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Protectionism What? EU and South America Strike Major Trade Deal

Protectionism What? EU and South America Strike Major Trade Deal

One of the largest multilateral trade deals in history was signed just a few days ago, between the European Union and Mercosur, a South American trade bloc that includes Argentina, Brazil, Paraguay, and Uruguay. The deal covers countries with a total population of nearly 800 million people and it took 20 years to hammer out. It will open up Europe to more South American agricultural goods, while reducing their duties on European manufactured exports like cars, shoes, machinery, and, of course, wines and cheeses.

Three quick thoughts on this:

Trump wasn't even in the room, but he's in this story: One reason the long-deadlocked talks got crackling again was that Trump's more confrontational approach to US allies on trade had pushed the Europeans into seeking opportunities elsewhere. This is the largest trade deal the EU has ever struck, following smaller recent deals with Japan, Canada, Mexico, and Singapore.

Did you think all "populists" were protectionists? They aren't. Brazil's controversial far-right president Jair Bolsonaro is a major backer of the deal. He has made it his mission to reduce tariffs and other investment barriers in what is one of the world's most protectionist countries. He sees that as a way to spur growth and clear away a legacy of left-wing economic policies.

Could it go up in smoke? Yup. Farmers in Europe and manufacturers in Mercosur don't like it, and that matters because the deal still requires ratification by each member country (that means 28 in Europe alone.) But the biggest immediate challenge will come in Argentina. If Wall Street friendly President Mauricio Macri loses his fading re-election bid to the leftwing protectionist ticket of Alberto Fernandez and former president Cristina Fernandez de Kirchner later this year, Buenos Aires could throw a wrench into this thing fast.

Carbon has a bad rep, but did you know it's a building block of life? As atoms evolved, carbon trapped in CO2 was freed, giving way to the creation of complex molecules that use photosynthesis to convert carbon to food. Soon after, plants, herbivores, and carnivores began populating the earth and the cycle of life began.

Learn more about how carbon created life on Earth in the second episode of Eni's Story of CO2 series.

As we enter the homestretch of the US presidential election — which is set to be the most contentious, and possibly contested, in generations — Americans are also voting on 35 seats up for grabs in a battle for the control of the Senate. The 100-member body is currently held 53-47 by the Republican Party, but many individual races are wide open, and the Democrats are confident they can flip the upper chamber of Congress.

Either way, the result will have a profound impact not only on domestic policy, but also on US foreign relations and other issues with global reach. Here are a few areas where what US senators decide reverberates well beyond American shores.

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On September 23, GZERO Media — in partnership with Microsoft and Eurasia Group — gathered global experts to discuss global recovery from the coronavirus pandemic in a livestream panel. Our panel for the discussion Crisis Response & Recovery: Reimagining while Rebuilding, included:

  • Brad Smith, President, Microsoft
  • Ian Bremmer, President and Founder, Eurasia Group & GZERO Media
  • Jeh Johnson, Partner, Paul, Weiss, Rifkind, Wharton & Garrison, LLP and former Secretary of Homeland Security.
  • John Frank, Vice President, UN Affairs at Microsoft
  • Susan Glasser, staff writer and Washington columnist, The New Yorker (moderator)

Special appearances by UN Secretary-General António Guterres, European Central Bank chief Christine Lagarde, and comedian/host Trevor Noah.

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Jon Lieber, who leads Eurasia Group's coverage of political and policy developments in Washington, offers insights on the Supreme Court vacancy:

Will Senate Republicans, who stopped a Supreme Court nomination in 2016, because it was too close to an election, pay a political price for the change in tactics this time around?

Not only do I think they won't pay a political price, I think in many cases, they're going to benefit. Changing the balance of power on the Supreme Court has been a career-long quest for many conservatives and many Republicans. And that's why you've seen so many of them fall in line behind the President's nomination before we even know who it is.

At this point, do Senate Democrats have any hope of stopping President Trump from filling the ninth seat on the Supreme Court?

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In a special GZERO Media livestream on global response and recovery amid the COVID-19 pandemic, Eurasia Group & GZERO Media president Ian Bremmer discussed the difference between Europe's unified approach to economic stimulus and the deeply divided and political nature of the current conversation in the US. While initial stimulus support was bipartisan, there is little chance of Democrats and Republicans coming together again ahead of the November 3 presidential election. "It's red state versus blue state. President Trump's saying that coronavirus isn't so bad if you take the blue states out. He's president of the blue states, you can't take the blue states out," Bremmer told moderator Susan Glasser of The New Yorker.

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Panel: How will the world recover from COVID-19?

UNGA Livestream