11-Sep-2019: India skips EAEU meeting

India skipped a meeting of the Eurasian Economic Union (EAEU), which was organised by the Shanghai Cooperation Organisation (SCO) at Xi’an in China. India has been a member of the SCO since 2017.

The EAEU and the Belt and Road Initiative: In November 2018, Chinese Premier Li Keqiang and Russian Prime Minister Dmitry Medvedev met in Beijing for the 23rd annual meeting between Chinese and Russian heads of government, and the two sides agreed to enhance trade and economic ties. After the meeting, a press release by the Chinese Ministry of Foreign Affairs said that China would “synergize the Belt and Road Initiative and the Eurasian Economic Union". Both sides expressed willingness to dovetail the China-proposed Belt and Road Initiative and Russia’s Eurasian Economic Union.

The BRI is a mammoth infrastructure project unveiled by China in 2017, which plans to connect the three continents of Asia, Europe, and Africa.

The ‘Belt’ part refers to the Silk Road Economic Belt, consisting of three overland routes. First, a link between China, Central Asia, Russia and Europe. Second, a link through Central Asia and West Asia linking China with the Persian Gulf and the Mediterranean Sea. And third, a connection from China to Southeast Asia, South Asia, and the Indian Ocean. The ‘Road’ part refers to the 21st century Maritime Silk Road, creating maritime trade channels from China through the South China Sea, the Indian Ocean, and the South Pacific.

The China-Pakistan Economic Corridor, an important part of the BRI, passes through Pakistan Occupied Kashmir (PoK). In May 2017, India strongly opposed the BRI, and the Ministry of External Affairs said: “No country can accept a project that ignores its core concerns on sovereignty and territorial integrity.”

The SCO, an intergovernmental body for security and economic cooperation in the Eurasian region, was formed in 2001 by the ‘Shanghai Five’ (China, Kazakhstan, Kyrgyzstan, Russia and Tajikistan), in the wake of the Soviet Union’s collapse in 1991. Uzbekistan joined the SCO in 2001, with India and Pakistan following suit in 2017. The SCO has traditionally prioritised on counter-terrorism, listing terrorism, separatism and extremism as “the three evils”. However, since its formation, the SCO’s domain has expanded to include subjects such as culture and economics. Since the BRI’s launch in 2017, India has remained firm on not singing it off at the SCO’s annual summits in 2018 and 2019. The summit’s declarations of both years reflected the endorsement of the controversial project by all members but India.

28-Apr-2017: India, Eurasia union to seal pact

India is set to formalise a free trade agreement with the Eurasian Economic Union, clearing the decks for negotiations on deepening trade relations with the five former Soviet republics. The report of the Joint Feasibility Study Group had been accepted by both sides and the formal negotiations would begin by July.

The Eurasian Economic Union comprises Russia, Belarus, Armenia, Kazakhstan and Kyrgyzstan. The FTA is expected to open up a huge market with a trade potential of $37 to 62 billion.

Trade between India and the five Eurasian countries stands at about $11 billion. The FTA with the Eurasian countries was dictated by India’s need to diversify into new markets. We have a targeted trade of $30 billion with the five countries by 2025 and $15 billion annual investment.

At the meeting, experts highlighted the need for better understanding of the challenges in the new market like non-tariff barriers and quality standards before the negotiations take place.

Eurasian market could open up new export opportunities for Kerala in medical tourism, IT and IT-enabled services, besides traditional sectors like spices, marine products, coir and rubber. There is a need for safeguards in the pact to protect the state’s interests. Exporters and representatives of trade organisations called for steps to prevent dumping of goods and misuse of the rules of origin. They also highlighted the need for clarity on sanitary and phytosanitary measures, import licensing, quantitative restrictions and trade remedies.

22-Aug-2019: An international dialogue on South-South and Triangular Cooperation.

A global interaction was held with stakeholders in development cooperation, to address South-South Cooperation and Triangular Cooperation. It is a unique initiative of RIS, to connect with all partner countries for collectively exploring and introspecting on how best to strengthen South-South Cooperation.

The recently held Second United Nations High Level Conference on South-South Cooperation commemorating the 40th anniversary of Buenos Aires Plan of Action, often abbreviated as BAPA+40, has come up with an ambitious work plan. The Outcome Document of the Conference underscores the need to give enhanced focus on South-South Cooperation (SSC).

The contribution of IBSA countries for bringing out last year a timely declaration on South-South Cooperation, and reiterating certain principles of SSC that it is a partnership amongst equals guided by principles of respect for national sovereignty; national ownership and independence; equality; non-conditionality; non-interference in domestic affairs; and mutual benefit was acknowledged. These principles provide the blueprint for IBSA partnership with countries of the South, and are part of wider SSC principles.

The challenge is how to translate principles into concrete action. Time and again, in spite of all the goodwill which countries have, there are vast gaps between what is finally achieved and the principles wanted to be uphold. Therefore, even upon deliberation on new opportunities and new partnerships, it must be constantly evaluated whether what is done meets the core principles declared as sacred.

Prime Minister Shri Narendra Modi had outlined last year ten guiding principles for India’s engagement with Africa. But in effect, these guiding principles may well be the guiding principles for India’s engagement with the developing world itself i.e. South-South Cooperation.

