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Subject: International Relations

  • Ensuring Stability and Peace on the Line of Actual Control (LAC)

    LAC

    Central Idea

    • The Line of Actual Control (LAC) between India and China has been a hotbed of tension and occasional clashes in recent years, posing a significant risk of escalation. Both countries have invested heavily in defensive preparedness and military infrastructure near the LAC. While a permanent solution may not be immediately achievable due to the complexity of the border dispute, short-term and pragmatic steps can be implemented to reduce the chances of conflict and foster peaceful coexistence

    Inadequacies in Existing Agreements

    • Lack of Clarity on LAC: The agreements are based on the assumption that both parties have a clear understanding and definition of the LAC. However, in reality, there are significant segments of the border where the exact demarcation is disputed or lacks clarity.
    • Insufficient Mechanisms for Dispute Resolution: The 1993 Agreement called for the creation of joint mechanisms to verify and settle LAC-related disputes. However, it took 19 years for the establishment of the Working Mechanism for Consultation and Coordination on India-China Border Affairs (WMCC) in 2012. While the WMCC meets twice a year, its effectiveness in resolving disputes and preventing escalations on the ground has been limited.
    • Limited Border Personnel Meeting (BPM) Points: The LAC, which stretches for 3,488 kilometers, currently has only four established BPM points. The 2005 Protocol proposed the establishment of a BPM point at Lipulekh, but it has not been implemented.
    • Lack of Progress in Force Reduction and Redeployment: The agreements, such as the 1993 Agreement and the 1996 Agreement, envisioned a mutually agreed reduction and redeployment of forces along the LAC. However, there has been little progress in implementing these provisions. The absence of substantial force reductions contributes to the prevailing tensions and increases the risk of confrontations.

    Facts for prelims

    States Border with China Important Passes
    Jammu and Kashmir 1597 km Khardung La Pass, Chang La Pass, Marsimik La Pass, Saser La Pass
    Arunachal Pradesh

     

    		 1126 km

     

    		 Bum La Pass, Kibithu Pass, Tawang
    Uttarakhand 345 km Mana Pass, Lipulekh Pass, Niti Pass
    Sikkim 220 km Nathu La Pass, Jelep La Pass
    Himachal Pradesh 200 km Shipki La Pass, Kaurik Pass

    The Need for Effective and Immediate Measures

    • Fragile and Dangerous Situation: As stated by India’s External Affairs Minister, the situation along the LAC in Eastern Ladakh remains fragile and dangerous from a military assessment perspective. The potential for escalation and the risk of conflict are significant.
    • Escalation of Aggression: Following the Galwan crisis, there has been a significant mobilization of Chinese forces into Tibet, accompanied by heightened rhetoric and jingoism from both countries.
    • Complexity of Border Dispute: The border dispute between India and China, encompassing areas such as Arunachal Pradesh and Aksai Chin, is intricate and has deep historical and geopolitical roots. Achieving a permanent solution to the dispute may not be immediately feasible.
    • Uncertainty of War Outcomes: While there might be voices advocating for a more confrontational approach, it is essential to consider the potential outcomes of a full-fledged war. Despite assurances from the government, there is no guarantee that the results of such a conflict would be favorable to either India or China.

    Proposed Steps for Peace and Stability

    • Conversion of LAC into a Line of Control (LC): Both India and China should delineate the LAC on maps and on the ground without prejudicing their respective border claims. This transformation would help reduce the urge among forward troops to make incremental advances and could be accomplished through mature dialogue and the use of technology.
    • Treatment of Disputed Areas as No Entry Zones or Joint Patrolling: The disputed areas along the LAC could be designated as no entry zones, preventing either side from establishing a permanent presence. Alternatively, both countries can explore the possibility of allowing mutually agreed-upon patrolling of these areas. Joint patrolling would help maintain the status quo and build confidence between the troops.
    • Strengthening Existing Confidence Building Measures (CBMs): The WMCC, established in 2012, should be empowered with more authority and resources to effectively address LAC-related disputes. Additionally, establishing more BPM points along the LAC would facilitate quicker resolution of local issues and enhance communication and cooperation between the Indian and Chinese troops.

    Conclusion

    • The tense situation along the Line of Actual Control calls for immediate action to ensure stability and prevent the outbreak of a major conflict. It is crucial for both nations to prioritize dialogue, cooperation, and a commitment to regional stability in order to safeguard their own interests as well as those of the world, politically and economically.

    Also read:

    India-China clash: Why China has opened new front?

     

  • Duty-Free Quota Free (DFQF) Scheme

    Central Idea

    • India offers a duty-free quota-free (DFQF) scheme to least developed countries (LDCs) under the World Trade Organisation (WTO).
    • A report by the LDC Group reveals that about 85% of the products offered by India remain unutilised under the DFQF scheme.

    World Trade Organisation (WTO)
    Establishment The WTO was established on January 1, 1995, following the Uruguay Round of Negotiations conducted from 1986 to 1994.
    Nature The WTO is the only global international organization dedicated to regulating trade rules between nations.
    Successor to GATT It is the successor to the General Agreement on Tariffs and Trade (GATT), which was in place from 1948 to 1994.
    Objectives To facilitate the smooth, predictable, and unrestricted flow of international trade.
    Working Principles Based on the principles of MFN and national treatment, ensuring equal and non-discriminatory treatment.
    Member-Driven Organization Governed by its member governments, and decisions are made through consensus among these members.
    Special and Differential Treatment for Developing Countries The WTO provides specific flexibilities and rights to least developed countries (LDCs) and developing nations.

