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G7 struggles with response to China ‘economic coercion’ threat

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Tokyo, Japan – The G7 countries all agree on the threat of China’s economic coercion.

But reaching a consensus on concrete action to counter Beijing promises to be a challenge for the club of wealthy democracies amid divisions over how to manage ties with the world’s second-biggest economy.

The leaders of the G7 — Canada, France, Germany, Italy, Japan, the United Kingdom and the United States — have signalled that China’s use of punitive trade measures will be high on the agenda of their three-day annual summit, which kicks off in Hiroshima, Japan, on Friday. European Union leaders will also be present.

China’s use of coercive economic moves has been an issue of growing concern in the Asia Pacific and Europe in recent years, with Japan, South Korea, Australia and Lithuania all facing trade restrictions following disputes with Beijing on issues ranging from the origins of the COVID-19 pandemic to Taiwan.

While the G7 is expected to release a statement that will express concern about China’s economic coercion and propose ways to work together on the issue, it is unclear how far Japan and European members may be willing to go with measures that could antagonise Beijing given their heavy reliance on Chinese trade.

Japan and the European Union both count China as their top trading partner. The United States, which has led global efforts to push back against Beijing, does the most trade with Canada and Mexico, with China ranking as its third-biggest partner.

Sayuri Shirai, a professor of economics at Keio University in Tokyo, said Japan and Europe may be more cautious than the US about actions that could disrupt trade relations with China.

“China’s GDP [gross domestic product] is going to exceed the US in the next decade and have a huge market … So having access to China’s market is important for advanced economies,” Shirai told Al Jazeera.

“Japan has a military alliance with the US so they may be closer to the US, but they may also have to be careful about their companies’ interest in China since many companies have done a lot of foreign direct investment in China,” Shirai added.

INTERACTIVE_WHAT IS THE G7_2023
(Al Jazeera)

‘Economic NATO’

Some of the loudest calls for coordinated action against China have come from the US, where President Joe Biden has made countering Beijing a central pillar of his foreign policy.

Japanese police on patrol near Hiroshima, Japan, ahead of the G7 summit. They are walking along a tree-lined path.
The Hiroshima summit will give an indication of how far Japan and European members of the group may be willing to go with measures that could antagonise Beijing given their heavy reliance on Chinese trade [Richard A Brooks/AFP]

Earlier this year, Bob Menendez, the Democratic chairperson of the Senate Foreign Relations Committee, called for the formation of an “economic NATO” to respond to economic coercion, military aggression and violations of sovereignty.

Former UK Prime Minister Liz Truss also floated the idea of an economic version of NATO in a speech in February in which she called on world leaders to be ready to impose coordinated sanctions on China if it makes aggressive moves towards self-governed Taiwan, which Beijing claims as its territory.

In March, the EU unveiled an “anti-coercion instrument” for member countries that includes a new dispute resolution mechanism and countermeasures such as customs duties and restrictions on public procurement.

China has rejected accusations that it uses trade as a weapon and accused the US of hypocrisy given its own use of sanctions and export controls.

“If the G7 summit will put ‘countering economic coercion’ on its agenda, I suggest that they should first discuss what the US has done,” Chinese Foreign Ministry spokesperson Wang Wenbin told a regular press conference last week.

“China itself is a victim of US economic coercion and we have always been firmly opposed to economic coercion by other countries.”

Enforcement is key

The divisions between the US and other G7 members on China are not the only differences to have emerged ahead of this weekend’s summit.

Last month, the Financial Times reported that Japan and the EU had objected to a US proposal for a G7-wide ban on practically all exports to Russia after deeming it to be unrealistic.

Still, US officials have sought to raise expectations that the G7’s stand on economic coercion will go well beyond rhetoric.

On Tuesday, US Ambassador to Japan Rahm Emanuel, who has criticised the World Trade Organization dispute resolution as slow and called for the US to lead collective action against Chinese coercion, told his social media followers to “expect action”.

“G7 members are developing the tools to deter and defend against China’s economic intimidation and retaliation,” Emanuel said on Twitter.

