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Russian reservists recruited during a partial mobilization of troops attend a ceremony before departing to the Russia-Ukraine conflict zone, in the Rostov region, Russia October 31, 2022.
What We're Watching: Russian draft goes online, abortion pill ruling, US inflation slows, Taiwan gets new presidential candidate, Biden bets big on EVs
Russia’s digital draft
If you’re a young male citizen of Russia, it just got harder for you to hide from the war in Ukraine. The State Duma, Russia’s parliament, approved legislation on Tuesday that allows the government to send a military summons online instead of serving the papers in person. The upper house swiftly passed it into law on Wednesday.
“The summons is considered received from the moment it is placed in the personal account of a person liable for military service,” explains the chairman of the Duma’s defense committee, though the Kremlin insists no large-scale draft is imminent. If the person summoned fails to report for service within 20 days of the date listed on the summons, the state can suspend his driver’s license, deny him the right to travel abroad, and make it impossible for him to get a loan.
The database that provides names of potential draftees is assembled from medical, educational, and residential records, as well as insurance and tax data. Thousands of young Russians have already fled their country. Many more may soon try to join them.
Abortion pill stays on the market, but access rolled back
As the battle over abortion medication continues in the US, a federal appeals court has ruled that mifepristone – a drug approved by the Food and Drug Administration in 2000 – can remain on the market until the full case can be heard, likely by the Supreme Court.
Still, the court – made up of three appellate judges all appointed by Republican presidents – ruled that mifepristone cannot be sent by mail and rolled back a 2016 rule allowing it to be used up to 10-weeks gestation, dropping it back to seven weeks. It also rolled back other measures enforced by the Biden administration to enhance access after the gutting of Roe v. Wade.
This decision comes after a Trump-appointed, pro-life judge in Texas recently ordered a temporary stay on approval of mifepristone. Less than an hour later, another federal judge in Spokane, Washington, ruled that the drug must remain available in 17 Democratic-run states plus Washington, DC.
Importantly, the appeals court appeared to back the government's view that taking an approved drug off the market that accounts for more than half of all abortions nationwide would have “significant public consequences.”
As expected, abortion rights are shaping up to be one of the biggest political issues in the country. In Florida, Republicans are trying to fight a recently passed law banning abortion at six weeks, pushing for an outright ban.
US inflation cools — smartphones FTW
Good news for American households as US inflation fell to its lowest level in nearly two years in March. Prices grew at an annual clip of 5%, according to the latest figures released Wednesday. That’s down from 6% in February, marking the ninth consecutive month of falling inflation.
The highlights? Well, if you want to do some shopping in the US, now’s the time to cop a new smartphone, which will cost you 24% less than a year ago. And that summer road trip is on – gas prices are down more than 17%. At the same time, we remain “yolked,” as it were, to the Great Egg Crisis of 2023 — prices are up more than 30% despite easing a bit since February.
More broadly, that headline figure of 5% is still more than twice the pre-pandemic norm, and core inflation — which excludes volatile prices for fuel and food — is running at a toasty 5.6%.
That’ll keep the US Fed in the hot seat as it meets again in early May. Will they raise interest rates once more in a bid to finish off inflation? Or will they stand pat, worried about tipping the economy into a recession?
Will this man become Taiwan's next president?
Taiwan's ruling Democratic Progressive Party on Wednesday nominated VP William Lai as its candidate in the January 2024 presidential election.
Lai is widely viewed as a stand-in for term-limited President Tsai Ing-wen, reelected by a landslide in 2020. That means a tough line on China, which has made Tsai a darling in the West and reviled by Beijing. Lai used to support Taiwanese independence openly but has since moderated his position to align with the DPP's: We don’t need to formally break with the mainland because we’re already de-facto independent.
It's unclear who Lai will face, since the opposition Kuomintang Party — which, officially, is not pro-China but favors closer ties with China than the DPP — has yet to pick its candidate. (Terry Gou, the billionaire founder of Foxconn, the Taiwanese company that makes iPhones in China for Apple, is mulling another run.)
The vote will be Taiwan's most closely watched presidential election since 1996, when the self-ruled island ended decades of authoritarian rule. China responded to the democratic vibes by flexing its then-weak military muscles … until the US made it back off. This time, though, expect major Chinese fireworks if Beijing's candidate doesn't come out on top.
Biden’s ambitious new EV proposal
The Biden administration has proposed a new measure that would sharply accelerate the American auto industry’s transition to electric vehicles, and not everyone is happy about it.
The draft marks a big shift from Washington’s current carrots-based approach to boosting EV production to one that relies more on sticks. It would require carmakers to derive 60% of their sales revenue from electric vehicles by 2030, or face penalties. Currently, under a 2021 plan, the target is closer to 50% and manufacturers are allowed to opt in only if they want to. Under that plan, a range of subsidies and tax breaks aimed to incentivize consumers and manufacturers to ditch dirty fuel guzzlers.
Carmakers are already pushing back, saying that changes to assembly lines and supply chains will be expensive and take years to implement. But the Biden administration says the necessary funds were included in the Inflation Reduction Act, which earmarked $31 billion in subsidies for EV’s and tax credits for EV manufacturers.
Expect this to become a heated political issue in the coming months. Texas, despite being a leading investor in EV networks, has sued the federal government over the current EV standards, arguing that they are an overreach that violates states’ rights.
Ukraine's President Volodymyr Zelenskiy awards a Ukrainian service member at a position near a frontline, in Donetsk region, Ukraine March 22, 2023.