     

    DFQF Scheme

    • The DFQF access for LDCs was initially decided at the WTO Hong Kong Ministerial Meeting in 2005.
    • India became the first developing country to extend this facility to LDCs in 2008, providing preferential market access on 85% of its total tariff lines.
    • The scheme was expanded in 2014, offering preferential market access on about 98.2% of India’s tariff lines to LDCs.

    Issues highlighted by WTO

    (1) Tariff Line Utilisation Data

    • WTO data from 2020 indicates that 85% of the tariff lines offered by India under the DFQF scheme show zero utilisation rate.
    • China’s utilisation rate for similar tariff lines is 64%, with only 8% of the lines showing a utilisation rate above 95%.
    • Utilisation rates for beneficiary LDCs vary significantly, with Guinea and Bangladesh having low rates (8% and 0% respectively), while Benin reports the highest utilisation rate of 98%.

    (2) Non-Preferential Tariff Route

    • Similar to China, significant amounts of LDC exports enter India under the non-preferential (most favoured nation) tariff route, despite being covered by the Indian preference scheme.
    • The report highlights the importance of preference margins, indicating potential duty savings.
    • For example, fixed vegetable oil exported from Bangladesh to India has a preference margin of 77.5 percentage points, implying a potential $74 million duty savings if the preference scheme were utilized.

    Challenges and Barriers

    • The report suggests that the low utilisation of the preference scheme by LDCs is not due to exporter awareness but rather existing barriers that hinder the effective use of preferences.
    • The specific barriers preventing LDCs from fully utilizing the scheme are not mentioned in the article.

  • OPEC+ decision on Oil Supply cut

    opec

    Central Idea

    • Saudi Arabia has decided to decrease its oil supply to the global economy.
    • This unilateral action aims to stabilize the declining crude oil prices.
    • Previous efforts by major oil-producing countries within the OPEC+ alliance to cut supply did not yield desired price increases.

    What is OPEC+?

    • The non-OPEC countries which export crude oil along with the 14 OPECs are termed as OPEC plus countries.
    • OPEC plus countries include Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan, and Sudan.
    • Saudi and Russia, both have been at the heart of a three-year alliance of oil producers known as OPEC Plus — which now includes 11 OPEC members and 10 non-OPEC nations — that aims to shore up oil prices with production cuts.

    Reasons for OPEC+ Production Cuts

    • Russian war: Oil prices rose significantly following Russia’s invasion of Ukraine.
    • Previous major cut: The recent production cut is the largest since 2020 when OPEC+ members reduced outputs by 10 million barrels per day (bpd) during the Covid-19 pandemic.
    • Benefit to Middle Eastern states: The cuts are expected to boost prices, benefiting Middle Eastern OPEC+ members who have become significant oil suppliers to Europe after sanctions were imposed on Russia.

    Concerns for India

    • Fuel price hike: Despite importing cheap Russian oil, India has not seen a decrease in fuel prices.
    • Fiscal challenges: Rising oil prices pose fiscal challenges for India, where heavily-taxed retail fuel prices have reached record highs, threatening the demand-driven economic recovery.
    • Reliance on West Asian supplies: India imports about 84% of its oil and depends on West Asian countries for over three-fifths of its oil demand.
    • Potential impact on consumption-led recovery: India, as one of the largest crude-consuming countries, is concerned that production cuts by OPEC+ nations could undermine the country’s consumption-led economic recovery and negatively affect price-sensitive consumers.

    Back2Basics: Organization of the Petroleum Exporting Countries (OPEC)

    Description
    Founding September 14, 1960
    Member Countries Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates, Venezuela
    Goal Coordinate and unify petroleum policies among member countries, ensure stability and predictability in oil markets, secure fair returns on investment for member countries’ petroleum resources
    Production Quotas Set production limits for member countries to manage oil supply and stabilize prices
    Market Monitoring Monitor global oil market conditions, supply, demand, inventories, and prices
    OPEC Meetings Regular meetings held every six months for member countries to discuss and negotiate oil production and pricing policies
    Pricing Policy Historically used the “OPEC basket” concept – a weighted average price of crude oil blends produced by member countries
    Influence on Prices OPEC’s decisions and actions can impact global oil prices by increasing or decreasing production levels
    Diminished Influence OPEC’s influence on oil prices has reduced due to factors like the rise of non-OPEC oil production, changes in global energy markets, and geopolitical developments
    Non-OPEC Cooperation OPEC cooperates with non-OPEC countries, notably through the “OPEC+” group, which includes Russia, to collectively manage oil supply levels and enhance market stability

  • Carbon Border Adjustment Mechanism (CBAM): Balancing Trade and Environment

    Carbon

    Central Idea

    • The European Union’s (EU) Carbon Border Adjustment Mechanism (CBAM) has raised concerns in India due to its potential impact on the country’s carbon-intensive exports to the EU. While India has criticized CBAM as protectionist and discriminatory, the debate highlights the delicate relationship between trade and environmental considerations.

