Friday, July 1, 2011

Group of Eight(G-8)

I. Introduction:
1. G-8 Forum for Leaders of Worlds Largest Economies and Major Industrialised Nations: The Group of Eight (G-7), the world’s eight most economically powerful countries, was conceived of as a forum for leaders of the world|s largest economies and major industrial countries to come together and discuss global issues in an informal and cooperative environment.
The G-8 does not have a trans-national administration unlike the UN or the World Bank and hence there it has no headquarters, budget or permanent staff.

2. Origins in the 1973 Oil Crisis: 
The origin of G-7 can be traced to the 1973 oil crisis and subsequent global recession. The first meeting of the G-7 countries took place at France in 1975.

3. Entry of Russia: The G-7 was converted to G-8 by the entry of Russia into the group in June 1997. Russia was rewarded for its role in defusing the Bosnia crisis and the eastward expansion of NATO.

4. Russia and G8 Nations Mutually Dependent: Analysts point out that currently the G8 nations are more concerned about the stability of oil prices and security of supply. The G8 nations have cut their dependence on the Organisation of Petroleum Exporting Countries (OPEC) for supply of oil. The G8 members rely heavily on Russia to meet their energy needs. A third of Russia|s crude oil is exported to G8 nations. Russia|s economy has transformed due to the revenue earned from export of oil and gas to the G8 nations.

5. Members: 
US, UK, France, Germany, Italy, Japan, Canada and Russia.

6. G8+5 - Outreach Partners (O5): India, China, Brazil, South Africa and Mexico were invited to G-8 annual summits as outreach partners to deepen dialogue with the industrialised nations on priority issues of international agenda.
The G8+5, known as Outreach Five (O5) or the Plus Five, was formed in 2005 when Britain hosted the G8 Summit at Gleneagles, Scotland.
The Heiligendamm Process through which the institutionalisation of permanent dialogues between G-8 and O5 would be implemented was established at the Heligendamm Summit in Germany in 2007.
French President Nicolas Sarkozy proposed the O5, which are emerging economies, should become members of the G-8. However the G8 countries have different opinions about it with the US and Japan against enlargement of G8 and France and the UK favouring it.

7. Aim: The aim of G-8 is to have consensus among the G-8 leaders in generating greater economic co-ordination and stability on the international scene.

8. Focus: The initial focus of the G-8 Summits was on economic issues alone but after the Summit in the US in 1983, a political declaration was also added.

9. Functioning of the G-8: The Presidency of the G-8 rotates among the member States on an annual basis, with the new President assuming responsibility on January 1. The country holding the presidency hosts a series of meetings leading to a mid-year three-day summit with the Heads of State.

10. Criticism of the G-8 Summits: 
Focus of Anti-Globalisation Protests: 
The G-8 Summits are often the focus of anti-globalisation protests. Critics feel that the G-8 are responsible for global problems like global warming due to carbon dioxide emission, poverty in Africa and other developing countries due to debt crisis and unfair trading policy.

Lesser Foreign Aid: The G-8 members are criticised for providing lesser than expected foreign aid. Critics demand that the G-8 nations should allow at least 0.7% of their GDP to go towards foreign aid as outlined in Agenda 21 of the Earth Summit in 1992.

Mere Media Hypes: The G-8 Summits in recent years have been criticised for becoming mere media hypes and achieving nothing on the political or economic fronts.

II. G-8 Annual Summit (Hokkaido Toyako Japan, July 2008):
1. Agenda of the Summit: Main Theme - Climate Change, Environment Rising oil prices, stablising financial markets, protection of intellectual property rights
World energy situationDevelopment of African nations and achieving the Millennium Development Goals (MDGs) by 2015 Global food security, strengthening of Non-Proliferation Treaty (With reference to North Korea and Iran) Peace building measures in Afghanistan, West Asia and Sudan.

2. Meeting of the Outreach Countries - O5 or G5:Call for Shared Responsibility to Address the World Food Security: Leaders of the outreach countries, also known as O5 or G5, meeting on the sidelines of the G8 Summit, called for a shared responsibility to address the global food security. The joint declaration called upon the international community to devise better ways and means of producing and distributing food. It also pointed out that multi-billion agricultural trade-distorting support in developed countries have hampered the development of food production capacity in developing countries, critically reducing their possibilities of reaction to the present crisis.

