How Did the Trade of USA Changed With Muslim Countries after 9/11 - Term Paper Example

Table of Contents Tittle Page Number 1. Cover Page ………………………………………………………………………………… 1 2. Table of Contents ………………………………………………………………………………2 3. Abstract………………………………………………………………………………………...3 4. Introduction……………………………………………………………………………………4 5. The problem……………………………………………………………………………………5 6. Literature Review……………………………………………………………………………...8 7. Purpose of Study…………………………………………………………………………….10 8. Findings and Research Questions…………………………………………………………….11 9. Conclusion…………………………………………………………………………………….13 10. Recommendations………………………………………………………………………….14 11. Works Cited………………………………………………………………………….……...16 Abstract After the terror attack of the September 11th, it is a common knowledge that the relationship between the United States and the Muslim nations is recorded to be intense or coercive. The events led to the highest number of deaths within a single day, that has been recorded in the history of US. It was estimated that about 3,000 lives were lost on that fateful day. From New York City to Washington many deaths were realized. From the length of trade, these events have heightened the relationship once enjoyed between President Bill Clinton and the Arabian Peninsula to unimaginable low heights. The business trends with or between these countries do not suggest anything to admirable. Instead, it is a relationship based on schemes, war, and hatred. This research paper, therefore, seeks to evaluate the events that occurred during that period, the reasons for low economic ties and the possible solutions to these problems. The recommendations are based on various researches done on the events that occurred during this fateful day. It is, therefore, imperative for any researcher to foster more emphasis on key recommendations rather than on what happened during that day. Keywords: American Trade, bilateral trade, oil, gas Introduction to the study The overall relationship between the US and the Muslim world is by all accounts marked by confrontation at all lengths. After the terror attacks, there is a greater desire for the loose end between these regions to be tied back together. The bombing of the twin towers of U.S trade centers, the killing of millions in hijacked planes in 2001 all demonstrated the lengths of pains endured by America at the hands of terrorists (Smith, 2002). In retaliation, the Bush administration entered Iraq, the Afghanistan to pursue the perpetrators of these heinous crimes. They ended up succeeding but with very many casualties. A look at the American policies towards the Muslim world says much about the hatred that exist between these two regions (Schott, 2004). Although there are considerable studies on the American political, social interest in the Muslim nations, little evidence is there to provide how trade between these two regions emanates. According to Smith (2002), America requires gas and oil that the people of Middle East sell but the Arabs need the goods and services that America produces. America was once the worlds biggest oil exporter but now it is the biggest oil and gas importer. Americas strategy in combating terrorism was to extend trade relations with the Muslim nations (Smith, 2002).On the other hand, President Bush stated that even if the terrorists managed to attack the world trade state, efforts would be made to encourage international trade. The volume of U.S trade with the Middle East rose from $33.67 billion in 1990 to &63.38 billion in 2000.But with the events of 9/11 the trend had to take a paradigm shift. U.S exports to Saudi Arabia fell from $10.52 billion in 1998 to $ 5.97 billion in 2001 (Smith, 2002).A combined U.S exports to the six Persian Gulf countries previously were noted to fall from $15.3 billion in 1998 to $10.59 billion in 2001.A similar reverse of events was evident with U.S exports to other Arab nations, with the total exports falling from $26.67 billion in 1998 to $23.09 billion in 2001.The problems were fuelled by the effects of September 11.The relations between U.S and Arabian nations deteriorated to lengths that were unimaginable. The U, S media have the tolerance given by Arabian nations to terrorist groups like the al-Qaeda sharply. The media attacks resulted into backlashes with the Saudis, that reduced the volume of trade between the two regions. The problem The U.S foreign policy on bilateral trade executes the biggest challenge faced by these two great regions. Much of the resentment focused on U.S system is because of the U.S foreign policy that seems to be profiling the Arabian citizens from the rest of the world (Schott, 2004). The biggest challenge is on how the U.S Foreign policy is going to address certain specific issues. For instance, how is the U.S going to maintain its close alliance with Israel while maintaining a good relationship with Islamic countries? How is the U.S going to deal with civil society and other Islamic organizations located within its Muslim friends and allies? And how does it intend to avert the authoritarian regimes that pose a threat to its trade