    Carbon

    Understanding The Carbon Border Adjustment Mechanism (CBAM)

    • CBAM is a key climate law introduced by the European Union (EU). It is designed to address the issue of carbon leakage and create a level playing field for EU industries by imposing carbon-related costs on certain imported products.
    • In 2005, the EU implemented the Emissions Trading System (ETS), a market-based mechanism aimed at reducing greenhouse gas (GHG) emissions.
    • Under the ETS, industries within the EU are allocated allowances for their GHG emissions, which can be traded among themselves.
    • However, the EU is concerned that imported products may not account for embedded emissions due to less stringent environmental policies in exporting countries.
    • This disparity could put EU industries at a competitive disadvantage and potentially lead to carbon leakage, where European firms relocate to countries with less strict emission norms.
    • To address these concerns, the CBAM imposes carbon-related costs on imports of specific carbon-intensive products. The products currently included are cement, iron and steel, electricity, fertilizers, aluminium, and hydrogen.
    • The CBAM requires importers to pay a price linked to the average emissions cost under the EU’s ETS. If the imported products have already paid an explicit carbon price in their country of origin, a reduction can be claimed.

    Advantages of CBAM in addressing climate-related challenges

    • Addressing Carbon Leakage: CBAM helps address the issue of carbon leakage, which occurs when domestic industries relocate to countries with less stringent climate policies, leading to increased global emissions. By imposing carbon-related costs on imported products, CBAM aims to discourage carbon-intensive industries from shifting production to countries with lower environmental standards, thereby reducing carbon leakage.
    • Encouraging Global Climate Action: CBAM incentivizes countries with carbon-intensive industries to adopt more stringent climate policies. The mechanism sends a signal that products exported to the EU market should meet similar environmental standards as EU-produced goods. This encourages exporting countries to reduce their greenhouse gas emissions and transition to cleaner production processes, contributing to global climate action.
    • Levelling the Playing Field: CBAM aims to create a level playing field for EU industries by ensuring that imported goods face similar carbon costs as domestic products. This helps prevent unfair competition, as it aligns the cost of carbon across different markets. It incentivizes domestic industries to invest in cleaner technologies and processes, knowing that imported goods will also be subject to equivalent carbon-related costs.
    • Revenue Generation for Climate Initiatives: CBAM has the potential to generate revenue for the EU, which can be used to fund climate initiatives and support the transition to a low-carbon economy. The funds collected through CBAM can be reinvested in research and development, renewable energy projects, or supporting industries in their decarbonization efforts.
    • Aligning Trade and Climate Objectives: CBAM highlights the interlinkage between trade and environmental concerns. It creates an opportunity to align trade policies with climate objectives, fostering greater coherence between economic growth and sustainability. CBAM encourages countries to consider the carbon intensity of their exports and provides an impetus for the adoption of climate-friendly practices in international trade.

    Key issues associated with CBAM

    • Trade Protectionism: CBAM has been accused of being protectionist in nature. Critics argue that it could create barriers to trade and hinder the export capabilities of countries, particularly those with carbon-intensive industries. By imposing carbon-related costs on imports, CBAM may give an advantage to domestic industries and discriminate against foreign competitors.
    • Discrimination and Non-Discrimination Principles: CBAM may face challenges in adhering to the principles of non-discrimination within the WTO. While it is designed to be origin-neutral, in practice, it could potentially discriminate between goods from different countries based on varying carbon pricing policies or reporting requirements. This could lead to disputes and challenges under WTO rules.
    • Complexity and Implementation Challenges: CBAM implementation involves complex calculations and mechanisms to determine the carbon-related costs of imported products. Setting up effective monitoring, reporting, and verification systems to ensure compliance could be challenging, both for the EU and exporting countries. The administrative burden and costs associated with implementing CBAM may also pose practical difficulties.
    • Potential for Double Regulation: Some argue that CBAM may lead to overlapping regulations and duplicate efforts. Exporting countries may already have their own carbon pricing mechanisms or environmental regulations in place. CBAM’s imposition of additional costs on top of these existing measures could be seen as redundant and burdensome.
    • Impact on Developing Countries: Developing countries, which often have carbon-intensive industries, may face disproportionate negative effects from CBAM. These countries might struggle to comply with the stringent requirements and costs associated with CBAM, hindering their economic development and ability to compete in global markets.
    • Incomplete Accounting of Emissions: CBAM focuses on explicit carbon prices, which may not fully account for the implicit costs associated with products from different countries. This incomplete accounting could result in arbitrary or unjustifiable discrimination and may not effectively incentivize countries to adopt more stringent environmental policies.