The vision which Prime Minister outlined is as follows: to intensify and deepen engagement; development partnership to be guided by partners priorities, build on local capacities and create local opportunities; development partnership to be on terms that will be comfortable for partner country so that it liberates their potential and not constrain their future; open up markets and make trade and investment easier; harness India’s digital revolution to enhance education, health, public services, financial inclusion etc.; improve agriculture; address challenges of climate change; combat terrorism and extremism including in the cyber sphere; give enhanced focus on youth and their aspirations; keep oceans open and free for the benefit of all nations and together strive for a representative and democratic global order.

Certain aspects stakeholders must consider while deliberating on BAPA+40 decisions:

  • No South-South Cooperation can and should result in restricting the space for development or constrain the future of our countries.
  • In order to ensure that development is sustainable, it should naturally fit in with the national priorities of the countries concerned. India has always believed that South-South Cooperation should be demand driven and not supply driven. With such an approach, we have been able to touch the lives of people the world over.
  • Project implementation should be to finally hand over to the recipient partner country.
  • Development partnership should equally be a vehicle for sharing cutting edge technology, especially digital technology and artificial intelligence. India believes that hi-tech is a necessity for developing countries to leap frog into the 4th industrial revolution, as well as directly impact positively the lives of people, especially in delivery of public services, education, health, agriculture etc. Recipient partner countries should carefully evaluate the most appropriate options for them and avoid the digital divide, so that the 4th industrial revolution is an inclusive one.

Not enough attention is also being given to youth and their employment in the construct of South-South Cooperation. Building sustainable infrastructure is only one aspect of development cooperation, however important they may be. But true sustainability comes in empowering the local population, especially the youth. Empowering the youth and creating opportunities for their employment need to go hand in hand.

Ideally, South South engagement should be able to leverage trade and investment so that the engagement becomes self-sustaining and helps the recipient partner country to get out of the development partnership cycle and become independent of it.

Care and prudence must be observed in institutionalization of South-South Cooperation and while developing an impact assessment framework.

Triangular cooperation has become another important vehicle to combine the best of North and South, for the benefit of the South. India is working actively with countries like Japan, France, E.U. U.S. and others to see how best Africa and Asia can benefit from this tripartite construct. While there are challenges of bringing together two different systems of assistance for a common cause, countries are confident that they can overcome such technical hurdles for the larger goal.

To expand the idea of triangular cooperation beyond its traditional connotations, India has been instrumental in establishing, with France, the International Solar Alliance (ISA). ISA has last year taken the decision to expand its membership to make it universal so that a truly universal solar grid is developed. Prime Minister Modi has announced a Line of Credit of US$ 2 billion for solar energy projects, an example of how development partnership can venture into new and innovative areas.

India is even working with some developing countries like UAE to assist Africa. Contributions from India, Brazil and South Africa (IBSA) to IBSA-UN Fund in providing development support to least developed countries across the globe is also indicative of the commitment to the expanded idea of triangular cooperation.

Prime Minister Modi has articulated the importance of "reformed multilateralism”. He had proposed this in BRICS Summit last year in Johannesburg and again this year at the G20 Summit in Osaka. He pointed out in the BRICS Summit last year that BRICS had started a decade ago to, interalia, address the concern that multilateralism did not address our concerns and that it needed reform to benefit the developing world. However, ten years later, when we are faced with issues of unilateralism and protectionism, we cannot start reinforcing the status quo of multilateralism – a multilateralism which we had sought to reform ten years earlier. Consequently, instead of reinforcing the status quo of multilateralism as it exists now, we need to bring about "reformed multilateralism”. The Foreign Minister of BRICS recognised this in their recent meeting in Brazil. I would like to mention that in this "reformed multilateralism”, South-South Cooperation has a crucial role to shape it. For this, South-South Cooperation needs to adhere to its unique voice, principles and practices to benefit all developing countries.

The Delhi Process has assumed significance as it gathers academics, subject experts, policy makers and practitioners for exploring various facets and features of SSC.

4-Jul-2019: Maritime Anti-Corruption Network Launches Landmark Port Integrity Campaign in Indian Ports.

With the support of the Government of India, the Maritime Anti-Corruption Network (MACN)—a global business network of over 110 companies working together to tackle corruption in the maritime industry — announces the launch of a groundbreaking Port Integrity Campaign in India.

The campaign, which aims to reduce and (in the long term) eliminate integrity issues and bottlenecks to trade during operations in Indian ports, is a collective action of MACN, the Government of India, international organizations, and local industry stakeholders. The pilot of the campaign will take place in Mumbai ports (MbPT and JNPT) and will run until October this year.

Key activities of the campaign include the implementation of integrity training for port officials and the establishment of clear escalation and reporting processes. Following the pilot, MACN aims to expand the program to other Indian ports.

The Port Integrity Campaign has been made possible by strong commitment from the Indian Government to work with the private sector and to address integrity issues in Indian ports.

The MACN Port Integrity Campaign is also supported by: the United Nations Global Compact Network India (UNGCNI), the World Customs Organization (WCO), the Indian Customs and Central Excise, the Directorate General of Shipping India, the Indian Ports Association (IPA), the Indian Private Ports and Terminals Association (IPPTA), the Maritime Association of Nationwide Shipping Agencies India (MANSA), the Indian Shipowner’s Association (INSA), the Container Shipping Lines Association (CSLA), the Federation Of Indian Logistics Associations (FILA), the Danish Embassy, and the Norwegian Consulate General.