“My challenge today is to democratic middle powers, these countries are not hegemons like China and the United States, they still have the money, the muscle and the might to matter,” said Rasmussen, who envisions a lean and agile secretariat and potential meetings on the sidelines of existing leaders' summits.
The proposal puts flesh on the bones of a sentiment that Canadian Prime Minister Mark Carney expressed at Davos in late January, at a time when the US-Greenland crisis looked like it could destroy NATO.
“Middle powers must act together, because if we're not at the table, we're on the menu,” Carney said.
There is a lot of Sensible Susan substance to Rasmussen’s idea – a pro-free trade bloc that could also team up on critical minerals to counter Beijing’s supply chain dominance, as well as offer an investment alternative for the Global South to China’s Belt and Road.
He has also floated a potential economic equivalent to NATO’s Article 5 – that an attack on one is an attack on all.
“The Chinese strategy is to single out individual countries and expose those countries to economic coercion. But if we respond collectively, we represent 30% of the global economy, then it would create some respect,” Rasmussen said.
Economic coercion by global heavyweights toward middle powers has ramped up in recent years.
Exhibit A: Trump's tariff threats against the UK and his intimidation of the EU over Greenland.
Exhibit B: a China–Lithuania row over the name of a Taiwanese office in Vilnius and a bruising China–Canada trade stoush and hostage diplomacy espisode after Ottawa honoured its extradition treaty with the US and detained a Huawei executive.
Australia has also not been immune – when Scott Morrison’s government in 2020 called an inquiry into the origin of the coronavirus pandemic, China slapped an 80% restriction on Australian barley. Diplomatic bickering with Beijing also saw Australian winemakers and other producers punished.
A collective economic defence clause and support group could offer safety in numbers. (But it would need a fun nickname like the EU’s trade “bazooka”.)