    WTO Consistency and CBAM potential discrimination

    • WTO’s non-discrimination principle: The World Trade Organization (WTO) operates on the principle of non-discrimination, treating ‘like’ products from different countries equally.
    • Origin-neutral CBAM: While CBAM appears origin-neutral in design, its application could potentially discriminate between goods based on inadequate carbon pricing policies or burdensome reporting requirements for importers. Whether the products affected by CBAM are truly ‘like’ is a key consideration.
    • For instance: While steel products may seem similar, different production methods lead to varying carbon intensity. This raises the question of whether processes and production methods should be relevant for comparing products. Critics argue that CBAM violates WTO law by discriminating based on embedded emissions

    General Exceptions under WTO and potential application for CBAM

    • Exceptions allow countries to deviate from trade rules: The General Exceptions, outlined in Article XX of the General Agreement on Tariffs and Trade (GATT), provide a set of policy grounds under which WTO members can justify trade measures that would otherwise violate their WTO obligations. These exceptions allow countries to deviate from certain trade rules for specified policy reasons.
    • Justification for exception: Article XX of the GATT lists various policy justifications, including public health, conservation of natural resources, and protection of the environment. The use of these exceptions is subject to meeting specific requirements, known as the chapeau. The chapeau sets out conditions that must be satisfied to justify a trade measure.
    • In the context of the CBAM: A WTO member implementing CBAM measures might seek to invoke the General Exceptions in Article XX of the GATT to justify any potential inconsistency with non-discrimination obligations.
    • For example: A country might argue that CBAM measures are necessary for the conservation of exhaustible natural resources or the protection of the environment, thereby justifying any deviation from non-discrimination principles.

    Carbon

    What are the concerns raised in India?

    • Impact on Export of Carbon-Intensive Products: India fears that CBAM implementation could severely affect its export of carbon-intensive products, particularly in sectors like aluminium, iron, and steel. These sectors may face significant challenges in accessing the EU market if they are subjected to additional economic costs due to CBAM.
    • Protectionism and Discrimination: India has criticized CBAM as being protectionist and discriminatory. It argues that the mechanism may create trade barriers and hinder the export competitiveness of Indian industries. India fears that CBAM could give an unfair advantage to EU domestic industries at the expense of Indian exporters.
    • Potential Economic Disruption: The implementation of CBAM may disrupt India’s trade flows and economic stability. The imposition of additional costs on carbon-intensive products exported to the EU market could lead to reduced demand, loss of market share, and potential negative impacts on employment and economic growth in India.
    • World Trade Organization (WTO) Challenge: India has contemplated the possibility of challenging CBAM at the WTO’s dispute settlement body. It raises concerns about the compatibility of CBAM with WTO rules, particularly regarding non-discrimination and trade-related principles
    • Interplay between Trade and the Environment: The concerns raised by India highlight the broader issue of the interplay between trade and environmental considerations. While acknowledging the need for environmental protection, India emphasizes the importance of ensuring that environmental measures do not become a smokescreen for trade protectionism.

    Facts for prelims

    What is Regional Trade Agreement (RTA)?

    • RTA is a treaty between two or more countries in a particular region that aims to reduce or eliminate trade barriers, such as tariffs and quotas, to facilitate increased trade between the member countries.
    • RTAs can take various forms, such as Free Trade Agreements, Customs Unions, Common Markets, and Economic Unions.

    What is Free Trade Agreement (FTA)?

    • FTA is a specific type of RTA that eliminates tariffs and other trade barriers on goods traded between the member countries.
    • FTAs may also include provisions on trade in services and investment, but they are primarily focused on reducing tariffs on goods

    Conclusion

    • The implementation of the EU’s CBAM has sparked concerns in India, primarily due to its potential impact on carbon-intensive exports. Analyzing its WTO consistency and potential justifications under the General Exceptions clause is crucial. In the ongoing India-EU free trade agreement negotiations, India should actively engage with the EU to safeguard its interests regarding CBAM while remaining open to the possibility of a WTO challenge.

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    Also read:

    India-EU Free Trade Agreement

     

  • In news: Helmand Water Conflict

    helmand

    Central Idea

    • Iran and Afghanistan have been engaged in a prolonged disagreement over the sharing of water from the Helmand River.
    • Violent confrontations have occurred in the border region between the two countries in the recent past.

    About Helmand River

    • The Helmand River is the longest river in Afghanistan, spanning approximately 1,150 kilometers (715 miles) in length.
    • It originates near Kabul in the western Hindu Kush mountain range.
    • The river flows in a south-westerly direction through desert areas before emptying into Lake Hamun, which straddles the Afghanistan-Iran border.
    • Lake Hamun, fed by the Helmand River, is the largest freshwater lake in Iran.
    • The Helmand River is a vital water source for both Afghanistan and Iran, supporting agriculture, livelihoods, and ecosystems in the region.

    Row over Helmand River and Lake Hamun

    • Afghanistan’s longest river: The Helmand River holds great importance for Afghanistan as it is the country’s longest river, originating near Kabul and flowing through desert areas.
    • Iran’s largest freshwater lake: Lake Hamun, located on the Afghanistan-Iran border, is Iran’s largest freshwater lake and has been historically sustained by the Helmand River.
    • Drying up due to drought: The Lake has experienced a drastic decline in water levels and has largely dried up, attributed to factors such as drought and the construction of dams and water control infrastructure.
    • Economic Importance: Lake Hamun plays a vital role in the regional ecosystem and supports agricultural activities, livelihoods, and economic sectors in the surrounding areas.

