International Relations: November 2022 UPSC Current Affairs | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly PDF Download

19th ASEAN-India Summit

Context 

• The Vice President, Shri Jagdeep Dhankhar, who is on a three-day tour of Cambodia, led the Indian delegation, including the External Affairs Minister, Dr S. Jaishankar, at the 19th ASEAN-India Summit in Phnom Penh, Cambodia.

Details

• Vice President stated that India-ASEAN relationship forms the central pillar of India's ACT-EAST policy. He reiterated India’s support to ASEAN centrality in the Indo-Pacific.
• At the summit, ASEAN and India adopted a joint statement announcing the elevation of the existing Strategic Partnership to Comprehensive Strategic Partnership.
• Both sides reaffirmed the importance of maintaining and promoting peace, stability, maritime safety and security, freedom of navigation and overflight in the Indo-Pacific region.
• The Joint Statement also reiterated the commitment to enhance India-ASEAN cooperation in various areas such as maritime activities, counter-terrorism, transnational crimes, cyber security, digital economy, regional connectivity, smart agriculture, environment, science & technology, tourism, among other areas.
• The Joint Statement also proposes expediting the review of ASEAN-India Trade in Goods Agreement (AITIGA) to make it more user-friendly, simple, and trade-facilitative.

India and ASEAN

• Association of Southeast Asian Nations (ASEAN), a 10-nation grouping, is considered one of the most influential groupings in Southeast Asia.
• It promotes intergovernmental cooperation and facilitates economic, political, security, military, educational, and sociocultural integration among its members and other countries in Asia.
• ASEAN operates under six fundamental principles, two of which are mutual respect for independence, sovereignty, and territorial integrity, and non-interference in member countries’ internal affairs.
• India and several other countries, including the US, China, Japan and Australia, are its dialogue partners.
• The ASEAN-India dialogue relations started with the establishment of a sectoral partnership in 1992.
• This graduated to full dialogue partnership in December 1995 and summit-level partnership in 2002.
• India is hosting the two-day conclave to mark the 30th anniversary of its relations with the 10-nation Association of Southeast Asian Nations (ASEAN).
• The ASEAN comprises Indonesia, Thailand, Vietnam, Laos, Brunei, the Philippines, Singapore, Cambodia, Malaysia and Myanmar.

Why ASEAN matters to India?

• The ten countries of South East Asia connect the two great oceans in both the geographical and civilizational sense.
• Central to India's Pacific vision, ASEAN assumes importance on the backdrop of an increasing Chinese influence in the region.
• While India and China are locked in a bitter standoff along the Line of Actual Control, New Delhi's outreach to ASEAN nations will help strengthen much needed diplomatic ties.
• ASEAN is also India's fourth-largest trade partner with about $86.9 Bn in trade between India and the ten ASEAN nations.
• ASEAN and India share land and maritime borders, and there is a lot of scope for enhancing connectivity through land, air and sea.
• India-Myanmar-Thailand Trilateral Highway is an ongoing effort to enhance road connectivity between Northeast India and Southeast Asia.
• ASEAN-India strategic partnership stands on a strong foundation of shared geographical, historical and civilisational ties.
• India’s Act East Policy, underlining ASEAN centrality, reflects the importance, India attaches to engagement with ASEAN.
• Inclusiveness, openness and ASEAN centrality and unity, lie at the heart of the new Indo-Pacific.
• With the increasing focus on oceans as providers of resources, the reservoirs of biodiversity, the highways of global trade and the frontiers of scientific research, cooperation in the maritime domain has become increasingly important under the overall rubric of ASEAN-India cooperation.

Issues with ASEAN

• Lack of a custodian and lacks of strong institutions to guarantee the success of the implementation of its collective decisions.
• Facing strategic competition for influence in the Asia-Pacific between the United States and China and have been forced to choose sides.
• Each member faces their own unique social, economic, and political challenges. As a result, each seems to have no choice but focus on addressing their own internal affairs.
• ASEAN members faces internal and external security challenges that are border disputes and conflicts, illegal migration, ethnic crises etc.

Way Forward

• ASEAN must put in extra efforts to sustain and enhance its existing successes and achievements. The bloc should emerge as a catalyst for peace by promoting rule of law in the region.
• ASEAN must also promote transparency and work to reduce corruption.
• This association needs to enhance closer coordination and regional connectivity. India should also start delivering the pending project. For ex. the India-Myanmar-Thailand (IMT) highways project
• ASEAN need to strike a good balance between commercial gains and environmental protection if ASEAN wishes to achieve inclusive growth and sustainable development.

