International Relations: July 2022 Current Affairs | UPSC Mains: International Relations PDF Download

Chabahar Port

Why in News?

Recently, during the foreign ministerial meeting of the Shanghai Cooperation Organisation (SCO) meeting, India pushes for a greater role for Chabahar Port in increasing the connectivity in the region.

• India will be taking over the SCO presidency next year.

What other points Highlighted by India?

• On Afghanistan, highlighted that India extended humanitarian assistance to Afghanistan to help it fight hunger and food insecurity.
• Raised the problems of the energy crisis and food crisis arising from the Ukraine conflict.
• Highlighted the need to adopt zero tolerance policy towards terrorism.
• He also appreciated the entry of Iran into the organization.
• Iran’s inclusion will strengthen the SCO forum as now all the member nations will have the opportunity to use the facilities of the Chabahar Port in Iran.

What is Chabahar Port?

About:

• The port of Chabahar is located in southeastern Iran in the Gulf of Oman.
•  It is the only Iranian port with direct access to the ocean.
• It’s located in the Sistan-Balochistan province on the energy-rich Iran’s southern coast.
• The Chabahar port is considered a gateway to golden opportunities for trade by India, Iran and Afghanistan with central Asian countries.

Significance:

• No other international port has seen the level of involvement and enthusiasm from Chabahar as India. 
• It will make way for India to bypass Pakistan in transporting goods to Afghanistan using a sea-land route. 
  • At present, Pakistan does not allow India to transport its territory to Afghanistan.
• It would give momentum to the International North-South Transport Corridor of which both are initial signatories along with Russia. 
  • Iran is the key gateway to this project. 
  • It would counter the Chinese presence in the Arabian.

 Way Forward

• This project would give a boost to trade as India will get access to Afghanistan and beyond Turkmenistan, Uzbekistan, Tajikistan, Kyrgyzstan, Kazakhstan, Russia, and Europe.
• This project is also important in Countering the Chinese presence in the Arabian sea.
• Further it would enhance people to people contact in this region and also boost trade and investments, in future it could be shaped into one common market like European Union or ASEAN.

CAATSA

Why in News?

Recently, the United States (US) House of Representatives has approved an amendment to the National Defence Authorization Act (NDAA), proposing India-specific waiver under the Countering America’s Adversaries Through Sanctions Act (CAATSA).

• It will allow India to freely purchase Russia’s S-400 missile system without the fear of American sanctions.

What is the Proposed Amendment?

• The amendment urges the US administration to use its authority to provide India with a Countering America’s Adversaries Through Sanctions Act (CAATSA) waiver to help deter aggressors like China.
• The legislation says that the United States-India Initiative on Critical and Emerging Technologies (ICET) is a welcome and essential step to developing closer partnerships between governments, academia, and industry in the two countries to address the latest advances in artificial intelligence, quantum computing, biotechnology, aerospace, and semiconductor manufacturing.

What is CAATSA?

About:

• US Law:
  • CAATSA is a law that came into effect in the US in 2017, and was meant to punish countries having deep engagements with Russia, North Korea, and Iran using economic sanctions.
  • Title II of the Act primarily deals with sanctions on Russian interests such as its oil and gas industry, defence and security sector, and financial institutions, in the backdrop of its military intervention in Ukraine and its alleged meddling in the 2016 US Presidential elections.
  • Section 231 of the Act empowers the US President to impose at least five of the 12 listed sanctions — enumerated in Section 235 of the Act — on persons engaged in a “significant transaction” with Russian defence and intelligence sectors.
• Sanctions that can Impact India: There are only two sanctions that may impact either India-Russia relations or India-US relations.
  • Prohibition of Banking transactions: The first of these, which is likely to have an impact on India-Russia relations, is the “Prohibition of Banking transactions”.
  • Export Sanction: The sanction will have greater consequences for India-US relations. This is the “export sanction” which has the potential to completely derail the India-US Strategic and Defence partnership, as it will deny the license for, and export of, any items controlled by the US.
• Waiver Criteria:
  • The US President was given the authority in 2018 to waive CAATSA sanctions on a case-by-case basis.

