prelims booster 2021

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INTERNATIONAL RELATIONS – CURRENT AFFAIRS: TARGET 2021

Under the Guidance of M K YADAV

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* We took all care in preparing this document. If you still find any discrepancy in the information provided, please inform us at

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CURRENT AFFAIRS PRELIMS BOOSTER 2021

INTERNATIONAL RELATIONS - I

MOST IMPORTANT INTERNATIONAL GROUPINGS & RELATED AGREEMENTS

July 2019 – March 2021

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SNO. TOPICS RELATED TOPICS PAGE #

1. INTERNATIONAL GROUPINGS & AGREEMENTS 1.1 SAARC • SAARC DEVELOPMENT FUND (SDF) 5

1.2 BBIN MOTOR VEHICLE AGREEMENT (MVA) 6

1.3 SOUTH ASIA SUBREGIONAL ECONOMIC

COOPERATION (SASEC)

6

1.4 SOUTH ASIA CO-OPERATIVE ENVIRONMENT

PROGRAMME (SACEP) • SOUTH ASIA SEAS PROGRAMME

(SASP)

7

1.5 BIMSTEC • BIMSTEC CONCLAVE OF PORTS

• BIMSTEC DMEX 2020

7

1.6 INDIAN OCEAN RIM ASSOCIATION (IORA) • 6th INDIAN OCEAN DIALOGUE (IOD)

• TRACKS OF DIPLOMACY

• INDIAN COUNCIL FOR WORLD AFFAIRS (ICWA)

8

1.7 INDIAN OCEAN NAVAL SYMPOSIUM (IONS) 10

1.8 INFORMATION FUSION CENTRE – INDIAN

OCEAN REGION (IFC-IOR) • SAGAR (SECURITY AND GROWTH

FOR ALL IN THE REGION)

10

1.9 INDO PACIFIC QUAD • Key Highlights: Quad Leaders’ Joint Statement - “The Spirit of the Quad”

• Vaccine Maitri initiative (India’s Vaccine Diplomacy)

11

1.10 ASEAN-INDIA SUMMIT & ADMM-PLUS • Indo-Pacific Oceans Initiative (IPOI)

• ASEAN & ASEAN – INDIA FORUMS

• Research and Information System for Developing Countries (RIS)

12

1.11 REGIONAL COMPREHENSIVE ECONOMIC

PARTNERSHIP (RCEP)

14

1.12 MEKONG GANGA COOPERATION (MGC) 16

1.13 COMPREHENSIVE & PROGRESSIVE

AGREEMENT FOR TRANS–PACIFIC

PARTNERSHIP

• CPTPP Vs RCEP 17

1.14 ASIA-PACIFIC ECONOMIC COOPERATION

(APEC)

18

1.15 ASIA PACIFIC TRADE AGREEMENT (APTA) • UNITED NATIONS ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC (ESCAP)

19

1.16 ASIA-PACIFIC INSTITUTE FOR

BROADCASTING DEVELOPMENT (AIBD)

20

1.17 CONFERENCE ON INTERACTION &

CONFIDENCE BUILDING MEASURES IN ASIA

(CICA)

21

TABLE OF CONTENTS




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1.18 IBSA • Beijing Declaration and Platform for Action (BPfA), 1995

• SOUTH-SOUTH COOPERATION

21

1.19 BRICS • BRICS Plus

• BRICS Local Currency Bond Fund (BBF)

• BRICS PartNIR

23

1.20 COMMONWEALTH & COMMONWEALTH

HEADS OF GOVERNMENT MEET (CHOGM)

24

1.21 AFRICAN CONTINENTAL FREE TRADE

AGREEMENT (AFCFTA) & AFRICAN UNION

• African Union

• Africa and India

• India Africa Forum Summit (IAFS)

25

1.22 ASIA-AFRICA GROWTH CORRIDOR (AAGC) 26

1.23 NON-ALIGNED MOVEMENT (NAM) SUMMIT 26

1.24 G-20 • OSAKA TRACK ON DIGITAL ECONOMY

• DATA LOCALISATION

• Around the world

27

1.25 G-7 29

1.26 SHANGHAI COOPERATION ORGANIZATION

(SCO) • REGIONAL ANTI-TERRORIST

STRUCTURE (RATS)

• CENTRAL ASIAN REPUBLICS (CARS)

30

1.27 EURASIAN ECONOMIC UNION (EEU) • ANCIENT SILK ROUTE

• LAPIZ LAZULI CORRIDOR

31

1.28 TAPI GAS PIPELINE 32

1.29 ASHGABAT AGREEMENT • INTERNATIONAL NORTH SOUTH TRANSPORT CORRIDOR (INSTC)

33

1.30 CHABAHAR PORT 34

1.31 ORGANIZATION OF THE PETROLEUM

EXPORTING COUNTRIES (OPEC) • OPEC+

• Asian Premium

34

1.32 GULF COOPERATION COUNCIL (GCC) 36

1.33 ARAB LEAGUE 36

1.34 OTHER FORUMS IN ARAB REGION • Arab Maghreb Union

• Agadir Agreement

• Council of Arab Economic Unity

• Greater Arab Free Trade Area

37

1.35 ORGANISATION OF ISLAMIC COOPERATION

(OIC)

37

1.36 US-MEXICO-CANADA AGREEMENT (USMCA) • North American Free Trade Agreement (NAFTA)

38

1.37 MAJOR NON-NATO ALLY (MNNA) STATUS &

NATO • Major non-NATO Ally (MNNA)

• COMCASA, LEMOA, & BECA

38

1.38 ORGANISATION FOR ECONOMIC CO-

OPERATION AND DEVELOPMENT (OECD)

40

1.39 EUROPEAN UNION (EU) & BREXIT • THE SCHENGEN AGREEMENT

• OTHER EU INSTITUTIONS

41




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1.40 EASTERN ECONOMIC FORUM (EEF) & FAR

EAST • RUSSIAN FAR EAST 45

1.41 TRANS-ATLANTIC TRADE AND INVESTMENT

PARTNERSHIP (TTIP)

46

1.42 ASIA EUROPE MEETING (ASEM) 46

1.43 FIRST INDIA-CARICOM SUMMIT 46

1.44 MERCOSUR 47

1.45 ARCTIC REGION & ARCTIC COUNCIL • Global Commons

• ‘Svalbard Treaty’

• India’s Research Stations in Antarctica

47

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-

The News

• Recently the Foreign Ministers from the South Asian Association for Regional Cooperation (SAARC) participated in an informal meeting on the sidelines of the U.N. General Assembly (UNGA).

Details of the meet:

• Informal meetings, held since 1997, take advantage of the opportunity provided by the presence of the Foreign Ministers at UNGA sessions to exchange views on SAARC issues.

• India was appreciated for convening a video conference of SAARC Leaders in March 2020 to take collaborative measures towards combating the COVID pandemic across the region.

• This included the creation of SAARC COVID-19 Emergency Fund, proposed by Indian Prime Minister Modi, to which all countries have pledged voluntary contributions. - India had offered an initial contribution of US$10 million that will be at the disposal of SAARC

countries.

• Other measures undertaken by India during COVID-19 - virtually convening health professionals and trade officials' meetings, creating a ‘COVID-19 Information Exchange Platform (COINEX), foreign currency swap support and activation of SAARC Food Bank mechanism.

SAARC

• Established in 1985, with the signing of the SAARC Charter, in Dhaka, Bangladesh.

• 8 Member States – Afghanistan (Joined in 2007), Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.

• 9 Observer states – Australia, China, European Union, Iran, Japan, the Republic of Korea, Mauritius, Myanmar, and USA.

• Secretariat – set up in Kathmandu, Nepal in 1987

• Decision making - The highest decision-making authority at Summit level Meetings under SAARC is the Heads of State

or the head of the Government of Member States. - Decisions at all levels are to be taken on the basis of unanimity. Bilateral and contentious issues are

excluded from the deliberations of the Association.

• Last Summit - was held in 2014, in Nepal. The next Summit to be hosted by Pakistan, in 2016, got cancelled in the backdrop of the terrorist attacks in Pathankot and Uri.

• South Asia Free Trade Agreement (SAFTA), the FTA of SAARC, came into force in 2006.

• Intra-regional trade among SAARC members - Less than 5% of total trade.

SAARC DEVELOPMENT FUND (SDF)

• The News: The SAARC Development Fund (SDF) marked 10 years of funding projects, in April, 2020.

• It is the umbrella financial institution for developmental projects in SAARC member countries.

• Established in 2010 (16th SAARC Summit, Thimpu) by heads of 8 SAARC member states.

• Governing Council - comprises Finance Ministers of 8 member countries.

• HQ – Thimpu, Bhutan

• It funds projects in South Asia region via 3 windows viz. Social, Economic and Infrastructure Windows.

1.1. SOUTH ASIAN ASSOCIATION FOR REGIONAL COOPERATION (SAARC)

1. INTERNATIONAL GROUPINGS & RELATED AGREEMENTS

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The News:

• A recent report by World Bank observed that connectivity between Bangladesh and India, alongside Bhutan and Nepal (BBIN countries), has the potential to make the sub-region an economic growth pole for South Asia.

• Previously, a meeting of Bangladesh, Bhutan, India and Nepal (BBIN) on the BBIN MVA (Motor Vehicle Agreement) was held in New Delhi, India. Bhutan participated in the capacity of an observer.

• Objective - to discuss the passenger and cargo Protocols that are to give effect to the Motor Vehicles Agreement for the Regulation of Passenger, Personal and Cargo Vehicular Traffic between the 4 BBIN countries.

• Bangladesh-Bhutan-India-Nepal (BBIN) is a sub-regional architecture which is hailed as “South Asian

Growth Quadrangle”.

About BBIN Motor Vehicle Agreement (MVA)

• The transport ministers of the BBIN countries signed the major sub regional transport project, in 2015, in Thimphu, Bhutan

• Objective - allowing motor vehicles of all categories registered in the 4 countries to move freely in the region ie. seamless transit of passenger and cargo vehicles among them.

• It will be supplemented with building and upgrading roads, railways and waterways infrastructure.

• While India-Nepal-Bangladesh have ratified the MVA and plan to launch it, Bhutan could not get public and parliamentary support for ratification of the MVA and is still finalising the domestic formalities.

• Bhutan has some reservations about its environmental impact owing to increased traffic of heavy-duty vehicles.

- The News: The Finance Minister invited the Asian Development Bank (ADB) to set up a South Asia Sub-regional Economic Cooperation (SASEC) Secretariat in India.

About SASEC

• Founded in 2001.

• 7 Members: Bangladesh, Bhutan, India, Maldives, Myanmar, Nepal, and Sri Lanka.

• Aim: to promote regional prosperity by improving cross-border connectivity, boosting trade among member countries, and strengthening regional economic cooperation.

• It is an initiative of Asian Development Bank (ADB). ADB is the secretariat and lead financier of the SASEC program.

• Four main SASEC sectors—transport, trade facilitation, energy, and economic corridor development.

• SASEC Vision: Powering Asia in the 21st Century: 3 levers- - Resource to industry links - Industry to industry links. - Industry to infrastructure links

• It is a project based partnership. As of June 2020, SASEC member countries have signed and implemented 61 ADB-financed investment projects worth more than $13.5 billion.

• SASEC Road Connectivity Investment Program (SRCIP) - Supported by Asian Development Bank (ADB) - It aims at upgradation of road infrastructure in Bangladesh, Bhutan, Nepal and India (BBIN) in order

to improve the regional connectivity.

1.3. SOUTH ASIA SUBREGIONAL ECONOMIC COOPERATION (SASEC)

1.2. BBIN MOTOR VEHICLE AGREEMENT (MVA)




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-

The News

• 15th Governing Council Meeting of South Asia Co-operative Environment Programme (SACEP) was held in Dhaka, Bangladesh.

About SACEP

• It is an inter-governmental organization, established in 1982 by the governments of South Asia.

• Aim: to promote and support protection, management and enhancement of the environment in the region.

• 8 Member countries: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.

• SACEP is also secretariat for the South Asian Seas Programme. It is based in Colombo, Sri Lanka.

• The Governing Council is the principal deliberative & review committee, represented at Ministerial level (Union Minister for Environment represents India).

South Asia Seas Programme (SASP)

• It is one of 18 Regional Seas Programmes of UNEP (UN Environment Programme) and was adopted in March 1995.

• Aim: To protect and manage the marine environment and related coastal ecosystems of the region in an environmentally sound and sustainable manner.

• Members: 5 maritime countries of South Asia - Bangladesh, India, Maldives, Pakistan and Sri Lanka, sharing the Indian Ocean.

• SACEP serves as the secretariat for implementation of SASP Action Plan.

-

The News

• The BIMSTEC charter was recently finalised after 23 years of its inception, and it is due to be signed in the 5th BIMSTEC summit, scheduled to be held in Sri Lanka.

• In the absence of a dedicated charter, BIMSTEC was running with the spirit of Bangkok Declaration, 1997.

• The Charter is expected to define: - Long-term vision and priorities for cooperation. - Delineating roles & responsibilities of different layers of institutional structure. - Decision-making processes.

About BIMSTEC

• BIMSTEC is a regional organization comprising 7 Member States lying in the littoral and adjacent areas of the Bay of Bengal.

• Background - Founded in June 1997 through the Bangkok Declaration. - Initially formed by 4 Member States with the acronym ‘BIST-EC’ (Bangladesh, India, Sri-Lanka and

Thailand Economic Cooperation). - It was renamed ‘BIMST-EC’ in December 1997, following the inclusion of Myanmar. - With the admission of Nepal and Bhutan in 2004, the name of the grouping was changed to BIMSTEC

(Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation).

• Member states – - 5 from South Asia, including Bangladesh, Bhutan, India, Nepal, Sri Lanka, and

- 2 from Southeast Asia i.e. Myanmar and Thailand.

1.5. BAY OF BENGAL INITIATIVE FOR MULTI-SECTORAL TECHNICAL AND ECONOMIC COOPERATION

(BIMSTEC) BIMSTEC

1.4. SOUTH ASIA CO-OPERATIVE ENVIRONMENT PROGRAMME (SACEP)




8



• Objective - To harness trade and accelerated growth with

mutual cooperation in different areas of common interest by

utilising the regional resources and geographical advantage.

• Secretariat – Dhaka, Bangladesh

• Areas of Cooperation - BIMSTEC has identified 14 priority

areas where a member country takes lead.

• Summits – 2004 (Bangkok, Thailand), 2008 (New Delhi, India),

2014 (Nay Pyi Taw, Myanmar), 2018 (Kathmandu, Nepal).

- 5th Summit was to be held in Colombo, Sri Lanka in 2020,

but was postponed due to Covid 19 pandemic.

