and in close partnership with our allies and friends,” he said.[v]
The terms like “Asia Pivot,” “Strategic Rebalance,” and “Asia Focus,” popularized by then U.S. Defence Secretary Leon Panetta and Secretary of State Hillary Clinton.  Asia Pivot can be comprehended from two broad perspectives. One the geo-economics of the pivot and two, the geo-politics of the Asia pivot.
Geo-Economics of the Pivot:
a.       Asia-Pacific region is stretched from Indian subcontinent which also includes India Ocean to the shores of Americas through the Pacific Ocean thus makes it most promising from navigation, resources and trade point of view.
b.      This region promises unprecedented prospects for investment, technology, trade and ensuring freedom of navigation and sea lines.
c.       This region is most populated region as it includes world’s two most populated states of China and India thus promises abundant man/labour power.
d.      The region of Asia-Pacific is more significant as the region is key engine of global economy. The two big emerging economies of the world- China and India are located in this region and they will be decisive in the future economic diplomacy.[vi]
Geo-Political significance:
a.       The region of Asia-Pacific holds the key allies to the United States such as Japan, South Korea Australia etc. thus make this region more attractive to US.
b.      The region of Asia-Pacific holds not only rich land/marine resources but also key sea routs and straits which are very critical from security point of view.
c.       Important trade routes are going through this region which is very critical to US security given the fact that the region has huge potential of resources.
d.      Rich seas such as south china and East China Sea are located in this region and are very critical to the allies of US.[vii]
The Asia Pivot as has been underlined by the Hillary Clinton has following broad contours:
a.       Strengthening the bilateral security alliances as US has already started to proceed on these lines with Australia, South Korea, Japan etc.
b.      Strengthening and deepening its engagements with the emerging powers of the world such as China. Indonesia and India.
c.       Engaging with regional multilateral institutions such as ASEAN, APEC etc.
d.      Expanding trade and investment in the region as the regions has huge potential on these lines.
e.       Forging a broad based military presence in the region in order to ensure its security as well as of its alliance partners.
f.       Advancing democracy and human rights in the region.[viii]
The Obama administration has sought to rebalance American policy toward Asia since the middle of 2011. The rebalance, or misnamed “pivot,” is usually depicted in military or security terms, with America shifting its focus and resources from the wars in Iraq and Afghanistan back to the Asia-Pacific region, where U.S. economic and security interests are greater. In fact, rebalancing was originally an integrated strategy with military, diplomatic, and economic initiatives intended to strengthen U.S. involvement in the region, demonstrated by President Obama’s ten-day trip through Asia in November 2011.
The Asia Pivot operation has already begun with the Obama’s visit to Asian states last year. White House Press Secretary Jay Carney said that “The President’s trip to Asia will be an opportunity to build on our successful efforts to refocus on the Asia Pacific as the most rapidly growing and dynamic region in the world”.[ix] Last year when President Obama travelled to Thailand, Cambodia and Burma, simultaneously, the Secretary of State Hillary Clinton, and the Defence Secretary Leon Panetta were also in the region; which is vindication of the importance being attached to the Asia Pacific region by the Obama Administration. The Jay Carney also reiterated that, the President will focus on expanding US trade and economic ties in the region, supporting democracy and human rights, and working through regional institutions to ensure that nations abide by the rules of the road”.[x]
There is a transformational shift in the new US foreign policy preference and the most visible sign is in its military sphere. US have planned to expand its military presence in the Asia-Pacific region to counter any upcoming challenge as it has already announced new deployment or rotations of troops and equipments to Australia and Singapore.
