[Premium] Trump’s Tariff’s Will Force Israel to Choose Between India and China

With all the flack President Trump has received on his steel tariff’s from the MSM, most observers are missing the point of the decision. Trump understands that China and the USA are already engaged in economic warfare, with China winning.  The tariffs are designed to balance out China’s trade policy.

More important than the effects of the tariffs, the signal from the Trump administration is that China is essentially American enemy number one.  This has a tremendous effect across the world.  With alliances consolidating from the east to west, Trump is trying to nudge allies to make a decision.

Israel is not immune to this challenge.  Since the early 2000’s it has courted both India and China with tremendous success.  Of course India is seen as more important and has been raised to the level of a strategic ally, which places Israel in the middle of the Indo-Chinese rivalry.

Up until now, Israel has been able to stay neutral on issues of dispute between China and India, yet with the USA making China into enemy number one, Israel appears to be heading towards a crossroads.  Of course, the decision in many ways was helped along by China’s actions towards India and its support of Pakistan which is an enemy of India and adversary of Israel.  China’s disregard of civil rights, persecution of opposition dissent, and the now appointement of President Xi for life make Israel’s decision that much easier.

What About the Chinese Investment Potential

While its true Israel will have to do away with Chinese money, the investments China has made seem to be part of a larger strategy of control.  One just needs to ask Zambia on how their ability to have self determination has gone since the Chinese have taken over the copper and coal industry there.

Zambia Reports published the following a few days ago: “The Zambia Association of Timber and Forestry Based Industry has alleged that about 5,000 mukula laden containers from Zambia have been exported to China following the ban on the exportation of timber species in 2017.”

According to the report the government appears to be working with China to help illegally export the mukula.  Of course China loves to insist that it is positively investing in Zambia.

Israel has deftly avoided going down the same route as Zambia and although the lure of Chinese investments can be great, Jerusalem realized early on that dealing with China is like a drug that feels great in the beginning but can be deadly down the line.

Trump’s tariff decision has now begun to force the concretization of new alignments that have already been underway.  As the trade wars and potential direct conflicts between China and the USA heat up, look for even more increased partnerships between Israel and India and a dampening of Israel-Chinese relations.

 

Bibi Netanyahu: “This will be remembered by our people through the ages”




Prime Minister Netanyahu and President Donald Trump held their first meeting after Trump’s dramatic decision to recognize Jerusalem as Israel’s capital.  In opening remarks President Trump spoke about his decision on Jerusalem.

“No one could get past Jerusalem, we’ve taken it off the table,” adding that he believes the Palestinians intend to return to the negotiating table, “and if they don’t, there will be no peace.”

In connection to his potential arrival for the US Embassy opening in Jerusalem, the President said the following: “We’re looking at coming. If I can, I will, but I’ll be there again. Israel is very special to me.”

Prime Minister Netanyahu said the following:

“Thank you. Mr. President, Donald, Melania, Sara and I want to thank you for your extraordinary friendship and hospitality. It’s always a pleasure to see you both.

This is the first time we meet Washington, America’s capital, after you declared, Mr. President, Jerusalem as Israel’s capital. And this was a historic proclamation, followed by your bold decision to move the embassy by our upcoming national Independence Day.

I want to tell you that the Jewish people have a long memory, so we remember the proclamation of the great king, Cyrus the Great, Persian king 2,500 years ago. He proclaimed that the Jewish exiles in Babylon could come back and rebuild our Temple in Jerusalem. We remember a hundred years ago, Lord Balfour, who issued the Balfour Proclamation that recognized the rights of the Jewish people in our ancestral homeland. We remember 70 years ago, President Harry S. Truman was the first leader to recognize the Jewish state. And we remember how a few weeks ago, President Donald J. Trump recognized Jerusalem as Israel’s capital. Mr. President, this will be remembered by our people through the ages.

And as you just said, others talked about it; you did it. So, I want to thank you on behalf of the people of Israel, and I also look forward to our discussions on both challenges and opportunities.

If I had to say what is our greatest challenge in the Middle East to both our countries, to our Arab neighbors, it’s encapsulated in one word: Iran. Iran has not given up its nuclear ambitions. It came out of this nuclear deal emboldened, enriched. It’s practicing aggression everywhere, including on our own borders. And I think we have to stop this country that chants, “Death to Israel, death to America.” Iran must be stopped. That is our common challenge.