• Significance

- The BIMSTEC region brings together 1.6 billion people (22% of world population) - A combined GDP of US $3.7 Trillion - BIMSTEC has also established a platform for intra-regional cooperation between SAARC and

ASEAN members. - Key connectivity projects

✓ Bangladesh-Bhutan-India-Nepal (BBIN) Motor Vehicles Agreement (MVA) ✓ Kaladan Multimodal Project – Connects Kolkata in India to Sittwe in Mayannmar (through sea)

and then to Paletwa in Myanmar (through river Kaladan). ✓ IMT Trilateral Highway - connecting India and Thailand through Myanmar (Moreh in India ➔

Bagan in Myanmar ➔ Mae Sot in Thailand).

BIMSTEC DMEx 2020

• The 2nd BIMSTEC Disaster Management Exercise (BIMSTEC DMEx 2020) was conducted in February 2020, in Bhubaneswar, Odisha (The 1st BIMSTEC DMEx-2017 was conducted in Delhi).

• Organized by - National Disaster Response Force (NDRF)

• Participants - 5 member countries namely Bangladesh, India, Myanmar, Sri Lanka and Nepal (except Bhutan and Thailand).

• Focus - on emergency response in cultural heritage sites.

• Impact of disasters on cultural heritage – The Bhuj City Palace, Gujarat (Earthquake, 2001), The Galle Fort, Sri Lanka (Tsunami), Buddhist monasteries and temples, Sikkim (Earthquake 2011), World Heritage Site of Ayutthaya, Thailand (Heavy rains, 2011), Heritage Structures in Uttarakhand (Flash floods, 2013), World Heritage Sites in Nepal (Earthquake, 2015 ), cultural landscape of over 3000 monuments situated along the Irrawaddy River, Bagan, Myanmar (Earthquakes, 2016)

- The News

• United Arab Emirates (UAE), as the current Indian Ocean Rim Association (IORA) Chair, recently hosted the 20th IORA Council of Foreign Ministers’ (COM) Meeting, virtually.

• France recently became the 23rd member of the Indian Ocean Rim Association (IORA), on the basis of Réunion Island only.

• This is the first time that a country whose mainland is not on the Indian Ocean has been brought into the fold of the IORA.

About IORA

• The IORA is an inter-governmental organisation, was established in 1997.

1.6. INDIAN OCEAN RIM ASSOCIATION (IORA)

INDIA & BIMSTEC

• Out of 14 priority areas, India is the Lead Country in 4 areas, ie. Counter-Terrorism & Transnational Crime, Transport & Communication, Tourism, and Environment and Disaster Management.

• India invited BIMSTEC leaders for PM Shri Narendra Modi’s swearing-in ceremony in May 2019.




9



• The vision for IORA originated during a visit by late President Nelson Mandela (of South Africa) to India in 1995.

• Objective - aimed at strengthening regional cooperation and sustainable development within the Indian Ocean region.

• 23 member states: South Africa, Mozambique, Tanzania, Kenya, Madagascar, Comoros, Mauritius, Seychelles, Iran, Oman, UAE, Yemen, India, Sri Lanka, Bangladesh, Malaysia, Indonesia, Singapore, Thailand, Australia, Somalia, Maldives, and recently included France (2020).

• Note: Pakistan, Saudi Arabia, Myanmar are not members.

• Eligibility for IORA membership - All sovereign States of the Indian Ocean Rim are eligible for membership of the Association.

• 9 Dialogue Partners - Japan, Germany, Italy, China, USA, UK, Egypt, South Korea and Turkey.

• Apex Body - Council of Foreign Ministers (which meets annually).

• Decision making - All decisions are taken through consensus.

• IORA Secretariat is located at Ebene, Mauritius.

• Current Chairmanship - UAE has taken over the Chair from South Africa for a 2 year period, upto 2021.

• IORA has been granted Observer status at the United Nations General Assembly (UNGA).

• India hosted 2nd IORA Renewable Energy Ministerial meet in 2018 (along with International Solar Alliance Meet) that adopted "Delhi Declaration on Renewable Energy in the Indian Ocean Region".

INDIAN OCEAN DIALOGUE (IOD) The News

• 7th Indian Ocean Dialogue (IOD) was recently held (virtually) by United Arab Emirates, in February 2021.

About Indian Ocean Dialogue (IOD)

• IOD is a flagship initiative of the IORA.

• It is a Track 1.5 Dialogue that brings together key stakeholders from governments and think tanks from all Member States and Dialogue Partners of IORA.

• 2021 Theme - ‘Fostering a New Era of Cooperation in the Indian Ocean’

• IOD originated in the 13th Council of Ministers meeting, in Perth, Australia (held in 2013).

• 1st IOD – Kerala, India (2014).

• 6th IOD was organized in New Delhi (Dec, 2019) with the assistance of the Indian Council for World Affairs (ICWA).

TRACKS OF DIPLOMACY

Track 1: Official discussions typically involving high-level political and military leaders and focusing on cease-fires, peace talks, and treaties and other agreements. Track 2: Unofficial dialogue and problem-solving activities aimed at building relationships and encouraging new thinking that can inform the official process. Participants are NGOs, Civil society etc Track 1.5: denote a situation in which both official and non-official actors work together to resolve conflicts Track 3: People-to-people diplomacy undertaken by individuals and private groups Multi track: operating on several tracks simultaneously, including official and unofficial.

INDIAN COUNCIL FOR WORLD AFFAIRS (ICWA)

• Established in 1943 by a group of Indian intellectuals as a think tank.

• An Act of Parliament in 2001, declared ICWA as an institution of national importance.

• The Vice President of India is the ex-officio President of ICWA.

• ICWA is funded by the Ministry of External Affairs and enjoys full autonomy.




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The News

• The 5th meeting of the Indian Ocean Naval Symposium (IONS) Working Group on Humanitarian

Assistance and Disaster Relief (HADR) was recently held through video conferencing, owing to the

ongoing COVID-19 pandemic.

• The meeting was coordinated by the Indian Navy, being the Chair of the IONS Working Group on HADR.

About IONS

• The IONS is a regional forum of Indian Ocean littoral states, launched by India in February 2008.

• It is a voluntary initiative that seeks to increase maritime co-operation among navies of the littoral

states of the Indian Ocean Region (IOR).

• Aim - To generate a flow of information between navies that would lead to common understanding and

possibly cooperative solutions on the future maritime problems and challenges

• Under the IONS charter of business adopted in 2014, the forum has working groups on Humanitarian

Assistance and Disaster Relief (HADR), Information Security and Interoperability (IS&I) and Maritime

security (anti-piracy).

• 24 Member States –geographically divided into 4 subregions:

- South Asian Littorals: Bangladesh, India, Maldives, Pakistan, Seychelles, Sri Lanka, and the U.K.

- West Asian Littorals: Iran, Oman, Saudi Arabia, and UAE

- East African Littorals: France, Kenya, Mauritius, Mozambique, South Africa, and Tanzania

- South East Asian and Australian Littorals: Australia, Indonesia, Malaysia, Myanmar, Singapore,

Thailand, and Timor Leste.

• 8 Observer countries - China, Germany, Italy, Japan, Madagascar, the Netherlands, Russia, and Spain

• Chairmanship - rotates every 2 years. Current Chairpersonship – France.

• In 2018, IONS conducted its first ever operational exercise called ‘IMMSAREX’, under the IONS Charter.

The News

• A Maritime Information Sharing Workshop (MISW) was hosted by the Indian Navy, under the aegis of

the Information Fusion Centre – Indian Ocean Region (IFC-IOR), Gurugram.

• Aim - to acquaint participants about IFC-IOR and its information sharing mechanisms and promote

sharing of best practices in this field.

• The IFC-IOR was launched by the Hon’ble Raksha Mantri in Dec 2018, for furthering maritime security

and safety in the region.

• The setting up of IFC-IOR underscores the governmental approach and effort in line with the vision of

Hon’ble Prime Minister towards Security and Growth of All in the Region (SAGAR).

Information Fusion Centre – Indian Ocean Region (IFC-IOR)

• It is a 24/7 regional information-sharing centre.

• Established at – Gurugram, Haryana, co-located with Information Management and Analysis Centre (IMAC) which is jointly administered by the Indian Navy and Indian Coast Guard.

1.7. INDIAN OCEAN NAVAL SYMPOSIUM (IONS)

1.8. INFORMATION FUSION CENTRE – INDIAN OCEAN REGION (IFC-IOR)

Information Management and Analysis Centre (IMAC), set up in the aftermath of 26/11 Mumbai attacks, is the single point centre interlinking all the coastal radar chains to generate a seamless real-time picture of the nearly 7,500-km long coastline. IMAC also gives information to IFC-IOR.




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• Need for IFC IOR - The Indian Ocean Region is vital to world trade and economic prosperity of many nations as more

than 75% of the world’s maritime trade and 50% of global oil consumption passes through the IOR. - However, threats such as maritime terrorism, piracy, human and contraband trafficking, illegal and

unregulated fishing, arms running and poaching pose myriad challenges to maritime safety and security in the region.

- The scale, scope and the multi-national nature of maritime activities, make it difficult for countries to address these challenges individually.

- Hence, collaborative efforts between maritime nations in the IOR is essential to enhance situational awareness of the maritime activities in the region.

• IFC-IOR Vision - Strengthening maritime security in the region and beyond, by building a common coherent maritime situation picture and acting as a maritime information hub for the region.

• Through IFC-IOR, information on “white shipping”, or commercial shipping, will be exchanged with countries in the region to improve maritime domain awareness in the Indian Ocean.

SAGAR (SECURITY AND GROWTH FOR ALL IN THE REGION)

• It is a High-level articulation of India’s Vision for Indian Ocean.

• ‘SAGAR’ is in consonance with India’s ‘Act East’ policy and the nation’s diplomatic, economic and military outreach in the region.

• SAGAR has distinct but interrelated elements that determine the engagement India wants in Indian Ocean (a) Enhancing Capacities to safeguard Land and Maritime territories & interests. (b) Deepening Economic and Security cooperation in Littorals (c) Promoting collective action to deal with natural disasters and maritime threats like piracy, terrorism and

emergent non-state actors (d) Working towards sustainable regional development through enhanced collaboration (e) Engaging with countries beyond our shores with the aim of building greater trust and promoting respect

for maritime rules, norms and peaceful resolution of disputes

- The News:

• Quadrilateral Framework (QUAD), represented by 4 dialogue partners US, Japan, India and Australia,

held its first ever Leaders’ Summit (virtually), represented by the Heads of the States.

• The QUAD was revived in 2017, and until now was only held at the level of Foreign Ministers and Joint

Secretary-rank officials.

• The Leaders’ Summit was preceded by 3rd Quad Ministerial Meeting (Feb 2021), held to discuss issues

across Indo-Pacific and the military takeover in Myanmar.

About QUAD

• QUAD is an informal strategic group (gradually moving towards formalization) comprising Australia, India, Japan and the US, as the strategic dialogue partners.

• The Quad had its real genesis in the response to the 2004-2005 Asian Tsunami when India showed prowess in spearheading the relief and rescue effort in South East Asia.

• The dialogue was initiated by Japanese Prime Minister Shinzo Abe in 2007.

• Although QUAD is viewed as an attempt to counter China's aggressive maritime rise in IOR (eg. South

China Sea, OBOR etc), the Quad members have emphasised that it was not aimed at any other country.

• They have rather emphasised on “Common interests” in the Indo-Pacific region. They are:

1.9. INDO PACIFIC QUAD: 1st LEADERSHIP SUMMIT




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- Free, open, prosperous and inclusive Indo-Pacific region

- Addressing common challenges of terrorism

- Proliferation linkages (case of North Korea).

- Upholding the rules-based order in the Indo-Pacific and respect for international law,

- Enhancing connectivity

- Upholding maritime security in the Indo-Pacific

- Freedom of navigation and overflight

• For the first time in 2020, all four QUAD Countries - Japan, India, Australia and the USA - took part in

the Malabar Naval exercise.

- Malabar Exercise is an annual naval military exercise that started between India and the U.S. in 1994

and became trilateral (with Japan) in 2015. It is held alternately in the Indian and Pacific Oceans.

Key Highlights: Quad Leaders’ Joint Statement - “The Spirit of the Quad”

• Commitment - To promote a free, open rules-based order, rooted in international law to advance security and prosperity and counter threats to both in the Indo-Pacific and beyond.

• Common goals – To respond to most urgent global challenges like economic and health impacts of COVID-19, climate change, cyber space, critical technologies, counterterrorism, quality infrastructure investment, and humanitarian-assistance and disaster-relief as well as maritime domains.

• Enhancing health security – - Join forces to expand safe, affordable, and

effective vaccine production and collaborate to strengthen equitable vaccine access for the Indo-Pacific, to speed up economic recovery.

- Initiate Quad vaccine Initiative on the lines of India’s Vaccine Maitri initiative.

- Call for transparent and results-oriented reform at the World Health Organization.

• Climate Change – To strengthen the climate actions of all nations, including to keep a Paris-aligned temperature limit within reach and establish a climate working group to strengthen climate actions globally on mitigation, adaptation, resilience, technology, capacity-building, and climate finance.

• Cooperation on the critical technologies - Launch a critical- and emerging-technology working group to facilitate cooperation on international standards and innovative technologies of the future.

• Maritime security – - Prioritize the role of international law in the maritime domain, particularly as reflected in the United

Nations Convention on the Law of the Sea (UNCLOS). - Meet challenges to the rules-based maritime order in the East and South China Seas.

• Strengthen engagement – Foreign Ministers to meet at least once a year and an in-person Leaders’ Summit by end of 2021.

• Other areas - Complete denuclearization of North Korea, restoring democracy in Myanmar, etc.

The News

• The 17th ASEAN-India virtual summit was recently held (November, 2020)

• Also, 14th ASEAN Defence Ministers’ Meeting Plus (ADMM Plus) was organized online at Hanoi, Vietnam (December, 2020) that marked the 10th anniversary of ADMM Plus.

1.10. ASEAN-INDIA SUMMIT & ADMM-PLUS

Vaccine Maitri initiative (India’s Vaccine Diplomacy)

• Under this initiative, India has supplied ‘Made in India’ COVID-19 vaccines to more than 72 nations across geographies.

• International Goodwill - India received appreciation from WHO, IMF, African & Caribbean Countries, etc.




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About 17th ASEAN-India (virtual) Summit: Key highlights

• India and ASEAN countries resolved to explore ways to increase trade between them despite India’s exit from the 15-nation Regional Comprehensive Economic Partnership (RCEP) agreement.

• India announced a contribution of US$ 1 million to the COVID-19 ASEAN Response Fund.

• Underscoring the importance of greater physical and digital connectivity between ASEAN and India, India reiterated its offer of US$ 1 billion Line of Credit to support ASEAN connectivity.

• The Leaders also welcomed the adoption of the new ASEAN-India Plan of Action for 2021-2025.

• Other area of discussions – Tensions in South China Sea, terrorism, adherence to international law, especially the UNCLOS, ensuring freedom of navigation and overflight etc.

