Managing the turbulence in India-US relations(Live Mint summary-29th June 2018)

www.iasinsights.in; www.iasgyaan.com posts Live mint summary about How to calm the disturbances created in India-USA relations.

Managing the turbulence in India-US relations

Live mint

Context:

  • US asked all countries, including India, to reduce oil imports from Iran to zero by 4 November.If India fails to do this, its companies will face the same sanctions as any other violator.
  • The bilateral relationship is certainly experiencing some turbulence but it is nowhere near a crash-landing.
  • European nations are facing the same problem.

Existing problems between India-USA:

  • India is in the process of purchasing S400 surface-to-air missile systems from Russia—a decision that could mean more sanctions for New Delhi due to “Countering America’s Adversaries Through Sanctions Act” (CAATSA).
  • In addition to these issues, US President Donald Trump has been quite vocal about the tariffs imposed by India on American goods.

How and on whom USA imposes sanctions?

USA imposes

  1. Primary sanctions directly
  2. Secondary sanctions indirectly.

It imposes sanctions on

  • Countries which are economically integrated with America than those which are not.
  • The US uses its economic and military links as leverage in its non-proliferation goals but North Korea and Iran which were never linked to USA

Position of USA:

  • US is increasingly willing to hurt its allies and partners in order to change the behavior of its enemies.
  •  US seeks the support of other countries to build a tighter multilateral sanctions regime. To seek this support USA is imposing secondary sanctions willingly.

What USA is offering to India?

India will be granted some waiver for the development of Chabahar port—India’s link to Afghanistan and Central Asia—but that may not extend to crude imports.

What was the plan to resolve the above issues?

Issues were supposed to be resolved during the inaugural 2+2 dialogue between the external affairs and defense ministers of both countries on 6 July. However, the US has decided to postpone this meeting. In fact, the scheduling of this dialogue has long been a problem.

Consequences:

  1. Indian private companies will put out from Iran affecting our onshore revenue and our oil needs if India fails.
  2. India is the world’s largest arms importer and the US has made rapid strides in this market in the past decade. Washington should be seriously worried about jeopardizing future defense deals in India if CAATSA begins to bleed New Delhi.

What India should do?

  • India should stay firm on the S400 deal
Advertisements

This site uses Akismet to reduce spam. Learn how your comment data is processed.