Indo-US Relations - general essay

Introduction:

1. New Level of Maturity in Indo-US Ties: India's relations with the US have reached a new level of maturity where both sides can live with their differences without their fundamental friendly good relations being affected adversely. Indo-US relations have never been better, with bilateral exchanges in every area, including peaceful uses of nuclear energy.
2. Basic Shift in US Policy towards India:
   
   • Offer for Cooperation in Civilian Nuclear Technology: The Indo-US Civil Nuclear Agreement gives India access to civilian nuclear technology which was denied to India for three decades. Analysts point out that this goes well beyond what was being considered under the Next Steps in Strategic Partnership (NSSP).
   • Defence Cooperation Agreement: The US has also offered a defence cooperation agreement with India that includes joint production. Analysts point out that such a provision is provided only to close allies of the US like South Korea and Turkey. This is seen as unprecedented in Indo-US ties.
   • Institutional Means to Convert Aspects of NSSP into Tangible Projects:The US has also offered India the institutional means to convert aspects of the NSSP, including economic cooperation and provision of space technology, into tangible projects.
   • The US Wants India to Become a Great Power: The US has emphasised time and again that it wants India to become a great power and sees on threat in India taking such a role. This was conveyed to India's Prime Minister by the US Secretary of State, Condoleezza Rice, during her visit to India in March 2005.
3. Reasons Behind the US Desire to Make India a Major Power:
   
   • Relations with India Need to go Beyond NSSP: The US has come to the conclusion that relations with India should go beyond the NSSP. Therefore the US announced that it would help India in its efforts to become a world power in the 21st century.
   • Recognition of India's Growing Power: Analysts feel that the US has developed a new respect for India as growing power on account of its nuclear tests, its high economic growth, its achievements in the IT sector and its good export performance.
   • Wants a Balance of Power in Favour of Freedom: Analysts point out that the US feels that the current world order is not conducive to US security interests. Thus, the US wants a "balance of power in favour of freedom". India fits into this equation perfectly. The US feels that India's partnership will be crucial in shaping the international order in the 21st century.
   • China Factor: Analysts opine that the US is not comfortable about the rise of China and is therefore encouraging India to maintain the balance of power in the region as well as in the world.
4. Broader Indo-US Strategic Relationship: Indo-US relationship is being transformed from a bilateral one to a strategic partnership, according to the then US Ambassador to India, David C Mulford. The US is in favour of a decisively broader strategic relationship to help India achieve its goals as one of the world's great multi-ethnic democracies. The vision embraces cooperation on a global strategy for peace, defence, energy, and economic growth.
5. Shared Common Values and Interests: Mr. Mulford pointed out that Indo-US relationship is based on shared common values and interests. Both sides work together closely in countering terrorism, share the view that extremist governments have no place in the international system, cooperate in fighting HIV/AIDS, and work together to build stronger economic relations.

The US Secretary of State Hillary Clinton’s Visit to India (July 18-21, 2009):

1. First Visit to India as Secretary of State: The US Secretary of State visited India from July 18-22, 2009. This was her first visit to India after taking charge as the US Secretary of State. She was the highest-ranking member of the Obama Administration to visit India.
2. Three Hi-Tech Agreements Finalised during the Visit:
   
   1. End User Monitoring Agreement (EUMA):
      
      • India has been signing an end-user monitoring agreements (EUMA) for all dual-use and high-technology purchases from the US since 1984. All high-tech deals, military or civil had separate EUMA clauses.
      • The current End User Monitoring Agreement (EUMA) finalised during US Secretary of State Hillary Clinton’s visit is an umbrella agreement with the US to skip deal-to-deal hassles. It is seen as the harbinger of greater defence cooperation.
      • As per the agreed EUMA text, the US can physically inspect defence equipment and technology sold to India, but the time and place of verifications would be decided by India. This would avoid on-site verification.
      • The US insists that countries acquiring sensitive military technology from it do have an end user pact.
   2. Technology Safeguards Agreement (TSA) - An End User Agreement in Space Sector: The new Technology Safeguards Agreement signed by the US Secretary of State Hillary Clinton and India’s External Affairs Minister S.M. Krishna would cover launches involving satellites owned by the US government or academic institutions or by third country space agencies and universities which have US equipment on board. Since the components and satellites would have to be integrated with ISRO’s launch vehicles the TSA would provide for monitoring by the US to ensure against diversion or misuse of equipment.
   3. Science and Technology Cooperation Agreement was also signed by India’s External Affairs Minister and the US Secretary of State.
3. Joint Statement:
   
