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Subject: International Relations

  • Dealing with the challenges India faces

    The article deals with the challeges India has to deal with in 2021 on the various front like foreign policy and economy.

    Major challenge of 2020

    • The COVID-19 pandemic, which embraced every segment of Indian society was the most insidious threat.
    • Since April, India has confronted an unprecedented situation on the border with China in eastern Ladakh.
    • Ever since, the border has remained live; as of now there is no end in sight.
    • Chinese behaviour at the border has led to a grave hiatus in India-China relations.
    • Internal problems such as Naxalite violence and Jammu and Kashmir endured during much of 2020.
    • The economy is in recession. India has slipped further down the scale in the Human Development Index.
    • Slippages have occurred in the Global Economic Freedom Index.

    How India should deal with the challenges ahead

    1) China challenge and foreign policy

    • In foreign policy India must not remain content or satisfied with the current stand-off with China in the Ladakh sector.
    • The conflict with China is enabling many of its neighbours to play China against India.
    • So, India should think of what better options are available to it to resolve that conflict
    • To tackle China, India must come up with a whole new paradigm of ideas on which further actions can be formulated.

    2) State of the economy

    • India must seek to enhance its competitive advantage vis-a-vis other nations.
    • India should focus on export-oriented economic strategy instead of looking inward to enlarge its economy.
    • India should enhance its export capacity.
    • India’s strength lies in its diversity, and its ability to utilise all available opportunities.
    • The other pressing challenge in 2021 would be job creation for the youth, who are India’s most abiding asset.
    • The government must take urgent steps to set right the disruptions in the labour market caused by the pandemic.
    • Creating new jobs in new industries should be a critical requirement.
    • Stimulating demand would ensure growth in job opportunities, and this should go hand in hand with this task.
    • The importance of such measures must not be underestimated.

    3) Restoring confidence in constitutional practices

    • The government to restore confidence in constitutional proprieties, practices and principles.
    • There is a crisis of confidence which is affecting the body politic.
    • The starting point would be effecting an improvement in Centre-State relations, particularly between Centre and States.
    • As digital technology advances, concerns that an unduly centralised Central government could use this to further reduce the independent authority of States will again need to be dispelled.
    • Effective cooperation between the Centre and the States must be restored as early as possible to instil confidence about India’s democratic future.

    Consider the question “What are the challenges ahead for Indian economy in the wake of economic disruption caused by the pandemic? Suggest the way to deal with these challenges.”

    Conclusion

    As 2020 comes to a close, it might be worthwhile to take a hard look at these issues to ensure that 2021 does not become another wasted year.

  • Reading the new US policy on Tibet

    The Tibet Policy and Support Act (TPSA) passed by the US Senate earlier this week, bookends a turbulent year in US-China relations.

    Must read:

    Tibetan Policy and Support Act (TPSA)

    Do you think that India’s support for the Tibetan cause is the root cause of all irritants in India-China relations?

    TPSA: A backgrounder

    • The TPSA is an amended version of the Tibet Policy Act of 2002, which came into existence during the Bush Administration.
    • The act once signed into law would make it the official policy of the US Government to oppose any effort by the govt. of the People’s Republic of China to select, educate, and venerate Tibetan Buddhist religious leaders in a manner inconsistent with Tibetan Buddhism.
    • The proposed legislation will empower the US Government to impose sanctions on China who might try to interfere in the process of selecting the next incarnation of the Dalai Lama.

    US and China, today

    • US-China relations have become much more difficult over the last two decades, particularly worsening in the Trump Administration.
    • The matters range from the pandemic to trade tariffs and its cross-world coalition-building against Chinese superpower ambitions.
    • Earlier in the year, President Donald Trump signed into law the Hong Kong Autonomy Act.

    Fuelled by TPSA

    • Adding much fuel to the issue, the TPSA introduces stronger provisions on Tibet, plus teeth in the form of a threat of sanctions, including travel bans on Chinese officials.

    The Dalai Lama

    • Among the most significant amendments is that the TSPA makes it US policy to oppose attempts by Beijing to install its own Dalai Lama in a manner inconsistent with Tibetan Buddhism.
    • The legislation makes reference to the Chinese government’s ‘Measures on the Management of the Reincarnation of Living Buddhas’ in 2007.
    • China had earlier insisted that the reincarnation of living Buddhas including the Dalai Lama must comply with Chinese laws and regulations.