• The Prime Minister underscored the importance of strengthening convergence between India's ‘Indo-Pacific Oceans Initiative’ and ASEAN ‘Outlook on Indo-Pacific’ to ensure a free, open, inclusive and rules-based Indo-Pacific region. - A “Cohesive and Responsive ASEAN” is essential for “Security and Growth for All in the Region

(SAGAR)”.

ASEAN Defence Ministers’ Meeting (ADMM)

• Established in 2006, ADMM is the highest defence consultative and cooperative mechanism in ASEAN, that meets annually.

• Objective - to promote regional peace and stability through dialogue and cooperation in defence and security.

• ADMM Plus – - Established in 2010, the ADMM-Plus is a platform for ASEAN and its 8 Dialogue Partners (ASEAN

+8), namely Australia, China, India, Japan, New Zealand, Republic of Korea, Russia, & USA. - Meets annually, since 2017. - 2020 year marks the 10th year of inception of ADMM Plus forum. - 2021 New Chairmanship: Brunei Darussalam

ASEAN & ASEAN – INDIA FORUMS ASEAN

• A regional inter-governmental group of 10 South East Asian nations: Brunei, Myanmar, Cambodia, Indonesia,

Laos, Malaysia, Philippines, Singapore, Thailand, and Vietnam.

• Established in – August 1967, in Bangkok, Thailand, with the signing of the ASEAN Declaration (Bangkok

Declaration).

• Founding Nations of ASEAN - Indonesia, Malaysia, Philippines, Singapore and Thailand.

- Later joinees - Brunei Darussalam (1984), Viet Nam (1995), Lao PDR (1997), Myanmar (1997) and

Cambodia (1999),

• ASEAN Summit: 37th Summit held in Hanoi, Vietnam (November, 2020)

• ASEAN Secretariat - Jakarta, Indonesia

• ASEAN + 3 - was created to improve existing ties with the China, Japan, and South Korea.

• ASEAN + 6 - ASEAN + 3 and Australia, New Zealand and India

Indo-Pacific Oceans Initiative (IPOI)

• Launched in 2019, at the East Asia Summit held in Bangkok, Thailand.

• It is an open global initiative to draw on existing regional cooperation architecture and mechanisms to focus on 7 central pillars conceived around Maritime Security: 1. Maritime Ecology. 2. Maritime Resources. 3. Capacity Building & Resource Sharing. 4. Disaster Risk Reduction & Management. 5. Science, Technology & Academic

Cooperation. 6. Trade Connectivity 7. Maritime Transport.




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EAS (East Asia Summit) = ASEAN + 8

• 18 Member countries - ASEAN + 8 (India, China, Japan, Australia, New Zealand, South Korea, Russia and USA)

• Meeting held annually after the ASEAN Summit Meet.

• First summit in 2005, Kuala Lumpur, Malaysia. Recent Summit -15th East Asia Summit (EAS) held in Hanoi, Vietnam (November, 2020)

• 6 priority areas - Environment and Energy, Education, Finance, Global Health Issues and Pandemic Diseases, Natural Disaster, Management and ASEAN Connectivity.

• Following the 12th EAS in 2017 in Manila, Philippines and following the adoption of the Manila Plan of Action, Maritime Cooperation has been identified as an important area of cooperation under the EAS.

ASEAN Regional Forum (ARF)

• Established in 1994 as security dialogue forum.

• Meets annually - Last Meeting: 27th ARF, Vietnam, September 2020.

• Comprises 27 members: 10 ASEAN members + 10 ASEAN dialogue partners (Australia, Canada, China, EU, India, Japan, New Zealand, S. Korea, Russia and the United States) + one ASEAN observer (Papua New Guinea), DPR Korea, Mongolia, Pakistan, Timor-Leste, Bangladesh and Sri Lanka.

ASEAN – India Centre (AIC)

• Established in 2012 on the 20 years dialogue completion commemorative summit.

• It is a resource centre for ASEAN Member States and India to fill the knowledge gaps that currently limit the opportunities for cooperation.

Delhi Dialogue: 11th Edition (DD XI)

• The 11th edition of the Delhi Dialogue was held in New Delhi

• DD XI is a premier annual track 1.5 event to discuss politico-security,

economic & socio-cultural engagement between ASEAN & India.

• It has been held annually since 2009.

• DD XI was organized by Ministry of External Affairs in partnership

with Research and Information System for Developing Countries

(RIS).

• Theme for Delhi Dialogue XI: - "Advancing Partnership in Indo-

Pacific”.

Point to note - India and ASEAN observed 25 years of their Dialogue Partnership, 15 years of Summit Level interaction and 5 years of Strategic Partnership in 2017.

- The News:

• After 8 years of negotiation, India recently decided to exit Regional Comprehensive Economic Partnership (RCEP) discussions over “significant outstanding issues”.

• The 15 remaining RCEP countries have signed the agreement, without India. However, India has been given the option of joining it later.

• The initialising ceremony of RCEP was held recently among member-countries on the sidelines of the 37th ASEAN Summit.

1.11. REGIONAL COMPREHENSIVE ECONOMIC PARTNERSHIP (RCEP)

Research and Information System for Developing Countries (RIS)

• It is a New Delhi–based autonomous policy research institute.

• It is a forum for promoting South-South Cooperation and fostering effective policy dialogue and capacity-building among developing countries on global and regional economic issues.

• It also collaborates with developing countries in multilateral negotiations in various forums.




15



About RCEP

• It is a free trade agreement (FTA) between 10 countries of ASEAN and 5 other countries (excluding India) with which ASEAN has existing FTAs: India, China, Japan, Korea, Australia and New Zealand.

• It was introduced during 19th ASEAN meet held in 2011. RCEP negotiations were formally launched in 2012 at the ASEAN Summit in Cambodia.

• What does the RCEP propose? - To create an “integrated market” spanning all 15 countries ➔ easier for products and services of

each of these countries to be available across this region.

- Framework aimed at lowering trade barriers and securing improved market access.

• RCEP negotiation includes: trade in goods, trade in services, investment, economic and technical

cooperation, intellectual property, competition, dispute settlement, e-commerce, small and medium

enterprises (SMEs) and other issues.

• Significance

- It is the world's largest free trade bloc.

- RCEP potentially includes more than 30% of global population, 30% of global economy, and reach

2.2 billion consumers.

- Three largest economies of the pact China, Japan and South Korea, are part of Free Trade

Agreement for the first time

RCEP: Benefits for India RCEP: Key Concerns

• Compliment India’s FTA with ASEAN

• Enable operationalization of ‘Act East Policy’

• Trade facilitation - Fuse multiplicity of trade rules under bilateral agreements into one large regional agreement.

• Opportunity to reduce overall deficit (goods + services) with ASEAN members through greater market access in services and investment. for eg. In Pharmaceuticals, ICT, Medical professionals etc.

• Integration into Asia’s ‘Regional Production Network’ – world’s factory.

• Push to India’s Indo Pacific ambitions – Economic & Strategic

• Counter to other mega regional agreements (eg. Revised Trans-Pacific Partnership) where India stands to lose due to its lack of membership.

• Greater access to APEC (Asia Pacific Economic Partnership) through RCEP.

• Withdrawal of USA from TPP ➔ RCEP main vehicle to achieve Trans-Pacific cooperation

• RCEP would be key driver of global trade at a time when a trade war is threatening serious disruption to global commerce.

• India has a trade deficit with 11 of the RCEP members (> $53 billion with China alone). FTA will lead to dismantling of duties on most products that could further increase the deficit significantly, esp. competition from cheap Chinese goods.

• NITI Aayog on FTA with RCEP Countries - India’s trade deficit with the RCEP bloc has risen from $9 billion in FY05 to $83 billion in FY17, of which China alone accounts for over 60% of the deficit. Indian industry will have more to lose than gain if it agrees to a liberal tariff elimination schedule specially w.r.t China.

• “Inadequate” protections against surges in imports. No auto-trigger mechanism to raise tariffs on products when their imports crossed a certain threshold.

• No lucrative offers on services liberalization, including easier work visa norms (Mode 4)

• Lack of clear assurance over market access issues in countries such as China and non-tariff barriers on Indian companies

• Significant imports surge may result in loss to agriculture sector and domestic manufacturers and lead to livelihood losses. For eg. Most vulnerable would be sectors like iron and steel, dairy, marine products, electronic products, chemicals and pharmaceuticals and textiles. ➔ threat to Make in India.




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• India wants strict rules of origin to prevent Chinese goods from flooding the country through member countries that may have lower or no duty levels. Other RCEP Members oppose this.

• India wanted RCEP to exclude most-favoured nation (MFN) obligations, as it did not want to hand out, especially to countries with which it has border disputes, the benefits it was giving to strategic allies or for geopolitical reasons. Esp. in sensitive sectors like defence.

• Rigid IPR (Intellectual Property rights) standards may affect India’s generic drug industry and adversely impact public health due to rise in medicine costs.

• Also, since India already has separate FTAs with the 10-member ASEAN bloc, Japan and Korea, some experts are of the view that India may not gain much on the goods side with existing FTA partners in RCEP.

Way forward for India

• Boosting domestic capabilities - Fast tracking domestic economic reforms to make India an “attractive investment destination”.

• Reducing the cost of doing business through infrastructure investment and improving the business environment holds the key for improving India’s export prospects.

• Increase “Utilisation rate” of existing FTAs - India must continue to engage ASEAN to review the bilateral free trade agreement (FTA) to make it “more user-friendly, simple and trade friendly”. Trade agreements are lucrative only if both parties benefit.

• Expeditiously Conclude bilateral FTAs with EU, USA to ensure continued integration with international markets to boost exports.

• Calibrated approach - India should wait and watch how RCEP pans out. When India’s concerns are addressed, it can consider joining it.

- The News:

• The 12th Mekong Ganga Cooperation Senior Officials' Meeting (12th MGC SOM) was held via Video Conference recently (September 2020.

• The meeting reviewed the progress made since the 10th Mekong-Ganga Cooperation Ministerial Meeting (10th MGC MM) was held in August 2019 in Bangkok, Thailand.

About Mekong Ganga Cooperation (MGC)

• Established in 2000 at Vientiane, Laos

• Mandate: To facilitate closer contacts among people inhabiting Ganga and Mekong, the 2 major civilizational river basins.

1.12. MEKONG GANGA COOPERATION (MGC)




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• 6 members: India, Thailand, Myanmar, Cambodia, Laos and Vietnam (India + 5 ASEAN Countries/Mekong Basin Countries).

• Four areas of cooperation: tourism, culture, education, and transportation.

Key takeaways from 10th MGC Ministerial Meeting

• The Ministers adopted the new MGC Plan of Action 2019-2022 that envisages project-based cooperation in the 7 areas of MGC cooperation, namely tourism and culture, education, public health and traditional medicine, agriculture and allied sectors, transport and communication, MSMEs as well as 3 new areas of cooperation, i.e. water resources management, science and technology, skill development and capacity building.

• The Ministers welcomed India’s assistance to Cambodia, Lao PDR, Myanmar and Viet Nam under the MGC Quick Impact Projects (QIP) Scheme and noted that since its inception in 2014, 24 projects have been completed so far.

• The Ministers welcomed India’s joining the Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy (ACMECS) as a Development Partner and noted that ACMECS Inaugural SOM with India was held in Bangkok.

The News:

• The U.K. government announced that it is applying to join the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), under its post-Brexit plans.

• Recently there was a discussion to consider India as a potential addition to the CPTPP. China is also ‘actively considering’ joining the CPTPP.

About CPTPP

• CPTPP or TPP-11 is a revamped free-trade agreement, between 11 countries (excluding USA) - Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

• It replaced the Trans-Pacific Partnership (TPP) agreement.

• Background - The USA withdrew from the erstwhile Trans-Pacific Partnership (TPP) agreement, however the remaining 11 members pushed ahead with the deal, and signed the rebranded trade pact CPTPP in Santiago, Chile.

• It entered into force in December, 2018.

• The CPTPP aims to strengthen trade among countries the Asia-Pacific region, by significantly eliminating tariffs and non-tariffs barriers.

• It would address the "21st century trade issues" such as intellectual property protections, digital trade rights, Labour issues, and protections for investors.

1.13. COMPREHENSIVE & PROGRESSIVE AGREEMENT FOR TRANS–PACIFIC PARTNERSHIP




18



• Significance - It represents 13.5% of global GDP (TPP, with USA, would have represented 40%). - The 11 states form a market of 500 million people, greater than that of the European Union’s single

market.

Comparison of CPTPP with TPP

• Most of the original TPP provisions have been retained with 2/3rds of the CPTPP’s 30 chapters identical to TPP.

• CPTPP, however, suspended more than 20 provisions that the U.S. had negotiated to include but the other countries had been reluctant to include, such as investment and intellectual property (IP) chapters.

CPTPP Vs RCEP

CPTPP RCEP

Agreement A revamped version of TPP

A multilateral deal led by ASEAN and

backed by China.

Negotiations Officially launched in 2012.

Members 11 members (described above) 15 members - 10 ASEAN member + 5

ASEAN FTA Partners (Australia, New

Zealand, China, Japan and South Korea).

Note: India withdrew recently

Size Represent 14% of world GDP, 7% of the

global population and 15% of global trade.

Represents 00% of the world’s

population, and 32% of global economy.

Common Members 7 common members: Australia, Brunei, Japan, Malaysia, Singapore, New Zealand, and

Vietnam.

- The News:

• Recently, Asia-Pacific Economic Cooperation (APEC) forum was held virtually, hosted by Malaysia.

APEC

• APEC is a regional economic forum of 21 Pacific Rim member economies.

• Established in 1989, HQ: Singapore

• APEC's 21 member economies are: Australia; Brunei Darussalam; Canada; Chile; People's Republic of China; Hong Kong, China; Indonesia; Japan; Republic of Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; The Philippines; The Russian Federation; Singapore; Chinese Taipei; Thailand; United States of America; Vietnam.

• Point to note: APEC members are referred to as economies, not states, so delegates from China, Hong Kong and Taiwan can simultaneously participate in the annual summit.

• Aim: sustainable economic growth and prosperity in the Asia-Pacific region.

• Why was it established? - In response to the growing interdependence of Asia-Pacific economies and the advent of regional

trade blocs in other parts of the world; - To establish new markets for agricultural products and raw materials beyond Europe.

• APEC accounts for about 50% of world’s trade and almost 60% of global GDP.

• In APEC, all economies have an equal say and decision-making is reached by consensus.

• There are no binding commitments or treaty obligations.

1.14. ASIA-PACIFIC ECONOMIC COOPERATION (APEC)




19



• Three Pillars of APEC's agenda: - Trade and Investment Liberalization - Business Facilitation - Economic and Technical Cooperation (ECOTECH)

• India is not a member but an observer. India had applied but membership was denied because it does not border the Pacific Ocean.

