Russia-related sanctions to dominate 2+2 talks
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Russia-related sanctions to dominate 2+2 talks

News:

  1. India and the US will hold their first 2+2 dialogue next week

Important facts:

2. First  2+2 Dialogue will involve the External Affairs and Defence Ministers and their American counterparts.

2+2 Dialogue:

  •  India and the U.S. have decided to set up a new dialogue mechanism that would include defence and foreign ministers of the two countries.
  •   The dialogue format would be likely called “2 by 2”.
  •  The India-U.S. “2 by 2”dialogue will be on the lines of India-Japan 2+2 dialogue format.
  •  The India-U.S. “2 by 2”dialogue would replace the existing India-U.S. Strategic and Commercial Dialogue for trade and commercial issues.
  •  India and the U.S. will now have a separate dialogue on commercial issues, which will not include the foreign ministers.

Significance of “2 by 2” Dialogue 

  • The objective of this dialogue is to raise defence and security issues.
  • It is aimed at enhancing peace and stability across the Indo-Pacific region by elevating strategic consultations in the dialogue.
  • The shared priorities include job creation, improving the business and investment climate and sustaining a rules-based global order.
  • The U.S. has strategic consultations in this format with key partners and allies including Australia, Japan and the Philippines.

3. The new dialogue format was agreed upon by the two sides during PM Narendra Modi’s visit to Washington D.C. in June 2017.

4. U.S President Donald Trump recently accused New Delhi of charging as high as 100 per cent tariff on import of American products.

5. Trump recently impose tariffs on import of foreign products.

6. Trumphas defended it by arguing that this is in retaliation to the imbalance of trade that the US has with major trading partners including China, the European Union and India.

7. Issues expected to discuss:

  • Recent Russia-related sanctions, key impediment for India’s defence modernization.
  • The two sides will share perspective on strengthening their strategic and security ties.
  • Both side will exchange views on a range of bilateral, regional, and global issues of mutual interest.
  • The Indian side will firmly place its objections to CAATSA during the 2+2 Dialogue on July 6.

8. Impact of CAATSA

  • The impact of CAATSA (Countering America’s Adversaries Through Sanctions Act) is still being assessed in the military circles even as policy moves from the U.S. have not been reassuring.
  • Last week, the U.S. Senate passed the National Defence Authorisation Act (NDAA) for 2019 without any waiver provisions under CAATSA for countries having significant defence relations with Russia.
  • Indian side will firmly place its objections to CAATSA as practically all major defence deals in the pipeline between India and U.S. would help up due to this.

9. No waivers

  • The House version which was passed earlier had allowed limited waiver, which did not find place in the Senate version.
  • The House version allows for waivers for 180 days, provided the administration certifies that the country in question is scaling back its ties with Russia.
  • Even this would be tough for India, as it would be extremely difficult to scale down its relations with Russia.
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