    Other provisions of TPSA

    • The TPSA has introduced provisions aimed at protecting the environment of the Tibetan plateau, calling for greater international cooperation and greater involvement by Tibetans.
    • Alleging that China is diverting water resources from Tibet, the TPSA also calls for a regional framework on water security, or use existing frameworks… to facilitate cooperative agreements among all riparian nations.
    • While the 2002 Act said the US should establish a “branch office” in Lhasa, the TSPA ups the ante by changing that to a “consulate”.
    • It recognizes the Central Tibetan Administration, whose Prime Minister Lobsang Sangay takes credit for ensuring that the Senate took up the legislation for a vote.

    Chinese response to TPSA

    • China had earlier said the TPSA severely breached international law and basic norms governing international relations, interfered in China’s internal affairs, and sent a wrong message to ‘Tibet independence’ forces”.
    • After the passage of the Bill through the Senate, China said it “resolutely opposes” the “adoption of Bills containing such ill contents on China.

    India’s present stance on Tibet

    • If India is pleased with this latest US barb to China, it has not said so openly.
    • India has mostly refrained from playing the Tibet card against China, and like the US, has a one-China policy.
    • It was only this year, in the ongoing Ladakh standoff, that it used Special Forces made up almost entirely of Tibetan exiles to occupy strategic heights in Pangong Tso’s south bank.
  • The new League of Nations

    Despite China’s rise, the world will remain committed to multi-polar order. The article highlights the emerging trends in the global order against the backdrop of a pandemic and explains how there could be an opportunity for India.

    Changing geopolitical landscape and choices India face

    • As the world is slowly recovering from the disruption caused by the pandemic, there are worrying intimations of other crises looming round the corner.
    • Geopolitics has been transformed and power equations are being altered.
    • There are a new set of winners and losers in the economic changes.
    • Technological advancement will magnify these changes.
    • India will need to make difficult judgements about the world that is taking shape and find its place in a more complex and shifting geopolitical landscape.
    • As the pandemic recedes, the world could draw the right lessons and proceed on a more hopeful trajectory.

    Unlearnt lessons: lack of international cooperation

    • Most challenges the world faces are global, like the pandemic.
    • However, international cooperation in either developing an effective vaccine or responding to its health impacts has been minimal.
    • The pre-existing trend towards nationalist urgings, the weakening of international institutions and multilateral processes continues.
    • Even in the distribution of vaccines, we are witnessing a cornering of supplies by a handful of rich nations.

    Need for a collaborative solution

    • Global challenges such as climate change, cybersecurity, space security, terrorism, drug trafficking, money laundering and ocean and terrestrial pollution demand collaborative, not competitive solutions.
    • The challenges require some display of statesman-like leadership to mobilise action on a global scale.
    • The nation-state will endure but its conduct will need to be tempered by a spirit of internationalism and a sense of common humanity.

    Role of China and Asia

    • The pre-pandemic shift in the centre of gravity of the global economy and political power and influence, from the trans-Atlantic to the trans-Pacific, has been reinforced under the impact of the crisis.
    • East Asian and South-East Asian countries are the first to register the green shoots of recovery.
    • China has been the first large economy to witness a significant rebound in its growth rate.
    • The regional supply chains centred on China have been reinforced rather than disrupted.
    • China will emerge in pole position in the geopolitical sweepstakes commencing in 2021.
    • The power gap with its main rival, the US, will shrink further.

    Why should India prefer multi-polar world order

    • As the power gap between India and China is expanding, the threat from China will intensify and demand asymmetrical coping strategies.
    • Despite China emerging a relative gainer from the pandemic the trend towards multi-polarity is here to stay.
    • Neither the US nor China can singly or as a duopoly manage a much more diffused distribution of economic and military capabilities across the globe.
    • This is only possible through multilateral approaches and adherence to the principle of equitable burden-sharing.
    • But a multipolar order can only be stable and keep the peace with a consensus set of norms, managed through empowered institutions of international governance and multilateral processes.
    • India’s instinctive preference has been for a multipolar order as the best assurance of its security and as most conducive to its own social and economic development.
    • India now has the opportunity to make multipolar order as its foreign policy priority as this aligns with the interests of a large majority of middle and emerging powers.
    • This will be an important component of a strategy to meet the China challenge.