The American ‘Asia Pivot’ is not immune from risks it embodies. In an era of constrained U.S. defense resources, a new shift in U.S. military emphasis on the Asia-Pacific region might lead in a
reduction in U.S. military capacity in other regions of the world. The next important is budgetary consideration is that plans to restructure U.S. military deployments in Asia and minimize cuts in the Navy may run up against more restrictive funding constraints than plans yet assume. Furthermore, the perception among many that the “rebalancing” is targeted against China could strengthen the hand of Chinese hard-liners. Such Prints could also substantially make it more difficult for the United States to achieve China’s cooperation on a range of issues. Moreover, the prominence the Obama Administration has given to the initiative has raised the costs to the United States if it or successor administrations fail to follow through on public pledges made, particularly in the military realm.[xi]
China factor:
Some commentators believe that the Asia Pivot is nothing but containment of China by other means. China is not only likely to overtake US as a dominant economic power but also emerging as a capable military power to ascertain its position in the Asia-Pacific region. China is becoming more assertive in its responses to territorial sovereignty disputes, and its influence on international and regional affairs is growing. Unforeseen events complicated the picture. Tensions erupted between the Philippines, Vietnam, and China in the South China Sea, between Japan and China in the East China Sea, and between Japan and South Korea over disputed but relatively insignificant territorial claims.[xii]
The Chinese influence in the Asia Pacific region has grown considerably for last few years as China has always considered Asia-Pacific as its area of influence. China has now declared ‘indisputable sovereignty’ over South China Sea; as also its ‘core area of interest'. Seeking a historic shift in the Asia-Pacific ‘balance of power', China tries to replace the US as a dominant Asia Pacific power by its assertive diplomatic-cum-military presence in the region.[xiii] 
President Obama referred to China for the first time as an “adversary.” The US China relations today face great challenges from trust deficit in bilateral relations to regional tension over the issue of territorial sovereignty in the Asia Pacific region. The instability in Asia also poses dilemmas for a Washington that has doubled down on its alliance commitments across the Pacific. The growing rift between China and its smaller neighbors in the South China Sea and the East China Sea pose serious challenge for the United States in the western Pacific.[xiv]
A Pentagon ‘National Military Strategy’ paper underlines that US strategic calculations and its security paradigm will overwhelmingly concentrate in Asia-Pacific. Robert Gates, ex US Defense Secretary said that Pentagon would sustain funding for ‘air superiority and mobility, long range strike, nuclear deterrence, maritime access, space, cyberwar, intelligence and surveillance’ in South-East Asia. Barrack Obama’s presence in Bali during the recent East Asian Summit is an indication of US enhanced strategic engagement in Asia-Pacific. In cognizance with the new emerging dynamics, the US is deploying more troops, submarines and surface vessels to strengthen its forward presence, besides taking counter measures against Chinese missiles.[xv]
Therefore, China too will have to identify the parameters and implications of American pivot so for as China’s own security paradigm is concerned. The biggest game changer may well be the new administration in Beijing — the mood and demeanor of the new leadership led by Xi Jinping. Given the narrative that US is no more a sole power and the era of American dominance has gone therefore, the form and content of the U.S. pivot to Asia may be determined more by Asians than Americans.
The essential goal of the US Asia Pacific policy is to devote more effort to impact the development of the Asia-Pacific’s norms and rules, more significantly as China has emerged an assertive regional power. Given that one implication of the “pivot” or “rebalancing” toward the Asia-Pacific is to strengthening U.S. credibility in the region.[xvi] This is more important as US economy is not in good shape and also budgetary constraints will determine to what extent the Administration’s plans are implemented and how various trade-offs are managed.
Pivot’s Implication on Europe:
The “pivot to Asia” proclaimed by Former US Secretary of State Hillary Clinton underlined “the future of politics will be decided in Asia.” The Clinton reiterated the American commitment towards Europe in the form of aid and security but now “The time has come for the United States to make similar investments as a Pacific power.” [xvii] There is great ambivalence in the new foreign policy of US as there will be a shift in focus from Europe to Asia Pacific in the US calculation of global geo-politics. The 2011 Transatlantic Trends Report marked the first time that the American public believed that their national interest are secure more with Asia than with Europe.
The message Ms Clinton has transmitted is very clear to Europe that Asia is more important than Europe in its calculation as she put it like this “as the war in Iraq winds down and America begins to withdraw its forces from Afghanistan, the United States stands at a pivot point. Over the last 10 years, we have allocated immense resources to those two theaters. In the next 10 years, we need to be smart and systematic about where we invest time and energy, so that we put ourselves in the best position to sustain our leadership, secure our interests, and advance our values. One of the most important tasks of American statecraft over the next decade will therefore be to lock in a substantially increased investment -- diplomatic, economic, strategic, and otherwise -- in the Asia-Pacific region”.[xviii]
            The US economy is recessing and is not much promising as defined by the Obama administration that US is committed to continue the expenditures in Asia and shall not be reduced therefore, the scheme will hit none other than Europe. As US is cutting down its $500 billion in its expenditures which will directly expose the Europe and also US administration has already announced that it intends to withdraw two of the four U.S. army brigades currently deployed in Europe — with overall military spending in Europe set to decline by 15 percent.[xix]
Now there is a genuine threat being worried to all the European states that US shift in its policy is somewhere giving signals that Europe is no more as relevant as it used to be in post second world war. It is China, India and Indonesia which is more significant than Europe to US vis-à-vis US geostrategic designs are concerned. “The fulcrum for our strategic turn to the Asia-Pacific,” According to the New York Times, this includes “six aircraft carriers and a majority of the Navy’s cruisers, destroyers, littoral combat ships and submarines, [and] an accelerated pace of naval exercises and port calls in the Pacific.”[xx] 
            Therefore, it will be an interesting to see to what extent US will succeed in its new approach given the fact that US is no more a sole decisive power and it has to face Chinese resistance in the region which will be a litmus test to US in new realities of global politics. There is one narrative that USA has declined and in order to protect its sole power status it has brought Asia Pivot to show the world that America is still in control of world affairs. Additionally, USA also realize Chinese threat and its growing influence in the Asia Pacific region which can be vindicated from the fact that how China maneuvered the last ASEAN summit which ended without any official communiqué, given the fact that ASEAN was supposed to press on China to resolve its dispute amicably with its neighbors on the disputed South China Sea.
