Relevance: GS Paper II
Introduction
The 2+2 discussions, held after two previous cancellations this year, brought much-needed focus on the India-U.S. relationship after months of drift and occasional discord.
Boost to defence
The India-U.S. defence relationship has been given a significant boost with the three agreements signed after the inaugural 2+2 Dialogue in Delhi:
- the Communications Compatibility and Security Agreement (COMCASA),
- “hotlines” between the Defence and Foreign Ministers of both countries, and
- the first tri-services military exercises between the two countries.
COMCASA
- COMCASA is the third of four “foundational”, or enabling, agreements signed by India after more than a decade of negotiations, and is perceived as an inevitable consequence of the large amount of U.S. defence hardware it has been purchasing.
- This will increase, going forward, given the U.S. decision to include India in the top tier of countries entitled to Strategic Trade Authorisation (STA-1).
Unreasonable demands made at 2+2 discussions
- U.S. officials said clearly that they expect India to increase imports of American oil and gas as well as aircraft in order to wipe out the trade surplus India enjoys.
- The U.S.’s other demand, to “zero out” oil imports from Iran by November, is simply unreasonable. It would hurt India dearly not only because of costs at a time when the dollar is strengthening and fuel prices are going up, but also in terms of its substantial engagement with Iran.
What was missing at 2+2 discussions ?
- While trade was addressed, India did not receive a clear-cut assurance of its GSP (Generalised System of Preferences) status being restored, or of waivers on steel and aluminum tariffs imposed by Washington.
- No public statement was made on what the U.S. will do on India’s investment in the Chabahar port once its full sanctions kick in on November 4.
- American officials also gave no firm commitment in their statements that India will receive a waiver to purchase Russian hardware, beginning with the S-400 missile system.
Conclusion
Delhi must work with Washington in the next few months to ensure that the benefits from the 2+2 dialogue don’t add up only on the other side.