    The favourable geopolitical moment for India

    • Due to China’s aggressive posture across the board and its unilateral assertions of power, there is a significant push-back even from smaller countries, for example, in South-East Asia and Africa.
    • China’s blatant “weaponisation of economic interdependence” such as action against Australia, has made its economic partners increasingly wary.
    • In this context, India is seen as a potential and credible countervailing power to resist Chinese ambitions.
    • The world wants India to succeed because it is regarded as a benign power wedded to a rule-based order.
    • India can leverage this propitious moment to encourage a significant flow of capital, technology and knowledge to accelerate its own modernisation.

    Consider the question “Though it may sound counterintuitive, India which is dealing with pessimism about its economic prospect in the wake of the pandemic, may be located at favourable geopolitical moment” Comment.

    Conclusion

    India should seize the opportunity and make multi-polar world order a pillar of its foreign policy to counter China threat while trying to leverage the moment to attract the flow of capital, technology and knowledge to accelerate its own modernisation.

  • Tibetan Policy and Support Act (TPSA)

    The US and China sparred over Tibet and the South China Sea over the passing of the Tibetan Policy and Support Act (TPSA).

    Do you think that India’s support for the Tibetan cause is the root cause of all irritants in India-China relations?

    About TPSA

    • The TPSA once signed into law would make it the official policy of the US Government to oppose any effort by the govt. of the People’s Republic of China to select, educate, and venerate Tibetan Buddhist religious leaders in a manner inconsistent with Tibetan Buddhism.
    • The proposed legislation will empower the US Government to impose sanctions on China who might try to interfere in the process of selecting the next incarnation of the Dalai Lama.

    Why such a law?

    • Tibetans were concerned over the possibility of the Chinese Government making an attempt to install someone loyal to it as the 15th Dalai Lama after the death of the incumbent.
    • The PRC could use him as a puppet to fizzle out the global campaign against its occupation of Tibet.
    • The incumbent and the 14th Dalai Lama have been living in exile in India ever since his 1959 escape from Tibet, which had been occupied by the Chinese People’s Liberation Army (PLA) in 1950-51.
    • He has been leading the movement for “genuine autonomy” for Tibet and the Tibetans.

    Significance of TPSA

    • The TPSA acknowledged the legitimacy of the Tibetan Parliament in Exile elected by the exiled community as well as the CTA.
    • It seeks to introduce key provisions aimed at protecting the environment and water resources on the Tibetan Plateau.
    • In an aggressive move, the PRC government has forced resettlement of the nomads from grasslands.
    • TPSA recognizes the importance of traditional Tibetan grassland stewardship in mitigating the negative effects of climate change in the region.
    • In addition, it calls for greater international cooperation to monitor the environment on the Tibetan plateau.
  • India’s new Europolitik

    The article explains the shift in India’s foreign policy in its relations with the European middle powers against the backdrop of churn in the geopolitics.

    India’s changing perception of Europe

    • Three recent developments underline India’s changing perceptions of Europe.
    • 1) India’s support for France’s membership of the Indian Ocean Rim Association (IORA).
    • 2) India’s backing for a larger European role in the Indo-Pacific.
    • Delhi has welcomed the interest of Germany and the Netherlands in building a new geopolitical architecture in the Indo-Pacific.
    • 3) Security cooperation in the Indo-Pacific is also emerging as an important theme in partnership between India and the U.K.

    Reasons for India’s shift

    • India is looking beyond the bipolar geopolitical competition between the US and China.
    • Delhi also wants to insure against the inevitable volatility in the complex dynamic between Washington and Beijing.
    • To cope with the uncertain political trajectory of the US, Delhi is already supplementing its American partnership with a network of multilateral groups with other middle powers, such as the India-Australia-Japan forum and the trilateral dialogue with France and Australia.

    Rebuilding ties with Europe and challenges

    • Rebuilding ties with Europe needs a significant corrective to Delhi’s traditional strategic neglect of the continent.
    • The bipolar Cold War dynamic and the North-South framework developing world versus the developed prevented Delhi from taking a more nuanced view of Europe’s political agency after WWII.
    • Attempts to impart strategic momentum after the Cold War did not really succeed.
    • As the economic gap between China and India widened, so did the scale of European interest in both countries.
    • It is also true that the European ability to project military power into the Indo-Pacific is limited.
    • But in combination with Asian democracies, Europe can certainly make a difference.
    • It can mobilize massive economic resources, wield political influence, and leverage its significant soft power to shape the Indo-Pacific discourse.

