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Daily News Brief
July 10, 2019
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Top of the Agenda
Finance Chief’s Resignation Deepens Doubts in Mexico
Mexico’s finance minister, Carlos Urzua, resigned yesterday (El Universal) in a surprise move seen as a blow to President Andres Manuel Lopez Obrador’s government. Urzua accused the administration of implementing policies without sufficient evidence and having conflicts of interest in appointing ministry officials.
 
Urzua was seen as an economically prudent figure in a seven-month-old administration that promised a dramatic departure from how the country was previously managed. He had disagreed (WSJ) with several of Lopez Obrador’s decisions, including funding a new refinery at the state-owned energy firm Pemex and canceling construction of a partially built airport. The resignation came as Mexico has struggled to revive a sluggish economy (WaPo). Lopez Obrador appointed Urzua’s deputy, Arturo Herrera, as his replacement.
Analysis
In Foreign Affairs, Denise Dresser writes that Lopez Obrador has yet to prove he can “achieve his visionary aims without consolidating excessive power.”
 
“Rising debt and aggressive new expenditures, including a $8 billion refinery, leave Pemex no room to boost gas investment. And the government is scaring away outside investors by attacking private contracts,” CFR’s Shannon K. O’Neil writes for Bloomberg.
 
“If managed properly, this is, in some way, an opportunity for there to be a recalibration in terms of policymaking,” the Wilson Center’s Christopher Wilson told the New York Times.

 

Pacific Rim
Japan-South Korea Trade Spat Worsens
Japan said yesterday it will not revoke new controls (AP) on high-tech exports to South Korea, despite calls from South Korean President Moon Jae-in for a diplomatic resolution. South Korea’s trade ministry said it will file a complaint at the World Trade Organization.
 
On CFR’s Asia Unbound blog, Sheila A. Smith discusses the differences shaping the Tokyo-Seoul relationship.
 
China: U.S. Commerce Secretary Wilbur Ross announced yesterday that restrictions on U.S. tech companies selling components to Huawei (FT) would be relaxed. Ross said the ban on the Chinese telecom giant would only apply to products that pose a national security threat.

 

South and Central Asia
Sri Lanka Looks to Revive Tourism
The government announced several new measures yesterday to make flights cheaper (AP), including reducing fuel prices, in a bid to boost tourism. The country’s tourism industry has struggled since the Easter Sunday bombings.
 
Pakistan: Media watchdog Reporters Without Borders condemned the suspension of three television channels (RFE/RL) after they broadcast a press conference by opposition politician Maryam Nawaz, daughter of imprisoned former Prime Minister Nawaz Sharif.

 

Middle East and North Africa
U.S. Seeks Military Coalition in Gulf
Chairman of the Joint Chiefs of Staff Joseph Dunford said yesterday (Reuters) that the United States hopes to enlist allies in the coming weeks to help patrol waters off Iran and Yemen and to escort commercial vessels in the area.
 
CFR looks at the Strait of Hormuz, a U.S.-Iran maritime flash point.
 
Libya: Four Javelin anti-tank missiles originally sold to France by the United States were recovered (NYT) at a camp of rebel forces seeking to overthrow Libya’s internationally recognized government. A French military advisor denied the weapons were transferred to the rebels, which would break the terms of the U.S. sale and violate a UN arms embargo.
 
CFR’s Steven A. Cook explains the march led by General Khalifa Haftar on Tripoli.

 

Sub-Saharan Africa
Sudan Court Rules Internet Blackout to End
The country’s military cut internet access (BBC) following pro-democracy protests in early June. After the Tuesday ruling, internet was slowly restored (Al Jazeera), first to landlines and then to mobile services.
 
Ethiopia: The Addis Ababa government has banned motorcycles (BBC) in the capital following a spate of robberies it says were carried out by motorcyclists.

 

Europe
France, UK Reportedly to Backfill U.S. Troops in Syria
The two countries have agreed to increase their troops in Syria by 10 to 15 percent as U.S. forces withdraw, according to a report in Foreign Policy. Germany has rejected a U.S. request to send ground troops to Syria.
 
UK: Britain’s ambassador to the United States resigned today (CNN) following a leak of diplomatic cables in which he described the Trump administration as “inept” and “insecure.” The UK Foreign Office defended (Vox) diplomats’ right to be candid in their assessments of foreign governments.

 

United States
Navy Secretary to Lead Defense Department
Navy Secretary Richard V. Spencer will serve (WaPo) as acting defense secretary while the Senate considers the nomination of current Acting Secretary Mark Esper. Spencer will be the department’s third acting leader this year.

 

Global
UN: Progress Toward 2030 Education Goal Lagging
One in six children will not attend primary and secondary school by 2030, the year by which countries pledged to achieve universal access, according to a new report [PDF] by the United Nations’ education, science, and cultural agency, UNESCO.
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