    Disagreements between Iran and Afghanistan (Taliban)

    • Fouling of the 1973 Helmand River Treaty: The agreement signed in 1973 between Iran and Afghanistan to regulate the allocation of river water has not been fully ratified or effectively put into practice.
    • Iran accuses Afghanistan of violating water rights: Iran has consistently accused Afghanistan of infringing upon its water rights, claiming that it receives significantly less water than agreed upon in the 1973 treaty.
    • Afghanistan blames climatic factors for reduced water flow: Afghanistan has refuted Iran’s allegations, citing climatic factors such as reduced rainfall and diminished river water volumes as the primary causes of the current situation.
    • Concerns over Afghanistan’s dam and irrigation projects: Tehran expresses concerns over Afghanistan’s construction of dams, reservoirs, and irrigation systems along the Helmand River, fearing that these initiatives negatively impact water flow into Iran.

    Tehran-Taliban Relations: A recent recap

    • Previous ties between Iran and the Taliban: Prior to the Taliban’s capture of Kabul, Iran maintained diplomatic relations with the group, driven by shared opposition to the presence of US forces in the region.
    • Lack of formal recognition of the Taliban government: Despite refraining from formally recognizing the Taliban government, Iran has pragmatically engaged with the ruling group in Afghanistan to protect its interests, including the preservation of Lake Hamun.
    • Border clashes since the Taliban’s takeover: Following the Taliban’s rise to power, there have been repeated incidents and clashes along the Iran-Afghanistan border.

    Why is Taliban furious this time?

    • Taliban’s interest in promoting agriculture: The Taliban seeks to prioritize agricultural development, which influences their approach to water management and distribution.
    • Tehran’s sudden attention to Sistan-Baluchistan after protests: Following nationwide protests, including Sistan-Baluchistan, Iran’s government has shown increased attention to the region due to its disadvantaged status and reliance on water resources from Lake Hamun.

    Major hurdles in the resolution

    • Lack of interest: Both Iran and the Taliban show little interest in addressing the mismanagement of water resources and environmental challenges in the region.
    • Short-term focus on internal problems: Both Iran and the Taliban prioritize short-term solutions and focus on internal issues rather than actively resolving the water dispute.

    Current situation in Sistan-Baluchistan

    • Mounting public anger: The region of Sistan-Baluchistan in eastern Iran experiences growing public anger and frustration, largely driven by water shortages and other economic and social challenges.
    • Water shortages and other problems: Sistan-Baluchistan faces severe water shortages, contributing to economic and social difficulties in one of Iran’s poorest areas.
    • Setting up an inquiry commission: In an effort to address the recent border clash, Iran and Afghanistan have agreed to establish a commission of inquiry to investigate the incident.

     

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  • BRICS FM meeting in South Africa

    brics

    Central Idea

    • External Affairs Minister S Jaishankar is in Cape Town, South Africa, to participate in a meeting of foreign ministers from the BRICS countries.
    • The foreign ministers’ meeting aims to finalize the agenda for the upcoming BRICS summit, scheduled to be held in South Africa in August.

    What is BRICS?

    Explanation
    About BRICS is a grouping of the world’s leading emerging economies: Brazil, Russia, India, China, and South Africa.
    History The term BRIC was coined in 2001 by British Economist Jim O’Neill to describe the four emerging economies of Brazil, Russia, India, and China. The grouping was formalized in 2006, and South Africa joined in 2010.
    Composition BRICS comprises the four emerging economies of Brazil, Russia, India, and China, with South Africa joining later.
    Footprints BRICS represents 41% of the global population, 24% of global GDP, and 16% of global trade.
    Chairmanship Rotates annually among the members, with India holding the chair in 2021.
    Initiatives
    1. New Development Bank: NDB funds infrastructure and sustainable development projects.
    2. Contingent Reserve Arrangement: CRA provides mutual support and strengthens financial stability among BRICS nations.
    3. BRICS Payment System: Aims to create an alternative payment system to SWIFT.
    4. Customs agreements: BRICS signed agreements to coordinate and ease trade transport.
    5. Satellite: A constellation of remote sensing satellites has been launched in collaboration with BRICS nations.

     

    Key agenda of this meet

    • Geopolitical consolidation and potential expansion: Two key items on the agenda attracting attention are the plan to expand the membership of BRICS and the discussion of a common currency.
    • Friends of BRICS meet: South Africa, as the chair this year, is hosting a Friends of BRICS meeting with foreign ministers from Africa and the Global South.

    Potential Expansion of BRICS

    • Countries in queue for BRICS membership: Around 19 countries are reportedly seeking to join BRICS, including Argentina, Nicaragua, Mexico, Uruguay, Venezuela, Nigeria, Algeria, Egypt, Senegal, Morocco, Saudi Arabia, the UAE, Turkey, Syria, Iran, Kazakhstan, Bangladesh, Afghanistan, Indonesia, and Thailand.
    • Inclusion of big oil producers: The list of potential new members includes major oil-producing countries like Saudi Arabia, Iran, the UAE, Nigeria, and Venezuela.

    China’s Role in BRICS

    • China driving expansion: China is leading the effort to expand its membership of BRICS and is promoting the idea of creating a bigger space for the Global South.
    • Focus on multilateralism: China emphasizes multilateralism as it criticizes US hegemony, using the theme of “multilateralism” rather than “multipolarity” in discussions about BRICS.
    • Challenging the Western geopolitical view: The conflict in Ukraine has strengthened the China-Russia partnership and transformed BRICS into an aspiring bloc that challenges the western geopolitical narrative.