    An exceptional relationship with Frace

    • France has been an exception in Europe in its connection with India.
    • India’s partnership with France now has a strong regional anchor — the Indo-Pacific as it has its territories in the Western Indian Ocean and the South Pacific.
    • France and Britain have lingering disputes leftover from the era of decolonization in parts of the Western Indian Ocean.
    • India will have to contribute to the amicable resolution of those problems.

    Consider the question “A strong coalition with the European middle powers should be the indispensable element of India’s foreign policy in the face of changing geopolitical circumstances. Comment.”

    Conclusion

    As China transforms the Eurasian landmass as well as the Indo-Pacific, it is abundantly clear that the US alone cannot redress the imbalance. A strong coalition of Asian and European middle powers must now be an indispensable element of the geopolitics of the East. Such a coalition can’t be built overnight. But India could push for a solid start in 2021.

  • Friend and neighbour: India-Bangladesh relations

    India must strengthen ties with Bangladesh and appreciate Sheikh Hasina’s challenges

    Virtual summit between India and Bangladesh

    • The virtual summit was conducted recently between Prime Minister Narendra Modi and his Bangladesh counterpart Sheikh Hasina.
    • There was a discussion on issues ranging from the violent border incidents to the COVID-19 fight, demonstrates their desire to reboot India-Bangladesh ties that have faced challenges in recent months.
    • PM Modi called Bangladesh a “major pillar” in India’s neighbourhood first policy, while Ms. Hasina invited him to visit Bangladesh in March for the celebrations of the 50th anniversary of its independence.
    • It is a key opportunity for India, which had played a major role in Bangladesh’s liberation in 1971, to revive the relations and address the issues adversely affecting the partnership.

    Importance of India-Bangladesh relationship

    • Bangladesh and India are at a historic juncture of diplomacy embedded in a rich matrix of history, religion, culture, language and kinship.

    (1) ‘Blue Economy’ programme’ –

    • Both countries are looking at strengthening economic cooperation through joint investments and cooperation under the ‘Blue Economy’ programme.
    • The programme entails synergized efforts of littoral states in the exploration of hydrocarbons, marine resources, deep-sea fishing, preservation of marine ecology and disaster management.
    • The industry in India needs to look for opportunities for collaboration in defence, such as in military hardware, space technology, technical assistance, exchange of experience, and development of sea infrastructure.

    (2) India’s Act East Policy

    • Connectivity offers a game-changing opportunity for India and Bangladesh. This is pivotal to India’s connectivity with its north-eastern region and with countries of ASEAN.
    • This is particularly important in the context of both the Make in India initiative as well as India’s Act East Policy.
    • The two countries also see themselves converging around a lot of commonalities, not just as neighbours battling the scourge of terrorism, but as leading economic partners.
    • In terms of diplomacy in the South Asian region, both countries have had identical views.
    • From how organizations such as the South Asian Association for Regional Cooperation (SAARC) should be going forward in promoting cooperation among its member nations to economic growth.

    Challenges in India-Bangladesh relations

    (1) Violent border incidents

    • Despite the friendship remaining solid, the border has been sensitive.
    • At least 25 Bangladeshis were killed in the first six months of this year along the border by Indian forces, according to a rights watchdog.

    (2) Sharing of River Waters

    • The Teesta water dispute between West Bengal and Bangladesh remains unresolved.

    (3) The Citizenship (Amendment) Act and the proposed National Register of Citizens, which Ms Hasina called “unnecessary”, have created a negative impression about India.

    (4) China’s economic footprint is growing

    • China is making deep inroads into Bangladesh by ramping up infrastructure investments and expanding economic cooperation.
    • Bangladesh is overwhelmingly dependent on China for military hardware.
    • Since 2010, India approved three Lines of Credit to Bangladesh of $7.362 billion to finance development projects. But, just $442 million have been disbursed until December 2018.