relations with the other Muslim nations and the world? All these issues are a threat to the U.S, and proper mechanisms need to be applied to redress the need for proper trade relations (Devereaux and Lawrence, 2006). According to the policy statement, Ambassador Freeman Jr. American interest in the Muslim nations was to encourage them to reinvest the monies gained from oil trade into the American Economy. But since September 11, the trend seemed to grow dim as time elapsed (Schott, 2004). The Arabs doubted that the money they put into American economies can be swindled off.The swindling could be by the politicians or seized by the monetary authorities or harassed by litigators who normally live by the legal blackmail of the American system. These has led to Arabs disinvestment into the American economy and thus putting money into other accounts in socialist nations like China. All these just continue to make the problem of trade even tougher for the local citizens. Within this report on foreign policy, it is evident that some of these Muslim citizens who are oil producers end up manipulating their currency (Schott, 2004). The result was that the relations were heightened. In his submission, he identified several reasons as to why the problem seem not to end anytime soon. He identified the need to change the policies for the better future of the American economy which relies heavily on imported oil and gas from the Muslim countries. The alienation of Arab and Muslims from the United States are because of the policies that are there to favor the American at the expense of their trade partners (Schott, 2004). For instance, U.S decision to back Israel in pacifying Palestinians rather than to continue in trying to mediate for a peace deal between Palestine and Israel makes the relations tougher (Schott, 2004). The strategy only discredits U.S as a peacemaking country, and this empowered the Islamist radicals amongst the people of Palestine to rebel against the Israeli people. There was a collusion of U.S government with that of the Israelis to overthrow the government of Hamas. It first did leave Hamas nowhere to go to but further into the Iranian embrace. The canalization of armed conflict among Palestinians, it then partitioned territories, encouraged Israel to crush the people of Gaza into submission (Schott, 2004). On the other hand, the prospects of lasting peace agreement between Palestine and Israelis seem to be far-fetched. Americas catastrophic march into the strategic of Iraq, have made her pinned down for ages. Now, Iraq is a country militarily occupied by Americans, but politically occupied by Iran. The Indian Parliament on their part declared this invasion of Iraq as deadly and against the declaration of human rights in the U.N Charter (Schott, 2004). It was believed that American companies will benefit from Iraqi oil. Also, the US national energy plan-the Cheney Report released in early May called for an increase in the US activities in the regions of the Persian Gulf for purposes of securing future oil products. Evidently the desire to be successful eventually, led to a war between the Euro Zone, and Iraq has become the beachhead. In his further submissions, he states that the US had to nip this in the bud as the dollar had a grip on oil trading, and on the world trade in general (Devereaux and Lawrence, 2006). Any event that negatively affects the dollar, can have a negative impact on the US economy and that of the world. This would also limit the ability of the US economy to control international trade. Furthermore, the war on Iraq was about oil and US control of currency on oil reserves in the world economy. The issue of WMD (weapons of mass destruction), democracy and human right were simply a pretext to cheat the stupid believers of American philosophy (Schott, 2004). In March and April 2002, there was an increase of hostility towards Americans and the Israelites. This is because of the siege of Ramallah, and other cities in Palestine, and the occupation of Israel at the West Bank (Devereaux and Lawrence, 2006). Furthermore, there was a massive protest in Arabian countries, protesting against Israeli occupations, and the unwillingness of United States to restrain them. Literature Review The U.S relations with the Arabian countries has been an issue of controversy since 9/11.Trade between these two regions has been on the decline since the incidents and the eventual invasion of Iraq, Afghanistan and the recent uprisings from Egypt all the way to Syria.US exports to middle East fell from $15.3 billion in 1998 to $10.59 billion in 2001. And to other Arabian nations exports fell $26.67 billion in 1998 to $ 23.09 billion in 2001 (Devereaux and Lawrence, 2006). The fall in figures could be attributed to an increase of the strenght of the U.S. dollar against other major world currencies. Secondly two other factors played in the course of the downward trend of exports to Muslim nations. The failure of the Arab-Israeli peace negotiations and the start of the second Palestinian uprising of 2000 fueled anti-American sentiments