The second is seeking, because of that challenge, to exploit the opportunity for peace, because the Arabs have never been closer to Israel; Israel has never been closer to the Arab states. And we seek also to broaden that peace to the Palestinians.

So I look forward to those discussions, but I want to just reiterate what you just said: Mr. President, I’ve been here for nearly four decades with, talking, seeking to build the American-Israel alliance. Under your leadership, it’s never been stronger. And the people of Israel see your position on Jerusalem. They see your position on Iran. They see your magnificent defense of Israel and the truth in the United Nations. And I as prime minister see something that you as president see, but others can’t see. It’s the extent of our intelligence and other cooperation in matters that are vital for the security of both our peoples.

And Mr. President, I just want to say: Thank you for your leadership and thank you for your tremendous friendship”.

 

PACKERS CORNER: Purim, Bibi, and the Trump Peace Plan

Its been a very hectic week in the Middle East and especially in Israel. So its Purim tonight and by tomorrow and if you’re celebrating correctly then you won’t remember anything, so let’s get right into it.
In Syria, things continue to get crazier and crazier. Turkey is doubling-down in Afrin (northwest Syria) and now sending in special forces. The Kurds continue to hold tough and now have some help from Syrian Government forces. Meanwhile, in the northeast of Syria, America went for the full Purim attack on Russian mercenary forces and Syrian/Iranian forces, killing at least 200 and wounding something like 200 more – out of a force of approximately 500. The short story is that the US and their primarily Kurdish allies have carved out an autonomous region east of the Euphrates River. For some reason, the Syrians/Russians/Iranians decided that now would be the right time to try and seize some of those areas, especially where there is oil. It turns out that now was not the right time. Remains to be seen if there will be further effects from this incident that reverberate throughout Syria. Important to keep in mind that Bashar Assad, the President of Syria, still only controls about 50% of Syria, the rest being held by rebels and Kurds (with US backing). This one ain’t nearly over. Over 600 people killed near Damascus (the capital!!) in just the last week and a half!
Turning to Israel. Everything fell apart and then it didn’t, but it still could.
-The FOUR investigations against the Prime Minister continue with no end in sight. The fourth investigation (“case #4000”) was reported to be quite serious and then the judge and investigator were proven to be secretly coordinating their efforts. Big legal no-no. This one may be a dud as well. Too soon to say. Endless.
-Coalition trouble. Big fight between the Haredi parties and Avigdor Lieberman and his goons. The reason – a new draft law. When the Haredi parties joined the Government it was on condition that a new draft law be passed (previous one was struck down by the Supreme Court) that would protect yeshiva students from having to go to the army. Lieberman thinks the army should decide the perameters of the law. So far, no one has quit, or even threatened to quit, the Government. Theoretically, the Haredi-proposed law can pass without Lieberman and his party’s support and that’s likely what will happen.
-The Supreme Court today ruled to delay the destruction of the 15 houses in the Jewish Community of Netiv Ha’Avot in Gush Etzion (Judea/Southern West Bank) for another 3 months, giving time for temporary houses to be built for the families to live in until permanent houses are built nearby. How many permanent houses will be built? A new government decision has ordered the legalization of Netiv Ha’Avot and the building of 350 more homes there. The point of the “Peace Now” lawsuit was to destroy the Jewish Community there but it was switched around and the Community will now (legally) thrive!  Coincidence that it happens near Purim – not bloody likely.
Finally, just tonight reports are coming out supposedly revealing details of the Trump Administration’s soon-to-be-released peace plan. Already there are those condemning it and those saying the reports are not accurate. Could go any which way. Who knows at this point. Nothing new in the plan, at least how’s its being reported. More of the same and will most likely end up the same as well – dustbin of history.
And as it was then, so should it be now:
“Now in the twelfth month, which is the month Adar, on the thirteenth day of the same, when the king’s commandment and his decree drew near to be put in execution, in the day that the enemies of the Jews hoped to have rule over them; whereas it was turned to the contrary, that the Jews had rule over them that hated them;” (Esther 9:1)

Trump, Netanyahu and the Post-Oslo era

If the peace process ends, Netanyahu will present his own plan.

You wouldn’t know it from the news, but this week, the probability that Israel will apply its law to areas of Judea and Samaria rose significantly.

This week was first time that either Prime Minister Binyamin Netanyahu or the Trump administration ever addressed the possibility of Israel applying its law to areas of Judea and Samaria.