    India’s Position in BRICS

    • India’s participation in BRICS and the G7: India’s involvement in both BRICS and the G7 demonstrates its engagement with multiple groupings and does not indicate alignment with an anti-Western coalition.
    • Non-Western group: India views BRICS as a non-western group and believes it should remain so, focusing on its role as a platform for Global South countries to express solidarity.
    • New challenges for India: Some analysts argue that as BRICS expands and more members join, it could sidelines India’s influence within the group.

    What about BRICS Common Currency?

    • Proposal for a common currency: Russia proposed the idea of a common currency at the BRICS summit in Beijing last year. Leaders established a committee to study its feasibility.
    • Cautious reception and challenges: The proposal for a common currency received cautious feedback, with concerns about its viability and complexities such as different economic and political systems among member countries.
    • Insulation from the dollar: The idea of a common currency presents an opportunity to reduce reliance on the US dollar, but not all members are convinced it is the right time.
    • Difficulties in currency trade: Negotiations between India and Russia for trading in their respective currencies have encountered difficulties, with Moscow preferring dollar payments due to limited imports from India.

    China’s stance on the US dollar

    • Retreating US dollar hegemony: China has expressed discontent with the “hegemony of the US dollar” and aims to promote the use of the Yuan as a trading currency in Central Asia.
    • No open voices abandoning the dollar: Despite its criticisms, there is no evidence to suggest that China is ready to completely abandon the US dollar at present.

     

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  • UAE withdraws from Combined Maritime Forces (CMF)

    Central Idea

    The United Arab Emirates (UAE) has announced its withdrawal from the U.S.-led Combined Maritime Forces (CMF), a maritime coalition responsible for securing Gulf waterways crucial to global oil trade.

    What is Combined Maritime Forces (CMF)?

    Establishment 2002
    Location Bahrain
    Objective Promoting security, stability, and prosperity across maritime regions
    Member Nations Over 30 member nations
    Primary Task Forces Combined Task Force 150 (CTF 150), Combined Task Force 151 (CTF 151), Combined Task Force 152 (CTF 152)
    Operations Counter-terrorism, counter-piracy, maritime security, and cooperation
    Collaborations United Nations, European Union, NATO, and regional partners
    Contributions Naval assets including warships, aircraft, and maritime patrol vessels
    Focus Areas Arabian Sea, Gulf of Oman, Gulf of Aden, Red Sea, Indian Ocean, Arabian Gulf, and surrounding areas

     

    Reasons for UAE’s withdrawal

    • UAE has not provided specific reasons for its withdrawal from the Combined Maritime Forces (CMF) in the official statement.
    • One potential factor could be a desire to distance themselves from perceived dependencies or entanglements with the US.
    • This could be part of a broader strategy by the UAE to assert its own regional influence, pursue independent foreign policies, or rebalance its relationships with China and Iran.

    Recent incidents and tensions in Gulf Waters

    • In late April and early May, Iran seized two tankers, one of which was empty and travelling between the UAE ports of Dubai and Fujairah.
    • Iran was also accused of launching a drone attack on an Israeli-owned tanker in November 2022, escalating tensions with the United States.
    • As a response to increasing harassment by Iran, the US announced the deployment of reinforcements to the Gulf, a vital route for a significant portion of the world’s sea-borne oil.

     

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  • Switzerland’s Foreign Policy: Promoting Peace and Collaboration

    Switzerland

    Central Idea

    • Switzerland, known for its long-standing commitment to neutrality and diplomacy, has concluded its month-long presidency of the United Nations Security Council. Switzerland’s historical experiences and its alignment with the principles of ahimsa (non-violence) make it a natural partner for India, a country rooted in similar values.

    Switzerland’s Historical Journey

    • Civil Wars (16th to 19th century): Switzerland experienced a series of civil wars between Catholics and Protestants, lasting for up to 300 years. These conflicts ravaged the country and led to a moment of deep reflection.
    • The Swiss Confederation (1848): The civil war of 1847 prompted the Swiss people to envision a more peaceful future. In 1848, the Swiss Confederation was established, creating inclusive federal institutions that aimed to build domestic peace.
    • League of Nations (1920): Switzerland played a significant role in the establishment of the League of Nations, an international organization founded in Geneva after World War I. The League aimed to maintain peace and prevent future conflicts through collective security and diplomacy.
    • United Nations (1945): Switzerland actively supported the founding of the United Nations, a global organization formed after World War II to promote international cooperation, peace, and security. The UN has since played a vital role in addressing global challenges and conflicts.

    Switzerland

    Priorities set by Switzerland during its UNSC presidency

    • Building Sustainable Peace: Switzerland emphasized the importance of building sustainable peace in conflict-affected regions. Switzerland advocated for dialogue, trust-building, and diplomacy as essential tools to address the root causes of conflicts and promote lasting peace.
    • Protection of Civilians: Recognizing the plight of civilians caught in armed conflicts, Switzerland focused on the protection of civilians as a critical aspect of its foreign policy agenda. This involved raising awareness about the challenges faced by civilians in conflict zones and urging the international community to take concrete measures to safeguard their rights and well-being.
    • Humanitarian Action: Switzerland placed significant importance on humanitarian action during its UNSC presidency. It sought to mobilize support and resources for humanitarian assistance in areas affected by armed conflict, ensuring the provision of critical aid to vulnerable populations, including access to food, shelter, healthcare, and education.
    • Promotion of Multilateralism: As a strong advocate for multilateralism, Switzerland prioritized the promotion of international cooperation and collaboration. Switzerland aimed to foster dialogue and consensus-building among Security Council members to effectively address pressing global issues and work towards shared solutions.