throughout the Arab world. But of the above, the one major factor was the twin bombings of the World Trade Centers in New York and the pentagon (Devereaux and Lawrence, 2006). By attacking the World Trade center, terrorists hoped that they would manage to negatively affects international trade (Devereaux and Lawrence, 2006). However, they were not successful, because the whole world stood by United States and vowed to promote international trade. These events led to the resolution by the Bush administration into fading off the assault on American freedom by these cowards, to use military power into Iraq and Afghanistan to destroy all elements of al-Qaeda. It then culminated into American invasion of Iraq which led to the downfall of the Iraqi government under Saddam Hussein. But before this, October 1998 the US Congress had enacted the Iraqi Liberation Act (Devereaux and Lawrence, 2006). This act was aimed at allowing the US army to overthrow the Iraqi government. 97 million dollars was allocated for covert operations in Iraq, with the intention of frustrating its government. However, these strategies were not successful, because Saddam Hussein was able to survive all covert operations. The government of Iraq, was seen as a symbol of deviance, against the US (Bernard and Jensen, 2010). Richard Hass- a member of National Security and special assistant to the President under the senior Bush, who soon was appointed Director of Policy Planning in the State Department of George W. Bush.His job was to coordinate policy for the future of Afghanistan people.In his book (the intervention) he pointed out that, it is possible to change a regime through invading a country using the military. However, this is always not advisable because it would result to a power vacuum once the regime is changed. However, the United Nations and the United States invaded Iraq (Bernard and Jensen, 2010). The U.N sanctions were an important instrument for the US to prevent other powers from getting a foothold in Iraq. In the later periods of January 2003, oil was seen as the major reason for invading Iraq, and this is because the American military was able to control the gas and oil deposits in the region (Devereaux and Lawrence, 2006). Furthermore, it was believed that US companies would benefit from lucrative oil contracts that were to be found in Iraq. Furthermore, the US government aimed at influencing Iraq, to allow a liberal economy to thrive in it. This would include opening up the Iraq economy and resources from exploration by outside companies (Schott, 2004). Since the Gulf region is the main energy-producing region in the world, for the US strategic power, Iraq was central. For example, controlling Iraq would mean that the US government is in a strong position to determine the production rate and prices of oil, and hence use this power in advancing the interests of United States in the world. The US national energy plan-the Chaney Report- that was released in May of 2001, called for an increased US activities in regions like the Persian Gulf was aimed at securing future oil supplies. This war was important because the intention of the United States was to keep a grip on World Trade (Schott, 2004). This is against its competitors. It was a war between the Euro and the dollar. As a result, Iraqs invasion was only seen a beachhead that could only be disrupted to maintain a control of World Trade on every other economy. Since the fall of Iraqi Capital Baghdad to US forces on April 9, 2003, the US occupation- induced anarchy, lawlessness, looting, insecurity, growing violence and total chaos (Bernard and Jensen, 2010). All these led to massive loss of life and growing anti-Americanism in Iraq. As a result, the resentment between these two nations increased to unimaginable levels that could only mean that the US business relation with the Muslim nations was never mutual. Instead, it declined based on aggression and invasion of Iraq and subsequent US foreign policy formation. The purpose of the study Researches done on America, and the Muslim nations focus was on political effects that culminated from 9/11 attacks. In contrast to that, this paper looks at another very dynamic angle. From the onset of the four bombings that culminated from the operation by the worlds most deadly extremist group (the al-Qaeda), business has not been usual (Bernard and Jensen, 2010). Trade has been declining at rates that are not easy to imagine. Americas interest in oil and gas has increased its desire to control business in other world oil producing nations and put a grip on the dollar so that it remains the worlds most notable currency. With that in mind, they can control all lengths of business and have huge oil reserves at their disposal as they can (Bernard and Jensen, 2010). This research paper seeks to find answers as how the United States government can have a grip on its allies in the Persian Gulf like Kuwait and Israel. At the same time not to collapse relations with their Muslim enemies. It also seeks to know how the Muslim countries are saying about American products