India-Belarus Relation

Context

Recently, the 11th Session of the India-Belarus Inter-Governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation was held. 

What are the Highlights of the Session?

• The Intergovernmental Commission reviewed the results of bilateral cooperation that took place after the tenth session of the Commission in 2020.
• While expressing satisfaction at the progress made in regard to some projects, the Commission also directed concerned Ministries and Departments to focus on key sectors in the trade & investment spheres to finalise concrete outcomes.
• India and Belarus reiterated their strong desire to further broaden their cooperation with emphasis on key sectors such as pharmaceuticals, financial services, science and technology, heavy industries, culture, tourism, and education.
• The two ministers directed their respective business communities to engage with each other in these sectors to further mutually beneficial cooperation.
• The two sides agreed to promote cooperation among various states in India and regions in Belarus, especially in focus areas.

How Has Been India-Belarus Relations?

• Diplomatic Relations:
  • India’s relations with Belarus have been traditionally warm and cordial.
  • India was one of the first countries to recognize Belarus as an independent country in 1991 after the break-up of the Soviet Union.
• Supports at Multilateral Fora:
  • The cooperation between the two countries is visible at many multilateral fora such as the UN Security Council (UNSC) and Nuclear Suppliers Group (NSG).
  • Belarus was one of the countries whose support helped in consolidating India’s candidature for the non-permanent seat at the UNSC in July 2020.
  • India has also reciprocated Belarus’s support at various international fora, such as Belarus’s membership in the Non Aligned Movement (NAM) and other international and multilateral groups like IPU (Inter-Parliamentary Union).
• Comprehensive Partnership:
  • The two countries enjoy a comprehensive partnership and have established mechanisms for exchanging views on bilateral, regional and multilateral issues through Foreign Office Consultations (FOC), Intergovernmental Commission (IGC), and Joint Commission on Military Technical Cooperation.
  • The two countries have signed a number of Agreements/MoUs on various subjects, including trade and economic cooperation, culture, education, media and sports, tourism, science & technology, agriculture, textiles, Avoidance of Double Taxation, Promotion and Protection of Investments, and defence and technical cooperation.
• Trade and Commerce:
  • In the economic sector, the annual bilateral trade turnover in 2019 stands at USD 569.6 million.
  • India’s special gesture in 2015 that granted Belarus the Market Economy Status and a USD 100 million Line of Credit has also helped in the growth in the economic sector.
  • Market Economy status is a status conferred on the country exporting the goods accepted as the benchmark. Prior to this status, the country was considered as a Non-Market Economy (NME).
  • India’s encouragement to the Belarusian businessmen to invest in ‘Make in India’ projects are bearing fruits.
• Indian Diaspora:
  • The Indian Community in Belarus consists of around 112 Indian nationals and 906 Indian students pursuing studies in medicine in State medical universities in Belarus.
  • Indian art and culture, dance, yoga, ayurveda, films, etc. remain popular among Belarusian nationals.
  • Many young Belarusians also take keen interest in learning Hindi and dance forms of India.

Way Forward

• Belarus needs several footholds in Asia diversified by geographical subregions.
• India could become one of such pillars in South Asia, but Belarusian initiatives should definitely fall into the "matrix" of India's national interests and sacred meanings.
• There are also certain hidden reserves for cooperation in the field of cybersecurity.
• Belarus may become an "entry point" for Indian pharmaceutical companies to the Eurasian market.
• The potential of military and technical cooperation, including shared developments, has not been fully disclosed.
• Cinema (Bollywood) could stimulate the interest of the Indian business community and tourists.
• An additional increase in the export of tourism and medical services could be ensured by recreational centres being established in Belarus based on Indian traditional medicine models (Ayurveda + Yoga).

India-Australia Economic Cooperation and Trade Agreement

Context

The Australian Parliament recently approved the free trade agreement inked with India paving the way for the rollout of the pact from January 2023.

• The agreement is likely to push the bilateral trade to USD 45-50 billion in the next five-six years from the present USD 31 billion. 

More in news

• This was the third such agreement signed by this government, after the Mauritius and UAE trade pacts.
• The India-Australia Economic Cooperation and Trade Agreement (ECTA) needed ratification by the Australian Parliament before its implementation. 
• In India, such pacts are approved by the Union Cabinet. 
• This is the first agreement with a developed country after a decade. 