Lawmakers from Bayit Yehudi and the Likud have prepared separate bills on the issue. MK Bezalel Smotrich’s Bayit Yehudi party bill calls for Israel to apply its law to Area C – the parts of Judea and Samaria located outside Palestinian population centers.

The second bill, proposed by Likud MK Yoav Kisch, calls for Israel to apply its law to the Israeli communities in Judea and Samaria. The Likud’s central committee unanimously passed a resolution in December calling for the government to implement such a policy.

On Monday, Netanyahu met with the Likud Knesset faction to convince the lawmakers to postpone consideration of Kisch’s bill. Netanyahu gave two justifications for his position.

First, he said that he wants to discuss the issue with the Trump administration. Netanyahu explained, “On the topic of applying sovereignty [in Judea and Samaria], I can tell you that for some time now I have been discussing the issue with the Americans.”

Netanyahu continued, “Our relationship with them is a strategic asset to the State of Israel and the settlement enterprise.”

Netanyahu’s statement was very general. The media chose to interpret it to mean that Netanyahu was lobbying the Trump administration to support the application of Israeli law to parts of Judea and Samaria.

But that is not at all what he said. He said that he is discussing the issue with the Americans and that he wants to maintain the good relations Israel now enjoys with the Trump administration because those relations are a strategic asset for Israel.

The second guiding principle Netanyahu said inform his position on applying Israeli law to parts of Judea and Samaria contradicts the notion that he wants the Trump administration to adopt the cause of applying Israeli law in Judea and Samaria as an American position.

Netanyahu said he opposes Kisch’s bill because he believes that applying Israeli law to the Israeli communities in Judea and Samaria is “an historic undertaking.”

Netanyahu said, “This has to be a government initiative and not a private one, because this is a historic undertaking.”

Before considering the implications of Netanyahu’s second guiding principle, we need to examine carefully consider the US position on the issue.




Netanyahu’s general statement to the Likud Knesset faction provoked a media maelstrom. The outcry compelled the Trump administration to respond. The manner it responded to the media storm was instructive.

The administration’s first response came at the conclusion of Secretary of State Rex Tillerson’s meeting with Egyptian Foreign Minister Sameh Shoukry in Cairo. Tillerson was in Egypt on the first leg of his regional tour to Egypt, Jordan, Lebanon, Turkey and Saudi Arabia. Given his hosts’ opposition to President Donald Trump’s recognition of Jerusalem as Israel’s capital last December, the State Department was certainly not interested in having the US embroiled in Israeli discussions about applying Israel law to areas in Judea and Samaria.

And yet, in his media appearance, Tillerson ignored the issue. He told reporters, “The Trump administration remains committed to achieving a lasting peace agreement between the Israelis and the Palestinians.”

As the media storm in Israel and the region over Netanyahu’s remarks expanded with Palestinian condemnations of his statement, a senior diplomatic source in Jerusalem clarified Netanyahu’s remarks to reporters.

The senior diplomatic source explained that Netanyahu “has not presented the United States specific proposals for annexation, and the US has not expressed its agreement with any such proposal. Israel updated the US on the varying proposals that have been raised that the Knesset. The US expressed its clear position that it wishes to advance President Trump’s peace plan. Prime Minister Netanyahu’s position is that if the Palestinians maintain their refusal to negotiate, Israel will present its own alternative.”

This statement is the most revealing statement any senior official has made on the issue of applying Israeli law to areas of Judea and Samaria. The senior official told us several things we didn’t know.

First, Netanyahu plans to wait to present any new Israeli position on Judea and Samaria until after Trump presents his peace plan.
Second, Netanyahu will postpone consideration of any plan to present an independent Israeli initiative if the Palestinians agree to return to the negotiating table.

Finally, like Tillerson, the senior Israeli official did not say that the US opposes Israeli plans to apply Israeli law to parts of Judea and Samaria.

Later on Monday, in response to virulent criticisms of the US following Netanyahu’s remarks, the Trump administration stiffened its tone.

White House spokesman Josh Raffel issued what the media presented as a harsh rebuke of Netanyahu’s statement before the Likud Knesset faction members.

“Reports that the United States discussed with Israel an annexation plan for the West Bank are false, Raffel said.

“The United States and Israel have never discussed such a proposal, and the president’s focus remains squarely on his Israeli-Palestinian initiative.”

Did Raffel’s statement tell us anything new? Not really.

