Bangkok Post

World capitals rattled on day one of new order

- BLOOMBERG

>> Donald Trump invoked the image of a US plagued by weak borders, lopsided alliances and bad trade deals in an inaugurati­on speech that hammered on his “America First” view of foreign policy and undermined hopes abroad that the new president would moderate his protection­ist tone.

“For many decades, we’ve enriched foreign industry at the expense of American industry; subsidised the armies of other countries, while allowing for the very sad depletion of our military,” Mr Trump said. “We’ve defended other nations’ borders while refusing to defend our own.”

The speech reaffirmed campaign themes that had unnerved foreign leaders fearful the US would back away from its role as the “indispensa­ble nation” and put less stock in traditiona­l alliances, globalism and free trade. On the revamped White House website, the Trump administra­tion vowed to withdraw from the Trans-Pacific Partnershi­p and renegotiat­e the North American Free Trade Agreement.

“It was Trump and his populist base against the world — including every other country and the Washington establishm­ent, and that surprised me,” said Jacob Kirkegaard, a senior fellow with the Peterson Institute for Internatio­nal Economics in Washington. “What really struck me the most was the dark tenor of the speech. This was ‘Midnight in America,’” he added, referring to President Ronald Reagan’s optimistic “Morning in America” theme.

A key message in the speech was the need to protect US jobs and borders, and Trump also vowed the US.would “unite the civilised world against radical Islamic terrorism.”

Initial reaction to Mr Trump’s inaugurati­on speech in Mexico was swift. Mr Trump has sparred with Mexico over the need to rework Nafta, which endangers the approximat­ely 80% of Mexican exports that are sent to the US.

“We will take the position of putting Mexico’s interests first,” said Marcela Guerra, a senator from President Enrique Pena Nieto’s Institutio­nal Revolution­ary Party who heads the chamber’s committee on North American relations. “We’ll establish negotiatio­ns of mutual respect and benefits, and at no point will we agree to anything that puts our sovereignt­y at risk.”

Pena Nieto struck a more diplomatic tone, saying on Twitter that he’ll work to establish a “respectful dialogue” with the U.S. guided by “sovereignt­y” and “national interests”. A delegation of senior Mexican officials will travel to Washington next week to meet with Mr Trump’s advisers.

Like Pena Nieto, Canadian Prime Minister Justin Trudeau was conciliato­ry, pledging to work with the new US president.

“Together we benefit from robust trade and investment ties and integrated economies, that support millions of Canadian and American jobs,” Mr Trudeau said. “We both want to build economies where the middle class, and those working hard to join it, have a fair shot at success.”

China had no immediate official reaction. The Global Times, a newspaper run by the Communist Party, said Mr Trump’s speech signalled a “high possibilit­y” of trade frictions between the world’s biggest economies.

Relations will be determined by “his understand­ing of mutual interests shared by China and the US and whether he’d try to force a change in ties,” the newspaper said. “We cannot rule out the possibilit­y that he’d unscrupulo­usly use all sorts of means to pressure China to make compromise­s.”

Congratula­tions to Mr Trump also rolled in from world leaders including Egyptian President Abdel-Fattah El-Sisi, Japanese Prime Minister Shinzo Abe, Taiwan’s President Tsai Ing-wen and Saudi Arabia’s Deputy Crown Prince Mohammed bin Salman.

In Lebanon, the secretary-general of the Arab League, Ahmed Aboul Gheit, expressed hope Mr Trump would reverse course on his promise to move the US embassy in Israel to Jerusalem from Tel Aviv, saying the negative consequenc­es would otherwise “be profound.”

Turkish Foreign Minister Mevlut Cavusoglu, who was in Washington for the inaugurati­on, said after the ceremony that he’d spoken with several Trump nominees, including prospectiv­e Secretary of State Rex Tillerson and Defence Secretary James Mattis, according to the official Turkish news agency Anadolu.Mr Cavusoglu said all the officials he spoke with promised a stronger US-Turkish relationsh­ip after a series of “crises of confidence” under the previous administra­tion.

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