Diplomatist Magazine Diplomatist September 2019 | Page 35

SPOTLIGHT
economy into a series of reforms in 1991. Open access market
led to the forming of several economic ties between India and
the US. The relation started to normalize with the US ever
since and in a matter of ten years, all sanctions were lifted
from India. Today, India stands tall as a major partner to the
US in the Asia Pacific region.
The year 2005 brought special achievements for Indo-US
bilateral relations:
1. Both countries agreed to start a dialogue on energy and
security in the March meet of US Secretary Condoleezza Rice
and her Indian counterpart.
2. Two months later, New Delhi and Washington
signed a new defense framework which prioritized defense
cooperation in maritime security and humanitarian assistance
between both the countries.
3. In October, both countries conducted the largest naval
exercise followed by frequent land and air exercise.
4. But the most crucial and awaited deal happened to be
the Civil Nuclear Deal. The deal lifted the three-decade-old
prohibition of nuclear trade between India and the US. Under
this, India agreed to separate its civil and military facilities and
put civil nuclear facilities under the scanner of International
Atomic Energy Agency (IAEA). In return, the US agreed to
work for civil nuclear cooperation with India.
In the wake of China’s ambitious intentions to dominate
the Asia-Pacific region, India has become a strategically
important partner to the US in this region in the last two
decades. This can be easily seen if we observe the recent
chain of events.
The Barack Obama administration made India its major
defense partner and extended its support in the transfer of
technologies. In 2016, the US and India signed a crucial
pact of understanding in which both countries’ military can
use each other’s assets and bases in case of need making the
joint operations smoother. The United States renamed its
largest command i.e. Asia Pacific Command to Indo-Pacific
Command recognizing India’s importance amidst increasing
tension in the South China Sea region. The latest landmark
in India-US relation is the Communications Compatibility
and Security Agreement (COMCASA) which allows
interoperability and sale of high-end military technology
between the two nations.
A renewed framework for the Indo-US defense relations
took both countries in a new era of friendship based on a
common world view and shared national interests.
In his much-discussed visit to Vietnam in 2018, President
Donald Trump had stated America’s vision of an open and
free Pacific in which every country remains strong, sovereign
and prosperous. In this light, the US is actively seeking
opportunities for collaboration with BIMSTEC where India
remains in central focus, it being the pioneering country
amongst BIMSTEC collaborators.
Though India’s defense cooperation with the US seems
quite amiable and strong with multiple defense deal and joint
exercises, India’s trade relations have not been as smooth.
A recent report published by Atlantic Council titled ‘Trade
at Crossroads: A Vision for Trade Relationship’ expresses
concern over growing trade tensions between India and US.
The report begins by saying that Indo-US trade relationship
is rapidly approaching a point of crisis. It further says that
existing institutional arrangements are not able to address
growing trade conflicts while protectionist instincts of both
governments are acting as a catalyst amidst growing tensions.
The report critiques the efforts of both sides and states
that though representatives of both the nations have tried to
understand the issues of each other but have failed to arrive
at any significant conclusions. In April 2018, the US decided
to revisit the Generalized System of Preference (GSP) status
granted to India in order to check whether India offered
equal access to its market or not. Later, GSP i.e. preferential
treatment benefits were terminated by the US.
Recently, Donald Trump called India the ‘Tariff King’,
though, the validity of his statement can be questioned as tariff
rates of many countries are higher than India. India retaliated
by increasing tariffs on 28 items including almond, pulses,
walnuts coming from the US. This protectionist attitude of both
countries has been pointed out by the Atlantic Council’s report.
The report has recommended several immediate measures
to avoid turning the current state of affairs in a trade war. It
has strongly recommended managing current tensions in
order to reach initial agreements. The Indian bureaucracy
of the country’s Ministry of Commerce and Industry is
not empowered enough to negotiate as efficiently as their
American counterparts. The report has recommended that
this administrative flaw be immediately addressed. In other
recommendations of the report, the need for institutional
reforms, exploring trade opportunities for other significant
market sectors openings were in prime focus.
India and the US shall continue to remain global strategic
partners for clear interdependence on each other owing to
many political and economic compulsions. At the same time,
India continuously needs to enhance its defense capabilities,
grow the domestic market and boost the manufacturing and
service sectors in order to remain more relevant than before
in a continuously changing global scenario. n
*Author is an assistant professor at school of media and
communication studies, Tula’s Institute. His area of interest
is media, caste and democracy. He also keeps an eye on
International Relations of India.
Extraordinary and Plenipotentiary Diplomatist • Vol 7 • Issue 9 • September 2019, Noida • 35