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Trump Needs a Tough North Korea Deal

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  • Trump Needs a Tough North Korea Deal

Donald Trump will be under political pressure in Singapore this week to ensure any deal he makes with North Korea is tougher than the one Barack Obama struck with Iran. The comparison may be misleading.

Geography and history make the two negotiations fundamentally different, former diplomats and nuclear disarmament experts say. North Korea’s neighbors have lived with its nuclear arsenal for years now. Iran sits near weak and failed states with fragile borders and histories, as well as Israel, heightening the risk that even the prospect of a nuclear-armed Iran could provoke war.

“It’s all about geography and one’s neighbors,’’ said Mark Fitzpatrick, a former U.S. diplomat who served both in South Korea and as acting assistant secretary of state for non-proliferation. He now heads the U.S. office of the International Institute for Strategic Studies.

“The primary difference is that America’s major ally in the region, Israel, cannot and will not accept a nuclear Iran,’’ said Fitzpatrick in an interview earlier this month at the Shangri-La security summit in Singapore. “Israel would be all too happy if the U.S. attacked Iran.’’

North Korea, by contrast, tested its first bomb in 2006. What prompted the Trump-Kim Jong Un summit in Singapore this week wasn’t Pyongyang’s nuclear breakout more than a decade ago, but last year’s tests of intercontinental ballistic missiles capable of reaching the U.S. mainland. The two men arrived in Singapore on Sunday and are due to meet Tuesday morning.

That has made North Korea the bigger and more immediate threat to the U.S., said Christopher Hill, a former diplomat who headed the U.S. delegation in talks with North Korea from 2005. Pyongyang, unlike Iran, already has a nuclear weapon and “it’s aimed at us,’’ he said. “I think it’s designed to decouple us from the region.’’

Hill is skeptical Trump will be able to achieve the “complete, verifiable and irreversible dismantlement’’ of North Korea he has promised, and worries the U.S. president will give away too much in Singapore. If mishandled, the Trump-Kim meeting risks driving a wedge between Washington and some of its closest allies, Hill said.

Senate Democrats also sent Trump a letter last week demanding he accept nothing less than complete nuclear disarmament from North Korea. New York Senator Chuck Schumer later told reporters the bar was set higher than for the Iran deal, because the threat from North Korea was greater.

Getting that kind of deal quickly, however, requires “magical thinking,” according to a report published Monday by the Brussels-based International Crisis Group. “North Korea’s nuclear and missile complex and production capabilities are far more extensive than Iran’s, and the Joint Comprehensive Plan of Action took 20 months of near constant high-level talks to nail down.”

Trump pulled out of the 2015 JCPOA with Iran last month, declaring it so weak it was “the worst deal ever.”

It’s very unlikely, according to Hill, that the U.S. president will get a deal that creates the level of intrusive verification inspections Iran accepted in 2015, or persuades North Korea to ship out large amounts of fissile materials as Iran did.

Neither Hill nor other analysts interviewed think Trump should accept North Korea as a nuclear state, or give up on the attempt to pressure Kim into abandoning his nuclear weapons. Yet some believe that so long as Kim agrees to abandon his intercontinental missile program, the region can return to managing a nuclear North Korea, while a much longer process of disarmament talks gets under way.

Even if the two sides agree to freeze North Korea’s missile tests and nuclear fuel production, it would take at least two years to get the whole program inventoried and the pieces in place for any disarmament to begin, according to Daryl Kimball, executive director of the Arms Control Association, a Washington advocacy group.

“That isn’t kicking it into the future,” he said. “It’s acknowledging the reality that you need a step by step process.”

That should be possible even with an initial agreement that looks much weaker than the JCPOA, because the region is relatively stable. Pyongyang is surrounded by stronger states including China, Japan and Russia. And however provocative its missile tests and other actions, North Korea largely keeps to itself.

As for South Korea, “it has lived with the threat of war since 1953, but the armistice strangely enough has largely held,’’ said James Hoare, an associate fellow at the U.K. think tank Chatham House, who as a diplomat established the British embassy in Pyongyang.

Fragile Neighborhood

Iran’s neighborhood is much more fragile. The Islamic Revolutionary Guard Corps-Quds Force is involved in fighting conflicts and supporting militias in Iraq, Lebanon, Syria and Yemen.

“Iran is in some ways the more worrisome case,” said Kimball. “The concern about Iran is that it would be even bolder and more expansionist and harder to contain if it had a nuclear weapons capability.’’

Moreover, Iran’s bitter rival Saudi Arabia has indicated that it will acquire nuclear weapons if Iran does, a more worrying proliferation risk than if Japan or South Korea should decide to acquire their own nuclear deterrents — an unlikely scenario in the short term.

