Latest news with #Non-ProliferationTreaty
Business Recorder
2 days ago
- Business
- Business Recorder
Sanctions eroding USD's global reach
History may hold US President Donald Trump responsible for undermining the pervasive influence of his country in several international agencies dating back to when the US was the sole superpower - from 1989 subsequent to the collapse of the Soviet Union roughly around 2017: World Trade Organisation (WTO) by raising tariffs on all imports into the US, North Atlantic Treaty Organisation (insisting on greater equality in contributions by member countries and threatening to revisit Article 5 which stipulates that all member countries will come to the assistance of a member if attacked), and International Atomic Energy Agency (by bombing nuclear sites in Non-Proliferation Treaty signatory Iran thereby taking away the protection implicit to signatories). But what President Trump cannot be solely held responsible for is the global momentum towards de-dollarisation mainly due to the overuse of sanctions by administrations dating back to 2000, including his own first term. Sanctions have become the tool of first resort for American presidents, which has compelled heavily sanctioned countries to consider trading in a currency other than the dollar through a messaging/transfer system that is not hostage to US-led sanctions. The Society for Worldwide Interbank Financial Telecomm unication (SWIF T) was founded in 1973, essentially to replace telex, and has since become a global provider of secure financial messaging services. It is headquartered in Belgium and is a member owned cooperative connecting 11000 banks, financial institutions and corporations in more than 200 countries/territories and is overseen by G-10 banks — Belgium, Canada, France, Germany, Italy, Japan, Netherlands, Sweden, Switzerland, UK, and USA – countries defined as the West, unequivocally led by the US. In 2006-07, SWIFT allowed financial institutions to comply with FATF SR VII (fighting terrorist financing by mentioning more detailed information about the payment ordering customer). SWIFT then began to liaise closely with Financial Action Task Force to combat money laundering and terror related financing by providing information and data and worked with the US Treasury's terrorist finance tracking program. In 2010 financial institutions began to include underlying customer information; and to comply with sanction laws, increasingly used by the US-led West as a foreign policy tool. However, SWIFT maintained that compliance rested with financial institutions and competent authorities and that it did not arbitrarily select which jurisdiction's sanctions to follow but because it is incorporated in Belgium it complies with related European Union regulation, confirmed by the Belgium government. In 2012, twenty-nine years after SWIFT was founded, it's framework was reviewed, and a SWIFT Oversight Forum was established in which the G-10 banks were joined by ten other central banks from major economies: Reserve Bank of Australia, People's Bank of China, Hong Kong Monetary Authority, Reserve Bank of India, Bank of Korea, Bank of Russia, Saudi Arabian Monetary Agency, Monetary Authority of Singapore, South African Reserve Bank and Central Bank of the Republic of Turkey. The influence of the Bank of Russia, sanctioned by the US, is non-existent, given that Western banks have frozen the 300 billion dollars of Russian reserves they held and appropriated the interest and on-lent it to Ukraine. Notwithstanding SWIFT's claims of neutrality three subsequent decisions allowed the US-led West to determine which country or entity was to be sanctioned, and the selection in at least three cases, notably Iran, North Korea and Russia, mirrored US foreign policy thrust. In 2012, pursuant to international and multilateral action to intensify financial sanctions against Iran, EU regulation 267/2012 was passed – a regulation that prohibited SWIFT from providing service to EU sanctioned Iranian banks. In March 2016 SWIFT restricted access of North Korean banks, reportedly due to UN sanctions and concerns about their role in illicit activities. And in 2022, two days after the Russian invasion of Ukraine, at Ukraine government's request, SWIFT disconnected all designated Russian entities and their Russian based subsidiaries/entities as well as Belorussian and the country's designated subsidiaries from SWIFT Network in compliance with the EU Council Regulation (765/2006). Today 1400 financial institutions in over 100 countries use CIPS which relies on SWIFT's messaging service for over 80 percent of its transactions. It uses SWIFTs standard for syntax in financial messages as those formatted to SWIFT standards can be read and processed by many well-known financial processing systems, whether or not the message travelled over the SWIFT network. Be that as it may, due to digital real time transfer of funds, SWIFT is unlikely to remain the primary source of money transfer for long. China overtook the US in purchasing power parity (PPP) nine years ago in 2016, and by 2022 the International Monetary Fund (IMF) rated the Chinese economy in PPP terms to be 23 percent larger than the US, the World Bank rated it 19.8 percent larger than the US and even the CIA considered China larger by 16 percent. No doubt fully cognizant of its growing economic power, in 2015 Peoples Bank of China launched a Cross Border Interbank Payment System (CIPS) to (i) facilitate international Renmibi transactions; (ii) provide real time clearing and settlement; and (iii) operate independently and alongside SWIFT. It is a matter of time that with the rising rivalry between China and the US, CIPS may delink from SWIFT sooner rather than later. In 2021 Shaikh Muhammad Shariq, Chief Representative of the National Bank of Pakistan, while addressing the Pakistan Investment Forum and the Cross-border E-commerce Conference held in Pakistani Embassy Beijing noted that 'ICBC and Bank of China, Karachi branches are providing CNY clearing & settlement services in Pakistan. ICBC Karachi branch has also obtained the direct participation qualification of the first cross-border CNY clearing mechanism of CIPS in South Asia to facilitate and ensure quick and smooth CNY clearing to improve bilateral trade.' Another emerging platform, BRICS (Brazil