Stress on Establishing a Just and Reasonable International Trade Regime: 
The joint declaration of the G-5 countries stressed on creating an enabling international environment for agro-produce related trade, establishing a just and reasonable international trade regime for agricultural products and concluding the Doha Round of WTO talks with meaningful commitments to agricultural subsidies reductions.

Food Security Crisis Demanded a Rapid and Substantial Increase in Allocation of Resources: The leaders of the Outreach countries noted that the food security crisis demanded a rapid and substantial increase in allocation of resources to support rural development and combat hunger and poverty. They also stressed on encouraging collaborative action for better seeds and farm outputs that are sustainable and environmentally sound as well as a comprehensive approach in all fields, including finance, trade, aid, environment, intellectual property rights and technology transfer, so as to create a conducive international environment for food security.

Essential to Address the Challenges and Opportunities Posed by Biofuels: The joint declaration said that it was essential to address the challenges and opportunities posed by biofuels and the current food security crisis had multiple causes whose assessment required objectiveness. It also pointed out that biofuels, if developed substantially could effectively contribute to generating opportunities and achieving food and energy security altogether.

Public Policies for Production of Biofuels Should Contribute to Sustainable Development and Not Threaten Food Security: The G-5 leaders emphasised that it was important that public policies for production of biofuels contribute to sustainable development and the well-being of the most vulnerable people and do not threaten food security.

Energy Security - Emphasis on Renewable Energy and Energy Efficiency: On energy security, which was essential to ensure the steady growth of the global economy, the joint declaration by the G-5 said that the international community should emphasise on renewable energy and energy efficiency and give adequate consideration to solar, wind and hydro-electrical power, and biofuels such as ethanol and bio-diesel without adversely affecting food security.
Call for an integrated approach to energy cooperation, ensuring access to energy by developing countries on an equitable and sustainable manner.

3. G-8 Summit Declaration:
A. Climate Change: All countries recognise that deep cuts in global emissions would be necessary to achieve the UN Framework Convention on Climate Change (UNFCCC) objective, and that adaptation would play a correspondingly vital role, according to the G-8 Summit declaration.
A long-term global goal for reducing global emissions needed to be set, but keeping in view the sentiments of the emerging economies like India, the declaration noted that the size of the cuts would take into account the principle of equity.
The G-8 agreed on the need for a global emissions cut of at least 50 per cent by 2050.The emissions cut would be taken against a 1990 baseline.
The developed major economies would attempt to stop the growth of emissions as soon as possible. The also agreed to implement economy-wide mid-term goals and take corresponding actions in order to achieve absolute emission cuts.

Developing Economies would Pursue Nationally Appropriate Mitigation Actions: The declaration confirmed that the developing economies in this group, on their part would pursue, in the context of sustainable development, nationally appropriate mitigation actions, supported and enabled by technology, financing and capacity-building, with a view to achieving a deviation from business as usual emissions.
The Ability of Developing Countries to Achieve a Long-term Goal of Reducing Global Emissions would Depend on Affordable Technologies: The G-8 meeting recognised that the ability of the developing countries to achieve a long-term goal of reducing global emissions would depend on affordable, new, more advanced and innovative technologies, infrastructure, and practices that transform the way people live, produce and use energy, and manage land.
The G-8 agreed to work constructively together to promote the success of the Copenhagen climate change conference in 2009.

B. Increasing Oil and Food Prices: The G-8 called for efforts to bring down the oil prices,which had increased five-fold since 2003. There was a need to improve transparency on the oil market, according to the Japanese Prime Minister Yasuo Fakuda.
The G-8 leaders called on all countries to end export restrictions on food to allow supplies to be sent to countries that most needed them.

C. Global Economic Growth Moderated, the G-8 Remained Positive on the Future: The global economy has been under threat from soaring oil and food prices as well as the sub-prime mortgage crisis in the US that has affected the financial markets. The G-8 which account for two-thirds of the Worlds Gross Domestic Product (GDP) said that while the global economic growth had moderated, they remained positive on the future.

D. G-8 Backs the Indo-US Nuclear Deal: The G-8 looked forward to working with India, the International Atomic Energy Agency (IAEA), the Nuclear Suppliers Group (NSG) and other partners to advance India|s non-proliferation commitments and progress so as to facilitate a more robust approach to civil nuclear cooperation with India to help it meet its growing energy needs in a manner that enhances and reinforces the global non-proliferation regime, according to the Chair|s summary released at the end of the G-8 summit.