Summit Risks

Above all, South Korea — the country most threatened by Pyongyang — has made it clear it would do almost anything to avoid war. That’s because it shares a direct border with its adversary, unlike Israel and Iran, says Fitzpatrick of the IISS.

Even before North Korea detonated a nuclear bomb, the South Korean capital Seoul was threatened by massed artillery just a few dozen miles away. So while Iran’s acquisition of nuclear warheads would be a game changer for Israel, for South Korea it was a very unwelcome but ultimately incremental development, he said.

The biggest risks from this week’s talks are that Trump either agrees to U.S. troop withdrawals without getting any definitive disarmament in return, or that the talks break down in acrimony and the U.S. and North Korea return to the threats of late 2017, according to Paul Haenle, director of the Carnegie-Tsinghua Center for Global Policy in Beijing.

A presidential summit that goes badly would put everyone “in a worse place,” worse than if there’d been no meeting at all, he said.

Bloomberg

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Ghana Ordered to Pay $111.5M to Power Company After U.S. Court Ruling

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The government of Ghana has been ordered to pay $111.5 million to Ghana Power Generation Company (GPGC) following a ruling by a District of Columbia Court in the United States.

This ruling was granted in favor of GPGC after Ghana failed to respond to an earlier tribunal ruling from the United Kingdom, which found the country in breach of a power purchase agreement.

The court’s decision comes after Ghana terminated its contract with GPGC on February 18, 2018. The UK tribunal, in its final award dated January 26, 2021, found that Ghana had violated its contractual obligations, resulting in significant financial damages for GPGC.

The tribunal initially awarded GPGC $134.3 million in damages, calculated using the Early Termination Payment formula as specified in the purchase agreement.

Ghana, however, did not comply with the tribunal’s verdict, prompting GPGC to pursue the matter in U.S. courts. On January 19, 2024, GPGC filed a lawsuit in the District of Columbia, citing the Federal Arbitration Act and the New York Convention, which provides for the recognition of international arbitration awards.

Court documents reveal that the petition was formally delivered to Ghana’s Ministry of Foreign Affairs and Regional Integration on January 23, 2024.

Despite receiving the legal documents, Ghana failed to respond to the court proceedings by the March 29, 2024, deadline. This non-response led the U.S. court to grant a default judgment in favor of GPGC.

Chief Judge James E. Boasberg emphasized that the arbitral judgment fell under the New York Convention, which requires member states, including the United States, to recognize and enforce international arbitration awards.

He further noted that Ghana had voluntarily submitted to international arbitration when entering the power purchase agreement, waiving its sovereign immunity in the process.

Although GPGC was not awarded pre-judgment interest, Ghana will be obligated to pay post-judgment interest at rates set by U.S. law.

This adds an additional financial burden to the $111.5 million judgment as the payment accrues further interest over time.

The country narrowly avoided a separate $11 billion arbitration award in the infamous P&ID case, which was eventually overturned due to findings of corruption and bribery.

However, in the GPGC case, multiple European courts have upheld enforcement orders, leaving Ghana with limited legal recourse.

The court’s decision is expected to place added pressure on Ghana as it faces mounting financial obligations related to international arbitration disputes.

GPGC has indicated that it will pursue all available legal avenues to ensure full recovery of the damages awarded by the tribunal, including possible enforcement actions in other jurisdictions.

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Zhongshang Fucheng Moves to Auction Nigerian Properties in UK Following $70M Arbitration Award

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Bola Tinubu

Zhongshang Fucheng Industrial Investment Ltd has escalated its efforts to collect a $70 million arbitration award from Nigeria by putting two residential properties in Liverpool up for sale.

This significant development follows a 2021 arbitration verdict against Nigeria, which remains unsettled.

The Chinese investment group has reportedly listed two buildings linked to the Nigerian government—15 Aigburth Hall Road and Beech Lodge, 49 Calderstones Road—on the global online marketplace eBay.

The move is part of a broader strategy to recover the outstanding $70 million, which includes a principal amount of $55,675,000, plus interest and legal costs, as stipulated by the arbitration verdict.

The arbitration stemmed from a dispute between Zhongshang Fucheng and Ogun State over a trade treaty violation.

The company claimed that Ogun State rescinded its rights to a free trade zone in 2016, prompting a legal battle that saw Zhongshang’s executives expelled from Nigeria.

The British court granted Zhongshang the authority to seize Nigerian assets in the UK after the Nigerian government failed to settle the arbitration judgment.

The seizure and subsequent auction of these properties mark a pivotal moment in the ongoing legal conflict.

The properties were confiscated because they were not classified as diplomatic or consular assets, making them subject to seizure under the court’s orders.

