Global Politics and Trade: Key Developments and Implications

As the world grapples with complex political and trade issues, several developments are gaining attention. In Mexico, Vicente Fox Quesada is set to become the first president not from the Institutional Revolutionary Party (PRI) in 70 years, promising a diverse and pluralistic cabinet. Meanwhile, the European Union is taking steps towards a military uniform by pledging troops, aircraft, and ships to a new peacekeeping force, raising questions about the financial and military burden on the US. Additionally, President Clinton's visit to Vietnam has highlighted the country's efforts to end a costly chapter in its history, while a trade spat between the US and EU over a tax break is threatening to escalate into a global conflict.

Key Takeaways:

• Vicente Fox Quesada's presidency in Mexico promises a diverse and pluralistic cabinet, a departure from the Institutional Revolutionary Party's (PRI) dominance.
• The European Union's pledge of 100,000 troops, 400 combat aircraft, and 100 ships to a new peacekeeping force has significant implications for US defense spending and burden.
• The US spends 60% of the top EU member nations' defense expenditures, and the EU's projected defense spending will dip below 2% of GDP by 2003.
• President Clinton's visit to Vietnam has helped end a costly chapter in the country's history, with many Vietnamese embracing free trade and politics.
• Vietnam's rulers, however, are trapped in fear and ideology, and need to lift their eyes to accommodate global forces of democracy and economic freedom.
• The tax break controversy between the US and EU over foreign sales corporations has raised questions about US tax and trade policy, with both sides waiting for a WTO ruling.
• The US has been the world's biggest booster of free and fair trade, but its national tax systems and trade policy seem wildly at odds, raising concerns over tit-for-tat challenges to national tax systems.
• The WTO and summit process must be used more effectively to avert counterproductive and destructive clashes between nations and businesses.

Statistics:

• 100,000 troops pledged by the European Union to the new peacekeeping force
• 400 combat aircraft pledged by the European Union to the new peacekeeping force
• 100 ships pledged by the European Union to the new peacekeeping force
• $100 billion annually needed by the Pentagon to carry out its missions (Air Force Secretary F. Whitten Peters)
• 3.2% of the US GDP spent on defense, projected to remain the same for the next three years
• 2% of the Western Europe's GDP projected to be spent on defense by 2003
• $6 billion tax breaks provided to companies manufacturing or selling abroad under the new legislation
• $4 billion saved annually by 6,000 US companies using foreign sales corporations
• 60,000-member contingent needed to be deployed within a 60-day period and sustained for up to one year

Sources:

• United Press International
• New York Times
• Washington Times
• Milwaukee Journal Sentinel
• Dallas Morning News