and their preferences (Devereaux and Lawrence, 2006). What they think about the trade between their country and the Americans is doing to their lives. How and when they believe the trade between their nations of origin and America soared up, and they think resulted into the soaring of trade relations. What they think about September 11 and how it impacted on their business lives and relations with America (Bernard and Jensen, 2010). Do they believe that the perceptions they have about America and those held by Americans about them could change anytime in the future? Does Islam education prohibits or enhances the type of extremist behaviors to existing concurrently with religion? Do they believe in Osama Bin Laden views of jihad against the "lesser" religions of the world. Findings; Research Questions Is there tolerance for extremists in Muslim America and those in member Muslim nations? Devereaux and Lawrence (2006) explain that approximately 5% of American Muslims are in support of the activities of Al-Qaeda. This is an indication that even though Al-Qaeda was claiming to be advancing the interests of Muslims, majority of the Islamic people did not support its activities. It is important to understand that this hostility emanated because of the fact that there are different interpretations of Quran. One interpretation denotes that it is unjust to kill and maim innocent civilians (Devereaux and Lawrence, 2006). This is the reason why most Muslims were against the activities of Al-Qaeda. Was the trade possible between USA and the Persian Gulf after 9/11? There was high publicized boycott of American products after the 9/11 and subsequent passing of US foreign policy on Muslim nations. In Egypt, there was a detailed list of products or substances that were circulated by the internet for boycott (Devereaux and Lawrence, 2006). This included all American products, which ranged from food substances, electrical items, computer products, batteries, candies, etc. An example of a company that was greatly affected by these boycotts includes AC Delco. This was an American company responsible for manufacturing batteries. Its products were boycotted in the Egyptian markets, resulting to great losses. Customers were required to substitute the products of Mitsubishi and Samsung, products manufactured by countries loyal to America, with the products of General Electric and Carriers. This was an Egyptian company. Other products that were boycotted include Coca-Cola, McDonalds, Marlboro, etc. The intention of these boycotts was to change the US foreign policy on Middle East, and its relations with the Islamic people (Bernard and Jensen, 2010). Other than the boycotts did there exist any form of aggression towards American products after 9/11 and how it Affect Egyptian economy. The Egyptian economy had been undergoing a series of recession since the year 1999. However, the events of September 11th had an impact in negatively affecting the economy. Remittances from relatives and friends who are abroad from the period of 9/11 fell by considerable margins (Bernard and Jensen, 2010). Revenues from Suez Canal as a result of a showdown in New York and Washington came down at very huge heights. Tourism also fell due to the events and oil exports had to come down. Are there any trade agreements that were reached at to ease the tension after or before 9/11? In the case of Egypt, which is the largest beneficiary of American products, trade and Investment Framework Agreement (TIFA) was reached in the year 1999 (Devereaux and Lawrence, 2006).After the failure to reach an FTA bilaterally, the US shifted to offering agreements in regional trade a priority. For example, as per the year 2003, the United States developed regional trade agreements with countries such as Jordan, Oman, Morocco, Israel, etc. This is under the MEFTA trade initiative. Ironically, despite Egypts trade dominance in the Arab region with the U.S.A discussions on FTA resumed on later but no fruits were seen (Rivoli, 2005). The trade that occurs between Egypt and the United States normally operates within two initiatives whose aim is to increase the various exports that Egypt takes to United States. One initiative is the Generalized System of Preferences, normally abbreviated as GSP. This is a preferential trade program in which certain Egyptian products qualify to receive the duty free benefits, while entering United States. This is through specific qualifications. The second initiative is the Qualifying Industrial Zones. This is a free way trade agreement which combines the Israeli and the Egyptian manufactured products to allow them access the US market, at a duty free (Devereaux and Lawrence, 2006). This initiative is aimed at improving the trade that occurs between Egypt and the United States. However, it is important to explain that Egyptian and American trade is only limited to agreements. These agreements are never enforced, and hence trade remains one way. This is because the Egyptians are still viewed with suspicions; this is despite their treaty with Israel, and cooperation with