Major highlights on AI-ECTA

• Data on trade:
  • India's goods exports to Australia stood at USD 8.3 billion and imports from the country aggregated to USD 16.75 billion in 2021-22. 
• Duty-free access: 
  • It would provide duty-free access to Indian exporters of over 6,000 broad sectors including textiles, leather, furniture, jewellery and machinery in the Australian market.
  • Australia will open 100 per cent of their lines (products) with no restriction on even quota. This is the first time Australia has done this for any country.
  • Australia is offering zero-duty access to India for about 96.4 per cent of exports (by value) from day one. This covers many products that currently attract 4-5 per cent customs duty in Australia.
• Double Taxation Avoidance Agreement (DTAA):
  • The Australian Parliament has also approved an amendment to the Double Taxation Avoidance Agreement (DTAA), a move which would help the Indian IT sector in operating in that market.  
  • It would stop the taxation on the offshore income of Indian firms providing technical support in Australia.

Significance of the pact

• Labour-intensive sectors:
  • They would gain immensely from textiles and apparel, few agricultural and fish products, leather, footwear, furniture, sports goods, jewellery, machinery, and electrical goods.
• Job opportunities: 
  • It will be a great job opportunity for Indians when Australian investment comes here. 
• More visas:
  • India has got visas for Indian chefs and yoga instructors and also got a commitment that every child going to study in Australia will get an opportunity to work there depending on the level of education.
• Beneficial for farmers:
  • The pact will help farmers growing grapes for making wine to explore more business opportunities in Australia.
  • There are 6,000 grape farmers in India who grow grapes for wine purposes. It will help attract investments, and new farmers can also come into the sector.
• Increased Exports:
  • The agreement has opened vistas of opportunities for domestic exports as over 98 per cent of the tariff lines will have tariff advantage from day one.
• Duty-free imports: 
  • We will also get duty-free imports of critical raw materials like coal, alumina, manganese, copper, nickel, wool, hides and skin. It will impart further competitiveness to our manufacturing and exports. 
• Indian IT sector is the biggest gainer of that amendment:
  • The move may lead to savings of about USD 200 million each year for over 100 Indian IT firms operating in Australia.

Way Forward

The FTA is a win-win for both. On one hand it would open up the Indian market for quality Australian wines, and on the other it would help the Indian wine industry evolve further benefiting from the expertise and investment from their Australian counterparts.  

What is a Free Trade Agreement (FTA)?

• A free trade agreement is a pact between two or more nations to reduce barriers to imports and exports among them.  
• Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.
• The concept of free trade is the opposite of trade protectionism or economic isolationism.

Key Benefits of Free Trade Agreements      

• Reduction or elimination of tariffs. 
• Intellectual Property Protection.
• Development of product standards.
• Supplying services in the FTA partner country.
• Fair treatment for investors.  

G-20 Summit 2022

Context

• World leaders participated in the recently held G20 Summit in Rome, Italy.
• During the summit, the leaders adopted the Rome Declaration and emphasised Covid-19 immunisation across the globe.

Highlights of the Summit 

• The 2021 G20 Rome summit was the sixteenth meeting of the Group of Twenty (G20).
• The world leaders had elaborate deliberations on issues of global importance like
  • fighting the pandemic, 
  • improving health infrastructure, 
  • boosting economic cooperation and 
  • furthering innovation.

Adopted the 'Rome Declaration'

• The Rome Declaration consists of 16 mutually agreed principles, which aims to guide joint action for preventing future health crises and to build a safer, equitable and sustainable world.

On immunisation front: 

• The countries agreed that the COVID-19 immunisation is a global public good.
• Agreement on strengthening the World Health Organisation to fast-track the process for emergency use authorisation for Covid-19 vaccines.
• To provide finances and technology for vaccine production at “mRNA Hubs” in South Africa, Brazil and Argentina.
• Work towards monitoring and implementation of the multi-sectoral, evidence-based One
• Health approach. 

Green Energy: 

• G-20 countries committed to ending international financing for all new coal plants by the end of 2021.
• But made no mention of domestic commitments on ending coal power generation.
• To mobilise more international public-private financing for “green” projects.

Commitments of Paris Agreement:

• India and many other developing countries pushed for safeguarding the interest of the developing world.
• The developed world has acknowledged that they have not done enough in terms of meeting their commitments.
• Further, they will work upon providing finance in providing technology.
• Also, they will be the enablers to make the transition to a clean energy world in the future.
• Countries would further work towards increasing the ambition from the current levels of commitment.