            The new development in the form of US-Europe free trade agreement which some commentators believe is reverse of Asia Pivot. The new team of President Obama’s administration which includes John Kerry, US Secretary of State, Chuck Hegel, Defence Secretary etc. have new priorities and the time will tell will they reverse the Asia Pacific narrative or continue with the Clinton-Gates legacy.
The recent visit of John Kerry to Europe to push US-Europe free trade agreement demonstrates that Europe is still promising. John Kerry on his visit to Germany said “we think this is something that can help lift the economy of Europe, strengthening our economy, create jobs for Americans, for Germans, for all Europeans, and create one of the largest allied markets in the world”.[xxi] President Obama in his recent State of the Union address underlined US-E.U. free trade negotiations in a single sentence well down in the text: “Tonight, I’m announcing that we will launch talks on a comprehensive Transatlantic Trade and Investment Partnership with the European Union, because trade that is fair and free across the Atlantic supports millions of good-playing American Jobs.”[xxii]
The Year before Obama and his team lead by Hillary Clinton was busy with drawing the parameters of Asia Pivot and but now, the new Obama team has different engagements not in Asia but in Europe in stretching the parameters of US-E.U. free trade agreement. Now, a question which confronts, is US going back to Europe? If so, then does it mean that US is not able to catch up the influence of assertive China in the Asia Pacific region. The above account does portray a complicated situation and the time will define whether US is coming back to Europe or keeping in hand both of these.     




[i] Clinton Hilary, “America’s Pacific Century,” Foreign Policy, November 2011, Available here: http://
www.foreignpolicy.com
[ii]  Rachman Gideon, “The US Pivot to Asia-should Europeans worry”, April 2012, Available at: http://www.cepolicy.org
[iii] “America’s Pacific Century,” by Hilary Clinton. Foreign Policy, November 2011. Available here: http://
www.foreignpolicy.com
[iv] “Asia trip to refocus on the most rapidly growing region: US”, online edition, The Hindu, November 10, 2012, Available at: http://www.thehindu.com
[v] Ibid.
[vi] Morse S. Eric, “Pivot to Asia: Calculus and Consequences”, Fall 2012 Volume 21, Issue 4. Available at: http://www.nationalstrategy.com
[vii] Ibid.
[viii] Clinton Hilary, “America’s Pacific Century,” Foreign Policy, November 2011, Available here: http://
www.foreignpolicy.com
[ix]  Gerson Joseph, “Reinforcing Washington’s Asia Pacific Hegemony”, Foreign Affairs, September 13, 2012, Available at: http://www.foreignaffairs.com
[x] Ibid.
[xi] Ross S. Robert, “The Problem With The Pivot”, Foreign Affairs, November/December 2012, Available at: http://www.foreignaffairs.com
[xii]Pivot to the Pacific? The Obama Administration’s “Rebalancing” Toward Asia”, Congressional Research Service, March 2012, Available at: http://www.cfr.org
[xiii] Pall D. H. & Haenle Paul, “A new great power relationship with Beijing”, November 2012, Available at: http//www.e-ir.org
[xiv] Swieboda Pawel, “Who is afraid of the big bad Pivot: Central Europe’s worries about U.S. foreign policy”, Foreign Affairs, December 2012. Available at: http//www.foreignaffairs.com
[xv] Dwivedi. G. G., “Dragon’s fire ignites a strategic rethink”, Available at: http://www.tribuneindia.com
[xvi] Saran Samir, “Obama’s Eastern Pivot made in Asia”, November 2012, Available at: http://www.thehindu.com
[xvii] Rachman Gideon, “The US Pivot to Asia-should Europeans worry”, April 2012, Available at: http://www.cepolicy.org
[xviii] Clinton Hilary, “America’s Pacific Century,” Foreign Policy, November 2011, Available here: http://
www.foreignpolicy.com
[xix] Rachman Gideon, “The US Pivot to Asia-should Europeans worry”, April 2012, Available at: http://www.cepolicy.org


[xx]   Gerson Joseph, “Reinforcing Washington’s Asia Pacific Hegemony”, Foreign Affairs, September 13, 2012, Available at: http://www.foreignaffairs.com

[xxi] http://www.diplonews.com
[xxii] Ibid.




























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