2+2 to address U.S. issues on Iran, Russia

2+2 to address U.S. issues on Iran, Russia

News:

1. India and U.S. to hold inaugural 2+2 dialogue on September 6.

Important facts:

2. Background:

• The twice delayed dialogue was earlier scheduled on July 6, but was postponed by U.S. citing unavoidable reasons.

3. Importance of 2+2 dialogue:

The highest diplomatic and political dialogue between the two countries this year, presents an opportunity to-

• Enhance engagement on range of diplomatic and security issues.
• Chalk out counter-terrorism strategy, designation of Pakistan based outfits as terrorist organisation.
• Laying the road map into sharing of information and cooperation FATF.

4. Issues related:

• The US has imposed military sanctions under CAASTA against countries that engage with Russia on defence.
• India buying S-400 air defence missile system from Russia will attract CAASTA.
• In the back drop of US pulling out of JCPOA (Joint Comprehensive Plan of Action), it has insisted all the countries upon halting import of Iranian crude.
• Cutting Iran oil imports will have significant economic impact on India (inflation and fuel price hikes).
• India’s development of Chabahar Port is a ‘sub-set’ of the Iran sanctions issue.
• India sees Chabahar port as gateway to develop economic and humanitarian channels to Afghanistan.
• US recently imposed tariffs on Indian steel and aluminium, to balance out the trade deficit with India.
• The decision of US administration to make changes in H1-B visa program.

5. India’s argument:

• Defence procurement is the key pillar of India-Russia relationship.
• S-400 is one of the world’s most advanced system, and is important for India’s security.
• Strong India is essential for the success of US’s Indo-Pacific policy.
• India’s stand on Iran is in consistence with UNSC resolution 2231, and issues related to JCPOA should be worked by the parties therein.
• India is heavily energy reliant with limited alternative energy sources.
• Recent oil and gas import from US has reduced trade deficit between India and US.

6. Challenges before India:

• Supporting US’s new South-Asia policy without compromising on its national interest.
• Strengthening its relation with US while keeping intact its traditional ties with Russia.
• Deepening its bilateral relation with US while maintaining its strategic autonomy.

7. Expected outcome from the dialogue:

• India is expecting a waiver from the sanctions under CAASTA.
• India may consider US demands to “zero out” its oil imports from Iran, if other sources of crude are made available at comparable price.
• Progress on Foundational Communications Compatibility and Security Agreement (COMCASA).
• Announcement on a new tri-service amphibious Humanitarian Assistance and Disaster Relief (HADR) exercise.
• Approval for special hotline between the defence ministers.