United Nations Framework Convention on Climate Change (UNFCCC) COP 26 

• It will be attended by 120 Heads of Government and Heads of State at the World Leaders’ Summit (WLS) at Glasgow.
• India is likely to address the COP26 summit with a national statement about India’s climate action plan.

G-20 Grouping

• The G20 is an informal group of 19 countries and the European Union, with representatives of the International Monetary Fund and the World Bank.
• The G20 membership accounts for 
  • two-thirds of the world’s population, 
  • 85% of global gross domestic product, 
  • 80% of global investment and 
  • over 75% of global trade.
• The members of the G20 are 
  • USA, Canada, Mexico; 
  • Argentina, Brazil;
  • EU, Germany, France, UK, Italy;
  • South Africa, Saudi Arabia and Turkey;
  • India; Indonesia; Australia;
  • Russia, China, South Korea and Japan.
• It does not have any permanent secretariat or headquarters.
• The G20 Summit is formally known as the “Summit on Financial Markets and the World Economy”.

India Norway Maritime Cooperation

Context
Recently, the 8th Norway-India Joint Working Group Maritime meeting was held in Mumbai.

Indo-Norway joint effort for GREEN MARITIME Sector. 

• Background : Maritime trade with Norway dates back to 1600. 
  • Norway has the technical expertise in Maritime sector and India has huge potential for development of Maritime sector and large pool of trained seafarers, which make both countries natural complementary partners.
  • The 7th JWG on Maritime was held in Oslo in  2019 and issues regarding cooperation in Shipbuilding, enhancing skills of seafarers and environment friendly ships were discussed.
• Recent Developments: During the 8th Meeting Discussion was held on use of alternative fuels like green ammonia and hydrogen for futuristic shipping. 
  • The Norwegian Green Shipping Programme has been successful and the experience and expertise was shared in the meeting.
  • Norway stated that it is committed to India for zero emission solutions.
  • The Indian side has requested Norway to extend Ship Board training and Ship Board training in the area of Polar Water Navigation.
  • The Norwegian delegation will take part in INMARCO, the Green Shipping Conclave, and the Maritime ShEO conference. 
  • The Maritime ShEO conference is supported by Norway and focused on maritime diversity and sustainability, including gender equality in the maritime industry.
• Other Projects:
  • Green Voyage 2050 Project: India Norway is part of Green Voyage 2050 project, both parties agreed on willingness, devotion, partnership and capacity building for achieving common goals.
  • Hong Kong Convention: India is a signatory to Hong Kong Convention for Recycling of Ships. 
  • In the 8th meeting, India requested that EU regulation should not hinder recycling to non-European countries which are compliant as per International Convention. 

Maritime Industry in India

• India has 12 major and 200 non-major/intermediate ports (under state government administration). 
• Jawaharlal Nehru Port Trust is the largest major port in India, while Mudra is the largest private port. 
  • India is one of the world's top 5 ship recycling countries and holds 30% share in the global ship recycling market. 
• Approximately 95% of the country’s trade by volume and 68% by value is moved through Maritime Transport.
• The overall installed capacity of the major ports in India has increased over 76% to reach 1,561 MTPA in Mar 2021, vis-a-vis 872 MTPA in March 2014.

Challenges of Maritime Industry

• Unsustainable extraction from marine resources, such as unsustainable fishing, exploited by illegal, unreported, and unregulated fishing.
• Physical alterations and destruction of marine and coastal habitats and landscapes due largely to coastal development, deforestation, and mining. 
• Unplanned and unregulated development in the narrow coastal interface and nearshore areas has led to the marginalization of poor communities, and loss or degradation of critical habitats.
• Marine pollution, for example, in the form of excess nutrients from untreated sewage, agricultural runoff, and marine debris such as plastics.
• Impacts of climate change, for example, in the form of both slow-onset events like sea-level rise and more intense and frequent weather events.
• Other Factors: Ineffective governance institutions, inadequate economic incentives, technological advances, lack of or inadequate capacities, lack of full implementation of the United Nations Convention on the Law of the Sea (UNCLOS) and other legal instruments, and insufficient application of management tools have often led to poorly regulated activities.

Initiatives of India

• MoPSW (Ministry of Ports, Shipping and Waterways)  is working diligently to develop the Maritime Sector as a goal of Maritime India Vision (MIV) 2030.

• Sagarmala Project: Vision of the Sagarmala Programme is to reduce logistics cost for export-import and domestic trade with minimal infrastructure investment.