Russia India China South Africa), has begun talks on replacing the dollar and developing an alternate payment system bypassing SWIFT and reducing reliance on Western financial institutions. This demand is not only from the sanctioned countries but also other countries grappling with Trump tariffs, demand to curtail economic and trade relations with China and last but not least due to the ongoing de-dollarization of the global economy. In 2021, the Atlantic Council concluded that sanctions have a poor record, rarely change a target's behaviour and often generate negative unintended consequences, and urged US policymakers to focus on whether sanctions are likely to produce the desired result rather than simply serving as a tool to signal displeasure. That exhortation has yet to resonate with the Trump administration and the threat of punitive sanctions against Russia in 50 days, unless it agrees to the terms of a ceasefire dictated by the US, would generate secondary sanctions (defined as those countries that continue to trade with Russia). Neither Russia nor its major trading partners, China, Brazil and India, appear to be concerned with China's s Xi Xinpeng dismissing the threat by stating that China would deepen its ties with Russia. To conclude, Pakistan's trade with Russia is less than one billion dollars while our trade with the US is around 3 billion dollars, less than 4 percent of the sum of our exports and imports, however the US exercises tremendous influence over all multilateral institutions (barring the Infrastructure Bank set up by China) – institutions from which Pakistan borrows heavily to avert the existing looming threat of default (ironically since 2019 even China has shown a reluctance to extend rollovers to Pakistan without being on a rigidly monitored IMF programme) and hence the threat of secondary sanctions by the US are going to play a key role in the country's decision to trade with Russia. Copyright Business Recorder, 2025
GMA Network
5 days ago
- Politics
- GMA Network
DFA lowers security alert for Pinoys in Iran
The Department of Foreign Affairs (DFA) downgraded Friday its travel alert for Filipinos in Iran, citing "positive developments" on the security situation in the Middle East state. Level 2 or Restriction Phase takes effect immediately, the DFA said. Manila enforced Alert Level 3, offering voluntary repatriation for Filipinos, last month due to alarming exchange of missile attacks between Iran and its long-time enemy Israel. Deployment of workers and unnecessary travel were likewise suspended. Despite the lowering of the alert level, the Philippine Embassy in Tehran will continue facilitating the voluntary repatriation of Filipinos, the DFA said. "The Department will closely monitor the situation in the region and will update the alert levels, as necessary," it added. Israel began attacking Iran last June 13, saying the country was on the verge of developing nuclear weapons. Iran, which retaliated with missile and drone strikes against Israel, denied the accusation, noting its nuclear program is for peaceful purposes as a party to the international Non-Proliferation Treaty. After a week of hostilities, US bombed Iran's key nuclear facilities—Natanz, Isfahan and Fordow—and called the strikes a "spectacular military success." A ceasefire was declared on June 24, but the Philippines, which has more than a million Filipino workers in the Middle East, called for continued deescalation of tensions and urged concerned parties to pursue diplomacy. Around 30,000 mostly Filipino caregivers are based in Israel and over 1,100 in Iran. — VDV, GMA Integrated News
Korea Herald
15-07-2025
- Politics
- Korea Herald
Presidential office plays down defense nominee's remarks on OPCON transfer
President Lee Jae Myung's office moved to clarify the administration's position on wartime control of the country's military Tuesday, after the nominee for defense chief, Democratic Party of Korea Rep. Ahn Gyu-back, painted taking full charge of operational control as a key goal. Speaking at a National Assembly hearing on his nomination as defense minister, Ahn said retrieving wartime operational control of the South Korean military from the US-led combined forces was a goal of the Lee administration. "We are aiming to complete the transition (of wartime OPCON) within the Lee administration's term of office," Ahn said in response to a question by People Power Party Rep. Yoon Sang-hyun. The presidential office said however the idea of wartime OPCON transfer within Lee's term office of five years was Ahn's "personal view," and that no deadline has been set. Asked about the projected increase in defense spending once South Korea took full charge of wartime OPCON, Ahn replied, "It depends on the study, but I think it's around 21 trillion won." Reclaiming wartime control of the Korean military, a longtime Democratic Party agenda, was one of Lee's policy pledges as a presidential candidate, although he did not provide a specific timeline on when that might be achieved. Former President Moon Jae-in of the Democratic Party had also sought to retake wartime control authority under the pretext of reducing Korea's reliance on the US for self-defense. At the hearing, Ahn drew the line on South Korea possibly developing nuclear latent capabilities. Nuclear latency is a state of having the technology and infrastructure necessary to build a nuclear weapon without necessarily owning one. Ahn also said that Seoul should always keep a wary eye on Pyongyang. "North Korea hasn't changed since the Korean War. We must always view the North with a question mark in mind, regardless of which administration is in power, but also remember that they are our fellow countrymen," he said. Ahn's remarks on Tuesday build on his interview with The Korea Herald on April 24, when he was chief special adviser to then-presidential runner Lee and already widely speculated to be his top choice for defense chief. In the interview, Ahn said that he believes South Korea should have full control of its military in peacetime and during war. Depending on the US for the country's own defense was turning South Korea's armed forces into a "mommy's boy," he said. Ahn also said in the interview that South Korea's falling out of the Non-Proliferation Treaty to cultivate nuclear capabilities was "not an option."