    Way Forward

    • It is imperative for India to bolster ties with this all-weather friend, and there may not be a better time to do so than when Bangladesh is to celebrate the golden jubilee of its independence.
    • India should support Bangladesh’s fight against radical elements. India should also not allow the ideological inclinations of the ruling party to spoil the historic relationship between the two countries.
    • New Delhi should take a broader view of the changing scenario and growing competition in South Asia, and reach out to Dhaka with an open mind.
    • There is much room for course correction in Delhi and to shift the focus from legacy issues to future possibilities.

    Practice Question: Discuss the importance of India-Bangladesh relations and various challenges affecting the relations between the two countries. How they can be addressed?

  • India-UK Relations

    India and the U.K. must not allow concerns of the moment to dominate their relationship.

    Practice Question: Discuss the opportunities and the challenges in the India-UK relationships. What is the prospectus of India-UK relations after Brexit and Coronavirus pandemic?

    Secretary’s Delhi visit

    • British Foreign Secretary Dominic Raab’s Delhi visit came with a declaration of immediate and longer-term goals for the India-U.K. relationship.
    • It prepares the way for PM Johnson’s India visit, as the chief guest at Republic Day and to invite PM Modi to the U.K. to the G-7 and the Climate Change (COP26) summits next year.
    • Johnson will be the first head of government to visit India after the spread of COVID-19; this will also be his first bilateral visit anywhere after Brexit signalling the importance of ties with India.

    A new page in ties

    • Upgrading the ties – Both countries up for upgrading of the 2004 India-U.K. Strategic Partnership to a “Comprehensive” Strategic Partnership.
    • This will help to envision closer military ties, cooperation in Indo-Pacific strategies, counter-terrorism and fighting climate change.
    • Hoping for FTA – Britain is on a mission to secure free trade partners after Brexit. It has wrapped up nearly 20 trade deals, including most recently with the U.S., Japan, and Vietnam and is hoping for India to sign the same.
    • Corona pandemic and cooperation for vaccine manufacturing – The highlight of India’s relations will be closer cooperation on the coronavirus vaccine.
    • India’s Serum Institute set to produce and distribute the Oxford/AstraZeneca vaccine in India, and then as part of the COVAX project to other developing countries.

    Challenges in India-UK relations

    • Stagnancy in the relations – India-UK relations are stagnant for the past five years due to Britain’s Brexit preoccupation.
    • The relationship has failed to progress in this time, despite visits by Mr Modi and former British Prime Minister Theresa May.
    • Other less important issues gained the narrative – Issues such as visas and the fate of fugitive Indian businessmen in the U.K. have been allowed to dominate the narrative.
    • The MEA had responded sharply to protests at the Indian High Commission in London over the Article 370 move in Jammu and Kashmir, and the Citizenship (Amendment) Act.
    • Britain’s concerns about the farmers’ protests that sparked responses in New Delhi about interference in India’s internal matters.
    • Sometimes, intense interest from the British Indian diaspora makes Indian politics a factor in British politics is a reminder of how closely linked the two countries remain.
    • A new chapter in India-UK relationship would necessarily entail the K. to be more sensitive to India’s concerns, and for India to be less sensitive when Britain expresses its concerns.
  • [pib] Haldibari – Chilahati Rail Link

    Ours and Bangladeshi PM has jointly inaugurated a railway link between Haldibari in India and Chilahati in Bangladesh.

    Examine the opportunities and challenges in the adoption PPP model by the Indian Railways.

    Haldibari – Chilahati Rail Link

    • This rail link being made functional is the 5th rail link between India and Bangladesh.
    • It was operational till 1965. This was part of the Broad Gauge main route from Kolkata to Siliguri during partition.
    • Trains travelling to Assam and North Bengal continued to travel through the then East Pakistan territory even after partition.
    • For example, a train from Sealdah to Siliguri used to enter East Pakistan territory from Darshana and exit using the Haldibari – Chilahati link.
    • However, the war of 1965 effectively cut off all the railway links between India and the then East Pakistan.
    • So on the Eastern Sector of India partition of the railways thus happened in 1965.  So the importance of the reopening of this rail link can be well imagined.

    A British-era legacy

    • The railway network of India and Bangladesh are mostly inherited from British Era Indian Railways.
    • After partition in 1947, 7 rail links were operational between India and the then East Pakistan (up to 1965). Presently, there are 4 operational rail links between India and Bangladesh.
    • They are, Petrapole (India) – Benapole (Bangladesh),  Gede (India) – Darshana (Bangladesh), Singhabad (India)-Rohanpur (Bangladesh),  Radhikapur (India)–Birol (Bangladesh).