What are the implications of CAATSA Waiver on India-US Relations?

• The NDAA amendment also urged the US to take more steps to assist India’s pivot away from its reliance on Russia-made arms.
• The amendment is in sync with the tenor of the recent bilateral strategic relations.
  • The watershed year was 2008 and since then cumulative US defence contracts with India add up to at least USD 20 billion. It was just USD 500 million in the period prior to 2008.
  • Furthermore, in 2016, the US recognised India as a major defence partner. Strategic ties have also been strengthened through groupings such as Quad and now I2U2.
• For India, a transition away from Russian platforms is in its strategic interests.
  • Russia’s dependence on China has increased significantly following its invasion of Ukraine, a situation that’s unlikely to change in future.
  • Already, China is next only to India as the second largest recipient of Russia’s arms exports.
  • Given the unravelling of India’s longstanding border management protocols with China, dependence on Russian arms platforms is unwise.

Landlord Port Model

Why in News?

Recently, Jawaharlal Nehru Port became the first major port of the country to become a 100% Landlord port of India having all berths being operated on PPP model.

What is Landlord Port?

• In this model, the publicly governed port authority acts as a regulatory body and as a landlord, while private companies carry out port operations—mainly cargo-handling activities.
• Here, the port authority maintains ownership of the port while the infrastructure is leased to private firms that provide and maintain their own superstructure and install their own equipment to handle cargo.

What is Service Port Model?

• In service ports, the port authority does the administration and operation of port activities.
• The port operation includes providing navigational services, warehouse facilities, cranes, and skilled employees/laborers. the construction of infrastructure, superstructure, and providing employees, becomes the responsibility of the port authority.
• Even if the port authority act in the public interest full ownership of the port remains with the state or the government.

What are the Key highlights of Jawaharlal Nehru Port?

About:

• It's located in Navi Mumbai is the premier container handling port in India, accounting for around 50% of the total containerized cargo volume, across the major ports of India.
• It was commissioned in 1989 and in three decades of its operations, JNP has transformed from a bulk- cargo terminal to become the premier container port in the country.

Overview:

It is one of the leading container ports in the country and is ranked 26th among the top 100 global ports (as per Lloyds List Top 100 Ports 2021 Report).

With its state-of-the-art facilities JNP meets all the international standards, user-friendly atmosphere, and excellent connectivity by rail and road to the hinterland.

It is presently handling 9000 twenty-foot equivalent units (TEUs) capacity vessels and with the upgradation, it can handle 12200 TEUs capacity vessels.

What is the PPP model?

About:

• Public-private partnerships involve collaboration between a government agency and a private-sector company that can be used to finance, build, and operate projects, such as public transportation networks, parks, and convention centers.

Indian Perspective:

• PPP is considered an effective tool for attracting investment in the port sector. Until now 86 projects worth Rs. 55,000 Crores have been granted approval under PPP.
• The key projects on PPP being implemented include berths, mechanization, development of oil jetty, container jetties, O&M of the container terminal, O&M of International cruise terminal, Commercialization of non-core assets on PPP mode, Tourism projects, viz., marina, development of islands to promote tourism.
• With the cargo volume expected to increase between 1.7 to 2 times (of 2020) by 2030, the percentage of cargo handled at Major Ports by PPP or other operators is expected to reach 85% by the year 2030.

UNRWA

Context: India contributed $2.5 mn to United Nations Relief and Works Agency (UNRWA) for Palestine Refugees in the Near East.

• UNRWA is relief and human development agency of UN which supports more than 5 million registered Palestinian refugees, and their descendants.
• It is only UN agency dedicated to helping refugees from specific region or conflict and is separate from UNHCR.
• Establishment: It was established December 1949 following 1948 Arab-Israeli conflict by UN General Assembly Resolution 302 (IV).
• Mandate: 
  • UNRWA has contributed to the welfare and human development of four generations of Palestine refugees , who had fled or were expelled from their homes during 1948 Palestine war as well during and following 1967 Six Day war.
  • Originally, it was intended to provide jobs on public works projects and direct relief, but now it provides services like education, health care, and social services to population it supports.
  • It also allows refugee status to be inherited by descendants.
• Region of operation: 
  • It provides aid in five areas of operation: Jordan, Lebanon, Syria, the Gaza Strip and West Bank, including East Jerusalem; and aid for Palestinian refugees outside these five areas is provided by UNHCR.
  • It serves about 5.3 million refugees scattered around Middle East.
• Funding:
  • It is funded almost entirely by voluntary contributions from UN member states.
  • It also receives some funding from regular budget of UN, which is used mostly for international staffing costs.