• 2021 Chair: New Zealand

Key highlights from the recent APEC meeting 2020

• Theme: Optimising Human Potential Towards a Resilient Future of Shared Prosperity: Pivot. Prioritise. Progress - It was chosen to reflect the Asia Pacific region's resilience, agility and inclusive economic growth

through the concept of Shared Prosperity during the COVID-19 pandemic.

• Adoption of Putrajaya Vision 2040: - It is a new 20-year growth vision to replace the Bogor Goals named after the Indonesian town where

leaders agreed in 1994 to free and open trade and investment. - The Vision is an open, dynamic, resilient and peaceful Asia-Pacific community by 2040, for the

prosperity of all people and future generations.

• Focus Areas: Trade and investment, Digital Economy and Technology, Structural Reform, Economic and Technical Cooperation and Thematic and institutional matters.

• Trade & Investment - Establish a free, open, fair, non-discriminatory, transparent and

predictable trade and investment environment to drive economic recovery at such a challenging time of COVID 19 Pandemic.

- Advance the economic integration in the region through the work on Free Trade Area of the Asia-Pacific (FTAAP) agenda.

• Digital Economy and Technology - Accelerate the implementation of the APEC Internet and Digital Economy Roadmap (AIDER) and welcome the APEC Roadmap on Digital Financial Inclusion.

• Addressing food security - Recognising the impact of COVID-19 on global food supply chains and to ensure food security through sufficient, safe, and nutritious food.

About APTA

• APTA, formerly known as Bangkok Agreement, was signed in 1975.

• It is the oldest preferential regional trade agreement among developing countries in Asia-Pacific.

• It is an initiative under the United Nations Economic and Social Commission for Asia and the Pacific (UN ESCAP).

• Objective – To promote economic development of its members through the adoption of mutually beneficial trade liberalization (tariff concession) measures that will contribute to intra-regional trade expansion and economic cooperation.

1.15. ASIA PACIFIC TRADE AGREEMENT (APTA)

FTAAP is a proposal to create a

free trade agreement among the

21 APEC economies.


https://en.wikipedia.org/wiki/COVID-19_pandemic



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• 7 Members - Bangladesh, India (Founding member), Laos, South Korea, China, Sri Lanka, & Mongolia (in 2020). - Membership open to all ESCAP developing member

countries.

• APTA Coverage – The scope expanded in 2017 from Merchandise goods to include services, investment, and trade facilitation. Thus, now converted to Free Trade Agreement (FTA).

• APTA Secretariat – UNESCAP (Trade, Investment & Innovation Division)

• APTA is the only operational trade agreement linking China and India.

UNITED NATIONS ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC (ESCAP)

• It is the regional development arm of the United Nations for the Asia-Pacific region.

• Established in 1947 with its headquarters in Bangkok, Thailand.

• Membership – 53 countries and 9 Associate Members ➔ two thirds of the world’s population.

• Geographical coverage - stretches from Turkey in the west to the Pacific island nation of Kiribati in the east, and from the Russian Federation in the north to New Zealand in the south.

• Objective - UNESCAP serves as the highest intergovernmental regional platform to promote cooperation among member States for creating a more interconnected region to achieve inclusive and sustainable economic and social development.

• Nodal Ministry from India: Ministry of Commerce and Industry

The News:

• Recently Asia-Pacific Institute for Broadcasting Development (AIBD) held a virtual conference on fight against fake news dissemination.

What is AIBD?

• AIBD is a regional inter-governmental organization, servicing countries of the United Nations Economic and Social Commission for Asia and the Pacific (UN-ESCAP) in the field of electronic media development.

• Established in 1977 under the auspices of UNESCO (United Nations Educational, Scientific and Cultural Organisation).

• Founding Organisations - International Telecommunication Union (ITU), the United Nations Development Programme (UNDP), UNESCO and Asia-Pacific Broadcasting Union (ABU).

• It is hosted by Govt. of Malaysia and the secretariat is located in Kuala Lumpur.

• Mandate – To achieve a vibrant and cohesive electronic media environment in the Asia-Pacific region through policy and resource development.

• AIBD utilizes the intellectual and technological resources available within the national broadcasting organizations of its member countries (sovereign states only and regional & international bodies).

• Membership – includes 26 full members (countries) and 50 affiliate members (organizations).

• India (Director-General of All India Radio (AIR)) was elected as President of the Asia-Pacific Institute for Broadcasting Development (AIBD) in 2018 for the duration of two years.

Preferential Trade Agreement

• A trade pact between countries that reduces tariffs for certain products to the countries who sign the agreement.

• While the tariffs are not necessarily eliminated, they are lower than countries not party to the agreement.

1.16. ASIA-PACIFIC INSTITUTE FOR BROADCASTING DEVELOPMENT (AIBD)

READ MORE AT: //ECONOMICTIMES.INDIATIMES.COM/ARTICLESHOW/61581900.CMS?UTM_SOURCE=CONTENTOFINTEREST&UTM

_MEDIUM=TEXT&UTM_CAMPAIGN=CPPST


http://commerce.gov.in/



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The News:

• India participated in the recently held Special Ministerial conference of CICA (Conference on Interaction & Confidence Building Measures in Asia).

About CICA Summit

• CICA is a pan-Asia, multi-national forum for enhancing cooperation and promoting peace, security and stability in Asia.

• Background - The idea of convening the CICA was first proposed by the First President of the Republic of Kazakhstan, Mr. Nursultan Nazarbayev, in 1992 (at 47th Session of United Nations General Assembly.)

• The CICA Summit is convened every 4 years. Meeting of the Ministers of Foreign Affairs is required to be held every 2 years.

• Confidence Building Measures are categorised under 5 broad dimensions: economic, environmental, human, fight against new challenges and threats, and military-political dimension.

• Membership - 27 Member States accounting for nearly 90% of the territory and population of Asia.

• Observers - 8 countries and 5 multi-national organizations, including United Nations.

• Eligibility for membership - For becoming a member of CICA, a state must have at least a part of its territory in Asia.

• Secretariat - Nur-Sultan, Kazakhstan.

• Decision making - All decisions within CICA framework are taken by consensus.

• India is a member of CICA since its inception and late Prime Minister Shri Atal Bihari Vajpayee had participated in the first CICA Summit held in 2002 in Almaty.

The News:

• The 6th India-Brazil-South Africa (IBSA) Women’s Forum meeting was held virtually (March, 2021), led by the Ministry of Women and Child Development, Government of India.

• The Women’s forum recalled that the year 2020 marked the: - 25th anniversary of the Beijing Declaration and

Platform for Action (BPfA) - Beijing+25. - 5th anniversary of the adoption of the 2030

Agenda for Sustainable Development and the Sustainable Development Goals (SDGs),

- 20th Anniversary of UN Security Council (UNSC) Resolution 1325 on women, peace and security.

- A decade since UN Women was established.

IBSA Dialogue Forum

• IBSA Trilateral Cooperation Forum was created in 2003, through the adoption of the Brasília Declaration.

• Promotes closer coordination on global issues between 3 large emerging multicultural, multiracial democracies, spread over 3 continents.

1.18. IBSA

1.17. CONFERENCE ON INTERACTION & CONFIDENCE BUILDING MEASURES IN ASIA (CICA)

Beijing Declaration and Platform for Action

(BPfA), 1995

• United Nations organized four world

conferences (WC) on women. The first three

were held in Mexico (1975), Copenhagen

(1980) and in Nairobi (1985).

• Beijing Declaration and Platform for Action

(BPfA) was adopted in the 4th World

Conference on Women (1995), held in Beijing.

• BPfA, the most progressive blueprint ever for

advancing women’s rights, made

comprehensive commitments under 12 critical

areas of concern.




22



• Forum provides platform to engage in discussions for cooperation in the field of agriculture, trade, culture, defence, education, energy, environment,among others.

• IBSA does not have a headquarters or a permanent executive secretariat.

• At the highest level, it holds the Summits of Heads of State and Government [5 IBSA Summits so far, 1st Summit – Brasilia (2006), Brazil; Last Summit - Tshwane, South Africa (2011)]

• Additionally, the Foreign Ministers meet about once a year to preside over the Trilateral Ministerial Commission meetings of the Forum [1st meeting – New Delhi (2004); 9th Meeting – New York (2018)]

What is IBSA Trust Fund?

• The fund was established in 2004 and became operational in 2006.

• It is a unique initiative to enhance South-South cooperation for the benefit of nations of the South.

• The IBSA fund supports projects on a demand-driven basis through partnerships with local governments, national institutions and implementing partners.

• It brings together 3 emerging economies of IBSA to combat poverty in other developing countries.

• Each country contributes US$ 1 million annually to this fund.

• The United Nations Office for South-South Cooperation is the Fund Manager for this initiative.

• The fund was honoured with the UN South-South Partnership Award in 2006 and UN’s MDG award in 2010 for utilising innovative approaches for eradicating poverty and hunger in the world.

SOUTH-SOUTH COOPERATION

• South-South cooperation is a broad framework of collaboration among countries of the Global South in the political, economic, social, cultural, environmental and technical domains.

• Involving two or more developing countries, it can take place on a bilateral, regional, intraregional or interregional basis.

• Developing countries share knowledge, skills, expertise and resources to meet their development goals through concerted efforts.

Background

• The history of the South-South cooperation starts in 1949 with the establishment of the first UN technical aid programme by the Economic and Social Council (ECOSOC) and the creation of the United Nations Development Programme (UNDP) in 1969.

• In 1978 the conference of the Global South on Technical Cooperation among Developing Countries (TCDC) was held in Buenos Aires, resulting in the adoption of the Buenos Aires Plan of Action (BAPA) for Promoting and Implementing TCDC, one of the main pillars for the South-South cooperation.

• The International Conference on Financing for Development, held in Monterrey, Mexico in March 2002, specifically encouraged South-South cooperation, including through triangular cooperation, to facilitate exchange of views on successful strategies, practices and experience and replication of projects.

• Other initiatives - 2011 Istanbul Programme of Action for the LDCs, the 2014 Vienna Programme of Action for the LLDCs, the 2015 Addis Ababa Action Agenda on Financing for Development, the 2015 Sendai Framework for Disaster Risk Reduction, and the 2016 Paris Agreement on Climate Change have also given new impetus to South-South and triangular cooperation.

• 2nd United Nations High Level Conference on South-South Cooperation was also held, commemorating the 40th anniversary of Buenos Aires Plan of Action or BAPA+40, and has come up with an even more ambitious work plan.

TRIANGULAR COOPERATION

• Triangular cooperation, is a collaboration which involves 3 actors - 2 from the South and 1 from the North.

International Day for South-South Cooperation is celebrated on 12 September




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• The latter, which can be traditional donor countries or an international organization, provides the financial resources (or training, management, technology, & other forms of support) so that the countries of the South can exchange technical assistance on a specific topic.

NOTE: United Nations Office for South-South Cooperation [UNOSSC] – To be covered under Factsheet on UN & RELATED AGENCIES

The News:

• The 12th BRICS Summit was recently held (Nov, 2020) under the chairmanship of Russia, in a virtual format.

• It was held in the backdrop of the 75th Anniversary of United Nations and in the midst of the COVID-19 pandemic.

• Summit Theme – ‘BRICS Partnership for Global Stability, Shared Security and Innovative Growth’.

Key Highlights of the Summit: Moscow Declaration

• Strengthening and reforming the multilateral system – BRICS reiterated the urgent need to strengthen and reform the multilateral system, including the UN, the WTO, the WHO, the IMF and other international organizations.

• The BRICS counter-terrorism strategy: to contributing in global efforts to combat terrorism. - It is well aligned with the Brasilia Declaration which condemned terrorism in all forms and

manifestation.

• Strategy for BRICS Economic Partnership 2025 Signed: It focuses on three priority areas: trade, investment and finance; digital economy; and sustainable development.

• Expediting operationalisation of BRICS Local Currency Bond Fund.

BRICS

• An association of 5 major emerging economies: Brazil, Russia, India, China and South Africa.

• Term coined in 2001 by Jim O'Neil

• 1st formal meeting of the group was held in Yekaterinburg (Russia) in 2009. South Africa was included in 2010.

• Represents 40% of the world’s population, 25% of the global GDP & 17% share in the world trade.

• Only world grouping that is NOT region, security or trade-based.

• It encourages commercial, political & cultural cooperation between BRICS nations.

• In the 6th BRICS Summit (Fortaleza and Brasilia) resulted in setting up of - New Development Bank or the BRICS Bank - BRICS Contingent Reserve Arrangement - It

is a framework for the provision of support through additional liquidity in response to short-term balance of payments pressures.

1.19. BRICS

India will be taking over the Chairship of the BRICS, which would be the third BRICS Presidency for India since its inception (after 2012 and 2016) and will host the 13th BRICS Summit in 2021.

LIST OF BRICS SUMMITS

2009 Yekaterinburg (Russia)

2010 Brasilia (Brazil)

2011 Sanya (China)

2012 New Delhi (India)

2013 Durban (South Africa)

2014 Fortaleza (Brazil)

2015 Ufa (Russia)

2016 Benaulim (India)

2017 Xiamen (China)

2018 Johannesburg (South Africa)

2019 Brasilia (Brazil)

2020 Moscow (Russia)




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BRICS Plus

• It is a means to increase engagement with other Emerging Markets & Developing Economies (EDME).

• 1st created at Xiamen summit in 2017. Concept introduced by China.

BRICS Local Currency Bond Fund (BBF)

• BBF is envisaged as a bond fund in national currencies of BRICS countries.

• Aim - To promote BRICS domestic and regional bond markets. - To increase foreign private sector participation. - To counter high volatility in capital flows and exchange rate fluctuations

BRICS PartNIR

• The PartNIR seeks to make developing economies ready to embrace 4th Industrial Revolution based on big data, artificial intelligence and automation.

• It aims at deepening BRICS cooperation in digitalisation, industrialisation, innovation, inclusiveness and investment, to maximise the opportunities and address the challenges arising from the 4th Industrial Revolution.

• Vocational Training - It seeks to collaborate with G20 Initiative to Promote Quality Apprenticeship and the BRICS Action Plan for Poverty Alleviation and Reduction through Skills to make new labour force more technology ready.

• Expected Outcomes - It will enhance comparative advantages, boost economic growth, promote economic transformation of BRICS countries, strengthen sustainable industrial production capacity, create networks of science parks and technology, business incubators, and support small and medium-sized enterprises in technology intensive areas.

-

The News:

• Maldives has been officially readmitted to the Commonwealth, more than 3 years after it quit the organisation over criticism of its human rights record and lack of progress on democratic reforms.

• Maldives joined the Commonwealth in 1982 and was a member, until it withdrew in 2016.

• India was one of the countries that had supported Maldives’ readmission.

• Maldives will now be part of the Commonwealth Heads of Government Meeting (CHOGM) scheduled

for Kigali in Rwanda in June, 2021.

