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U.S. President Joe Biden speaks with Canada's Prime Minister Justin Trudeau as they meet during the Ninth Summit of the Americas in Los Angeles, California, U.S., June 9, 2022.

REUTERS/Kevin Lamarque

US green subsidies pushback to dominate Biden's Canada trip

As Ottawa prepares for a two-day visit by President Joe Biden starting Thursday, Canadians have been speculating about whether he will do something to stop the northward flow of border crossings by undocumented migrants at Roxham Road, Quebec.

That problem is grabbing headlines, but it is nothing next to the border challenges the Americans face, and the Canadians likely have more important requests for Biden. Behind the scenes, the government is focused on getting Americans to help mitigate the impact of the Inflation Reduction Act, the largest climate spending package in US history, which could lead to the loss of capital and jobs from Canada.

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British PM Rishi Sunak and European Commission President Ursula von der Leyen shake hands at Windsor Guildhall, Britain, February 27, 2023.

Dan Kitwood/Pool via REUTERS

What We’re Watching: Post-Brexit trade, West Bank chaos, Nigeria’s vote count, Teddies for Turkey

A historic post-Brexit breakthrough

UK Prime Minister Rishi Sunak and European Commission President Ursula von der Leyen unveiled a plan on Monday they say will finally resolve the complex problem of post-Brexit trade involving Northern Ireland. In the coming days, skeptics (and opponents) of the deal within Sunak’s Conservative Party and the Democratic Unionist Party in Northern Ireland will read the proposal closely to decide whether to approve it. The deal is intended to ease the flow of trade between Britain and Northern Ireland, some of which will flow across the UK’s border with the Republic of Ireland and into the EU. The deal creates two lanes for trade: a faster-flowing green lane for goods transiting only between Britain and Northern Ireland and a red lane with more rigorous customs checks for goods bound for the EU. The two biggest (of many) issues that will now be debated in Britain’s parliament: How to determine which lane each shipment of goods will travel through and what role the European Court of Justice will play in resolving trade disputes that involve Northern Ireland. Sunak appears to believe that his plan will pass parliament, but the scale of this important political victory for the embattled PM will depend on how much opposition from his own party and the DUP force him to rely on the opposition Labour Party for the votes needed to get it done. Sunak was in Belfast on Tuesday to sell the deal to the DUP.

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U.S. Defense Secretary Lloyd Austin III at the military camp in Quezon City, Metro Manila, Philippines.

Reuters

What We're Watching: US military in the Philippines, Ecuadorian referendum, Israel's AG vs. Bibi, Ukraine shows EU anti-corruption love, China's snoop balloon

Don't buy hype about the US military in the Philippines to counter China

The Philippine decision to grant the US military access to four more military bases in the country has gotten a lot of buzz that it’s a major move against China. For sure, the archipelago is the closest US ally to Taiwan and the disputed South China Sea – Beijing claims sovereignty over both. But while Xi Jinping is surely not happy about America getting additional places in Southeast Asia to host its troops, the move is no game changer in US efforts to better patrol the region or — yikes — respond to an eventual Chinese attack on Taiwan. Why? For one thing, the US military only really needs to use two old American bases north of Manila because they are both very big and close enough to the action. What’s more, the other sites are either too small or still under construction. There is, however, an interesting domestic political angle. President Ferdinand "Bongbong" Marcos Jr., aware that most Filipinos have soured on China over its actions in the South China Sea, wants to show his people that he won't be as chummy with Xi as his predecessor, Rodrigo Duterte. At the same time, Bongbong also knows that the Philippine economy is so dependent on trade with China and that his military is so weak that he can't afford to push Beijing too hard. If he's not forced to pick a side, he'll continue to play both — taking a page from his dictator dad’s old playbook.
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Iranians Seek Attention From the World Economic Forum | Davos 2023 | GZERO Media

In Davos, Iranian protesters demand IRGC to be declared "terrorist"

While I’ve read reports of protesters in the vicinity of the 2023 World Economic Forum meeting in Davos, Switzerland I haven’t witnessed any activity near the Congress Center itself. That’s what made this demonstration stand out for me and why I wanted to speak to the participants.

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European Commission President Ursula Von der Leyen delivers a speech at the 2023 World Economic Forum in Davos, Switzerland.

BENOIT DOPPAGNE/Belga/Sipa USA via Reuters Connect

What We’re Watching: EU's green subsidies, Vietnam’s leader canned, Bolivia's psychic cat hunter

To push back against IRA, EU plans its own green subsidies

It’s no secret the European Union has been unhappy with what it sees as unfair trade practices coming from Washington and Beijing. US President Joe Biden’s passage of the $369 billion Inflation Reduction Act, for example, offers consumer tax credits as well as incentives to US producers of green tech products that Europeans fear will put the continent’s manufacturers at an unfair advantage — perhaps even pushing them to relocate stateside. No wonder, then, that speculation has been rife over the possibility of the EU introducing its own subsidies in response. On Tuesday, European Commission President Ursula Von der Leyen told a Davos audience that the 27-member bloc will propose a Net-Zero Industry Act to mobilize EU support for green industries. Details will be hammered out at a summit in early February, but with the US investment so high, the EU’s commitment is expected to be big. The bigger questions are whether all these subsidies will be sustainable in the long term and if they will translate into lower prices that encourage EU consumers to buy more electric vehicles made in the bloc.

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TITLE PLACEHOLDER | World In :60 | GZERO Media

China is open for business: Chinese Vice Premier at Davos

Ian Bremmer shares his insights on global politics this week on World In :60 from an undisclosed room at the World Economic Forum in Davos, Switzerland.

What was China Vice Premier Liu He's message at Davos?

The message was that China is open for business, supports entrepreneurship, wants to engage in the global economy. Open, open, open. If you were just listening to the translation, you'd think it was a Western leader. Didn't mention COVID once. Sounds great. Kind of extraordinary given the reality of what China's been through over the last couple of years, but certainly tailored message to the audience that he was seeing.

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Europe Supports Ukraine Despite Energy Crisis: EU's Von der Leyen | Europe In :60 | GZERO Media

Europe supports Ukraine despite energy crisis: EU’s von der Leyen

Carl Bildt, former prime minister of Sweden, shares his perspective on European politics.

What were the main points of the commission President Ursula von der Leyen's State of Europe speech?

Well, the first point was obviously support for Ukraine in different forms. And she highlighted in particular the need to get Ukraine full access to the European internal market, thus facilitating the long-term development of the Ukrainian economy. The second item that she dealt with quite a lot was, of course, the energy crisis in order to bear and handle the winter as the Russians are cutting the gas.

Second question: what's going to happen in Sweden after the recent election?

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Ukrainian kids celebrate International Children's Day In Krakow, Poland.

Beata Zawrzel via Reuters Connect

War, reforms & bureaucracy will decide Ukraine’s EU bid

It’s at war for its survival, yet Ukraine’s candidacy for European Union membership has just been endorsed. While success would be a game-changer for Kyiv, getting there won’t be easy, given the required internal reforms, international bureaucracy, and shifting geopolitics.

The European Commission is clear that Ukraine must carry out serious reforms to join the bloc, but some tough questions need to be answered. Does Ukraine deserve to be an EU member? What about the stringent process and requirements? Is there a natural tie-in to NATO membership? And what are the politics at play, given that Moldova, another former Soviet republic Russia considers to be in its sphere of influence, has been approved, while Georgia has not.

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