   1. Defence Cooperation:
      
      • The two sides reaffirmed their commitment to the early adoption of a UN Comprehensive Convention against International Terrorism, which would strengthen the framework for global cooperation.
      • Defence cooperation envisaged under the Defence Cooperation Framework Agreement of 2005 would be prioritised.
      • Agreement to move ahead in the Conference on Disarmament towards a non-discriminatory, internationally and effectively verifiable Fissile Material Cut-off Treaty (FMCT).
      • A high-level bilateral dialogue to close gaps on achieving global nuclear non-proliferation and cooperation to prevent nuclear terrorism.
      • Consultations on nuclear fuel reprocessing arrangements and procedures to start from July 21, 2009.
   2. New Architecture of Strategic Dialogue:
      Discussions would take place on exchanging views on reforming the UN Security Council, the G-8 and the G-20 so that these organisations and groupings reflect the world of the 21st century in order to maintain long-term credibility, relevance and effectiveness.
   3. Economics and Trade:
      
      • Commitment to Open Trade and Investment Policies: The Statement noted that as G-20 members, India and the US had pledged to work together with other major economies to foster a sustainable recovery from the global economic crisis through a commitment to open trade and investment policies.
      • Both Sides committed to facilitate a pathway forward on the WTO Doha Round.
      • Pledged to cooperate to preserve the economic synergies, to increase and diversify bilateral economic relations and expand trade and investment flows between the two countries.
      • Negotiations for a Bilateral Investment Treaty would be scheduled in New Delhi in August 2009.
      • Resolved to harness the ingenuity and entrepreneurship of the private sectors of both countries with the newly-configured CEO Forum.
   4. Education:
      
      • Both sides affirmed the importance of expanding educational cooperation through exchanges and institutional collaboration.
      • Agreed on the need to expand the role of the private sector in achieving this.
   5. Science & Technology:
      
      • The two sides concluded a Science and Technology Endowment Agreement and signed a Technology Safeguards Agreement (TSA).
      • Both sides welcomed India’s participation in the Future Gen Project for the construction of the first commercial scale fully integrated carbon capture and sequestration project and in the Integrated Ocean Development Project, an international endeavour for enhancing the understanding of Earth and Ocean dynamics and addressing the challenges of climate change.
      • Agreed to form working groups to focus on new areas of common interest - nano-technology, civil nuclear technology, civil aviation and licensing issues in defence, strategic and civil nuclear trade.
   6. Energy and Climate Change:
      • Both sides to intensify collaboration on energy security and climate change.
      • Efforts to be made to increase energy efficiency, renewable energy, and clean energy technologies through the India-US Energy Dialogue and a Global Climate Change Dialogue.
      • Bilateral S&T Collaboration to Support Transfer of Technology in Areas of Mutual Interest: Agreement to launch a process of bilateral scientific and technological collaboration to support the development, deployment and transfer of transformative and innovative technology in areas of mutual interest, including solar and other renewable energy, clean coal and energy efficiency and other renewable areas.
      • Commitment to Work Together for Positive Results in the UNFCCC Conference on Climate Change: Both countries affirmed their commitment to work together with other countries, including through Major Economies Forum (MEF), for positive results in the UNFCCC conference on Climate Change in Copenhagen in December 2009.
   7. Deepening Indo-US Relations:
      1. Five Pillars of New Architecture of Indo-US Strategic Dialogue:The US Secretary of State Hillary Clinton highlighted five pillars that would form part of the new architecture of strategic dialogue with India as follows:
         
         • Strategic Cooperation
         • Energy and Climate Change
         • Education and Development
         • Trade and Agriculture
         • Science & Technology
      2. Strategic Dialogue to be Taken Forward by Five Working Groups:
         