What We’re Watching: Zelensky’s Bakhmut message, Rishi’s post-Brexit win, Trudeau’s take on Haiti, Ethiopia’s peace progress
Russia and Ukraine score points where they can
Volodymyr Zelensky visited frontline troops in war-ravaged Bakhmut, located in Ukraine’s eastern province of Donetsk, on Wednesday as Russian drones struck across the country. While planning for the trip was surely well underway before Vladimir Putin’s surprise stop in Russian-occupied Mariupol last weekend, the contrast underlined Zelenksy’s signal of defiance.
By appearing in Bakhmut very near the fighting, Zelensky reminded the world that, six months after Putin mobilized 300,000 new Russian soldiers for a deeper advance into Ukraine, even the small city of Bakhmut remains beyond their grasp.
In other war news, Russia has warned it will respond harshly to shipments from the UK to Ukraine of anti-tank munitions made from depleted uranium. Moscow claims this step adds an escalatory nuclear element to the conflict. In response, the UK insists the Russian position is propaganda, that the use of depleted uranium is common in anti-tank weapons, and that it contains nothing that can be used to make nuclear or radiological weapons. Finally, Russia has announced a plan to raise an additional $8 billion in revenue by changing the way oil profits are taxed.
All these stories underscore the reality that, while little has changed on the battlefield, Russians and Ukrainians are still looking for every small advantage they can gain in what looks increasingly like a war of attrition.
Has Brexit got “done” yet?
In a win for PM Rishi Sunak, the British House of Commons on Wednesday passed a reworked post-Brexit deal for Northern Ireland, which was agreed to last month with the European Commission.
Essentially, the proposal known as the Windsor Framework creates two lanes for trade: a faster-flowing green lane for goods transiting only between Britain and Northern Ireland and a red lane with more rigorous customs checks for goods bound for Ireland and elsewhere in the EU. It is unlikely to come into effect for several months as details are ironed out, officials say.
Still, despite the big margin of victory, more than 20 Tories – including Sunak’s two predecessors Liz Truss and Boris Johnson – voted against the measure, with Johnson saying it would mean that the UK won't be able to fully embrace the benefits of Brexit (what benefits, he didn’t say). It also signals that in the run-up to next year’s general election, Sunak will continue to deal with a vocal Euroskeptic wing within his party.
Meanwhile, six representatives from Northern Ireland’s Democratic Unionist Party also rejected the vote, suggesting that the DUP would not lift its boycott on the Northern Ireland legislature, which began almost a year ago. The lack of resolution on this front will make for awkward optics as President Joe Biden heads to Belfast next month to mark the 25th anniversary of the Good Friday Agreement that ended the Troubles.
Trudeau’s take on Haiti
President Joe Biden heads north on Thursday for his first presidential visit to Canada, where he and PM Justin Trudeau are expected to discuss a variety of issues, from defense and immigration to trade and Ukraine (see our look at likely agenda items here). But Biden is also expected to make some demands about … Haiti.
The situation in the Caribbean nation has deteriorated in recent months. Police have lost control to local gangs, and more than 200 Haitians were killed in the first half of March alone.
The Biden administration is reluctant to get more involved itself but wants Canada to take the lead in addressing the chaos in Haiti. Why Canada? The country has a long track record as a peacekeeper and has had prior involvement (for better or worse) in Haiti, making it an obvious choice from Washington’s perspective. An uptick in Haitian migrants seeking entry to the US and Canada raises that urgency further.
But Trudeau says that “outside intervention” can’t bring long-term stability to the country, and it’s hard to argue with the historical record on that. Meanwhile, many in Haiti worry that outsiders would merely prop up unelected acting PM Ariel Henry. And it didn’t help that Haiti’s largest newspaper ridiculed the recent deployment of two Canadian ships to patrol the coast.
All of this puts Trudeau in a tough spot: Biden wants him to be a reliable security partner beyond Ukraine, but the political fallout from a failed entanglement in Haiti could be disastrous for him. While the Canadian leader will likely make a commitment of some sort for Haiti, will it be enough to satisfy Biden or change the dynamics in Haiti itself?
*From trade and migration to defense, culture, and technology, the US and Canada need each other more than ever. To meet the moment, GZERO Media is launching GZERO North, a new weekly newsletter offering an insider’s guide to the very latest political, economic, and cultural news shaping both countries. Subscribe today!
Ethiopia, TPLF take steps in tenuous peace
The Ethiopian government is removing the Tigray People’s Liberation Front from its list of terrorist organizations, part of a peace deal with the rebel group signed last November. The decision moves the country closer to what observers hope is an enduring peace after a brutal two-year civil war that has claimed an estimated 600,000 lives.
The situation is very delicate. The agreements don’t include all of the various combatants and are vague about who controls certain disputed territories. And while all sides reportedly committed war crimes, many Tigrayans believe the deal doesn’t hold the Ethiopian federal government accountable. PM Abiy Ahmed’s resistance to a UN investigation inspires little hope.
Still, the momentum is towards peace, for now. Economic interests are part of the reason why. Ethiopia is in bad shape, as the country is wracked by famine, drought, and an estimated reconstruction price tag of $20 billion. A lasting peace would enable Ethiopia to reopen two-year-old talks with the IMF on a $26 billion loan restructuring plan, which was interrupted by the war. Still, with so much bad blood – will these incentives be enough to bind the former combatants to a durable peace? All parties must still tread very carefully …