Mark Kennedy, director of the Wahba Institute for Strategic Competition at the Wilson Center in Washington, DC, said he expected the G7 to make progress towards coordinated action due to the growing realisation of the dangers of economic overreliance on any one country.

“Europe has witnessed the impact of coercion within its ranks more vividly than the US, most recently in Lithuania, and endured the pain from overreliance on a sole supplier as it weaned itself off reliance on Russian energy,” Kennedy told Al Jazeera.

“A focus on de-risking by diversifying supply chain … by building partnerships with low- and middle-income countries through investment and aid is very unifying. It also can be presented to the Global South as a location for alternative sourcing.”

Henry Gao, a Chinese trade expert at Singapore Management University, said, however, that the actual implementation of any coordinated measures is likely to be difficult.

“It’s easy to come up with statements, but enforcement will be a big problem, especially for Asian countries which have very close economic ties with China,” Gao told Al Jazeera.

“One model that might be useful in this regard is the EU’s anti-coercion instrument, which moves the decision-making from the country level to the EU level, but this would be very hard to replicate even at the G7 level, not to mention on a global basis.”

 

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Construction wraps on indoor supervised site for people who inhale drugs in Vancouver

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VANCOUVER – Supervised injection sites are saving the lives of drug users everyday, but the same support is not being offered to people who inhale illicit drugs, the head of the BC Centre for Excellence in HIV/AIDS says.

Dr. Julio Montaner said the construction of Vancouver’s first indoor supervised site for people who inhale drugs comes as the percentage of people who die from smoking drugs continues to climb.

The location in the Downtown Eastside at the Hope to Health Research and Innovation Centre was unveiled Wednesday after construction was complete, and Montaner said people could start using the specialized rooms in a matter of weeks after final approvals from the city and federal government.

“If we don’t create mechanisms for these individuals to be able to use safely and engage with the medical system, and generate points of entry into the medical system, we will never be able to solve the problem,” he said.

“Now, I’m not here to tell you that we will fix it tomorrow, but denying it or ignoring it, or throw it under the bus, or under the carpet is no way to fix it, so we need to take proactive action.”

Nearly two-thirds of overdose deaths in British Columbia in 2023 came after smoking illicit drugs, yet only 40 per cent of supervised consumption sites in the province offer a safe place to smoke, often outdoors, in a tent.

The centre has been running a supervised injection site for years which sees more than a thousand people monthly and last month resuscitated five people who were overdosing.

The new facilities offer indoor, individual, negative-pressure rooms that allow fresh air to circulate and can clear out smoke in 30 to 60 seconds while users are monitored by trained nurses.

Advocates calling for more supervised inhalation sites have previously said the rules for setting up sites are overly complicated at a time when the province is facing an overdose crisis.

More than 15,000 people have died of overdoses since the public health emergency was declared in B.C. in April 2016.

Kate Salters, a senior researcher at the centre, said they worked with mechanical and chemical engineers to make sure the site is up to code and abidies by the highest standard of occupational health and safety.

“This is just another tool in our tool box to make sure that we’re offering life-saving services to those who are using drugs,” she said.

Montaner acknowledged the process to get the site up and running took “an inordinate amount of time,” but said the centre worked hard to follow all regulations.

“We feel that doing this right, with appropriate scientific background, in a medically supervised environment, etc, etc, allows us to derive the data that ultimately will be sufficiently convincing for not just our leaders, but also the leaders across the country and across the world, to embrace the strategies that we are trying to develop.” he said.

Montaner said building the facility was possible thanks to a single $4-million donation from a longtime supporter.

Construction finished with less than a week before the launch of the next provincial election campaign and within a year of the next federal election.

Montaner said he is concerned about “some of the things that have been said publicly by some of the political leaders in the province and in the country.”

“We want to bring awareness to the people that this is a serious undertaking. This is a very massive investment, and we need to protect it for the benefit of people who are unfortunately drug dependent.” he said.

This report by The Canadian Press was first published Sept. 18, 2024.

The Canadian Press. All rights reserved.