India And Belarus

Why in News?

India congratulated Belarus for celebrating its 78 years of Independence on 3rd July 2022.

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 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, country is 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

• Taking into account the gradual shift of the global geopolitical and geo-economic center of gravity to Asia, cooperation with India creates additional opportunities for international trade and investment.
• 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 centers to be established in Belarus based on Indian traditional medicine models (Ayurveda + Yoga).
• The drivers of bilateral cooperation could be the interaction of the leading “think tanks” of Belarus and India.
• To increase mutual interest, establishing new innovative growth points and encouraging breakthrough ideas and active expert diplomacy communication is of prime importance. The drivers of bilateral cooperation could be the interaction of the leading “think tanks” of Belarus and India.

China Pakistan Economic Corridor (CPEC)

Why in News?

Recently, Pakistan and China decided to welcome any third country joining the multi-billion dollar China-Pakistan Economic Corridor (CPEC).

• In context to Afghanistan, it had broken new ground in strengthening international and regional connectivity.
• Earlier, Pakistan signed a new agreement with China to begin the second phase of the USD 60 billion China-Pakistan Economic Corridor (CPEC).

What is CPEC?

• CPEC is a 3,000-km long route of infrastructure projects connecting China’s northwest Xinjiang Uygur Autonomous Region and the Gwadar Port in the western province of Balochistan in Pakistan.
• It is a bilateral project between Pakistan and China, intended to promote connectivity across Pakistan with a network of highways, railways, and pipelines accompanied by energy, industrial, and other infrastructure development projects.
• It will pave the way for China to access the Middle East and Africa from Gwadar Port, enabling China to access the Indian Ocean and in return China will support development projects in Pakistan to overcome the latter’s energy crises and stabilising its faltering economy.
• CPEC is a part of the Belt and Road Initiative.
• The BRI, launched in 2013, aims to link Southeast Asia, Central Asia, the Gulf region, Africa and Europe with a network of land and sea routes.

What are CPEC’s Implications for India?

• India’s Sovereignty: India has continuously opposed the project since it passes through the Pakistan-occupied Kashmir territory of Gilgit-Baltistan – a claim opposed by Pakistan.
  • The corridor is also perceived to be an alternative economic road link for the Kashmir Valley lying on the Indian side of the border.
  • Most key players in the Indian state of Jammu and Kashmir, have expressed optimism about the project.
  • There have been calls by local business and political leaders to declare Kashmir on both sides of the Line of Control (LoC) a ‘Special Economic Zone’.
  • However, a well-connected Gilgit-Baltistan that attracts industrial development and foreign investment, if CPEC proves a success, will further consolidate the region’s perception as internationally recognised Pakistani territory, diminishing India’s claim over the 73,000 sq km piece of land which is home to more than 1.8 million people.
• Emergence of Pakistan as an Outsourcing Destination: It is poised to speed up Pakistan’s economic progress.
  • Pakistani exports, mainly in the textile and construction material industry, compete directly with those of India in the US and UAE – two of the top three trading partners of both countries.
  • With the supply of raw material from China becoming easier, Pakistan will be suitably placed to become a regional market leader in these sectors – mainly at the cost of Indian export volumes.
• Stronger BRI and Chinese Dominance in Trade Leadership: China’s BRI project that focuses on the trade connectivity between China and the rest of Eurasia through a network of ports, roads and railways has been often seen as China’s plan to dominate the region politically. CPEC is one giant step in the same direction.
  • A China that is more accepted and integrated with the rest of the global economy will have a better say in the United Nations and with individual nations, which may prove to be bad news for an India aspiring to acquire a permanent seat at the UN Security Council.