4. India's Role at the G-8 Summit:
1. India's Stand on Issues Related to Climate Change:Sustained and Accelerated Economic Growth Critical for all Developing Countries - Quantitative Restrictions on Emissions cannot be considered: 
Prime Minister Manmohan Singh reiterated his stand on the obligations thrust on developing countries such as India by emphasising that sustained and accelerated economic growth was critical for all developing countries who cannot for the present even consider quantitative restrictions on their emissions.

No Demonstrable Progress on Agreed GHG Reductions from Developed Countries: 
Dr. Singh told the G-8 meeting that no demonstrable progress on even the low levels of agreed Greenhouse gases (GHG) reductions was seen from the developed countries. He pointed out that the prognosis was that their emissions as a whole would continue to rise even in the years to come.

The G-8 Must Show Leadership by Delivering Significant GHG Reductions: Prime Minister Manmohan Singh stressed that the G-8 must show the leadership by taking and then delivering truly significant GHG reductions.

2. India's Climate Change Views Not Fully Incorporated in the G-8 Declaration: Dr. Singh told the G-8 leaders that even if some India|s views were not incorporated in the G-8 summit declaration, India would adopt the text as it was. He pointed out that the text of the declaration had been agreed to after protracted negotiations. This had been done in the spirit of compromise and willingness to accept each others| views.

3. Prime Minister Holds Bilateral Meetings with World Leaders: India|s Prime Minster Manmohan Singh also held bilateral meetings with the Presidents of the US, Russia, China and others. Dr. Singh held useful discussions with the US President George W. Bush on the Indo-US civil nuclear cooperation deal.

4. G-8's Backing of the Indo-US Nuclear Deal Significant for India: Analysts point out that in a major breakthrough the G-8 summit backed the Indo-US nuclear calling for a more robust approach to civil nuclear cooperation with India. This was a complete reversal of its earlier position of slamming India for its alleged nuclear adventurism. Thus, India|s emergence as a rising power was evident at the G-8 summit.

5. G-8 Taking Account of India|s Concerns: 
Analysts point out that the G-8 meetings are a significant part of exchanging ideas and concerns and with India becoming a regular member of these meetings; it is more likely that policies of major developed countries would take account of India|s concerns. Such concerns would become part of the record of each country and this could be reflected in their policies.

6. Greater Role for India and China at the Next G-8 Summit in Italy: 
French President Nicolas Sarkozy said that emerging economies, including India and China, would play bigger role at the next G-8 summit in Italy in 2009. The leaders of the Outreach countries, including India and China, would join the G-8 leaders for a day-long meet in the next summit. In 2008 leaders of the Outreach countries spend only half a day with G-8 leaders.

IV. Conclusion:
1. G-8 Falls Short on GHG Emission Cuts: Analysts point out that the goal of 50 per cent reduction of greenhouse gas (GHG) emissions by 2050 outlined by the G-8 countries at the Hokkaido Toyako summit in Japan in July 2008 falls short of the climate change challenge faced by the world. The fourth report of the Intergovernmental Panel on Climate Change (IPCC) pointed out that to avoid sudden shifts in climate, there is an urgent need for the major GHG emitters to engage in concrete action to reduce emissions, and to fund mitigation and adaptation actions in vulnerable countries.

2. India Needs to Adopt Cleaner Technologies and Assess the National and Sector-specific Options to Reduce Emissions: 
India has reiterated that as a developing country, there was no question of being equated with the G-8 in meeting emission cuts targets. However, analysts suggest that as a leader of the developing countries, India can adopt cleaner technologies and methods. Priority must be given to assess the national and sector-specific options to reduce emissions, and to achieve sustainable growth.

3. Threats to World Economy did not get Priority at the G-8 Summit: Analysts point out that in the build-up to the G-8 summit, the global financial and oil food prices crisis were expected to get priority as every country in the world is experiencing the adverse impact of high oil and food prices. However, these aspects did not get the attention they deserved during the G-8 summit in Japan. India pointed out that climate change was linked to food and energy security. To address these problems in a meaningful way, forums like the G-8 need to come out with action plans as the different challenges facing the world need to be viewed within a common global framework.

4. G-8 Needs to Expanded to Reflect the Current Realities: 
Analysts opine that the scope and nature of issues that the G-8 would have to deal in the time to come are bound to be varied and expansive. Thus, the G-8 needs to expand and include influential members of the international community like India, China and Brazil to reflect the current global realities.

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.
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