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N.B. election: Parties’ answers on treaty rights, taxes, Indigenous participation

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FREDERICTON – The six chiefs of the Wolastoqey Nation in New Brunswick distributed a survey on Indigenous issues to political parties ahead of the provincial election, which is scheduled to kick off Thursday. Here are some of the answers from the Progressive Conservative, Liberal and Green parties.

Q: How does your party plan to demonstrate a renewed commitment to recognizing our joint treaty responsibilities and acknowledging that the lands and waters of this territory remain unceded?

Progressive Conservative: The party respectfully disagrees with the assertion that land title has been unceded. This is a legal question that has not been determined by the courts.

Liberal: When we form government, the first conversations the premier-designate will have is with First Nations leaders. We will publicly and explicitly acknowledge your treaty rights, and our joint responsibility as treaty people.

Green: The Green Party acknowledges that New Brunswick is situated on the unceded and unsurrendered territories of the Wolastoqiyik, Mi’kmaq and Peskotomuhkati peoples, covered by the Treaties of Peace and Friendship. Our party is committed to establishing true nation-to-nation relationships with First Nations, grounded in mutual respect and co-operation as the treaties intended.

Q: How does your party propose to approach the issue of provincial tax agreements with First Nations?

Progressive Conservative: The government of New Brunswick operates in a balanced and fair manner with all organizations, institutions and local governments that represent the citizens of this province, including First Nations. Therefore, we cannot offer tax agreements that do not demonstrate a benefit to all citizens.

Liberal: Recent discussions with First Nations chiefs shed light on the gaps that existed in the previous provincial tax agreements with First Nations. Our party is committed to negotiating and establishing new tax agreements with First Nations that address the local needs and priorities and ensure all parties have a fair deal.

Green: The Green Party is committed to fostering a respectful relationship with First Nations in New Brunswick and strongly opposes Premier Blaine Higgs’s decision to end tax-sharing agreements. We believe reinstating these agreements is crucial for supporting the economic development and job creation in First Nation communities.

Q: How will your party ensure more meaningful participation of Indigenous communities in provincial land use and resource management decision-making?

Progressive Conservative: The government of New Brunswick has invested significant resources in developing a robust duty to consult and engagement process. We are interested in fully involving First Nations in the development of natural resources, including natural gas development. We believe that the development of natural gas is better for the environment — because it allows for the shutdown of coal-fired power plants all over the globe — and it allows for a meaningful step along the path to reconciliation.

Liberal: Our party is focused on building strong relations with First Nations and their representatives based on mutual respect and a nation-to-nation relationship, with a shared understanding of treaty obligations and a recognition of your rights. This includes having First Nations at the table and engaged on all files, including land-use and resource management.

Green: We will develop a new Crown lands management framework with First Nations, focusing on shared management that respects the Peace and Friendship Treaties. We will enhance consultation by developing parameters for meaningful consultation with First Nations that will include a dispute resolution mechanism, so the courts become the last resort, not the default in the face of disagreements.

This report by The Canadian Press was first published Sept. 18, 2024.

The Canadian Press. All rights reserved.

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Canadian Coast Guard crew member lost at sea off Newfoundland

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ST. JOHN’S, N.L. – A crew member of a Canadian Coast Guard ship has been lost at sea off southern Newfoundland.

The agency said in a release Wednesday that an extensive search and rescue effort for the man was ended Tuesday evening.

He was reported missing on Monday morning when the CCGS Vincent Massey arrived in St. John’s, N.L.

The coast guard says there was an “immediate” search on the vessel for the crew member and when he wasn’t located the sea and air search began.

Wednesday’s announcement said the agency was “devastated to confirm” the crew member had been lost at sea, adding that decisions to end searches are “never taken lightly.”

The coast guard says the employee was last seen on board Sunday evening as the vessel sailed along the northeast coast of Newfoundland.

Spokeswoman Kariane Charron says no other details are being provided at this time and that the RCMP will be investigating the matter as a missing person case.

This report by The Canadian Press was first published Sept. 18, 2024.

The Canadian Press. All rights reserved.

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