United States. Conclusion and Recommendations: Trade relations between United States and the Muslim nations are at a state of fear and anxiety after the attacks that occurred in September 11 in New York and Washington. The resultant influence of the attacks led to a state of confusion and high levels boycotts and propaganda in the United States and all over the Arabian Gulf (Bernard and Jensen, 2010). Increased profiling of citizens of Arabian nations made it very hard for American Muslims to transact their businesses without facing scrutiny from American officials. In the wake of September 11 debris, a huge number of citizens, were left either orphaned or widowed. It then led to people holding a lot of resentments either directed to the U.S government or to the extremist killers who used Islam as a means to spread their ideologies. One could have expected that the US government under the special assistance of the Homeland security could embark on a nationwide healing and reconciliation while at the same time attack the killers. In the aftermath of Iraq invasion, nothing is there to show for it (Devereaux and Lawrence, 2006). The incidents leading to the invasion were very painful, but the resultant effects were even much worse. At the height of it very many US soldiers lost their lives, and the strong economic ties reduced tremendously. The United States government needs to prioritize and identify the potential and actual terrorist shrines. Moreover, it should develop a realistic approach that helps to keep terrorists insecure, and constantly running away from the governments. There is a need to reaching out, listening to and working with other countries that can help to form mutual trade and security agreements. If the US had reached out mutually to a country like the Pakistanis, who is good for their rice exports, then Osama Bin Laden could have been killed very fast. Moreover, Pakistanis endemic poverty, widespread corruption, and often ineffective government create opportunities for Islamist recruitment. The poverty index pushes many families to send their children to madrasas that form a haven for extremist teachers (Devereaux and Lawrence, 2006). Terrorism is both a Pakistan and American problem to handle. But if measures were in place to form bilateral agreements then such problems could be dealt with from the grassroots level. Bilateral trade agreements need not be limited to certain countries. The preferential trade agreements should extend to many other countries that are defined by Islam as a religion. The status quo maintained by the United States over other countries of Muslim should be reduced, so that better relations are trade fostered. Security profiling should be fostered in a way that does not dehumanize a certain group of people based on their religious upbringing. For, instance when Mr. Ahmed H. Sharif was slashed through the neck by an unknown 21-year-old in his taxi. It happened only after the 21-year-old had asked the driver if he was Muslim and upon stating he was, the unthinkable occurred. These events only help in propagating the hate between the two regions; that can be averted through trade education forums and sensitization programs. The media should be used to in a way that can only help initiate peace rather than war. In a survey carried out by the CBS News agency, it found out that 73% of Americans have a negative attitude towards Muslims. This is after the terror attacks of September 11th. It is therefore essential for media organizations to correct the assumptions that Muslims are the root cause of terrorism. This would help in promoting peace in United States. The U.S foreign policy regarding Islamic states should be elaborated and corrected because it is the main reason of hostility between Muslims and Americans. Americans should be ready to learn from their mistakes just like the Taliban did after 9/11.It should be useful in fostering trade relations rather than hatred. Furthermore, the US should not use the war on terror for purposes of achieving economic gains. A country like Iraq needs rebuilding and proper legislation, so that they can realize their dreams. Bibliography: Bernard, A., & Jensen, J. (2010). The margins of US trade. Washington, DC: Peterson Institute for International Economics. Top of Form Bottom of Form Devereaux, C., & Lawrence, R. (2006). Case studies in US trade negotiation. Washington, DC: Institute for International Economics. Top of Form Bottom of Form Friedman, T. (2005). The world is flat: A brief history of the twenty-first century. New York: Farrar, Straus and Giroux. Top of Form Bottom of Form Rivoli, P. (2005). The travels of a t-shirt in the global economy: An economist examines the markets, power and politics of world trade. Hoboken, N.J.: John Wiley & Sons. Top of Form Bottom of Form Schott, J. (2004). Free trade agreements US strategies and priorities. Washington, DC: Institute for International Economics. Top of Form Bottom of Form Smith, D. (2002). Report from ground zero: The story of the rescue efforts at the World Trade Center. New York: Viking. Read More