Coastal Economic Zones (CEZ): 

• The government identifies 14 CEZs in the National Perspective Plan for Sagarmala Programme.
• CEZs aims to promote exports by providing infrastructure and facilities to entrepreneurs to set up businesses and industries near Ports.
• Indian Ocean Rim Association: India has been taking active participation in the IORA for promotion of the blue economy in Indian Ocean littoral states.
• Matsya Sampada Yojana: 
• It is a flagship scheme for focused and sustainable development of the fisheries sector in the country.
• It will bring about the Blue Revolution by harnessing fisheries potential in a sustainable, responsible, inclusive and equitable manner.
• Polymetallic Nodules (PMN): India has received the sanction from International Seabed Authority for deep-sea mining in the Central Indian Ocean.

Way Ahead

• India needs to develop maritime trade among BIMSTEC nations and tie-ups / MoUs with other maritime countries. 
• There is clear potential to further improve the Ease of Doing Business (EoDB) in the shipping ecosystem by a more comprehensive integration of technology. 
• Modernizing Major Ports infrastructure through PPP model. 

Chinese Presence in the Indian Ocean

Context

• Recently, China’s top development aid agency convened the first “China-Indian Ocean Region Forum” in the southwestern Chinese city of Kunming.

Key Points

• About: 
  • The meet is organised by the China International Development Cooperation Agency (CIDCA) 
  • It is the latest Chinese initiative focusing on the Indian Ocean Region (IOR).
  • Such moves underline Beijing’s growing strategic interests in a region where its economic footprint has been deepening.
• Theme: 
  • Shared Development: Theory and Practice from the Perspective of the Blue Economy.
• China on India’s position in this:
  • India, as a major country in the Indian Ocean region, was invited to this forum
  • China looks forward to meeting India at the next forum”. 
• India’s stand:
  • India has viewed China’s recent moves in the region warily, including the recent visit of a Chinese military tracking vessel, the Yuan Wang 5, to Sri Lanka. 
  • India sees the IORA as an already established platform for the region, which has 23 members, including Australia and Maldives with 10 dialogue partners which include China, Japan, Russia, the U.K. and the U.S.

China Indian Ocean Region Forum

• About: 
  • It is headed by the former Vice Foreign Minister of China.
• Jointly Held: 
  • The forum was “the first high-level official development cooperation forum jointly held by China and countries in the Indian Ocean Region
  • Over 100 participants, including senior officials from 19 countries bordering the Indian Ocean attended. 
• China’s Proposal:
  • To establish a marine disaster prevention and mitigation cooperation mechanism between China and countries in the Indian Ocean region
• Other country’s proposal:
  • To strengthen policy coordination, 
  • Deepen development cooperation, 
  • Increase resilience to shocks and disasters, 
  • Enhance relevant countries’ capacity to obtain economic benefits through use of marine resources such as fisheries, renewable energy, tourism, and shipping in a sustainable way.
• Supporting Countries:
  • 19 countries: Indonesia, Pakistan, Myanmar, Sri Lanka, Bangladesh, Maldives, Nepal, Afghanistan, Iran, Oman, South Africa, Kenya, Mozambique, Tanzania, Seychelles, Madagascar, Mauritius, Djibouti, and Australia.
  • But at least two of those countries, Australia and Maldives, subsequently released statements rebutting the claim, emphasising that they did not participate officially. 

China’s Plans for the IOR

• China’s prominent role in global supply chains, the vast resource base of the Indian Ocean, and the passage of strategic sea lines of communication through the IOR.
• Earlier, China’s Foreign Minister Wang Yi, during a visit to Sri Lanka, proposed creating a forum “on the development of Indian Ocean island countries” to “build consensus and synergy, and promote common development”.
• China is establishing a more frequent military presence in the waters of the IOR. Beijing’s first ever overseas military facility was set up in Djibouti near the Horn of Africa.
• Chinese military planners have previously said the PLA Navy, which earlier this year launched its third aircraft carrier, has a long-term plan to deploy six aircraft carriers to secure China’s maritime interests, and that two of them will be based in the Indian Ocean Region.

Issues

• China’s initiation of a new forum for IOR countries despite the other successfully established forums is worrisome.
• China has been relentlessly trying to ramp up political, economic and security inroads in the region despite being geographically far from IOR.
• Apparently aimed at countering India’s strong influence in the region.
• China has often been accused of engaging in “debt diplomacy”.

Way Ahead

• India has a central role in the region and for regional actors. Thus,  IOR countries should not ignore India’s strategic interests and concerns.
• India’s importance in the region can not be marginalised as there is a growing trust deficit when it comes to China.