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    Central Asia
     Apr 28, 2007
Page 3 of 4
In the trenches of the new cold war
By M K Bhadrakumar

systems in Canada or Cuba, we [Washington] would react much the same way. We are surrounding them and getting closer to their territorial boundaries."

On the other hand, Washington is counting on the shift to the right in the locus of European politics. It is much to Moscow's disadvantage that Nicolas Sarkozy is on course to succeed



Jacques Chirac as French president. That leaves Romano Prodi in Rome as the lone ranger from Moscow's side. Moscow would have assessed that German Chancellor Angela Merkel is already playing for time. She refuses to be pinned down on the missile-defense controversy. In essence, Merkel believes in the benefits of closer trans-Atlantic cooperation.

Der Spiegel reported last week in an exclusive report that Merkel, Bush and European Commission President Jose Manuel Barroso have agreed to set up a wide-ranging economic partnership between the European Union and the United States that "would have the aim of dismantling the non-tariff barriers to trade". The German daily revealed that a confidential draft has already been drawn up for a treaty establishing a "new trans-Atlantic economic partnership" that will be signed at the EU-US summit in Washington next week.

The rationale behind the initiative, which originated from Washington, is that Western governments must act quickly to combat the rise of China ("dark superpower") and Asia. To quote Der Spiegel, "The role NATO played in an age of military threat could be played by a trans-Atlantic free-trade zone in today's age of economic confrontation. The two economic zones - EU and the US (perhaps with the addition of Canada) - could stem the dwindling of Western market power by joining forces. Together the Europeans and the Americans are still a force to be reckoned with. Representing about 13% of the world's population and 60% of today's global economic power, they stand ready to act as producers and consumers not only of goods, but also of values." Interestingly, Merkel used her keynote speech at the World Economic Forum in January to push for closer trans-Atlantic economic links.

Clearly, Washington has reason to be confident that the residual opposition in Europe to US missile-defense deployments, too, may prove to be nebulous. Meanwhile, Russia's relations with the EU as such have entered a difficult phase. In a recent speech, EU Trade Commissioner Peter Mandelson, a highly respected voice of moderation in Europe, bemoaned that mistrust and a lack of respect in relations between the EU and Russia are at their worst since the Cold War. "Unless we comprehend our different perceptions of the landscape left behind by the last century, we risk getting the EU-Russia relationship badly wrong," he said.

The EU's blueprint of its new Central Asia strategy, to be adopted at the EU summit in June, will likely be viewed in Moscow as an unwelcome encroachment, especially given its thrust on developing energy cooperation with the region by bypassing Russian transportation routes.

In immediate terms, a virtual EU-Russia standoff is building up over Kazakhstan's participation in a US$6 billion gas-pipeline project that is an extension of the South Caucasus pipeline, linking Azerbaijan, Georgia and Turkey, and which is expected to run from Turkey to Austria via Bulgaria, Romania and Hungary. The 3,400-kilometer pipeline across the Caspian bypassing Russia, which is to be built from early next year so as to go on stream in 2011, will have a capacity of 30 billion cubic meters and promises to be a rival to Russian Gazprom's Blue Stream-2 (scheduled to be commissioned in 2012).

Moscow is well aware that Washington is the driving spirit behind the EU's energy policy toward Central Asia. Washington calculates that Moscow will be inexorably drawn into a standoff with the EU over the latter's increasingly proactive policies in Eurasia.

Without doubt, there are contradictory tendencies in trans-Atlantic relations. Of course, there is a degree of queasiness in Europe about US power and influence on the continent in the post-Cold War era. Much of Europe doesn't think that the US missile-defense system works, let alone that an apocalyptic Iranian threat exists. Even in Poland and the Czech Republic there is widespread public opposition to the US deployments. The major European capitals resent that Washington is negotiating bilaterally with Warsaw and Prague, as if a coherent European security and defense policy independent of NATO is never achievable for Europe.

The European sensibility watches with dismay that not only has the EU dream of a big, peaceful post-modern federation receded but the specter of new Cold War-like divisions has begun haunting Europe. Many in Europe would agree with Gorbachev when he said last week that the missile-defense controversy "is all about influence and domination".

To be sure, trans-Atlantic relations are undergoing a major transformation. Despite all the talk of kindred values and similar social systems, the US is no longer supportive of the European project of integration. True, the Americans were at one time the promoters of the European project. But now they have developed distaste for the idea of European integration. And the Europeans remain uneasy about US "unilateralism".

On the other hand, Europe also faces an identity crisis. The Berlin Declaration, which was adopted last month on the 50th anniversary of the European Economic Community, completely overlooked the objective of the pan-European project. Translated into EU-Russia relations, all this means is that neither side seems to know what it wants from the other side. As things stand, it is highly unlikely that the Partnership and Cooperation Agreement of 1999 between the EU and Russia, which expires at the end of this year, will be extended or replaced by a new treaty.

Arms race in the making?
After Gates' mission to Moscow, Russian Deputy Defense Minister Sergei Kislyak warned that the controversy has the potential to create obstacles to the development of bilateral relations for a long time. "It will be a strategic irritant for years to come," he said. Defense Minister Anatoly Serdyukov went a step further: "The Russian position on this issue remains unchanged. The strategic missile defense system is a serious destabilizing factor that could have significant impact on regional and global security" (emphasis added).

Serdyukov's reference to "global security" gives an altogether different dimension to the missile-defense controversy. Russian experts feel that the deployment of the missile-defense system is

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