FRUSTRACIÓN IRANÍ Y LOGRO PALESTINO

Top of the Agenda: Senate Targets China's Currency Policy

The U.S. Senate passed legislation yesterday that would tax the goods of countries with "misaligned" currencies (WSJ). The bipartisan measure is meant to target China, a trading partner that the United States has routinely criticized for devaluing its currency. China warned that such a move could instigate a trade war (BBC) between the nations.

U.S. officials have argued that by holding down the yuan, China is able to keep its exports inexpensive for U.S. consumers, thus undermining the U.S. manufacturing sector. The measure has gained traction because of the perception that China's alleged unfair trade advantage (NYT) is allowing it to steal U.S. jobs, contributing to an already-bleak employment outlook.

However, leaders in the House of Representatives have voiced strong opposition (Politico) to the bill, indicating that it will likely not be taken up by legislators in that chamber. The White House has not taken an official stance, but has cautioned that the bill could be inconsistent with World Trade Organization rules.

Analysis

This Independent Task Force report encourages the Obama administration and Congress to adopt a "pro-America" trade policy that brings to more Americans the benefits of global engagement.

The aftermath of the Great Depression saw a burst of competitive currency devaluations and protectionism that undermined confidence in an open global economy. As countries recover from the financial crisis today, they need to heed the lessons of the past and avoid the policies of the 1930s, writes Liaquat Ahamed in Foreign Affairs.

Sizeable trade and currency imbalances between China and the United States have fueled tensions over China's exchange-rate policies vis-à-vis the dollar and intensified debate over the proposed remedies to the problem, explains this CFR Backgrounder.

MIDDLE EAST

U.S. Accuses Iran of Plot to Kill Saudi Ambassador

The United States accused Iranian officials of plotting with an assumed Mexican drug cartel (NYT) to assassinate Saudi Arabia's ambassador in Washington, and blow up the Israeli embassy in Washington and the Saudi and Israeli embassies in Argentina. NADA MENOS! Iran denied the accusations.

Iran's ambitions as a regional power and links to suspected terrorist groups pose stiff challenges to its neighbors and the world. These are magnified by upheaval in the Middle East and tensions within the Iranian regime, explains this CFR Crisis Guide.

ISRAEL: Israel and Hamas, the militant group that controls the Gaza Strip, agreed to a prisoner swap (al-Jazeera), in which Israel will free over one thousand Palestinians in exchange for an Israeli soldier, Gilad Shalit, who was captured by Hamas in 2006. DESPROPORCIÓN INSULTANTE. AÚN ASÍ, A FALTA DE MEJORES PERSPECTIVAS, REPETIRÁN EL TRUCO LOS PALESTINOS? QUÉ DIRÁ AHORA EL ISRAELÍ LIBERADO ACERCA DEL TRATO QUE LE DIERON?