Geopolitics - The Sixteenth Council

Negotiations and Tariff Threat of Ongoing US-Europe Territory Dispute

The US-Europe dispute over Greenland reflects a new era of geopolitically driven trade policy. President Trump’s threats of escalating tariffs aim to force European acquiescence, prompting discussions on Europe’s anti-coercion measures. NATO deployments to Greenland, debates over US missile defence, and concerns from Russia and China underscore the stakes. Failure to reach agreement risks severe economic disruption for Europe, particularly Germany, while US-EU trade faces uncertainty. The crisis signals that tariffs are increasingly a tool of strategic coercion rather than revenue generation.

U.S. Capture of Nicolás Maduro and the Inception of a New, Volatile Foreign Policy Doctrine

The U.S. capture of Nicolás Maduro marks a watershed in global politics: a shift from rules to raw power. Framed as law enforcement by United States under Donald Trump, the operation signals a new doctrine of unilateral regime removal tied to strategic resources. The immediate prize is Venezuelan oil; the long-term cost is a destabilized international order, where sovereignty becomes conditional and retaliation increasingly likely.

2026 Geopolitics: Power Without Dominance

Geopolitics in 2026 is defined by power without dominance. Major states retain significant military and economic capacity, yet lack the ability to impose durable outcomes unilaterally. Strategic competition has shifted toward chokepoints in technology, energy, and finance, while unresolved conflicts are increasingly managed rather than resolved. Fiscal constraints, alliance recalibration, and regional power assertion are reshaping global behaviour, producing a fragmented international system marked by calibrated escalation, persistent friction, and heightened strategic uncertainty.

Electoral Uncertainty in Latin America

Latin America is entering a period of heightened electoral uncertainty as a dense cycle of elections from late 2025 to 2026 reshapes the region’s political trajectory. Voter fatigue, economic pressures, and dissatisfaction with inequality are fuelling a potential shift away from left-leaning governments toward more centrist or market-oriented leadership. While this transition may unlock reform and investment opportunities, it also heightens risks of policy volatility, social unrest, and intensified geopolitical competition between global powers.

Global Order Under Strain: The Major Foreign-Policy Shocks of 2025

2025 exposed a global order under strain, defined less by decisive realignments than by accumulating shocks. U.S.–China economic confrontation became visibly symmetric, conflict mediation in Ukraine and the Middle East lost credibility, and regional actors assumed security roles once held by global powers. Trade routes, supply chains, and deterrence norms all proved fragile. The year underscored a central reality: major powers retain ambition, but their ability to enforce outcomes is increasingly constrained, producing a more volatile and contested international system.

Economies to Watch in 2026

The global economy entering 2026 is no longer governed primarily by growth cycles, but by strategic stress. Fiscal exhaustion in advanced economies, geopolitical fragmentation, energy realism, and uneven technological diffusion are reshaping economic outcomes. The most consequential economies in 2026 will not be those expanding fastest, but those sitting at critical inflection points—capable of transmitting shock, absorbing volatility, or redefining alignment. Economics has become an instrument of power, constraint, and contest.

Economic Policy Variation in Latin America

Latin America’s economic landscape is shifting as countries balance slow growth with rising geopolitical pressures. Diversified trade—especially deeper ties with China—and selective nearshoring are reshaping regional dynamics. While open-market economies like Chile and Colombia expand global access, protectionist players such as Brazil and Argentina prioritise shielding domestic industries. Despite strong potential, the region faces fiscal strain, low productivity, and infrastructure deficits. Long-term growth hinges on structural reforms and fiscal consolidation to strengthen resilience in a volatile global market.

Development of UK Trade Deals since Brexit

Since Brexit, the UK has pursued new and amended trade deals to expand market access and strengthen international partnerships. Agreements with the EU, US, India, and Pacific nations reflect efforts to boost exports, attract investment, and drive growth under the Invest 2035 strategy. Despite ongoing economic instability, these trade deals support diversification, innovation, and employment across high-growth sectors such as technology, clean energy, and manufacturing—positioning trade as a central pillar of the UK’s long-term recovery and competitiveness.

Recognition Without Reconciliation: The Palestine Recognition Shake-Up

Britain, Canada, and Australia’s recognition of Palestine has upended the diplomatic balance. While Palestinians hail the move as overdue legitimacy, Israeli Prime Minister Netanyahu vows there will be “no Palestinian state,” framing the decision as a reward for extremism. This Western shift pressures Washington, unsettles Arab capitals, and raises expectations for Palestinian governance. Recognition does not create statehood, but it changes the political calculus—forcing Israel, its allies, and its critics to rethink their next moves.

What does Chinese Military Expansion mean?

Beijing’s Victory Day parade has brought global attention to China’s military expansion and new nuclear capabilities. The strong demonstration of military power reflects President Xi’s political ambitions for China, carrying implications for both the East Asian region and international relations. Geopolitical tensions both within the region and between China and the US, as well as the development of diplomatic partnerships between China, Russia, and North Korea, mark an increase in militaristic competition and spending, and a united front against Western interference.

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