Nicaragua election criticism will not shake Ortega

Significance The outcome comes as little surprise, given the repressive tactics used by the Ortega administration in the run-up to the vote, which included the disqualification or imprisonment of numerous opposition candidates. The United States and other international actors are now poised to put increased pressure on the re-elected government. Impacts The prospect of extended sanctions will act as a further disincentive to foreign investment. Ortega’s efforts to boost regional support through increased alignment with Honduras may lead to greater bilateral trade. More undocumented Nicaraguan migration looks inevitable, whether due to continuing political repression or worsening economic hardship.

Significance The deal reached between Iran and the P5+1 negotiating group (UN Security Council permanent members plus Germany) on July 14 promises to end most sanctions on the country, in return for suspension and monitoring of its nuclear programme. If ratified by all parties, it will create opportunities for an expansion of Iran's gas production and exports. Iran is the holder of the world's largest gas reserves, according to BP estimates. It is also the third-largest producer (after the United States and Russia, and probably having overtaken Qatar during 2015), and the fourth-largest consumer. Impacts Iran could increase gas exports by advancing projects stalled by sanctions, although most of these will take some years to come to fruition. Iran would seek to attract foreign investment into its gas industry to increase production and exports in the longer term. If this occurs, Iran will compete with other gas exporters, particularly Russia, into the 2020s.


Significance Mali’s economy has suffered a double blow in recent months from ECOWAS sanctions and the COVID-19 pandemic, amidst political turbulence and ongoing insecurity. The country ranks 184th out of 189 countries, according to the most recent Human Development Index. Impacts Economic hardship could lead to renewed unrest. Labour unions are already ratcheting up pressure; several are planning to strike from October 19 over pay and working conditions. The transition may allow the resumption of development aid, although the United States has suspended military aid until elections.


2020 ◽  
Vol 21 (2/3) ◽  
pp. 143-149
Author(s):  
Sonali Dohale ◽  
Kara M. Bombach ◽  
Cyril T. Brennan ◽  
Renée A. Latour ◽  
Axel S. Urie

Purpose The article examines the sweeping changes to the review process undertaken by Committee on Foreign Investment in the United States (CFIUS) as a result of the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA). The Article specifically reviews the long-awaited final sets of regulations, effective as of February 13, 2020, and analyzes their impact on the CFIUS process, as well as considers the implications of FIRRMA for parties to foreign acquisition, control, and investment transactions. Design/methodology/approach The Article begins with an overview of the CFIUS framework and a general explanation of FIRRMA. It then moves to an analysis of FIRRMA and the resulting changes to the prior CFIUS regime. The Article concludes with general considerations and provides recommendations for parties who may find themselves analyzing the potential applicability of CFIUS to foreign acquisition and investment transactions. Findings FIRRMA resulted in significant changes to the existing CFIUS regulatory framework. Practical implications Parties should learn the CFIUS changes as a result of FIRRMA, including the new mandatory filing requirements as well as implications for non-controlling investment transactions. Parties should include CFIUS analysis and planning in the earliest stages of deal planning and due diligence. Originality/value The article provides an in-depth review of the changes to CFIUS resulting from FIRRMA. The changes to the existing CFIUS landscape have resulted in new mandatory filing requirements and expanded jurisdiction over non-controlling investment and real estate transactions, which are discussed in the article.


Subject The threat to North Korea's political stability were supreme leader Kim Jong-un to die. Significance Seoul and Beijing both insist all is normal in North Korea, contrary to unattributed news reports -- which the United States and others are monitoring -- that supreme leader Kim Jong-un is gravely ill after heart surgery. Last seen on April 11, Kim missed a key anniversary on April 15. Impacts March was a record month for missile tests, but all were small; intercontinental ballistic missile or nuclear tests are too risky for now. A COVID-19 epidemic would dent lingering hopes of life improving under Kim. New prestige projects with tight deadlines will impose additional hardship. Despite sharply reduced bilateral trade, China will use back channels to ward off risk of regime collapse.