    Switzerland

    Switzerland’s Foreign Policy alignment with India’s Principles

    • Non-Violence (Ahimsa): Switzerland and India both emphasize the principle of non-violence (ahimsa) in their foreign policy outlook. Switzerland’s commitment to peace promotion and the protection of civilians in zones of armed conflict resonates with India’s longstanding belief in non-violence as a means to resolve conflicts and maintain harmonious relations.
    • Shared Historical Legacies: Switzerland’s historical struggles with civil wars and subsequent efforts to establish inclusive federal institutions for domestic peace parallel India’s own historical journey toward independence and the construction of an inclusive democratic system.
    • Value of Diplomacy: Switzerland’s role as a neutral and diplomatic hub and India’s long-standing commitment to diplomatic engagements underline the significance of dialogue, negotiation, and consensus-building in addressing global challenges and conflicts.
    • International Cooperation: Switzerland actively engages in international organizations and initiatives, such as the United Nations, while India’s active participation in multilateral platforms like the United Nations and the G20 underscores its commitment to international cooperation. Both countries value multilateralism and collaborative efforts to address shared challenges.
    • Promotion of Peace: Switzerland’s focus on building sustainable peace and protecting civilians in conflict zones aligns with India’s commitment to peace promotion and conflict resolution. Both countries prioritize peaceful means of resolving disputes and work towards creating a peaceful and secure world.

    Facts for Prelims: The UNITE Aware technology platform

    • The UNITE Aware technology platform is a system developed by India in collaboration with the United Nations to enhance the safety and security of peacekeepers deployed in conflict zones.
    • It is a real-time situational awareness system that uses advanced technologies such as satellites, drones, and geospatial tools to provide up-to-date information on the ground situation to peacekeeping forces.
    • The system also includes a mobile app that allows peacekeepers to report incidents and receive alerts in real-time.
    • The platform is designed to help peacekeepers make informed decisions and respond effectively to emerging threats, thereby reducing the risks to their safety and security.

    Switzerland

    Conclusion

    • Switzerland’s foreign policy, anchored in peace promotion and protection of civilians in armed conflict zones, aligns with India’s principles of non-violence. Switzerland’s active initiatives and participation in the United Nations Security Council’s open debates reflect its commitment to fostering a peaceful future. Together, Switzerland’s position in New York and India’s G20 presidency offer a promising path towards a more harmonious and peaceful world.

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  • Cambodian King’s state visit to India

    cambodia

    Central Idea

    • Cambodian King Norodom Sihamoni is on his maiden state visit to India to mark the culmination of 70th anniversary of diplomatic relations with India.

    Marking 70th Anniversary of Diplomatic Ties

    • This visit holds special significance as it is the first state visit by a Cambodian King in nearly six decades, with the last visit being made by King Norodom Sihamoni’s father in 1963.
    • India and Cambodia share warm and friendly relations, characterized by deep-rooted people-to-people ties, cultural connections, and a commitment to mutual economic growth.

    India-Cambodia Diplomatic Ties: A Backgrounder

    cambodia

    [A] Historical Background

    Additional Information
    Indianization of Southeast Asia Spread of Indian religions, cultural practices, art, architecture, and literature across Southeast Asia
    Funan Kingdom (1st to 6th century CE) Indian traders establishing commercial links with Funan, leading to the exchange of goods, ideas, and cultural practices
    Chenla Kingdom (6th to 9th century CE) Emergence of Chenla as an Indianized kingdom with continued Indian cultural and religious influence
    Khmer Empire (9th to 15th century CE) Peak of Indian influence, adoption of Hinduism and later Buddhism, construction of monumental temples and structures like Angkor Wat
    Sanskrit Inscriptions and Literature Adoption of Sanskrit as court language, creation of inscriptions and literary works in Sanskrit
    Cultural Exchange and Artistic Influence Indian art, architecture, and performing arts influencing Cambodian temples, sculptures, and dance forms
    Royal Ties and Religious Connections Close connections between ruling elites of the Khmer Empire and Indian kingdoms, the transmission of Buddhist teachings and scriptures from India

     

    [B] Diplomatic Relations

    • Establishment of Diplomatic Ties: India and Cambodia established diplomatic relations in 1952 after Cambodia’s independence from French colonial rule.
    • High-Level Visits: Frequent visits by Indian Prime Ministers and Presidents to Cambodia and vice versa to strengthen bilateral relations and political dialogue.
    • Bilateral Agreements: Signing of agreements covering areas such as economic cooperation, cultural exchanges, defense, and tourism.
    • Resident Diplomatic Missions: Indian Embassy in Phnom Penh and Cambodian Embassy in New Delhi facilitating regular communication and coordination.
    • Regional and Multilateral Engagement: Collaboration within organizations like ASEAN and East Asia Summit, providing platforms for regional cooperation and addressing challenges.