    Benefits offered by the rail

    • The rail link will be beneficial for transit into Bangladesh from Assam and West Bengal.
    • It will enhance rail network access to the main ports, dry ports, and land borders to support the growth in regional trade and to encourage economic and social development of the region.
    • Common people and businessman of both countries will be able to reap the benefit of both goods and passenger traffic, once passenger trains are planned in this route.
    • With this new link coming into operation,  tourists from Bangladesh will be able to visit places like Darjeeling, Sikkim, Dooars apart from countries like Nepal, Bhutan etc easily.
    • Economic activities of these South Asian countries will also be benefitted from this new rail link.
  • The many challenges for WTO

    The next Director-General of the organization will have to navigate through a slew of thorny issues in WTO.

    WTO to lead by a woman for the first time

    • For the first time in its 25-year history, the World Trade Organization (WTO) will be led by a woman.
    • The D-G’s job will require perseverance and outstanding negotiating skills for balancing the diverse and varied interests of the 164 member countries, and especially, for reconciling competing for multilateral and national visions, for the organization to work efficiently.
    • The next D-G will have to grapple with the global economic fallout of the COVID-19 pandemic and work towards carrying out reforms of the multilateral trading system for reviving the world economy.
    • On all these issues, her non-partisan role will be watched carefully.

    Practice Question: In the wake of the global economic fallout of the COVID-19 pandemic, discuss the challenges ahead of WTO.

    Tussle between developed and developing countries

    • The current impasse in the WTO negotiations has led member countries to believe in the necessity of carrying out urgent reforms, which is likely to throw up some difficult choices for developing countries like India.
    • At the core of the divide within the WTO is the Doha Development Agenda, which the developed countries sought to move in favour of a new agenda that includes, amongst others, e-commerce, investment facilitation, MSMEs and gender.
    • Salvaging the ‘development’-centric agenda is critical for a large number of developing countries as they essentially see trade as a catalyst of development.
    • Restoring the WTO dispute settlement mechanism, especially the revival of its Appellate body, is also crucial for the organization’s efficient functioning.

    Definition of ‘Developing Country’ – a contentious issue

    • The push for a change in the definition of “developing country” under the principle of special and differential treatment (S&DT), aimed at upgrading certain developing countries, will deeply affect the status of emerging economies such as India, China, South Africa, Turkey, Egypt, etc.
    • The assumption that some countries have benefited immensely from the WTO rules since its formation in 1995 is flawed, at least in the case of India. And even if there may be no consensus of views on measuring ‘development’, India will remain a developing country no matter which parameter is used.
    • The way out for India could be to negotiate a longer phase-out period or an acceptable formula based on development indices, etc.

    Fisheries subsidies negotiations

    • Among the current negotiations at the WTO, the fisheries subsidies negotiations command the highest attention.
    • India can lead the way in finding a landing zone by urging others to settle for the lowest common denominator while seeking permanent protection for traditional and artisanal farmers who are at the subsistence level of survival.
    • The danger lies in seeking larger carve-outs, which could result in developed countries ploughing precious fisheries resources in international waters.

    Lessons from COVID-19

    • The COVID-19 crisis has revealed the urgent and enduring need for international cooperation and collaboration, as no country can fight the pandemic alone.
    • The D-G can help mitigate the effects of the pandemic by giving clear directions on ensuring that supply chains remain free and open, recommending a standard harmonized system with classification for vaccines, and by the removal of import/export restrictions.
    • Voluntary sharing and pooling of Intellectual Property Rights (IPR) is required for any global effort to tackle the pandemic, but with the fear of vaccine nationalism looming large, several countries are seeking to secure the future supply of leading COVID-19 vaccines.
    • India’sreiteration that its vaccine production and delivery capacity will help the whole of humanity will require the D-G to play a responsible role in removing barriers to intellectual property and securing a legal framework within the WTO TRIPS Agreement.
    • This can be done by lending salience to the effective interpretation of Articles 8 and 31 of the Agreement, that allow compulsory licensing and agreement of a patent without the authorization of its owner under certain conditions.