According to sources familiar with the situation, the properties are valued at approximately $2.2 million.

Zhongshang Fucheng has opted for an online auction to expedite the sale, aiming to reach a broad pool of potential buyers.

The decision to use eBay highlights the company’s commitment to transparency and swift asset recovery.

“This move is not just about recovering the funds; it’s a demonstration of our commitment to enforcing the arbitration award and ensuring that due process is followed,” said a consultant working with Zhongshang Fucheng, who spoke on condition of anonymity.

The Nigerian government, already grappling with similar arbitration cases, is facing increased scrutiny as European courts have granted enforcement orders in several countries, including the UK, Belgium, and France.

The ongoing conflict with Zhongshang Fucheng has intensified pressure on Nigerian authorities to address these legal and financial challenges more effectively.

In June 2024, the UK High Court, King’s Bench Division, ruled in favor of Zhongshang’s right to seize the Liverpool properties.

Master Lisa Sullivan’s ruling emphasized that the properties were used for commercial purposes, thereby excluding them from sovereign immunity protections.

The case against Nigeria underscores broader issues related to international arbitration and asset recovery, reflecting a growing trend of global legal disputes over state assets.

For Zhongshang Fucheng, the auction of the Liverpool properties represents a critical step in securing the funds awarded by the arbitration panel.

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NLC Prepares for Protest Against Alleged Intimidation of President Ajaero by Police

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Joe Ajaero

The Nigeria Labour Congress (NLC) has announced plans for mass protests and industrial action in response to what it describes as the harassment and intimidation of its president, Joe Ajaero.

This decision follows a summons by the Nigeria Police, accusing Ajaero of involvement in criminal conspiracy, terrorism financing, treasonable felony, subversion, and cybercrime.

In a communique issued at the end of an emergency meeting held on Tuesday, the NLC expressed outrage at the police’s actions and warned that if any harm befalls Ajaero or any other leader of the labour movement, the organization would mobilize its members for nationwide protests.

The congress also hinted at industrial action in defense of its leadership, which it views as being under attack.

“The Congress will not hesitate to take all necessary actions, including mass protests and industrial actions, to protect the integrity and independence of the labour movement,” read the communique signed by Sani Minjibir, Deputy President of the NLC.

“If anything happens to the President of the Congress or any other leader in furtherance of these tendentious allegations by the state, we will not stand idle.”

The NLC further called upon civil society groups and the general public to stand in solidarity with the labour movement, describing the situation as a fight against “injustice and oppression.”

The congress urged Nigerians to defend the country’s democratic values and support their cause in what they see as a critical moment for the future of the labour movement in Nigeria.

The controversy began earlier this week when the police issued an invitation to Ajaero, asking him to report to their Intelligence Response Team (IRT) in Abuja on Tuesday, August 20th, 2024.

The police warned that a warrant for his arrest would be issued if he failed to comply. According to the invitation, Ajaero is being investigated for a range of serious charges, including terrorism financing and cybercrime.

However, Ajaero’s legal counsel, led by renowned human rights lawyer Femi Falana, responded to the police on Tuesday, citing the short notice of the invitation as the reason Ajaero could not attend on the scheduled date.

The letter stated that Ajaero had prior engagements and requested an extension to Wednesday, August 29th, 2024. Falana also demanded detailed information regarding the allegations against Ajaero.

In its communique, the NLC condemned the invitation as a form of “witch-hunting, intimidation, and harassment,” insisting that the charges against Ajaero were politically motivated and intended to weaken the labour movement.

The NLC described the police’s actions as a blatant attempt to silence the leadership of the workers’ movement, warning the government to desist from further antagonizing its leaders.

“We view this as a calculated attempt to weaken and destabilize the labour movement, which has always stood as a bastion of democratic principles and the voice of the Nigerian masses,” the statement continued. “We remain resolute in our commitment to defending the rights and interests of workers and the Nigerian people. We shall not be cowed or intimidated by these desperate attempts to silence us.”

In anticipation of further escalation, the NLC directed its affiliate unions and state councils to begin mobilizing members across the country, stating that it is prepared to take any measures necessary to protect its leadership and the integrity of the labour movement.

The NLC warned the government that any attempt to undermine their rights or freedoms would be met with fierce resistance, including potential strikes and mass actions across Nigeria.

As the deadline for Ajaero’s appearance before the police approaches, tensions between the government and the labour union continue to rise.

The outcome of this confrontation could have far-reaching implications, not only for the leadership of the NLC but also for the broader landscape of Nigeria’s labour and civil rights movements.

The NLC has vowed to stand firm, declaring that it will continue to fight for justice, fairness, and the rule of law in Nigeria.

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