conflict + nafta

conflict between countries - background + key players

South China sea

The South China Sea is a strategically significant body of water bordered by several countries, including China, Vietnam, the Philippines, Malaysia, Brunei, and Taiwan. It is rich in natural resources, such as fish and hydrocarbons, and serves as a crucial maritime trade route, with an estimated one-third of global shipping passing through its waters.

Ongoing territorial dispute in the South China Sea, particularly between China and neighbouring countries, such as Vietnam and the Philippines. The dispute involves conflicting territorial claims over various islands, reefs, and waters within the region.

Key Players:

-          China: Asserts historical claims over the majority of the South China Sea, demarcated by the "nine-dash line," which encompasses approximately 90% of the area.

-          Vietnam: Claims sovereignty over the Paracel and Spratly Islands, citing historical evidence and proximity to its coastline.

-          Philippines: Asserts territorial rights over the Spratly Islands and Scarborough Shoal, contesting China's expansive claims.

-          Other Claimants: Malaysia, Brunei, and Taiwan also have overlapping claims in the region, contributing to the complexity of the dispute.

south china sea timeline

-          Historical Context: The territorial dispute traces back to historical claims and occupations of islands and features within the South China Sea by various nations.

-          Modern Developments: Tensions escalated in the late 20th and early 21st centuries as China began asserting its claims more aggressively, reclaiming land and constructing artificial islands for military purposes.

-          Legal Challenges: In 2016, an international tribunal ruled in favour of the Philippines, invalidating China's expansive claims based on the United Nations Convention on the Law of the Sea (UNCLOS). However, China rejected the ruling, asserting its historical rights.

-          Military Posturing: Naval and coast guard vessels from China and neighbouring countries frequently patrol disputed waters, leading to encounters and occasional clashes.

-          Economic Stakes: The South China Sea is rich in oil and natural gas reserves, making it a valuable economic asset. Exploration and exploitation activities by various claimants further fuel tensions.

-          Diplomatic Efforts: International organizations, such as ASEAN (Association of Southeast Asian Nations), have attempted to facilitate negotiations and promote a Code of Conduct for parties involved in the dispute. However, progress has been slow due to diverging interests and historical grievances.

south china sea - stats

-          The South China Sea covers an area of approximately 3.5 million square kilometers.

-          It is estimated to contain proven oil reserves of around 7.7 billion barrels and natural gas reserves of about 190 trillion cubic feet.

-          Over $5 trillion in global trade passes through the South China Sea annually.

-          China has reclaimed over 3,200 acres of land in the Spratly Islands since 2013, constructing military facilities and airstrips.

-          The Philippines filed a case against China at the Permanent Court of Arbitration in The Hague in 2013, challenging the legality of its claims under UNCLOS.

conflict within a country - background and key players

yamal

Yamal, is an autonomous region located in the Russian Arctic. It is known for its vast natural resources, including extensive gas reserves, which have attracted significant investment and development projects in recent years. However, the region is also characterized by stark inequalities in power and resources, particularly between indigenous communities and external stakeholders.

Key Players:

-          Indigenous Communities: Primarily composed of the Nenets people, indigenous communities in Yamal have traditionally relied on reindeer herding and fishing for their livelihoods. They possess traditional knowledge of the land and have a deep connection to their ancestral territories.

-          Government Agencies: The Russian government, through its various agencies and administrative bodies, plays a significant role in governing the Yamal region, implementing policies, and regulating resource extraction activities.

-          Energy Corporations: Major energy corporations, including Gazprom, operate extensively in Yamal, exploiting its vast gas reserves through large-scale extraction projects and infrastructure development.

yamal - timeline

-          Historical Exploitation: Historically, indigenous communities in Yamal have faced marginalization and exploitation by external actors, including forced resettlement, cultural assimilation policies, and environmental degradation due to resource extraction activities.

-          Gas Development Boom: In the early 2000s, the discovery of extensive gas reserves in Yamal sparked a wave of development projects led by energy corporations, resulting in the construction of pipelines, drilling rigs, and processing facilities across the region.

-          Land Disputes: Indigenous communities have raised concerns about the encroachment of gas infrastructure on their traditional territories, leading to disputes over land rights, compensation, and environmental impacts.

-          Socioeconomic Disparities: Despite the economic benefits generated by gas development, indigenous communities continue to face socio-economic challenges, including limited access to education, healthcare, and employment opportunities.

-          Environmental Concerns: Gas extraction activities have raised environmental concerns, including habitat destruction, pollution, and disruption of migratory routes for reindeer herds, upon which indigenous livelihoods depend.

-          Limited Participation: Indigenous communities often have limited opportunities to participate in decision-making processes related to resource management and development projects, leading to a lack of meaningful consultation and consent.

 

yamal - statistics

-          Yamal accounts for approximately 20% of Russia's natural gas production, with estimated reserves of over 16 trillion cubic meters.

-          The Nenets Autonomous Okrug, where Yamal is located, has a population of around 550,000 people, of which approximately 10% are indigenous Nenets.

-          Reindeer herding is a traditional livelihood for many indigenous families in Yamal, with over 300,000 reindeer managed by Nenets herders.

-          Gazprom's Yamal megaproject, including the Bovanenkovo gas field and the Yamal Peninsula infrastructure, represents an investment of over $50 billion.

-          Gazprom (the Russian corporation) is developing the region, known as the Yamal Megaproject it was initiated in the 1990s and the first gas supplies were produced in 2012. It includes:

o   A 570km railway opened in 2011

o   16 trillion cubic metres of gas

o   Over 2500 pipelines to transport the gas

o   Development of an aviation network

-          Impacts of megaproject

o   Nearly 30 fisheries of the river Ob have been destroyed

o   Destroyed over 64000km² of tundra in ten years of exploration

o   Reindeer migratory routes disrupted

o   Fishing stocks declines as spawning grounds have been polluted

nafta - background + aims

-          Came into place in 1994 to ensure free trade between USA, Canada and Mexico

-          Over the first 20 years of its existence, it resulted in a 400% increase in trade

-          Main driver was challenge presented by trade blocs from other parts of the world particularly Europe

-          Mexico was in debt in the 1970s and 80s and hoped econ growth  + higher employment would result from NAFTA

-          Main aims

o   Gradual elimination of all trade barriers

o   Improvement of working conditions

o   Expansion of global trade and cooperation

nafta pros

o   Trade between member countries tripled between 1993 and 2007

o   Manufacturing grew in USA, with increased employment

o   Mexico received increased FDI ( as TNCs could gain access to NAFTA trading partner markets)

nafta cons

o   some Canadian companies closed because of competition from lower-cost US firms

o   Some US firms have moved to Mexico reducing jobs in USA

o   Food surpluses from USA and Canada could be dumped in Mexico, reducing food prices and affecting the agricultural economy there

o   The growth of US-owned, labour intensive, export-orientated companies (maquiladoras) on the Mexican border keeps wage rates down

o   Mexico could be exploited because of its natural resources and less stringent pollution laws

-          Replaced by USMCA which came into effect in 2020