The EU-US deal on steel and aluminium is another interesting development. On October 30, 2021, the United States and the European Union ended a dispute inherited from the Trump-era, removing tariffs on imports of EU steel and aluminum that were imposed by the former president’s administration in 2018. The issue was still poisoning the transatlantic relationship (after the truce in the Airbus-Boeing case last June). The trade agreement addresses both Chinese overproduction and carbon intensity in the steel and aluminum sector. Such climate and social dimensions in trade rules are viewed as a form of enhanced partnership against Beijing. But does this agreement really signal a new tool in the global quest for sustainability and the transition to climate neutrality? At the very least, it does offer interesting possibilities, including the two possible expansion avenues already under consideration: turning towards comparable economies, in the form of a "climate club", and developing regulatory amendments to promote the ecological transition of developing economies.
This second aspect, helping least developed countries transition to renewables, is also highlighted among the many agreements signed at COP26, following the G20. The transatlantic initiative to help the South African energy sector speed up its exit from coal is another success, and a further step in the transatlantic agenda related to China's New Silk Road. Similarly to the US-EU Global Methane Pledge, this type of partnership points to the dynamism of renewed pragmatic multilateralism, tailored to our era where climate and strategic competition are clear priorities.
A China-US truce?
The joint declaration by Washington and Beijing on the implementation of the Paris Agreement was another surprise that came out of COP26. While not a "success" in any way, it still speaks to a joint desire to reduce tensions and re-establish communication - through a top-down impulse coming from both nations’ leaders. In October 2021, a historic sale of American gas to China eased trade hostility, as did two long meetings. This led to a virtual summit on November 15, 2021, between Joe Biden and Xi Jinping, during which each side restated its red lines and attempted to stabilize the relationship. Such a result could have only come out of a discussion between these two heads of state.
The next day, in a briefing at the Brookings Institution, US National Security Adviser Jake Sullivan explained in a readout that the main goal was to avoid misjudgments which could lead to open confrontation, but also to clarify areas of coordination between the 21st century’s main superpowers. Within a framework of open economic competition, the "old friends"- Xi Jinping’s chosen words of greeting to Joe Biden - talked about the energy crisis, the pandemic and the US-China Phase One trade agreement signed under Trump’s administration. There were also talks regarding Iran, North Korea and Taiwan, and reiteration of red lines on both sides. The current energy crisis was a big part of the discussion.
Or the official start of the new Cold War?
This exchange, followed by rumors of an American boycott of the 2022 Beijing Olympics the next day, can also be interpreted as an official starting point of a "Second Cold War", defined as a state of permanent global competition between two superpowers vying for power and influence, each attempting to contain the other globally. A "Second Cold War" would not be identical to the first Cold War between the United States and the Soviet Union.
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