Foreign Policy:INDO-US relations

A new phase in INDO-US relations : The 2+2 DIALOGUE


UPSWING IN INDO U.S. RELATIONS 

  Since the days of Indo-Pak War of 1971, the Indo-U.S. relations was at a very low ebb. It reached the nadir following India’s Pokhran II nuclear tests. In the last 20 years India has sought to develop closer relations with USA as a result of end of the cold war and the phenomenal rise of China.

The following are some of the landmark events for improving India USA relations: 
o  President Bill Clinton’s visit to India in March 2000.
o  Twin tower attack on September 2001 and terrorist attacks against the Indian Parliament in December the same year precipitated a rapid thaw in overall relationship.
o  President Bush waived the sanctions imposed on India due to nuclear tests. In 2002 USA and India concluded a General Security of Military Information Agreement (GSOMIA). GSOMIA facilitated opportunities for greater intelligence sharing between India and the
United States.
o  Signing of the New Framework for Defense Cooperation in 2005 and the 2012 U.S. Defense Technology and Trade Initiative (DTTI).
o  The “New Framework” understanding was renewed in 2015 by the U.S. Secretary of Defense and the Indian Defence Minister to underscore the importance of the DTTI and to establish additional cooperation groups to find concrete measures to strengthen U.S.-India defense trade.
o  Later, U.S. declared India as its major defence partner. Trump administration put India in the Strategic Trade Authorisation1 (STA-1) list, which means India gets to buy high end technology from the U.S.
o  The U.S. grants STA-1 only to countries that are part of all four - the Wassenaar Arrangement, Missile Technology Control Regime (MTCR), Nuclear Suppliers Group (NSG) and Australia Group. India is yet to get into the NSG because of opposition from China.

STRENGTHENING THE DEFENSE AND SECURITY PARTNERSHIP 
  The Ministers welcomed the inclusion of India by the United States among the top tier of countries entitled to license-free exports, re-exports, and transfers under License Exception Strategic Trade Authorization (STA-1) and committed to explore other means to support further expansion in two-way trade in defense manufacturing supply chain linkages.
  They welcomed the signing of a Communications Compatibility and Security Agreement (COMCASA), facilitate access to advanced defense systems and enable India to optimally utilize its existing U.S. origin platforms.
  The Ministers announced their readiness to begin negotiations on an Industrial Security Annex (ISA) that would support closer defense industry cooperation and collaboration.
  After recognizing the recent bilateral engagements, the Ministers committed to start exchanges between the S. Naval Forces Central Command (NAVCENT) and the Indian Navy, underscoring the importance of deepening their maritime cooperation in the western Indian Ocean.
  Through the Defense Technology and Trade Initiative (DTTI), the ministers committed to prioritize co-production and co-development projects to pursue other avenues of defense innovation cooperation. Further they welcomed the conclusion of a Memorandum of Intent
between the S. Defense Innovation Unit (DIU) and the Indian Defense Innovation Organization – Innovation for Defence Excellence (DIODEX).
  The Ministers announced to increase information-sharing efforts on known or suspected terrorists and to implement UN Security Council Resolution 2396 on returning foreign terrorist fighters.

PARTNERS IN THE INDO-PACIFIC AND BEYOND 
  The Ministers reaffirmed their shared commitment to a united, sovereign, democratic, inclusive, stable, prosperous, and peaceful Afghanistan. The two sides expressed their support for an Afghan-led, Afghan-owned peace and reconciliation process.
  India welcomed the recent U.S. – North Korea summit. The two sides pledged to work together to counter North Korea’s weapons of mass destruction programs and to hold accountable those countries that have supported them.
  The United States welcomed India’s accession to the Australia Group, the Wassenaar Arrangement, and the Missile Technology Control Regime and reiterated its full support for India’s immediate accession to the Nuclear Suppliers Group.

PROMOTING PROSPERITY AND PEOPLE-TO PEOPLE TIES 
  Both countries committed to further expanding and balancing the trade and economic partnership consistent with their leaders’ 2017 joint statement, including by facilitating trade, improving market access, and addressing issues of interest to both sides.
  Thus, both sides welcomed the ongoing exchanges between the Ministry of Commerce of India and the Office of the United States Trade Representative and hoped for mutually acceptable outcomes.
  Both sides looked forward to full implementation of the civil nuclear energy partnership and collaboration between Nuclear Power Corporation of India Limited (NPCIL) and Westinghouse Electric Company for the establishment of six nuclear power plants in India.

ISSUES IN INDO-US RELATIONS 
  Bilateral Trade: In 2017-18, India–U.S. Total Bilateral Trade was $126.1 billion. India's exports to U.S. was $77.3 billion and India’s imports from was $48.8 billion.
o  US slapped steel and aluminum tariffs on India — inviting reciprocal duties on 29 American exports by India.
o  India has also dragged the U.S. to the World Trade Organisation's (WTO) dispute settlement mechanism over the imposition of import duties on steel and aluminum.
  U.S. Business Concerns: U.S. Trade Representative (USTR) complained against India at WTO on export subsidy programmes: The Merchandise Exports from India Scheme; Export Oriented Units Scheme and sector specific schemes including the Electronics Hardware Technology Parks Scheme; Special Economic Zone (SEZ); Export Promotion Capital Goods Scheme; and duty free imports.
  H1B Visa Issue: The crackdown on the non-immigrant visa programme has affected Indian skilled workers and IT professionals. India raised the issue many times with the US.


The four foundational agreements 

The four foundational agreements are – Logistics Exchange Memorandum of Agreement (LEMOA),
COMCASA, General Security Of Military Information Agreement (GSOMIA) and Basic Exchange and Cooperation Agreement for Geo-spatial Cooperation (BECA).

General Security Of Military Information Agreements (GSOMIA) 
It is one of the four foundational agreements that the U.S. signs with allies and close partners to facilitate interoperability between militaries and sale of high end technology.

Communications Compatibility and Security Agreement (COMACASA)
The COMCASA provides the legal framework for the U.S. to part with its sensitive communication equipment and codes to enable transfer of real time operational information. This equipment is largely used for ground-to-air communication, on installed U.S. origin military aircraft, to enable best battle situation awareness. India signed in 2018.

Logistics Exchange memorandum of agreement (LEMOA) 
The agreement gives militaries of both the nations access to each other’s military facilities, without making it automatic or obligatory, mostly for the purposes of refueling and replishment. India signed the pact in 2016.