The Commonwealth

• Commonwealth is a political association of 54 member states (including Maldives), nearly all of them former territories of the British Empire.

• But today, any country can join the modern Commonwealth. For eg. Rwanda and Mozambique have no historical ties to the British Empire.

• It is home to 2.4 billion people, and includes both advanced economies and developing countries.

• The last country to join the Commonwealth was Rwanda in 2009.

• All members have an equal say regardless of size or wealth. India is a member.

• Queen Elizabeth II is the Head of the Commonwealth, and 16 members of the Commonwealth recognise the Queen as their monarch.

• The Commonwealth Secretariat was created in 1965 as a central intergovernmental organisation to manage the Commonwealth's work.

1.20. COMMONWEALTH & COMMONWEALTH HEADS OF GOVERNMENT MEET (CHOGM)

OMBUDSMAN SCHEME FOR NBFCS






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Commonwealth Heads of Government Meeting (CHOGM)

• CHOGM is a biennial summit meeting of the heads of government from 54 Commonwealth nations.

• The meeting is held in a different member state each time and is chaired by that nation’s Prime Minister/President, who becomes the Commonwealth Chair-in-Office.

• 1st CHOGM was held in 1971.

• 4 Major agenda items for the summit: - Prosperity - boosting intra-Commonwealth trade and investment

- Security - increasing cooperation across security challenges including global terrorism, organised

crime and cyber attacks

- Fairness - Promoting democracy, fundamental freedoms and good governance

- Sustainability - building the resilience of small and vulnerable states to deal with the effects

of climate change.

The News:

• On 1st January, 2021, actual cross-border trade began for the first time within the African Continental Free Trade Area (AfCFTA).

• The operational phase of the AfCFTA was launched during the 12th Extraordinary Session of the African Union (AU), in Niger, in July 2019.

• Also, the 34th Ordinary Summit of the African Union was held in February 2021 in Addis Ababa, Ethiopia.

African Continental Free Trade Agreement (AfCFTA)

• The AfCFTA agreement was adopted and opened for signature in March 2018 in Kigali, Rwanda. It entered into force in May 2019.

• To date, 54 of 55 of African Union member states (except Eritrea) have signed it and 35 countries have ratified it.

• AfCFTA is a continent-wide free trade area, that will go beyond trade in goods to over services, investment, competition and intellectual property.

• It will be the world’s largest free trade area, in terms of numbers of participating countries, since the formation of the World Trade Organization.

• Main objectives - to create a single continental market for goods and services, with free movement of business persons and investments, and thus pave the way for accelerating the establishment of the Customs Union.

• It is one of the flagship projects of Agenda 2063. - Agenda 2063 is a strategic framework, adopted by

African Union, for the socio-economic transformation of Africa within a 50 year period, from 2013 to 2063.

1.21. AFRICAN CONTINENTAL FREE TRADE AGREEMENT (AFCFTA) & AFRICAN UNION



African Union

• It is a continental body consisting of the 55 member states that make up the countries of the African Continent.

• It was officially launched in 2002 as a successor to the Organisation of African Unity (OAU, 1963-1999).

• Vision - An Integrated, Prosperous and Peaceful Africa, driven by its own citizens and representing a dynamic force in the global arena.

• AU's secretariat - based in Addis Ababa.

Africa and India

• Africa is an important economic partner for India with total annual merchandise trade estimated at $70 billion, or nearly 1/10th of India’s global trade.

• India is Africa’s 3rd largest trading partner.

• India has decided to open 18 new Indian Missions in Africa over a 4-year period (2018-2021).

India Africa Forum Summit (IAFS)

• It is the official platform for the African-Indian relations.

• 3 Summits held so far in 2008 (New Delhi), 2011 (Addis Ababa), and 2015 (New Delhi).




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• Potential - AfCFTA will bring together all 55 member states of AU, covering a market of more than 1.2 billion

people, and a combined GDP of more than US$3.4 trillion. - It has the potential both to boost intra-African trade by 52% by eliminating import duties, and to

double this trade if non-tariff barriers are also reduced. - Currently, African countries trade only about 16% of their goods and services among one another,

compared to 65% with European countries.

• AAGC is an economic cooperation agreement between the governments of India, Japan and the

governments of African countries.

• The idea of Asia Africa Growth Corridor (AAGC) emerged in the joint declaration issued by Prime

Minister Narendra Modi and Prime Minister Shinzo Abe in 2016.

• Objectives:

- It aims at Indo-Japanese collaboration to develop quality infrastructure in Africa.

- It would be complemented by digital connectivity, to create free and open Indo-Pacific Region.

- Priority to development projects in health, agriculture, disaster management and skill

enhancement.

• 4 Pillars of AAGC

- Development and Cooperation Projects

- Quality Infrastructure and Institutional Connectivity

- Enhancing Capacities and Skills

- People-to-people Partnership

• How it is different from OBOR (One belt one road)? –

- Unlike OBOR which is both a land corridor and ocean, AAGC will essentially be a sea corridor linking

Africa with India and other countries of South Asia, Southeast Asia, East Asia and Oceania.

- It rediscovers ancient sea-routes and creating new sea corridors that will link ports in Jamnagar

(Gujarat) with Djibouti in the Gulf of Eden and similarly the ports of Mombasa and Zanzibar will be

connected to ports near Madurai; Kolkata will be linked to Sittwe port in Myanmar.

The News:

• The Prime Minister participated in the online Summit of Non Aligned Movement (NAM) Contact Group held to discuss response to the ongoing COVID-19 pandemic crisis.

• It was hosted by Republic of Azerbaijan, the current Chair of NAM.

• Previously, Vice President M. Venkaiah Naidu represented India at the 18th Non-Aligned Movement (NAM) summit in Baku, Azerbaijan.

• Theme: “Upholding the Bandung Principles to ensure concerted and adequate response to the challenges of contemporary world”.

• The theme is significant as it relates to the forthcoming 65th anniversary of Bandung Principles in 2020 and the 60th anniversary of the establishment of the NAM in 2021.

1.22. ASIA-AFRICA GROWTH CORRIDOR (AAGC) READ MORE AT:

//ECONOMICTIMES.INDIATIMES.COM/ARTICLESHOW/61581900.CMS?UTM_SOURCE=CONTENTOFINTEREST&UTM


1.23. NON-ALIGNED MOVEMENT (NAM) SUMMIT


https://en.wikipedia.org/wiki/Economics

https://en.wikipedia.org/wiki/India

https://en.wikipedia.org/wiki/Japan

https://en.wikipedia.org/wiki/Africa



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About NAM

• NAM was founded in 1961, at Belgrade (in former Yugoslavia) as a movement opposed to the Cold War.

• It aimed at not aligning formally with or against any major power bloc - USA or the USSR - but seeking to remain independent or neutral. 1st NAM Summit was held in Belgrade (1961).

• NAM was established through the initiative of President of Yugoslavia Joseph Broz Tito, President of Egypt Gamal Abdel Nasser, Prime Minister of India Jawaharlal Nehru, President of Indonesia Sukarno, and President of Ghana Kwame Nkrumah.

• NAM has been established based on the principles agreed at the Asia-Africa Conference held in Bandung (Indonesia) in 1955, (known as the "Ten Principles of Bandung").

• Objective of NAM - to ensure "the national independence, sovereignty, territorial integrity and security of non-aligned countries" in their struggle against imperialism, colonialism, neo-colonialism, racism, and all forms of foreign subjugation.

• Members – 120 (India is one of the 29 founding members). Includes 53 countries from Africa, 39 from Asia, 26 from Latin America and the Caribbean and 2 from Europe.

• Key principles of NAM - The policy of non-alignment was based on the five principles of Panchsheel: 1. Mutual respect for each other’s territorial integrity and sovereignty. 2. Non-interference in each other’s military and internal affairs. 3. Mutual non-aggression. 4. Equality and mutual benefit. 5. Peaceful coexistence and economic cooperation

• During the 1970s and 1980s, the Movement of Non-Aligned Countries played a key role in the struggle for the establishment of a new international economic order.

The News:

• Prime Minister, Shri Narendra Modi, participated in the 15th G20 Summit convened by Saudi Arabia (Nov, 2020), in a virtual format. - Saudi Arabia became the first Arab nation to take over the G20 Presidency, which has now passed

on to Italy.

• The G20 Finance Ministers and Central Bank Governors (FMCBGs) met recently (February 2021) under the Italian G20 Presidency, for the first time. The event was held online.

G-20

• G-20 is an informal international forum for the governments and central bank governors from 20 major economies.

• G20 economies account for around 85% of the gross world product (GWP), 75% of world trade and two-thirds of the world population.

• Founded in 1999, at G7 meeting in aftermath of 1997 Asian financial crisis, where need was realized for a more inclusive body.

1.24. G-20




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• G20 replaced G7 as the main strategic forum. It is a more inclusive platform for economic communication between industrialized and developing countries.

• 20 Members (EU + 19 Countries): Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, UK, US, EU.

• Countries are represented by finance ministers and central bank governors. EU is represented by the European Central Bank. IMF and World Bank also participate in G20 forums.

• Mandate - Its aim was to review policy decisions to enhance international financial stability. It now deliberates on a wide range of global issues, including development, climate and energy, digital economy, and employment.

• G20 was raised to Summit level in 2008 to address the global financial and economic crisis of 2008.

• First G-20 Head of State Summit was hosted by US in Washington in 2008 (Due to Economic Crisis)

• Reflecting its nature as an informal political forum, the G20 does not have a permanent secretariat.

• The G20 Presidency rotates annually. To ensure continuity, the presidency is supported by a “troika” made up of the current, immediate past and next host countries.

• Note: For the first time, India will host the annual G-20 summit in 2023.

OSAKA TRACK ON DIGITAL ECONOMY

• "Osaka Track" is an overarching framework, launched by Japan's Prime Minister Shinzo Abe promoting cross-border data flow.

• The initiative seeks the removal of prohibitions on data localisation and urges nations to negotiate rules on data flows, cloud computing among others.

• India, South Africa, and Indonesia have boycotted the “Osaka Track" on the “digital economy" because - It overtly undermined “multilateral" principles of consensus-based decisions in global trade negotiations

(Osaka track pushed for “plurilateral negotiations ie. that takes place with more than two, but not very many, countries.]

- It denied "policy space" for digital-industrialisation in developing countries.

• Stance of Developed Countries - US, Japan, and Europe want liberal laws allowing their companies to store data in the most efficient place in the world.

• Stance of Developing countries - India, South Africa, and Indonesia want level playing field in digital economy – ie. allowing opportunity to local companies to grow to compete at global level before allowing free data flow.

• India has affirmed its stance on data localisation, asserting that data was a “new form of wealth” and needs to be stored in the native country rather than any other.

DATA LOCALISATION

• Data localisation is the act of storing

data on any device physically present

within the borders of a country.

• As of now, most of these data are

stored, in a cloud, outside India.

• RBI recently issued a deadline for

localisation of all sensitive data

belonging to Indian users of various

digital payment services.

• Localisation mandates that digital

payment companies collecting critical

data about consumers must store and

Around the world

• European Union's General Data Protection Regulation (world’s first data privacy law): Cross-border data movement can happen only if the other country has stringent rules to secure information.

• Nigeria: all subscriber and consumer data of tech and telecom firms and government data to be located locally, since 2013.

• Germany: Mandates that telecom and internet service providers store data locally.

• Russia: Mandates citizen data be stored within its borders.

• China: Regulation covers not just personal information, but also critical information infrastructure to build a strong cyber sovereignty.




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process them within the borders of India.

• The BN Srikrishna Committee report on data protection law suggested that localisation might help protect Indian citizens against foreign surveillance.

• While the move is being supported by Indian companies, like Reliance and PayTM, global giants such as Facebook, Google, and Amazon have strongly opposed it.

Importance of Data Localisation

• Protect the personal and financial information of the country’s citizens and residents from foreign surveillance.

• There is threat of data colonisation in the absence of adequate control over data.

• The data by the MNCs may be used to monetise outside the borders. Thus, need to localise data to ensure MNCs pay their ‘fair share of tax liabilities’ and govt. have better control over end use of data.

• It will give local governments and regulators the jurisdiction to call for the data when required.

• Storing of data locally is expected to help law-enforcement agencies to access information that is needed for the detection of a crime or to gather evidence. If data is not localised, the agencies need to rely on mutual legal assistance treaties (MLATs) to obtain access, delaying investigations.

• Unauthorised leaks, hacking and other cyber-crimes have rendered data bases vulnerable.

• To avoid any jurisdictional conflict during disputes.

The News:

• G7 leaders recently met via video link to discuss international cooperation on vaccine distribution and recovery from the COVID-19 pandemic.

• It was hosted by the United Kingdom, as the president of G7 for the year.

• The United Kingdom has also invited India to attend the G7 summit that is scheduled to be held in June, 2021, despite India not being a member of the G7 group.

• Previously, India was invited as a special guest by France, in 2019, for G7 Summit held in Biarritz, France.

• Apart from India, UK has also invited Australia and South Korea to participate in the proceedings of the summit as “guest countries”.

About G7 Group

• G7 is an intergovernmental grouping consisting of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.

• These countries are the 7 major advanced economies as reported by the International Monetary Fund.

• G7 countries represent more than 64% of the net global wealth and 30% of Global GDP (PPP basis).

• Founded by 6 member countries, in 1975, with the exception of Canada.

• The G7 was formed initially to discuss economic and political concerns prompted by the 1973 oil crisis.

• Meetings & Presidency - The representatives of the G7 countries meet annually to discuss international economic and monetary issues. The president of the G7 rotates among the member states every year.

• Status of Russia - In 1998 Russia was fully admitted making it G8. However, in 2014, Russia was suspended from the group after it annexed Crimea, from Ukraine.

• G7 is not a formal institution and therefore lacks a secretariat.

• A Gender Equality Advisory Council has been recently set up with an aim to convince private sector companies to set up such council and eradicate the problem of gender inequality from the root.

1.25. G-7




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The News:

• India, for the first time, held a summit level meeting "SCO Council of Heads of Government" (Nov, 2020), in virtual format, since it gained full membership of the organization in 2017 (along with Pakistan).

• India proposed creating 3 new pillars of cooperation: 1. Startups and Innovation 2. Science and Technology 3. Traditional Medicine

• The Summit adopted a statement on the “Joint Response Efforts” against COVID-19 and endorsed the need to strengthen SCO cooperation against the threat of pandemic, which has had “socio-economic consequence”.

• Also, the 20th Summit of SCO Council of Heads of State was recently held in virtual format (Nov, 2020), chaired by Russia.

• India extended full support to observing the 20th anniversary of SCO in 2021 as the "SCO Year of Culture”.

Shanghai Cooperation Organization (SCO)

• SCO is a permanent intergovernmental political, economic and security organization, founded in 2001.

• Founding members: China, Kazakhstan, Kyrgyzstan,

Russia, Tajikistan, and Uzbekistan.