The senior diplomatic source said Netanyahu has updated the administration on the various proposals for applying Israeli law to areas of Judea and Samaria. He didn’t say Netanyahu held discussions with administration officials about the various proposals. And the senior diplomatic source said that the US remains committed to advancing Trump’s peace plan.

In other words, there is no inherent contradiction between Netanyahu’s statement at the Likud faction meeting, the statement by the Israeli senior diplomatic source, Tillerson’s statement and Raffel’s statement. None of them said that Israel is interested in having the US support applying Israeli law to Judea and Samaria. None of them said the Trump administration opposes applying Israeli law to Judea and Samaria.

They all said the Trump administration is committed to advancing its own peace plan.

The sense that the dispute between Netanyahu and the White House was more apparent than real was reinforced on Tuesday at the State Department press briefing.

State Department spokeswoman Heather Neuert had no response to the news that the Knesset passed legislation placing Ariel University under the auspices of the Council of Higher Education, instead of a designated special council that deals specifically with higher education institutions in Area C. Like everyone else, she restated the administration’s commitment to advancing its own peace plan.

And this brings us to the peace plan the administration is now preparing.

Diplomatic sources in Jerusalem say that Netanyahu has presented two positions that he believes must be incorporated in any peace plan to ensure that the plan, if implemented will produce peace rather than war.

First, Netanyahu insists that the Palestinians must recognize Israel’s right to exist.

Second, Netanyahu insists that Israel must maintain permanent control over the eastern border with Jordan.

These goals are eminently reasonable. Israel cannot share sovereignty west of the Jordan River with an entity that rejects its right to exist. So any peace deal must involve Palestinian acceptance of the Jewish state’s right to exist.

By the same token, even in an era of peace, Israel cannot surrender its ability to defend itself. Since Israel cannot defend itself without perpetual control over the Jordan Valley, Israel cannot sacrifice its control over the Jordan Valley. Any deal Israel strikes with the Palestinians that does not include perpetual Israeli control over the Jordan Valley is a recipe for war.

If Trump accepts Netanyahu’s position and incorporates it into his peace plan, then as far as Netanyahu is reportedly concerned, the negotiations can begin in earnest.

On the other hand, if the Palestinians refuse to accept these conditions, then the peace process will be over.

And if the peace process ends, Netanyahu will present his own plan. That plan, apparently will look a lot like the Likud central committee’s plan to apply Israeli law over the Israeli communities in Judea and Samaria.

Rather than supporting someone else’s bill, Netanyahu will present the plan to the cabinet for approval and then introduce it as a bill to the Knesset, just as then prime minister Menachem Begin applied Israeli law to the Golan Heights in 1981.

While all of these developments may appear odd, we have been here before.

In many ways, the situation today recalls the situation in 1992. In 1992, the US was sponsoring peace talks between Israel and its Arab neighbors in Washington. Without informing the Americans, after taking office in 1992, the government of Yitzhak Rabin and Shimon Peres began carrying out secret talks with the PLO under the auspices of the Norwegian government in Oslo.

After the first Oslo deal was concluded in August 1993, Rabin sent Peres and then-Foreign Ministry legal adviser Joel Singer to the US to brief then-secretary of state Warren Christopher on the agreement. Rabin hoped Christopher would agree to present the deal as an American peace plan. Rabin believed that the Israeli public would be more supportive of a deal with an American imprimatur.

In a 1997 interview with Middle East Quarterly, Singer described the meeting with Christopher. Singer recalled that as Christopher read the agreement for the first time, a shocked look came over his face. “His lower jaw dropped, and for the first and last time in my life, I saw Warren Christopher smile.”

But Christopher rejected Rabin’s request, all the same.

“Secretaries of state are not supposed to lie,” he told Peres and Singer.

Just as the Clinton administration was not willing to take the lead on a new strategic trajectory that placed Israel and the PLO on equal footing, so the Trump administration is not willing to initiate a new post-Oslo Middle East.

That is Israel’s job today just as it was Israel’s job in 1993.

A close reading of Netanyahu’s statement to the Likud Knesset faction makes clear that he understands this basic truth. And a close reading of the statements and counter-statements from Jerusalem and Washington following his briefing to the Likud Knesset faction indicates that if and when Netanyahu embarks on a new course, like Bill Clinton and Warren Christopher in 1993, Trump and his advisers will not stand in his way.