Korea Herald
15-07-2025
- Politics
- Korea Herald
Lee's defense nominee says wartime OPCON return a key goal
President Lee Jae Myung's nominee for defense chief, Democratic Party of Korea Rep. Ahn Gyu-back, said Tuesday that retrieving wartime operational control of the South Korean military from the US-led combined forces is a goal of the Lee administration. "We are aiming to complete the transition (of wartime OPCON) within the Lee administration's term of office," Ahn said at a National Assembly hearing on his nomination in response to a question by People Power Party Rep. Yoon Sang-hyun. Asked about the projected increase in defense spending once South Korea took full charge of wartime OPCON, Ahn replied, "It depends on the study, but I think it's around 21 trillion won." Claiming wartime control of the Korean military was one of Lee's policy pledges as a presidential candidate, and has been a longtime Democratic Party agenda. Former President Moon Jae-in of the Democratic Party had also sought to retake wartime control authority under the pretext of reducing Kore's reliance on the US for self-defense. At the hearing, Ahn drew the line on South Korea possibly developing nuclear latent capabilities, which would mean having the technology and infrastructure necessary to build a nuclear weapon without necessarily owning one. Ahn also said that Seoul should always keep a wary eye on Pyongyang. "North Korea hasn't changed since the Korean War. We must always view the North with a question mark in mind, regardless of which administration is in power, but also remember that they are our fellow countrymen," he said. Ahn's remarks on Tuesday build on his interview with The Korea Herald on April 24, when he was chief special adviser to then-presidential runner Lee and already widely speculated to be his top choice for defense chief. In the interview, Ahn said that he believes South Korea should have full control of its military in peacetime and during war. Depending on the US for the country's own defense was turning South Korea's armed forces into a "mommy's boy," he said. Ahn also said in the interview that South Korea falling out of the Non-Proliferation Treaty to cultivate nuclear capabilities was "not an option."
Bangkok Post
13-07-2025
- Politics
- Bangkok Post
Iran says cooperation with UN nuclear watchdog will take 'new form'
TEHRAN - Iran said Saturday its cooperation with the International Atomic Energy Agency "will take on a new form", expressing a desire for a diplomatic solution to resolve concerns over its nuclear programme. Iran's 12-day war with Israel last month, sparked by an Israeli bombing campaign that hit military and nuclear sites as well as residential areas, rattled its already shaky relationship with the UN nuclear watchdog. The attacks began days before a planned meeting between Tehran and Washington aimed at reviving nuclear negotiations, which have since stalled. Foreign Minister Abbas Araghchi said on Saturday that Iran's cooperation with the IAEA "has not stopped, but will take on a new form", after the Islamic republic formally ended cooperation with the UN watchdog in early July. Iran has blamed the IAEA in part for the June attacks on its nuclear facilities, which Israel says it launched to prevent Iran from developing a nuclear weapon -- an ambition Tehran has repeatedly denied. The United States, which had been in talks with Iran since April 12, joined Israel in carrying out its own strikes on June 22, targeting Iranian nuclear facilities at Fordo, Isfahan and Natanz. Araghchi said requests to monitor nuclear sites "will be reviewed on a case-by-case basis... taking into account safety and security issues", and be managed by Iran's Supreme National Security Council. - 'Assurances'- In early July, a team of IAEA inspectors left Iran to return to the organisation's headquarters in Vienna after Tehran suspended cooperation. The talks were aimed at regulating Iran's nuclear activites in exchange for the lifting of economic sanctions. Before agreeing to any new meeting, "we are examining its timing, its location, its form, its ingredients, the assurances it requires", said Araghchi, who also serves as Iran's lead negotiator. He said that any talks would focus only on Iran's nuclear activities, not its military capabilities. "If negotiations are held... the subject of the negotiations will be only nuclear and creating confidence in Iran's nuclear programme in return for the lifting of sanctions," he told diplomats in Tehran. "No other issues will be subject to negotiation." Araghchi also warned that reimposing UN sanctions could eliminate Europe's role in the process. - Enrichment - "Such measures would signify the end of Europe's role in the Iranian nuclear dossier," Araghchi said. A clause in the 2015 nuclear agreement, which US President Donald Trump withdrew from during his first term, allows for UN sanctions to be reimposed if Iran is found to be in breach of the deal. Araghchi stressed that any new nuclear deal must uphold Iran's right under the Non-Proliferation Treaty to enrich uranium for peaceful purposes. "I would like to emphasise that in any negotiated solution, the rights of the Iranian people on the nuclear issue, including the right to enrichment, must be respected," he said. "We will not have any agreement in which enrichment is not included." Russian Foreign Minister Sergei Lavrov said at the BRICS summit in Rio on Monday that Moscow would remain a committed ally of Iran and support its nuclear programme.