    Way Forward

    • The consensus-based decision-making in the WTO, which makes dissension by even one member stop the process in its track, gives developing countries some heft and influence at par with developed countries.
    • The D-G would need to tread cautiously on this front, as some will allude to the successful implementation of the Trade Facilitation Agreement in 2017 that allowed member countries to make commitments in a phased manner in accordance with their domestic preparedness.
    • Most imminently, the next D-G will need to build trust among its members that the WTO needs greater engagement by all countries, to stitch fair rules in the larger interest of all nations and thwart unfair trade practices of a few.
  • US imposes CAATSA sanctions on Turkey

    The US has imposed sanctions on NATO-ally Turkey for its purchase of Russia’s S-400 missile defence system.

    Q.What is CAATSA law? Discuss how it will impact India’s ties with Russia.

    Turkey defies the US

    • Turkey decided to move ahead with the procurement and testing of the S-400, despite the availability of alternative, NATO-interoperable systems to meet its defence requirements.
    • This decision resulted in Turkey’s suspension and pending removal from the global F-35 Joint Strike Fighter partnership.

    What is CAATSA?

    • CAATSA stands for Countering America’s Adversaries through Sanctions Act (CAATSA).
    • It is a US federal law that imposed sanctions on Iran, North Korea, and Russia.
    • The bill provides sanctions for activities concerning:

    (1) cybersecurity, (2) crude oil projects, (3) financial institutions, (4) corruption, (5) human rights abuses, (6) evasion of sanctions, (7) transactions with Russian defence or intelligence sectors, (8) export pipelines, (9) privatization of state-owned assets by government officials, and (10) arms transfers to Syria.

    Why is India concerned?

    • This sanction is of particular interest to New Delhi, which is also in the process of buying the S-400 from Moscow.
    • This action has sent a clear signal that the US will fully implement CAATSA sanctions and will not tolerate significant transactions with Russia’s defence and intelligence sectors.

    What does the sanction mean?

    These sanctions comprise:

    1. a ban on granting specific US export licences and authorizations for any goods or technology,
    2. a ban on loans or credits by US financial institutions totalling more than $10 million in any 12-month period
    3. a ban on US Export-Import Bank assistance for exports
    • Additionally, sanctions will include full blocking sanctions and visa restrictions as well.
    • Last year, the US had removed Turkey from its F-35 jet programme over concerns that sensitive information could be accessed by Russia if Turkey used Russian systems along with US jets.

    India may get an exemption

    • Most of India’s weapons, naval arsenal, missiles, aircraft and aircraft carriers are of Soviet/Russian origin.
    • As per the Stockholm International Peace Research Institute (SIPRI) Arms Transfer Database, during the period 2010-17, Russia was the top arms supplier to India.
    • The Russian share in India’s arms imports during the same period has declined to 68 per cent, from an all-time high of 74 per cent during the 2000s.
    • The combined share of the US and Israel has increased from nine to 19 per cent.
    • Accounting for about 15 per cent, the US is the second-biggest supplier of arms to India during the five year period ending 2017.
    • Hence, US officials have earlier requested for “some relief from CAATSA” for countries like India.

    China factor

    • China being more assertive and Russia finding new partners, this waiver or “carve-out” would mean India has been able to secure its interests.
    • Hence, the US has designated India as a Major Defence Partner, and both countries coming together on Indo-Pacific strategy, the newly formed Quad, are on a stable footing.

    Why is CAATSA bad?

    • CAATSA impacts Indo-US ties and dents the image of the US as a reliable partner.
    • It also makes a point on principles that, as a sovereign country, India cannot be dictated about its strategic interests by a third country.
    • It also shows the need for India to be nimble-footed in its diplomacy when it comes to its key major power relationships – and one cannot be sacrificed at the cost of another.

    Back2Basics: India-US Defence Partnership

    • India is a major market for the US defence industry.
    • In the last decade, it has grown from near zero to USD 15 billion worth of arms deals.
    • Since 2008, major deals include the C-17 Globemaster, C-130J transport planes, P-8 (I) maritime reconnaissance aircraft, M777 light-weight howitzer, Harpoon missiles, and Apache and Chinook helicopters.
    • In percentage terms, the US share of Indian arms imports total 23 per cent in terms of the number of contracts and 54 per cent by value.
    • This value is all set to increase further with the US likely accepting an Indian request for Sea Guardian drones.