• SCO was preceded by Shanghai Five Mechanism,

created in 1996 by the above states (excluding

Uzbekistan, which joined in 2001).

• It advocates Shanghai Spirit:

- Internal policy based on the principles of mutual

trust, mutual benefit, equality, mutual

consultations, respect for cultural diversity, and a

desire for common development.

- External policy is conducted in accordance

with the principles of non-alignment, non-

targeting any third country, and openness.

• Currently 8 full members states – China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, India

(became member in 2017, and had been an observer since 2005), and Pakistan.

• 4 observer states – Afghanistan, Belarus, Iran and Mongolia.

• 6 dialogue partners - Azerbaijan, Armenia, Cambodia, Nepal, Turkey, and Sri Lanka.

• Two permanent bodies:

i. SCO Secretariat, in Beijing

ii. Executive Committee of the Regional Anti-Terrorist Structure (RATS), in Tashkent

1.26. SHANGHAI COOPERATION ORGANIZATION (SCO)




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Main goals of SCO

• Strengthening mutual trust & neighbourliness among the member states.

• Promoting their effective cooperation in politics, trade, the economy, research, technology and culture, education, energy, transport, tourism, environmental protection, etc.

• Maintain and ensure peace, security and stability in the region;

• Establishment of a democratic, fair and rational new international political and economic order.

REGIONAL ANTI-TERRORIST STRUCTURE (RATS)

• RATS is a permanent organ of the Shanghai Cooperation Organisation (SCO) which serves to promote cooperation of member states against the three evils of terrorism, separatism and extremism.

• Established: in 2001

• HQ: Tashkent, Uzbekistan

• The Head of RATS is elected to a three-year term.

• Each member state also sends a permanent representative to RATS.

CENTRAL ASIAN REPUBLICS (CARS)

• Consists of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan

• Constituent republics of the former Union of Soviet Socialist Republics, they all achieved independence in late 1991.

• NOTE: The 2nd India-Central Asia Dialogue was held virtually, in Oct 2020. (The 1st meeting was held in Samarkand, Uzbekistan in Jan 2019).

The News:

• Iran recently showed its willingness to join Eurasian Economic Union (EAEU). Iran has had a free trade agreement with the Eurasian union since 2018.

• Previously, India skipped a meeting of the Eurasian Economic Union (EAEU), which was organised by the Shanghai Cooperation Organisation (SCO) at Xi’an in China.

Background

• The entire event was organized to discuss and deliberate upon China’s Belt and Road Initiative, because of which India, despite being present in the SCO summit, decided to skip this meeting.

• China and Russia had expressed willingness to dovetail the China-proposed Belt and Road Initiative and Russia’s Eurasian Economic Union.

• The forum also promoted the revival of the ancient Great Silk Road in Eurasia in a new, modern format.

• India’s opposition is due to sovereignty concerns. The China Pakistan Economic corridor (CPEC) component of BRI passes through Gilgit Baltistan, a disputed territory occupied by Pakistan.

Eurasian Economic Union (EAEU)

• It is an economic union of states located in Northern Eurasia, established in 2015 with Headquarters in Moscow.

• 5 members: Armenia, Belarus, Kazakhastan, Kyrgyzstan, & Russia.

• The EEU introduces the free movement of goods, capital, services and people and provides for common transport, agriculture and energy policies.

• It has international legal personality and is established by the Treaty on the Eurasian Economic Union.

• Aim: to raise the competitiveness of and cooperation between the national economies, and to promote stable development in order to raise the living standards of the nations of the Member-States.

• India and EEU are in the process of finalizing a Free Trade Agreement (FTA).

1.27. EURASIAN ECONOMIC UNION (EEU)




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ANCIENT SILK ROUTE

• It was a network of trade routes that linked ancient regions of the world for the promotion of trade & commerce.

• It was regularly used during China’s Han dynasty rule from 2nd century BC (when the Han officially opened trade with the west) to 14-15th century AD (when East Roman empire fell to Turks and the Ottoman Empire boycotted trade with the west and closed the routes)

• Term coined by the German geographer and traveller, Ferdinand von Richthofen, in 1877 CE, who designated them 'Seidenstrasse’ (silk road)

• Silk Route - Starting from Chan’gan (Xian, China) → C. Asia → India (J&K imp. Point) → Afghanistan → Iran → Turkey (seat of Eastern Roman Empire) → North Africa → Eastern/western Europe (Mediterranean region, Greece, Rome & Britain)

• It carried Silk, Paper, Gunpowder, Philosophy, ideas, Science, Culture, even Bubonic Plague (believed to have started in China/Mongolia).

• During this time India was being ruled by Indo Bactrians, Parthians, Shaka, Kushans, Satvahanas, Chola, Chera, Pandyas (200 BC – 300 AD)

• Kushans and Indo Parthian controlled the silk route in Iran, C. Asia & Afghanistan

• The closing of the Silk Road forced merchants to take to the sea to ply their trade, thus initiating the Age of Discovery (1453-1660 CE) (Also because Italy monopolised overland trade with orientals).

LAPIZ LAZULI CORRIDOR

• Lapis Lazuli is an international transit route (a part of the ancient Silk Route) re-opened by Afghanistan in 2018, that links Afghanistan to Turkey via Turkmenistan, Azerbaijan and Georgia and onwards to Europe.

• The route involves road, rail, and maritime transport.

• The Lapis Lazuli route agreement was finalized in 2017 between Afghanistan, Turkmenistan, Azerbaijan, Georgia, and Turkey.

• The name “Lapis Lazuli” is derived from the historic route that Afghanistan’s lapis lazuli and other semiprecious stones were exported along, over 2,000 years ago to the Caucasus, Russia, Balkans, Europe, and North Africa.

The News

• The Asian Development Bank (ADB) in its “Asian Economic Integration Report 2021” report has said that

the first phase of Turkmenistan–Afghanistan–Pakistan–India (TAPI) natural gas pipeline project remains

on track and is set for a launch in 2021.

About TAPI Pipeline

• Turkmenistan-Afghanistan-Pakistan-India

(TAPI) gas pipeline is a proposed natural gas

pipeline.

• It is being developed with participation of the

Asian Development Bank.

• From the Galkynysh field in Turkmenistan, the

pipeline will run to Herat and Kandahar

province of Afghanistan, before entering

Pakistan. In Pakistan, it will reach Multan via

Quetta before ending at Fazilka (Punjab) in

India.

1.28. TAPI GAS PIPELINE




33



• Significance for India: - India’s effort is to tap Turkmenistan’s Galkynysh gasfields, which are the fourth largest in the world.

- It will enhance economic engagement through regional connectivity by economically integrating

region stretching from the Bay of Bengal to the Caspian Sea.

- It will also help in providing peace and security in the region.

- TAPI Project will provide an alternative supply source of gas with dependable reserves leading to

enhanced energy security.

- It will further diversify the fuel basket to the benefit of Indian economy as it would be used mainly

in power, fertilizer and city gas sectors.

• Signed in 2011 in Ashgabat (capital and the largest city of Turkmenistan), and came into force in 2016.

• It envisages establishment of an International Multi – Modal Transport and Transit Corridor between the Iran, Oman, Turkmenistan and Uzbekistan (Founding members), linking Central Asia with the Persian Gulf.

• Objective – to enhance connectivity within the Eurasian region and synchronize it with other regional transport corridors, including the International North–South Transport Corridor (INSTC).

• Qatar was also part of agreement as a founding member, but subsequently withdrew in 2013.

• Kazakhstan and Pakistan are its member since 2016. India became a member in February 2018.

INTERNATIONAL NORTH SOUTH TRANSPORT CORRIDOR (INSTC)

• It is a 7200 km long multi-mode network of ship, rail and road route for moving freight between India, Iran, Afghanistan, Armenia, Azerbaijan, Russia, Central Asia and Europe.

• Objective: - to increase trade connectivity

between Asian and European countries.

- to reduce costs in terms of time and money over the traditional route currently being used

The News:

• India, Iran and Uzbekistan held their first Trilateral Working Group Meeting on joint use of the strategic Chabahar port (in virtual format).

• India’s proposal to hold "Chabahar Day” on the sidelines of the International Maritime Summit hosted by India in January 2021, was also welcomed.

• All sides also noted the significant role played by Chabahar port for the region to deliver humanitarian assistance during the COVID pandemic.

1.29 ASHGABAT AGREEMENT



1.30. CHABAHAR PORT






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Chabahar Port: The Geography

• Chabahar Port is a seaport located in south-eastern Iran.

• It is situated on the Gulf of Oman along Makran coast and at the mouth of Strait of Hormuz.

• It is located in the Iranian province of Seistan-Baluchistan which is just 75 km. away from the Gwadar Port (Pakistan), 480 nautical miles away from Kandla Port and 900 Km. away from Mundra Port in Gujarat.

• It is Iran’s only oceanic port and consists of two separate ports named Shahid Kalantari and Shahid Beheshti.

• It is the only port with direct access to Indian Ocean.

• Also, being close to Afghanistan and Central Asian countries of Turkmenistan, Uzbekistan etc., it has been termed as “Golden Gate” to these land-locked countries.

• From Chabahar port, the existing Iranian road network can link up to Zaranj in Afghanistan. This road then connects to the 218-km Zaranj-Delaram road – constructed by India in 2009 and finally to Afghanistan’s Garland highway.

India & Chabahar Port: Historical Background

• Development of the port was first proposed in 1973, however, its development was delayed due to Iranian Revolution.

• India became involved with Chabahar Port development in 2002 but project could not take off due to economic sanctions on Iran.

• In January 2003, India, Iran and Afghanistan signed an MoU on Development and Construction of Transit and Transport Infrastructure on the Chabahar-Milak-Zaranj-Delaram route.

• Between 2005-2009, India spent $100 million to construct the Zaranj-Delaram road.

• India and Iran signed a MoU to develop Chabahar port in 2015. According to this understanding, India would be able to have direct access to Afghanistan through sea route after completion of project.

• In May 2016, India signed a historical deal with Iran and Afghanistan, through 12 MoUs, under which India would invest $500 million to develop the Chabahar port.

• Shahid Beheshti is being developed jointly by India, Afghanistan, and Iran under the Trilateral Transit Agreement signed in 2016.

• In October 2017, India sent its first shipment of wheat to Afghanistan through Chabahar Port,

• By end of May 2021, India expects to start full-scale operations at Iran's Chabahar general cargo port

it has built.

Significance of Chabahar Port for India - Chabahar Port would provide India access to the Iranian, Afghanistan, and Central Asian economies to ensure its economic & energy security and strategic advantage, by bypassing Pakistan, using a sea-land route.

The News:

• The Organization of the Petroleum Exporting Countries (OPEC) Secretariat recently hosted the 4th High-Level Meeting of the OPEC - India Dialogue via videoconference.

• The issue of Asian Premium was also discussed during the meeting.

1.31. ORGANIZATION OF THE PETROLEUM EXPORTING COUNTRIES (OPEC)




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• OPEC+ decided to cut oil output amid COVID-19 pandemic that shut down economies and caused oil prices to crash.

OPEC

• OPEC is a permanent, intergovernmental organization, created at the Baghdad Conference in 1960, by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.

• 13 members – Algeria, Angola, Congo, Gabon, Equatorial Guinea (2017 latest member), Iraq, Iran, Kuwait, Libya, Nigeria, Saudi Arabia, UAE, & Venezuela. Gabon rejoined OPEC in 2016.

- Indonesia, Qatar and Ecuador terminated their membership in year 2016, 2019 & 2020 respectively.

• The OPEC Secretariat is the executive organ of OPEC, which is in Vienna, Austria. It also functions as the Headquarters of the OPEC.

• Objective: secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry.

• It operates on the principle of unanimity, and one member, one vote.

• OPEC sets production targets for its member nations and generally, when OPEC production targets are reduced, oil prices increase.

• According to current estimates, 80% of the world's proven crude oil reserves are located in OPEC Member Countries, with the bulk of OPEC oil reserves in the Middle East, amounting to 64.5% of the OPEC total.

• India sources about 78% crude oil, 60% of liquefied petroleum gas (LPG), and nearly 38% of its liquefied natural gas (LNG) demand from OPEC

• Publication : World Oil Outlook

• India sources about 86 per cent of crude oil, 75 per cent of natural gas and 95 per cent of LPG from OPEC member nations.

Asian Premium

• Asian Premium is extra charge being collected by OPEC countries from Asian countries for the import of crude.

• OPEC countries gives discriminatory treatment to Asian countries by charging them a higher price and subsidising western countries at cost of Asian buyers.

• India is coordinating with China and other Asian countries to raise voice against Asian premium. Reason for Asian Premium

• The Asian premium has its root in the establishment of market oriented crude pricing in 1986. Before that, the prices were set by contract between the exporting country and the importing country.

• When the market-oriented price system emerged, OPEC’s political power to engage in price setting eroded. At the beginning of the market system in 1986, crude prices crashed.

• Saudi Arabia, to counter the price fall, introduced sale of crude oil on a formula method in early 1987. The idea was to create `markers’ for three regions – the US, Europe and Asia.

- Markers are price referrals based on historical and economic contexts of the respective market.

• For the US, the marker was the West Texas Intermediate (WTI) and for Europe, it was Brent. These two markets reflected the cost of crude produced in the respective geographies.

OPEC+

• A 23-nation alliance of 13 OPEC and 10 non-OPEC countries that export crude oil.

• In addition to OPEC countries it includes Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan and Sudan.

• These countries signed a Declaration of Cooperation undertaking a production adjustment to achieve a lasting stability in the oil market in the interest of oil producers and consumers.




36



• But for Asia, there was no such indigenous market/production location for importers except the export-oriented Gulf markets. Hence, the Dubai/Oman market price was taken as the marker. But it has failed to indicate the cost of production.

• In this formula pricing, the US and Europe had an advantage because their markets and prices were based on future trading and reflected every trend in the crude market. On the other hand, since Asia represented by Dubai/Oman do not have any derivative trading, doesn’t have that edge.

• Hence, price charged from Asian countries remained $1-$2 dollar higher than that from Europe and the US. This price differential is termed as ‘Asian Premium’.

• It is a regional intergovernmental political and economic union.

• The charter was signed in 1981.

• Members - All the Arab States of bordering Persian Gulf, except Iraq.

• 6 member states - Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates.

• HQ : Riyadh, Saudi Arabia

• All members are monarchies, including - 3 constitutional monarchies (Kuwait, Qatar & Bahrain) - 2 absolute monarchies (Oman and Saudi Arabia) - 1 federal monarchy (UAE which is composed of 7 member states, each of which is absolute

monarchy with its own emir). The News:

• The Palestinian Authority recently stepped down from a key Arab League role over the bloc's failure to condemn Bahrain’s and the UAE's normalization of ties with Israel under the Abraham Accords.

Arab League

• Formally known as the League of Arab States.