Significance US-China trade frictions, centring chiefly on disagreements over technology, intellectual property and the bilateral trade balance, are causing international market uncertainty. One US response to concerns about trading with China has been to expand the remit of the Committee on Foreign Investment in the United States (CFIUS), which evaluates investments into the United States from abroad. Impacts CFIUS expansion has bipartisan support and will continue regardless of the winner of the 2020 presidential election. The CFIUS intervened when a Chinese firm bought a US dating app, perhaps a precedent for seemingly non-security related investments. The CFIUS does not cover non-acquiring business partnerships or joint ventures, but general political pressure could curtail these.


Subject Chinese investment in the United States. Significance The Foreign Investment Risk Review Modernization Act (FIRRMA) enacted on August 13 expands the remit of the Committee on Foreign Investment in the United States (CFIUS), which reviews incoming foreign investment deals for possible national security implications. China is the implicit target. Since its peak of 46 billion dollars in 2016, Chinese direct investment in the United States has steadily declined, falling to 29 billion dollars in 2017 and dropping another 90% year-on-year in the first half of 2018. Impacts Uncertainty regarding new US regulations will hold some Chinese investors back from entering the market. Chinese businesses will face greater pressure from US policymakers and regulators to clarify their relationship with the Communist Party. Chinese investments in ICT, semiconductors and other advanced technologies will come under sustained scrutiny from US regulators. Chinese greenfield investments might increase as investors seek ways around tariffs and the Trump administration seeks to create jobs.


Subject Trade in pharmaceuticals and narcotics between China and the United States. Significance The flow of drugs between China and the United States -- both legal and illegal -- has a huge impact on each society, especially those going from China to the United States. Leaders in both countries have consciously sought to separate the bilateral trade and trafficking of drugs from their trade war. Impacts Although US pharmaceuticals firms should avoid tariffs on their products, tariffs may affect other areas of their supply chain. Other producers of pharmaceutical products, such as India, could benefit from any active US effort to diversify sources. If China were successfully to curb fentanyl production, production would probably shift to another country with lighter regulation.


Subject The implications for China of Donald Trump's election as US president. Significance Donald Trump was elected president of the United States on November 8, after a campaign in which he blamed China's trade policy for damaging US industry. He threatened trade sanctions on China, but also questioned the value of US military alliances with countries on its periphery. Impacts Beijing's first priority will be preventing a showdown on bilateral trade. Isolationism in the United States would free China's hand in dealing with maritime disputes. Climate change 'denial' is not an issue in China, so here Washington will vacate the moral high ground to Beijing. Stalled progress in the Trans-Pacific Partnership leaves the China-backed Regional Comprehensive Economic Partnership as the alternative.


Subject Outlook for the government of President Juan Orlando Hernandez. Significance On November 7, in a move that opposition figures claim is unconstitutional, President Juan Orlando Hernandez announced his intention to run for re-election in 2017. The announcement follows allegations relating to Hernandez's brother, that have highlighted links between senior figures in public life and a leading drug cartel. This risks undermining relations with the United States, and compounds controversy over the president's re-election bid. Impacts Hernandez may succeed in distancing himself from allegations of Cartel del Atlantico influence in public life. Presidential re-election may well be in the interests of a range of political actors. Increased government spending will drive higher growth in the run-up to next year's election.


Significance Several French industries have proclaimed low-carbon ambitions but outcomes have been modest: ‘green’ finance is still embryonic and there has been little progress on key decisions such as halting subsidies to fossil fuels. Moreover, France’s energy and climate transition is set to slow, undermining its efforts on the global scene. Impacts Pressure on countries such as Germany to phase out coal will rise. Private-sector and sub-national climate engagement in the United States may increase. The issue of the extent to which developed and developing countries should be treated differently may cause conflict in the run-up to COP24.


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