The NSA's data tapping: America through the PRISM

The <em>Guardian</em>'s stories of the last two days are the highest-level US leaks since the Pentagon Papers.

Yesterday, I asked if the story about the US National Security Administration secretly  requisitioning phone records went deeper – if social networking data might not be as easily requisitioned by security forces as phone metadata. Within hours, the Guardian provided the answer, in the form of a leaked PowerPoint presentation, classified 'Top Secret', which was “apparently used to train intelligence operatives” as part a program named PRISM.

This is now the second of two such 'Top Secret' documents obtained by the Guardian in as many days; an astonishing achievement, considering that the last documents of this level of American security classification to be actually published in the press were the famous “Pentagon Papers”, by the New York Times in 1971, forty-two years ago.

Nothing that WikiLeaks published ever carried this level of security classification. Most of the documents they leaked to the press were “secret” level, with a few “confidential” and unclassified documents thrown in.

This puts the Guardian in a unique position. Whoever leaked these documents – both the Verizon court order, and the intelligence training PowerPoint presentation the following day, two separate leaks – could be in real trouble under the Espionage Act as well as several other US statutes.

It is also worth mentioning that the Nixon administration did place an injunction on the New York Times and the Washington Post over the release of the Pentagon Papers, though it was lifted after fifteen days by the Supreme Court, which upheld the papers' First Amendment rights. Attorney General Eric Holder said yesterday that the DoJ “will not prosecute any reporter from doing his or her job.”

Nonetheless, this leak is absolutely unprecedented in the internet age, and the Obama administration is developing a worrying reputation for hostility to journalists; the DoJ named Fox News reporter James Rosen as a 'co-consipirator' under the Espionage Act in order to put him under surveillance in 2010, the first time a journalist had ever been targeted this way in the US.

This also comes at a time when Army Private Bradley Manning, who gave WikiLeaks their biggest information-dump of classified material, is facing military trial for leaks. Prosecutors are seeking to prove that he was “aiding the enemy” - which is technically a capitol offence in the US, though they apparently do not intend to seek the death penalty.

US Director of National Intelligence James R Clapper gave a statement yesterday condemning the leaks, saying that they threaten “potentially long-lasting and irreversible harm to our ability to identify and respond to the many threats facing our nation,” and highlighted that everything the NSA has been shown to be doing is “within the constraints of the law”. House intelligence chairman Mike Rogers defended the phone data requisition program to the Washington Post too, saying that within the last few years, the phone record requisition program had been used to stop a terrorist attack within the United States. But libertarian senator Rand Paul called the seizure shown by the first leak an “astounding assault on the constitution”.

The PRISM logo.

Nicky Woolf is a writer for the Guardian based in the US. He tweets @NickyWoolf.

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What is the EU customs union and will Brexit make us leave?

International trade secretary Liam Fox's job makes more sense if we leave the customs union. 

Brexiteers and Remoaners alike have spent the winter months talking of leaving the "customs union", and how this should be weighed up against the benefits of controlling immigration. But what does it actually mean, and how is it different from the EU single market?

Imagine a medieval town, with a busy marketplace where traders are buying and selling wares. Now imagine that the town is also protected by a city wall, with guards ready to slap charges on any outside traders who want to come in. That's how the customs union works.  

In essence, a customs union is an agreement between countries not to impose tariffs on imports from within the club, and at the same time impose common tariffs on goods coming in from outsiders. In other words, the countries decide to trade collectively with each other, and bargain collectively with everyone else. 

The EU isn't the only customs union, or even the first in Europe. In the 19th century, German-speaking states organised the Zollverein, or German Customs Union, which in turn paved the way for the unification of Germany. Other customs unions today include the Eurasian Economic Union of central Asian states and Russia. The EU also has a customs union with Turkey.

What is special about the EU customs union is the level of co-operation, with member states sharing commercial policies, and the size. So how would leaving it affect the UK post-Brexit?

The EU customs union in practice

The EU, acting on behalf of the UK and other member states, has negotiated trade deals with countries around the world which take years to complete. The EU is still mired in talks to try to pull off the controversial Transatlantic Trade and Investment Partnership (TTIP) with the US, and a similar EU-Japan trade deal. These two deals alone would cover a third of all EU trade.

The point of these deals is to make it easier for the EU's exporters to sell abroad, keep imports relatively cheap and at the same time protect the member states' own businesses and consumers as much as possible. 

The rules of the customs union require member states to let the EU negotiate on their behalf, rather than trying to cut their own deals. In theory, if the UK walks away from the customs union, we walk away from all these trade deals, but we also get a chance to strike our own. 

What are the UK's options?

The UK could perhaps come to an agreement with the EU where it continues to remain inside the customs union. But some analysts believe that door has already shut. 

One of Theresa May’s first acts as Prime Minister was to appoint Liam Fox, the Brexiteer, as the secretary of state for international trade. Why would she appoint him, so the logic goes, if there were no international trade deals to talk about? And Fox can only do this if the UK is outside the customs union. 

(Conversely, former Lib Dem leader Nick Clegg argues May will realise the customs union is too valuable and Fox will be gone within two years).

Fox has himself said the UK should leave the customs union but later seemed to backtrack, saying it is "important to have continuity in trade".

If the UK does leave the customs union, it will have the freedom to negotiate, but will it fare better or worse than the EU bloc?

On the one hand, the UK, as a single voice, can make speedy decisions, whereas the EU has a lengthy consultative process (the Belgian region of Wallonia recently blocked the entire EU-Canada trade deal). Incoming US President Donald Trump has already said he will try to come to a deal quickly

On the other, the UK economy is far smaller, and trade negotiators may discover they have far less leverage acting alone. 

Unintended consequences

There is also the question of the UK’s membership of the World Trade Organisation, which is currently governed by its membership of the customs union. According to the Institute for Government: “Many countries will want to be clear about the UK’s membership of the WTO before they open negotiations.”

And then there is the question of policing trade outside of the customs union. For example, if it was significantly cheaper to import goods from China into Ireland, a customs union member, than Northern Ireland, a smuggling network might emerge.

 

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.