Daily News Brief

February 2, 2023

Top of the Agenda

Washington and Manila announced today that the United States will increase its military presence (NYT) in the Philippines to a level not seen in thirty years, allowing the United States to temporarily station equipment and build facilities in a total of nine locations across the country. The agreement builds on a military cooperation deal signed under the previous Philippine president, Rodrigo Duterte, who delayed implementing it (Nikkei) as he sought Chinese investment.

The move comes amid a long-running territorial dispute between Beijing and Manila over waters in the South China Sea, as well as growing concerns that China could invade Taiwan. Speaking in Manila, U.S. Defense Secretary Lloyd Austin said the U.S.-Philippines partnership is especially important as China “continues to advance its illegitimate claims.” A spokesperson for China’s foreign ministry said today’s announcement “is exacerbating tension in the region.”

Analysis

“While the [deal] will indeed boost America’s presence and posture in the region, an equally important question is its significance for the Philippines,” Charmaine Willoughby of the Manila-based Foundation for the National Interest tells Nikkei.

“Having increased U.S. access in Northern Luzon, close to Taiwan, is really ensuring that the Philippines and the U.S. alliance is going to have a front and center role in Northeast Asian security and deterrence,” the National University of Singapore’s Drew Thompson tells the New York Times.

Pacific Rim

A new version of the note will remove a portrait of the queen and replace it with an image (ABC) of Indigenous Australians rather than one of her successor, King Charles III.

This video discusses King Charles and the future of the Commonwealth.

South and Central Asia

The state of emergency was set to be lifted two days ago. The six-month extension is expected to delay elections (Nikkei) that were planned to occur by August.

Pakistan: Police arrested a former interior minister (AP) of ex–Prime Minister Imran Khan after the man, Sheikh Rashid Ahmed, accused a former president of plotting to kill Khan.

Middle East and North Africa

During his two-day visit to Morocco, Spanish Prime Minister Pedro Sánchez is expected to announce (Bloomberg) an $869 million credit line for Spanish investments, while Morocco is expected to facilitate gas deliveries to Spain.

France/Iran/Yemen: French military forces intercepted Iranian weapons bound for Yemen, unnamed French officials told the Wall Street Journal.

Sub-Saharan Africa

Envoys from twelve African countries with high HIV burdens committed to four initiatives (UNAIDS) to help reach the 2030 goal, including increasing early HIV testing for children and adolescents and improving treatment for breastfeeding women living with HIV.

Nigeria: More than eleven thousand Nigerians sued London-based oil giant Shell (Reuters) in a British court after years of being affected by oil spills from a Shell subsidiary. Their case will test whether multinational corporations can be held responsible for the actions of their overseas subsidiaries.

Europe

Ahead of a European Union (EU) summit in Kyiv, Ukrainian police raided the homes (BBC) of billionaire Ihor Kolomoisky and former Interior Minister Arsen Avakov. The EU has pressured Ukraine to crack down on corruption as it seeks to join the bloc.

U.S./Germany: U.S. semiconductor firm Wolfspeed announced that it is building a plant (FT) in Germany, a move German officials hailed as proof that Europe can compete with new U.S. subsidies that have threatened to draw green investment away from the continent.

For Foreign Affairs, Felicia Wong and Todd N. Tucker discuss how the United States and Europe can turn trade tensions into climate progress.

Americas

Lawmakers rejected a proposal (MercoPress) to move the elections to this year. It is their second refusal since nationwide anti-government protests broke out following the impeachment of President Pedro Castillo Terrones. 

Brazil: Rogério Marinho, a close ally of former President Jair Bolsonaro, lost a closely watched race (Bloomberg) for the presidency of Brazil’s senate.

United States

The Federal Reserve hiked its benchmark interest rate to between 4.5 and 4.75 percent, the highest level since September 2007, and warned that “ongoing increases” (FT) will be needed to control inflation.

This Backgrounder looks at the U.S. Federal Reserve.

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