• It is a regional organization of Arab states in and around North Africa, the Horn of Africa and Arabia.

• Founded in 1945, in Cairo, Egypt.

• The league was chartered in response to concerns about post-war colonial divisions of territory as well as strong opposition to the emergence of a Jewish state on Palestinian territory.

• Purpose - to promote closer political, economic, cultural, and social relations among the members.

• Members- 22, Syria's participation has been suspended since November 2011.

• 4 observer states - Eritrea, India, Brazil, and Venezuela

• A formal commitment to international human rights law entered league conventions in 2004 (ratified in 2008) when some members adopted Arab Charter on Human Rights.

1.32. GULF COOPERATION COUNCIL (GCC)

1.33 ARAB LEAGUE

Abraham Accord (2020)

• It is a peace deal between Israel, the United Arab Emirates and Bahrain that was mediated by the USA.

• Terms of Agreement - Full diplomatic ties will be established between Israel, United Arab Emirates and Bahrain. In return, Israel would suspend its plans to annex parts of the occupied West Bank.

• Egypt in 1979 and Jordan in 1994 had already agreed to formally normalize their relationship with Israel.




37



Arab Maghreb

Union

• It is a trade agreement aiming for economic and future political unity among Arab countries of the Maghreb in North Africa.

• It was established in 1989

• Its members are the nations of Algeria, Libya, Mauritania, Morocco and Tunisia

• No high level meetings have taken place since 3 July 2008 and commentators regard the Union as largely dormant

• Seat of Secretariat- Rabab, Morocco

Agadir Agreement

• A free trade agreement between Egypt, Jordan, Morocco and Tunisia.

• The pact was launched in May 2001, it was signed in Rabat in February 2004 and came into force in March 2007.

• Agadir Agreement is open to further membership by all Arab countries that are members of the Arab League and the Greater Arab Free Trade Area, and linked to the EU through an Association Agreement or an FTA.

Council of Arab

Economic Unity

• Founded by Egypt, Iraq, Jordan, Kuwait, Libya, Mauritania, Palestine, Saudi Arabia, Sudan, Tunisia, Syria, United Arab Emirates and Yemen on May 30, 1964, following an agreement in 1957 by the Economic Council of Arab League.

• Administrative centre is in Cairo, Egypt.

Greater Arab Free

Trade Area

• The "Greater Arab Free Trade Area" (GAFTA) is a pan-Arab free trade zone that came into existence in 1997.

• Founded by 14 countries: Bahrain, Egypt, Iraq, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, and the United Arab Emirates

The News:

• India recently slammed the Organisation of Islamic Cooperation (OIC) for raising the Kashmir issue at United Nations Human Rights Council (UNHRC) and presenting "factually incorrect and unwarranted references."

• India’s Stand - OIC has no locus standi to comment on matters related to Jammu and Kashmir, which is an integral and inalienable part of India.

Organisation of Islamic Cooperation (OIC)

• OIC is the 2nd largest inter-governmental organization, after the United Nations, with a membership of 57 states, including Iran and Pakistan.

• It was founded in 1969 and was established following the criminal arson of Al-Aqsa Mosque in occupied Jerusalem.

• Administrative centre: Jeddah, Saudi Arabia.

• Objective: - To raise the collective voice of the Muslim world.

- To collectively work to safeguard and protect the interests of the Muslim world in the spirit of

promoting international peace and harmony.

• OIC has permanent delegations to United Nations and the European Union.

• Specialized organs under the banner of the OIC including the Islamic Development Bank and the Islamic Educational, Scientific and Cultural Organization.

• The official languages of the OIC are Arabic, English, and French.

1.35. ORGANISATION OF ISLAMIC COOPERATION (OIC)

1.34. OTHER FORUMS IN ARAB REGION




38



OIC & India:

• India is not a member of OIC even though it has about 12% of the world’s Muslim population.

• India has been blocked by Pakistan from joining the OIC over the Kashmir issue. OIC regards parts of Kashmir as “occupied by India”.

• However, in Feb 2019, India’s Foreign Minister was invited (by UAE) to attend the foreign ministers’ meet of the OIC, as a “Guest of Honour”.

• This was the first time in nearly 50 years that India was offered an invitation to attend a meeting of the OIC. Pakistan boycotted the meet.

• India was first invited as an official delegation at the 1st OIC Conference in Rabat, Morocco in 1969, however, it was rescinded on the insistence of Pakistan.

The News:

• Canada, Mexico and the United States have recently signed and ratified a new trade pact to replace the nearly 25-year-old, North American Free Trade Agreement (NAFTA)

• The new deal is called US-Mexico-Canada Agreement (USMCA).

United States Mexico Canada Agreement (USMCA)

• The United States Mexico Canada Agreement (USMCA) is an updated version of trillion-dollar North American Free Trade Agreement (NAFTA).

• Removal of NFTA - During the 2016 presidential campaign, US President Donald Trump promised to repeal NAFTA and other trade agreements he deemed unfair to the U.S. USMCA is the result of that.

• Major provisions - Dairy and Agriculture – US farmers to get more access to the Canadian dairy market. - Automobiles – Automobiles must have 75% of their components manufactured in Mexico, the US,

or Canada to qualify for zero tariffs (up from 62.5% under NAFTA). - USMCA stipulates minimum wages for workers in the automotive manufacturing process: - Intellectual Property –

✓ USMCA extends the terms of copyright to 70 years beyond the life of the author (up from 50). ✓ It also includes new provisions to deal with the digital economy, such as prohibiting duties on

things like music and ebooks, and protections for internet companies so they’re not liable for content their users produce.

- Sunset clause - The agreement puts in a 16-year “sunset” clause — meaning the terms of the agreement expire after a set period.

- Review - The deal is also subject to a review every 6 years, at which point the US, Mexico, and Canada can decide to extend USMCA.

North American Free Trade Agreement (NAFTA)

• It was implemented in order to promote trade between the U.S., Canada, and Mexico.

• The agreement, which eliminated most tariffs on trade between the three countries, went into effect on January 1, 1994.

The News:

• Recently a lawmaker introduced a bill in the US House of Representatives to terminate the designation of Pakistan as a Major non-NATO Ally (MNNA).

1.37. MAJOR NON-NATO ALLY (MNNA) STATUS & NATO



1.36. US-MEXICO-CANADA AGREEMENT (USMCA)






39



• Previously, in an effort to bring India at par with USA’s other NATO allies like Israel, South Korea, Japan, and Australia, the U.S. Senate has passed National Defense Authorisation Act (NDAA, 2020).

About the Legislative Provision

• The NDAA 2020 provides for increased U.S.- India defence cooperation in the Indian Ocean in the areas of humanitarian assistance, counterterrorism, counter-piracy and maritime security.

• However, the final version of the NDAA 2020 was passed without the provision to make India a Major non-NATO Ally (MNNA).

• If enacted, it will further institutionalise the recent designation of India (in 2016) as a Major Defense Partner (MDP) of the US.

• India and the US have already signed defense foundational agreements, LEMOA (Logistics Exchange Memorandum of Agreement) and COMCASA (Communications, Compatibility and Security Agreement).

• India & US are also in advance discussion to sign BECA (Basic Exchange Cooperation Agreement).

• India also became the 3rd Asian country, after Japan and South Korea, and 37th country to be designated

the Strategic Trade Authorisation-1 (STA-1) status by USA (in 2018) that will allow sale of high-tech

defence and non-defence products that are otherwise subjected to strict controls and licensing by USA.

About NATO

• The NATO is an intergovernmental military alliance based on the North Atlantic Treaty signed in 1949.

• Members - It consists of 30 independent member countries across North America and Europe.

• 9 countries as global partners - Afghanistan, Australia, Iraq, Japan, Mongolia, New Zealand, Pakistan, South Korea, and Colombia (joined in 2018, first Latin American country to do so),

• NATO is based on a system of collective defense whereby its member states agree to mutual defense in response to an attack by any external party.

• NATO’s headquarters - Brussels, Belgium.

• The combined military spending of all NATO members constitutes over 70% of the global defense spending.

• Last NATO summit held in London, UK, which also marked its 70th anniversary.

COMCASA, LEMOA, & BECA The News: India and USA recently signed the Basic Exchange and Cooperation Agreement (BECA), the last of four foundational agreements for strategic ties.

4 Foundational Agreements

• They are 4 foundational defence pacts that any country (including India) needs to sign to obtain cutting-edge weapons and communications systems from the US.

• India’s & USA have, thus, signed all 4 foundational agreements to deepen defense partnership: 1. The General Security of Military Information Agreement (GSOMIA) signed in 2002. It provides a

framework for exchange and protection of classified military information between U.S. and Indian defence industries. An extension - the Industrial Security Annex (ISA) was signed in 2019.

Major non-NATO Ally (MNNA)

• It is a designation given by the US government to close allies (about 30 countries) that have strategic working relationships with the US Armed Forces but are not members of the NATO.

• The MNNA status was first created in 1987.

• MNNA status does not automatically includes a mutual defence pact with the US, but it still confers a variety of military and financial advantages that otherwise are not available to non NATO countries.

• While India is yet to receive an MNNA status, Pakistan has been an MNNA since 2004.

• However, efforts to revoke Pakistan MNNA status has been gaining ground within the US Congress.

• In 2019, USA designated Brazil as an important non-NATO ally.




40



2. The Logistics Exchange Memorandum of Agreement (LEMOA) signed in 2016. It aims to provide mutual logistics support around the world.

3. The Communications Compatibility and Security Agreement (COMCASA) in 2018 (an India-specific version of CISMOA (Communication and Information on Security Memorandum of Agreement (CISMOA). - COMCASA will give Indian military access to function on high-end secured and encrypted

communication equipment which are installed on American platforms obtained by Indian Armed Forces. These platforms include C-130 J, C-17, P-8I aircraft, and Apache and Chinook helicopters.

4. Basic Exchange and Cooperation Agreement for Geo-spatial Cooperation (BECA) signed in 2020. - BECA will allow for expanded geospatial information sharing that will provide Indian military systems

with a high-quality GPS to navigate and missiles, with real-time intelligence, to precisely target the adversary.

- It was not signed till now due to differences over the issue of reciprocity in the exchange of information.

The News

• India was recently designated as the ‘Vice-Chair’ of Good Laboratory Practice (GLP) Working Group of the Organisation for Economic Co-operation and Development (OECD), recognising the contribution of the Indian GLP programme.

• Dr. Ekta Kapoor, Scientist, Department of Science and Technology (DST), has been appointed as Vice-Chair of the OECD Working Group on GLP for 2021 and 2022.

About Good Laboratory Practice (GLP)

• It is a quality system, which has been evolved by OECD to ensure that safety data generated on various chemicals like industrial chemicals, pharmaceuticals (Human and Veterinary), agrochemicals, cosmetic products, food/ feed additives, and medical devices, etc., can be relied upon by regulatory authorities.

• The OECD Principles of GLP ensure the generation of high quality and reliable test data.

• The DST, GoI established the National GLP Compliance Monitoring Authority (NGCMA) in 2002.

• NGCMA is the National body which grants GLP certification to test facilities (TFs) conducting safety studies on new chemicals.

1.38. ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT (OECD)




41



• In 2011, India became full adherent to the Mutual Acceptance of Data (MAD) in the OECD. - The MAD system helps to avoid conflicting or duplicative national requirements, provides a common

basis for co-operation among national authorities and avoids creating non-tariff barriers to trade. - The MAD status has given global recognition to India’s non-clinical safety data by tremendously

augmenting its credibility and acceptability across the globe. About OECD

• It is an international economic organisation, established in 1961.

• Background: The Organisation for European Economic Cooperation (OEEC) was established in 1948 to run the US-financed Marshall Plan for reconstruction of a continent ravaged by war. Encouraged by its success, Canada and the US joined OEEC members in signing the new OECD Convention in December 1960.

• Mission: to promote policies that will improve the economic and social well-being of people around the world.

• The OECD provides a forum in which governments can work together to share experiences and seek solutions to common problems

• Secretariat: Paris, France.

• Members: 37 Member Countries. India is not a member of OECD. - Colombia became the 37th member of the OECD in April 2020. - Colombia will be the third Member country from the Latin America and Caribbean region to join,

following Mexico and Chile. A fourth, Costa Rica, is entering the final stages of its accession process to the Organisation.

• Its members are committed to Democracy and Market Economy.

• Most OECD members are high-income economies with a very high Human Development Index (HDI) and are regarded as developed countries.

• OECD is an official United Nations observer.

• Publication - International Migration Outlook; Economic Outlook (which is OECD’s twice-yearly analysis

of the major economic trends and prospects for the next two years); International Enforcement

Cooperation etc

The News:

• The Brexit transition period recently ended on 31 December 2020, with United Kingdom and the European Union finalising the post-Brexit free trade deal – The EU-UK Trade and Cooperation Agreement (TCA)

• The U.K. had formally quit the European Union (EU) on 31 January 2020, the first country to do so. About BREXIT

• Brexit, coined by former lawyer Peter Wilding, is a blend of two words - "Britain" and "exit" (ie. Britain’s exit

from EU).

• UK/Britain joined EU (what was then the European Economic Community) in 1973.

• However, Britain voted to come out of EU in a 2016 referendum.

• In 2017, UK invoked Article 50 of EU Lisbon Treaty and initiated a 2 year negotiation process to withdraw

from EU.

1.39. EUROPEAN UNION (EU) & BREXIT




42



• UK entered an 11-month transition period (negotiated as part of an EU-UK exit deal) during which it had until the end of 2020 to conclude a deal that replaces the current relationship between UK & EU on trade and other issues.

European Union (EU)

• The European Union (EU) is a political and economic union, consisting of 27 member states (post UK’s exit), located primarily in Europe.

• EU has developed an internal single market through a standardised system of laws that apply in all member states.

• HQ - Brussels, Belgium. • Decision making - In order for the EU to adopt policies that concern defence and foreign affairs, all

member states must agree unanimously. • Background

- Since the end of World War II, European countries sought to deepen their economic integration in pursuit of peace and economic growth, and to avoid future conflicts.

- 1952 - European Coal and Steel Community (ECSC) was founded under Treaty of Paris (1951) by 6 countries - Belgium, France, Germany, Italy, Luxembourg and the Netherlands, by placing their coal and steel production in a common market under it.

- 1957 - European Economic Community (EEC) was created by the Treaty of Rome (1957) with an aim to bring about economic integration, including a common market and customs union, among its 6 founding members: Belgium, Germany, France, Italy, Luxembourg and Netherlands.

- 1965 - The Merger Treaty or Treaty of Brussels, unified the institutions of the European Coal and Steel Community (ECSC) and the Economic Community (EEC) under a single set of institutions, creating the European Communities (ECs).

- 1973 onwards - EC expanded and Denmark, Ireland, the United Kingdom became members. Greece joined in 1981, Portugal and Spain following in 1986.