    Various facets of India-Cambodia Relations

    (1) Economic Cooperation

    • Growing Bilateral Trade: Focus on sectors like textiles, pharmaceuticals, automobiles, agriculture, and information technology.
    • Development Assistance: India’s support in sectors like agriculture, irrigation, human resource development, and capacity building.
    • Investment and Joint Ventures: Exploring opportunities for investment and collaborative projects.

    (2) Defense and Security Cooperation

    • Training and Capacity Building: Defense cooperation through training programs for Cambodian armed forces personnel.
    • Defense Dialogues and Exchanges: Regular engagement in discussions on maritime security, counter-terrorism, and defense industry collaboration.

    (3) Cultural and Educational Exchanges

    • Art, Music, Dance, and Literature: Fostering cultural ties through exchanges and appreciation of each other’s cultural heritage.
    • Scholarships and Education: ICCR scholarships facilitate Cambodian students’ higher education in India.
    • People-to-People Connections: Cultural festivals, events, and tourism enhance mutual understanding and interactions.

    Strategic significance of Cambodia for India

    • Geostrategic Location: Cambodia’s position in Southeast Asia provides India with access to crucial sea routes and enhances its engagement in the Indo-Pacific region.
    • Regional Connectivity: Cambodia’s connectivity with other ASEAN countries allows India to strengthen regional partnerships and facilitate trade, investment, and people-to-people exchanges as part of its Act East Policy.
    • Balancing China’s Influence: Strengthening relations with Cambodia enables India to maintain a balanced approach and counterbalance China’s growing influence in the region.
    • Maritime Security: Cambodia’s coastal geography and access to the Gulf of Thailand are strategically important for India’s maritime security concerns. Cooperation with Cambodia supports regional stability and ensures the safety of vital sea routes.
    • Economic Engagement: Cambodia’s growing economy and investment potential offer opportunities for India to enhance economic cooperation, boosting trade, investments, and joint ventures for mutual benefit.
    • Cultural Diplomacy: Cambodia’s historical and cultural linkages with India provide a foundation for strong cultural and people-to-people ties, enhancing India’s soft power in the region.
    • Defense and Security Cooperation: Collaborating with Cambodia in defence and security areas contributes to regional security, including capacity building, joint exercises, and information sharing.

    Way Forward

    • Strengthen Economic Ties: Expand bilateral trade and investment, explore new sectors, and foster business partnerships.
    • Enhance Defense Cooperation: Continue training and capacity-building programs, and deepen discussions on shared security challenges.
    • Cultural Exchanges and Tourism: Promote greater cultural understanding, organize more cultural events, and facilitate tourism exchanges.
    • People-to-People Contacts: Encourage more interactions between citizens, foster academic collaborations, and promote tourism.
    • Regional Cooperation: Engage actively within ASEAN and other regional forums to address common challenges and pursue shared interests.

     

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  • Shifting US Policy: From Decoupling to De-risking in China Relations

    china

    Central Idea

    • The US is transitioning its policy on China from decoupling to de-risking, signalling a new approach.
    • The EU has already adopted a de-risking approach in its China policy, and the G-7 summit also expressed consensus on de-risking.

    Understanding the De-risking

    • After establishing diplomatic ties in 1979, the US and China developed a deep economic interdependence, benefiting China’s global engagement.
    • China’s rise challenged US global clout and impacted its domestic industries.
    • The Trump administration initiated a “decoupling” strategy to address the techno-economic challenge from China.
    • The Biden administration continues with a modified approach, shifting from decoupling to de-risking.
    • De-risking focuses on resilient supply chains to ensure the US is not subjected to coercion from other countries.

    Rationale behind De-risking

    • Geopolitical Competition: China’s rise as a strategic competitor challenges US global influence, prompting de-risking to reduce vulnerabilities and maintain an advantage.
    • National Security: Concerns about risks like intellectual property theft and cyber threats lead to de-risking to safeguard sensitive technologies and protect national security interests.
    • Resilient Supply Chains: The COVID-19 pandemic exposed vulnerabilities in supply chains, driving the need for de-risking to ensure diversified and resilient networks.
    • Fair Trade Practices: De-risking addresses concerns over China’s trade practices, such as intellectual property infringement and forced technology transfers, aiming for fairer trade by diversifying partners.
    • Alliance Building: De-risking aligns with allies’ interests, promoting collaboration and a united front against China’s rise.

    Geopolitical Ramifications

    • De-risking for Stronger Alliances: The US adopts de-risking to strengthen alliances in its rivalry with China, as seen in the G-7 summit declaration.
    • China’s Skepticism: China views de-risking as disguised decoupling, shifting blame for risks to China.
    • Aligning with Decoupling and United Front: De-risking aligns with decoupling by diversifying supply chains, while fostering a united front among allies.
    • Uncertain Effectiveness: The effectiveness of de-risking is uncertain, influenced by China’s response and challenges in diversifying supply chains.
    • Short-Term Indo-Pacific Impact: De-risking may temporarily divert focus from the Indo-Pacific, necessitating a balance with maintaining a robust strategy in the region.

    Way forward

    • The de-risking approach should be further developed and coordinated with allies to effectively counter China’s rise.
    • Balancing the benefits of de-risking with the need to maintain a robust Indo-Pacific strategy is crucial.
    • Engaging in strategic dialogues and strengthening alliances can help shape a cohesive approach in addressing China’s influence while minimizing risks.

     

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