         • Strategic Cooperation Working Groups - address non-proliferation, counter-terrorism, and military cooperation.
         • Energy and Climate Working Groups - continue the energy dialogue and initiate discussions on action to address climate change.
         • Education and Development Working Groups - seek to enhance cooperation in education and initiate discussions on women’s empowerment.
         • Economics, Trade and Agriculture Working Groups - continue discussions on business, trade and food security.
         • Science & Technology Working Groups - explore new areas for cooperation in leading technologies, and in addressing health challenges.
      3. Agreement signed for creating $30-million endowment to be used for joint research and development, innovation and entrepreneurial and commercialisation activities in science and technology.
      4. India pledged to designate two nuclear energy park sites in the country for development by US companies.
      5. India and the US intend to launch the “third phase” of their relationship by expanding the ambit of dialogue to include an annual meeting between the External Affairs Minister and Secretary of State and involving non-governmental figures and organisations.
      6. India-US Strategic Dialogue to be launched in 2010 would focus on wide range of bilateral, global, and regional issues, continuing programmes now being implemented and taking mutually beneficial initiatives that complement Indian and US development, security and economic interests.
      7. US Does Not Oppose ENR Technology Transfer to India: The visiting US Secretary of State Hillary Clinton said that the recent G-8 resolution on curbing transfer of nuclear enrichment reprocessing technology does not apply to India. She pointed out that the US had just completed a civil nuclear deal with India. So if the ENR technology transfer is done within the appropriate channel and carefully safeguarded, as it is in the case of India, that’s appropriate.
      8. Prime Minister Manmohan Singh accepted US President Barack Obama’s invitation to visit the US on November 24, 2009. This would be the first state visit under the new Administration.
   8. Criticism of the End-Use Monitoring Agreement (EUMA) between India and the US:
      1. Opposition Charge - Intrusive Inspections of Sensitive Defence Installations would Compromise the Country’s Sovereignty: On July 21, 2009, Opposition parties in the Parliament charged that the US the Government had compromised India’s sovereignty by allowing intrusive inspections of sensitive defence installations under the End-Use Monitoring Agreement (EUMA) with the US.
      2. Government - No Question of Diluting Country’s Freedom, EUMA an Agreement between two Sovereign States Relating to High-End Defence Purchases: The External Affairs Minister S.M. Krishna made identical statements in both Houses of the Parliament as follows:
         • The EUMA systematises ad hoc arrangements for individual defence procurements from the US entered into by previous governments.
         • The EUMA would henceforth be referred to in letters of acceptance for Indian procurement of US defence technology and equipment.
         • There was no question of the Government diluting or bartering away the country’s freedom or sovereignty, as it was an agreement between two sovereign States relating to high-end defence purchases.
   Conclusion:
   
   1. Agreements Signed between India and the US during the Visit of the US Secretary of State to India would have a Long-Term Impact on Bilateral Relations:
      
      • Analysts point out that the agreements finalised and signed between India and the US during the visit of the US Secretary of State Hillary Clinton to India would have a long-term impact on bilateral relations.
      • The EUMA could be the harbinger of greater defence cooperation between the two countries as India can now access cutting-edge US technology and the US companies can enter India’s market.
      • The TSA in the field of non-commercial use of space was also very significant as it was an umbrella agreement that was likely to dispense the individual licensing by the State Department.
      • Both sides agreed to undertake more collaborative projects in different fields, including energy and trade and agriculture.
      • The quality of implementation of these agreements would be under scrutiny in both countries as evident from the protests from the Opposition in the Parliament, according to analysts.
   2. The Obama Administration’s Resolve to Implement the Indo-US Civil Nuclear Agreement in both Letter and Spirit is Significant: The US Secretary of State reiterated the Obama Administration’s resolve to implement the Indo-US nuclear deal both in letter and spirit. She emphasised that the US would not withhold transfer of attendant reprocessing and enrichment technology (ENR). This was significant as the implementation of the Indo-US nuclear deal would help India access world-class nuclear power technology and boost up India’s energy security.
   3. Need for a Continuing Structured Bilateral Consultative Mechanism to Deal with Terrorism in the Region: Defence analysts point out that if the Indo-US partnership is not to be influenced by the United State’s relations with Pakistan and if both are to have a mutually agreed-upon strategy to face the common threat of terrorism, there needs to be continuing structured bilateral consultative mechanism to deal with terrorism in the region. This needs to be separate from the annual Strategic Dialogue.
   4. India and the US have Common Interests in the Evolving Balance of Power in Asia: Former US Deputy Assistant Secretary of State for South Asia, Teresita Schaffer said that India and the US had common interests in the evolving balance of power in Asia - in energy security, maritime security, climate change and peaceful and harmonious rise of China. There was an opportunity for both countries to reshape the global non-proliferation system in the wake of the Indo-US Civil Nuclear Agreement.
   5. Issues over which India and the US Differ:
      
      • Climate change - India is firm on not adopting a cap on emissions because it is not a significant polluter and economic growth is its priority. On the other hand the US wants a commitment from India on emission cuts.
      • Outsourcing
      • NPT
      • CTBT
      • Approach towards Iran
   6. Indo-US Relations More Secure Than Ever Before: Analysts point out that despite a few irritants, the Indo-US relations seem more secure than they have ever been. It is pointed out that there seems to be greater connectivity between the political leadership which has led to the expansion of the relations.
   7. India Should Continue to Follow an Independent Foreign Policy: Finally, analysts opine that a close working relationship with the US should be a priority in India’s foreign policy. At the same time India should continue to follow an independent foreign policy retaining its freedom of options to exercise multifarious choices to meet its national interests.