NATO is holding its 75th anniversary summit in Washington, D.C., with discussions focused on providing military and economic support to Ukraine. NATO Secretary-General Jens Stoltenberg has suggested a baseline contribution of $43 billion per year to support Ukraine. The National Association of Manufacturers (NAM), a leading advocate for manufacturers in the United States, has been a vocal supporter of Ukraine and has called for a strong defense industrial base. NAM President and CEO Jay Timmons emphasized the importance of manufacturers in supporting alliances, increasing prosperity, and ensuring peace and security. The summit will also address the attendance of British Prime Minister Keir Starmer and discussions on dealing with Chinese threats in the South China Sea [e97c6093].
Volodymyr Zelenskiy, the Ukrainian president, expressed gratitude to the United States, Denmark, the Netherlands, Belgium, and Norway for their practical steps in strengthening the Ukrainian air force with F-16s. Zelenskiy stated that F-16s bring just and lasting peace closer and that his team continues to work in Washington to reach agreements that strengthen Ukraine's defense capabilities. Jens Stoltenberg, the NATO secretary-general, emphasized that support to Ukraine is not charity but in NATO's security interest. NATO leaders discussed plans to modernize deterrence and defense, strengthen the industrial base, and reinforce partnerships in the Indo Pacific. The NATO summit also aimed to send a message to Vladimir Putin about the alliance's resolve to support Ukraine. The Dutch and Danish governments announced that the transfer process of F-16s to Ukraine is underway, and Ukraine will be flying operational F-16s this summer. The Labour government in the UK stated that it will not increase military spending without economic growth [8af7808b] [e97c6093].
In the midst of the summit, concerns have been raised about China's military exercises near NATO's border. China has teamed up with Belarus for a joint military exercise on the border with Poland, a NATO ally. The exercise aims to enhance training levels and deepen practical cooperation between the armies of China and Belarus. NATO officials are tracking the military maneuvers near its borders and remain vigilant [ffaf8e7b].
NATO members are expected to offer new security guarantees and some air defense equipment to Ukraine, but a formal invitation to join NATO is unlikely at this time. The summit will also address China's aid to Russia and the internal divisions within the alliance, particularly in the US, that may impact NATO's relevance. NATO is considering a more involved role in the Indo-Pacific, given China's support for Russia's war on Ukraine. The summit will also discuss dealing with Chinese threats in the South China Sea [e97c6093].
Jake Sullivan, the national security adviser of the United States, emphasizes the importance of alliances and the commitment of allies to NATO. He states that our allies are now committing more to our common defense than at any point since the end of the Cold War. NATO members are expected to meet or exceed the pledge to spend 2 percent of their GDP on defense, with 32 members meeting the target in 2024 compared to just nine in 2020. This year, America's NATO partners will spend an estimated $506.7 billion on defense, an increase of $181 billion from 2020. Defense expenditures of NATO nations in Europe and Canada are set to grow by 18 percent in 2023. Sullivan also highlights the increase in military spending by our closest partners in the Indo-Pacific, including Japan, South Korea, and Australia [3d05c274].
According to a BBC report, Nato expects 23 of its 32 members to achieve the target level of spending on defense this year. The members of the military alliance pledged to spend at least 2% of the value of their economies - measured by GDP - on defense per year by 2024. For 2024, Poland will be the top spender for the second year running, allocating 4.1% of GDP. Estonia is in second place at 3.4% with the US in third place at 3.4%. The UK comes ninth on the list with 2.3%. The average for Nato members in Europe and Canada is estimated at 2.0%. Defence spending by European Nato members and Canada has increased over the last 10 years. The current target for European Nato members of 2% of GDP on defense by 2024 was agreed in 2014. In that year only three countries (the US, UK and Greece) were spending more than 2% on defense. Nato members also pledged that by 2024 at least 20% of their defence expenditure should go on acquiring and developing military equipment. In 2024, all Nato members except Belgium and Canada are expected to achieve that. Nato's annual budget and programmes come to about €3.8bn overall, and there's an agreed cost-sharing formula to pay for the running of things such as civilian staff and administrative costs of Nato headquarters, joint operations, strategic commands, radar and early warning systems, training and liaison, defence communications systems, airfields, harbours and fuel supplies. The three biggest contributors to this are the US and Germany at 16% and the UK at 11%. The US used to pay more than 22% of these running costs. But a new payment formula was agreed in 2019 to address complaints by the Trump administration about the burden to the US of supporting the alliance [28c8da49].
In other news, Texas plans to establish a trade office in Taiwan, which has drawn opposition from China. U.S. ambassador to Japan Rahm Emanuel criticized Beijing's ban on Japanese seafood imports. Taiwan has fostered a close relationship with the U.S. through various diplomatic efforts. A commission set up by the Heritage Foundation recommends creating a bipartisan reparations committee to help U.S. citizens seek restitution from China for the pain endured during the pandemic [ffaf8e7b].
The first batch of US-built F-16 fighter planes are being transferred to Ukraine from Denmark and the Netherlands. US Secretary of State Antony Blinken announced the transfer at the Nato summit, stating that the jets will be flying over Ukrainian skies this summer to bolster Ukraine's air defenses against Russian aggression. Ukraine has been fighting a Russian invasion and has experienced blackouts due to aerial assaults on its national power grid. The F-16s have been on Ukraine's wish list for a long time due to their destructive power and global availability. Denmark has committed to donating 19 planes, the Netherlands has promised to deliver 24 aircraft, and Norway will donate six F-16 fighters to Ukraine. The deliveries are planned to start this year. US Senators Richard Blumenthal and Lindsey Graham have endorsed retired NATO F-16 pilots for Ukraine's Air Force and called on the Biden Administration to lift restrictions on using US-supplied weapons in Russia. They express optimism about Ukraine's military efforts and praise the country's offensive in Russia's Kursk Oblast. The senators stress the need for bipartisan support for Ukraine, pledge more military aid in 2024, and urge NATO to invite Ukraine to join this year. They also discuss a strategic agreement on Ukraine's rare earth minerals and support Zelenskyy's proposal to enlist retired NATO F-16 fighter pilots. President Zelenskyy emphasizes the importance of receiving military and technical assistance from partners. The senators plan to introduce the Stand With Ukraine Act in September to codify the bilateral security agreement reached between the Biden Administration and Zelenskyy's government in July 2024. [7a01786b] [1437f5dc]