- 1992 – Maastricht Treaty (formally known as the Treaty on European Union) signed. ✓ It formally created the European Union in 1993. European Communities (ECSC, EAEC, and EEC)

incorporated as European Union. ✓ European citizenship was created, allowing citizens to reside in and move freely between

Member States ✓ A common foreign and security policy was established ✓ A closer cooperation between police and the judiciary in criminal matters was agreed. ✓ The Treaty also established the European Central Bank (ECB) ✓ It paved the way for the creation of a single European currency – the Euro

- 1999 - Euro established as monetary union (Eurozone). At present, 19 of the 27 EU member states have adopted the euro (€) as their common currency and sole legal tender.

• Lisbon Treaty (2007) - entered into force in 2009. - It amended two existing treaties, the Maastricht Treaty and the Treaty of Rome. - It updated regulations for the EU, establishing a more centralized leadership and foreign policy, a

proper process for countries that wish to leave EU, and a streamlined process for enacting new policies.

- Article 50 of Lisbon Treaty provides for exit of member countries from European Union. • In 2012, the EU was awarded the Nobel Peace Prize for advancing the causes of peace, reconciliation,

democracy and human rights in Europe.

THE SCHENGEN AGREEMENT • Signed in 1985, operational in 1995, it is a treaty that paved the way for the creation of open borders without

passport controls between most member states.




43



• Point to note: Not all EU members are part of Schengen area. Some non-EU countries are also part of Schengen area - Iceland, Liechtenstein, Norway and Switzerland.

How EU is Governed?

The European Council

European Parliament Council of the European Union

European Commission

Role • Defines the general political direction and priorities of EU.

• It represents the highest level of political cooperation between EU countries.

• It is the EU's law-making body (Legislative arm)

• It is directly elected by EU voters every 5 years.

• It has legislative, supervisory, and budgetary responsibilities

• Govt ministers from each EU country meet to negotiate and adopt EU laws, together with the European Parliament, based on proposals from the European Commission

• Together with the European Parliament, the Council is the main decision-making body of the EU.

• Develops the EU's foreign & security policy, based on European Council guidelines

• Concludes agreements between the EU and other countries

• Adopts the annual EU budget - jointly with the European Parliament

• EU's politically independent executive arm.

• It proposes new legislations.

• It implements the decisions of the European Parliament and the Council of the EU.

Members Heads of state or government of EU countries, European Council President, European Commission President

• 705 MEPs (Members of the European Parliament)

• Number of MEPs for each country is roughly proportionate to its population

• Government ministers from each EU country, according to the policy area to be discussed.

• No fixed members of the EU Council.

• For eg. when the Council meeting on economic and financial affairs (the "Ecofin Council") is held, it is attended

A team or 'College' of Commissioners, 1 from each EU country




44



by each country's finance minister.

Meetings Council takes the form of (usually quarterly) summit meetings

Year of Establishment

1974 (informal forum), 1992 (formal status), 2009 (official EU institution)

1952 as Common Assembly of the European Coal and Steel Community, 1962 as European Parliament, first direct elections in 1979

1958 1958

Location Brussels (Belgium) Strasbourg (France), Brussels (Belgium), Luxembourg

Brussels (Belgium) Brussels (Belgium)

OTHER EU INSTITUTIONS

A) European Central Bank (ECB) • Role: To manage the euro, keep prices stable and conduct EU economic & monetary policy • President: Christine Lagarde • Members: ECB President and Vice-President and governors of national central banks from all EU countries • Established in: 1998

• Location: Frankfurt (Germany)

B) Court of Justice of the European Union (CJEU) • Role:

- Ensuring EU law is interpreted and applied the same in every EU country; ensuring countries and EU institutions abide by EU law, settles legal disputes between national governments and EU institutions.

- It can also, in certain circumstances, be used by individuals, companies or organisations to take action against an EU institution.

• Members: - Court of Justice: 1 judge from each EU country, plus 11 advocates general - General Court: 2 judges from each EU country

• Established in: 1952 • Location: Luxembourg

C) Eurogroup • Eurozone countries coordinate their economic policy through the Eurogroup, • Members: consists of economy and finance ministers of Eurozone countries. • Meeting: It meets the day before the “EcoFin” Council meetings (Under Council of the EU). • Agreements reached in Eurogroup gatherings are formally decided upon in the Council the next day, with only

ministers of Eurozone countries voting on those issues. Point to Note: • Council of Europe

- It should not be confused with Council of the European Union and European Council (which are EU Bodies). Council of Europe is NOT an EU body.

- Founded in 1949, the Council of Europe is Europe’s leading human rights organisation.




45



- It includes 47 member states. All 27 members of the European Union are its members. - HQ - Strasbourg, France - The European Convention on Human Rights (ECHR) is a treaty by which the member states of the

Council of Europe undertake to respect fundamental freedoms and rights. - European Court of Human Rights is the permanent judicial body which guarantees for all Europeans the

rights safeguarded by the European Convention on Human Rights (ECHR). - Council of Europe member states no longer apply the death penalty.

• European Free Trade Association (EFTA) - It is the intergovernmental organisation of 4 countries - Iceland, Liechtenstein, Norway and Switzerland. Ie.

No EU member is a part of EFTA. - It was set up in 1960, by the Stockholm Convention, for the promotion of free trade and economic

integration between its members.

• European Economic Area (EEA) - It brings together the EU Member States and the 3 EFTA States — Iceland, Liechtenstein and Norway — in

a single market, referred to as the "Internal Market". ie. 30 Members (27 EU + 3 EFTA members) - The EEA Agreement states that when a country becomes a member of the EU, it shall also apply to become

party to the EEA Agreement. - It entered into force on 1 January 1994.

The News:

• On the invitation of Russian President Vladimir Putin, Indian PM Narendra Modi was invited as chief guest at the 5th Eastern Economic Forum, held at Vladivostok, Russia.

• This was the first instance of an Indian prime minister attending the East Economic Forum.

• 20th India-Russia annual summit was also held alongside.

Eastern Economic Forum

• It was established by decree of the President of the Russia in 2015 to support the economic development of Russia’s Far East and to expand international cooperation in the Asia-Pacific region.

• Held annually, the Far East Economic Forum is sponsored by the organizing committee appointed by Roscongress, an association of the Russian Government.

• Participants in 5th Summit - India, Malaysia, Japan, Australia, and South Korea.

India’s Engagement in Russia’s Far East

• Realising the geostrategic significance of Russian Far East, India opened a consulate in Vladivostok in 1992.

• India was the 1st country to have a resident consulate in Vladivostok then.

• In the recent Summit, India announced a credit line of $1 billion for the development of this region.

• India and Russia agreed for a sea link between Vladivostok, the capital of Russian Far East and Chennai. This will reduce the transport time from existing 40 days to 24 days.

RUSSIAN FAR EAST

• It is a region extending between Lake Baikal - world's largest freshwater lake and deepest lake, and the Pacific Ocean.

• This is a region situated in the cold Siberian climate and borders two oceans, the Pacific and the Arctic, and 5 countries (China, Japan, Mongolia, the United States and North Korea)

1.40. EASTERN ECONOMIC FORUM (EEF) & FAR EAST

In April 2019, President Putin signed the Executive Order on Awarding Prime Minister of India Russia’s highest state decoration - Order of St Andrew the Apostle.




46



• It spreads over four time zones and various climate zones: from northern deserts to subtropics.

• On its own, it could be the 8th largest - just behind India - in terms of area, and 4th least densely populated country.

• Over the past few years, the Far East has been a dynamically developing part of the Russian Federation. Unique mechanisms such as Advanced Special Economic Zones are to create a favourable investment climate.

• The Far East is rich in natural resources. - The macro-region extracts 98% of Russian diamonds, 80% of stannary, 90% of borax materials, 50% of

gold, 14% of tungsten, and 40% of fish and seafood. - About 1/3 of all coal reserves and hydro-engineering resources of the country are here. - Forests of the region comprise about 30% of the total forest area of Russia.

• It is a proposed trade agreement between the European Union and the United States.

• Aims at providing greater compatibility and transparency in trade and investment regulation, while maintaining high levels of health, safety, and environmental protection.

• If formalised, it will be world’s largest investment relationship as EU and USA are two largest economies of the world. Combined GDP of the two economies is a third of world’s GDP.

• This agreement would also strengthen the geopolitical standing of the Trans-Atlantic bloc.

• Its main three broad areas are: market access; specific regulation; and broader rules and principles and modes of cooperation

• It is currently under negotiation.

The News

• Cambodia, the host of 13th Asia Europe Meeting (ASEM), has decided to further postpone it due to unabated risk posed by Covid 19 pandemic (originally scheduled for Nov, 2020).

About ASEM

• It is an Asian–European political dialogue forum to enhance relations and various forms of cooperation

between its partners.

• Formed in 1996.

• Members: 51 countries (21 Asian Countries + 30 European Countries) & 2 regional organisations (EU

and ASEAN)

• Pillars: Political, Economic and Financial, Socio Cultural and Educational.

The News: • Prime Minister of India met the leaders of the Caribbean Community and Common Market during the

first-ever India-Caricom leaders' summit in New York. • The meeting focussed on fighting climate change and increasing India's participation with the grouping,

• PM Modi announced a USD 14-million grant for community development projects in the Caricom and another 150 million line of credit for solar, renewable energy and climate- change related projects.

1.41. TRANS-ATLANTIC TRADE AND INVESTMENT PARTNERSHIP (TTIP)

1.43. FIRST INDIA-CARICOM SUMMIT

1.42. ASIA EUROPE MEETING (ASEM)




47



• The Prime Minister also invited the countries to join International Solar Alliance (ISA) and Coalition for Disaster Resilient infrastructure (ISA & CDRI to be covered under Envt. & DM section).

About CARICOM • The Caribbean Community (CARICOM) was formed in 1973 with signing of the Treaty of Chaguaramas. • The Treaty was later revised in 2002 to allow for the eventual establishment of a single market and a

single economy. • CARICOM is a grouping of 15 Member States and 5 Associate Members. • 15 Members - Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti,

Jamaica, Montserrat, St. Kitts and Nevis, St Lucia, St. Vincent and the Grenadines, Suriname, and Trinidad & Tobago.

• 5 Associate Members – Anguilla, Bermuda, British Virgin Islands & Cayman Islands. • Stretching from The Bahamas in the north to Suriname and Guyana in South America, CARICOM

comprises states that are considered developing countries. • Except for Belize, in Central America and Guyana and Suriname in South America, all Members and

Associate Members are island states. • HQ - Georgetown, Guyana

The News

• India seeks to fast-track negotiations for the expansion of the India-MERCOSUR Preferential Trade Agreement (PTA).

MERCOSUR • The Southern Common Market (MERCOSUR for its Spanish initials) is a regional integration process,

founded in 1991 through the Asunción Treaty. • It was initially established by 4 countries - Argentina, Brazil, Paraguay and Uruguay.

• It was subsequently joined by Venezuela, but Venezuela was suspended from membership in 2016. • Associate members – Bolivia (it is in the final stages of the accession as a full member), Chile, Colombia,

Ecuador, Guyana, Peru, Surinam • Objective - to promote a common space that generates business and investment opportunities through

the competitive integration of national economies into the international market. • Mercosur functions as a customs union and free-trade area, and has ambitions to become a common

market along the lines of the European Union.

The News

• Recently, India unveiled a new draft ‘Arctic’ policy that, among other things, commits to expanding the following in the Arctic region. - Scientific research - Sustainable tourism - Mineral oil and gas exploration

• Previously, India had been re-elected as an observer to the Arctic Council at the 11th Arctic Council Ministerial Meeting in Rovaniemi, Finland.

• India was first granted the Observer status in 2013. -

1.45. ARCTIC REGION & ARCTIC COUNCIL

1.44. MERCOSUR




48



About Arctic Region

• The Arctic Circle encloses 21 million square kilometres

of land and 13 million sq.km of mostly ice-bound seas.

• The Arctic consists of the Arctic Ocean, adjacent seas,

and parts of Alaska (United States), Canada, Finland,

Greenland (Denmark), Iceland, Norway, Russia, and

Sweden.

• The Arctic Ocean is located completely within the Arctic

Circle, centring approximately on North Pole.

• The Arctic Ocean is the smallest and shallowest ocean

of the five principal oceans on the Earth.

• Ice cover - It is partly covered by sea ice throughout the

year, and almost completely in winter.

• Salinity & Temperature

- Arctic Ocean's surface temperature and salinity

vary seasonally as the ice cover melts and freezes.

- Its salinity is the lowest, on average, of the 5 major

oceans due to low evaporation, heavy fresh water

inflow from rivers and streams, and limited

connection and outflow to surrounding oceanic

waters with higher salinities.

• Arctic Ocean is home to the longest continental shelf in

the world, stretching around 750 miles toward Siberia.

• Wildlife - walruses, polar bears, arctic foxes, seals,

brown bears, Beluga whales, arctic wolves, Bowhead whales, Narwhal Whales, jellyfish etc.

• Arctic Ocean is often considered as a “Global Common” but does not have an international regime to

identify it as such. Being an Ocean, it is governed by United Nations Convention on Law of the Sea

(UNCLOS).

Arctic Council

• It is an intergovernmental forum promoting cooperation among

Arctic States and Arctic indigenous communities on common Arctic

issues, esp. sustainable development and environmental protection.

• Established in 1996 by the Ottawa declaration.

• Permanent Participants

- 8 Arctic Countries- Canada, Denmark (Greenland & Faroe

Islands), Finland, Iceland, Norway, Russia, Sweden and USA.

- 6 organizations - representing Arctic indigenous peoples, with

status as Permanent Participants.

• Observers

- The Observer status in the Arctic Council is open to non-Arctic

states, along with inter-governmental, inter-parliamentary,

global, regional and non-governmental organizations that the

Council determines can contribute to its work.

- 13 Non-arctic States have been approved as Observers to the Arctic Council.

Global Commons

• Concept of Global commons first articulated

in 1970 when UN General Assembly

adopted Declaration of Principles

governing seabed and ocean floors.

• It refers to resource domains or areas that

lie outside the political reach of any one

Nation State ie. Every nation has equal

access to it.

• International Law defines 4 global commons

- Antarctica - governed by the 1959

Antarctic Treaty.

- High Seas – Governed by UNCLOS,

instruments governed by International

Maritime Organization (IMO) and

UNEP’s Regional Seas Conventions.

- Atmosphere – UNFCCC, Montreal

Protocol and other environment

treaties.

- Outer space - Treaty on Principles

governing the Activities of States in the

Exploration and Use of Outer Space.

Observer states 1. France 2. Germany 3. Italy 4. Japan 5. Netherlands 6. China 7. Poland 8. India - Kiruna Ministerial

meeting, 2013 9. Republic of Korea 10. Singapore 11. Spain 12. Switzerland 13. United Kingdom




49



• How does it work?

- Decisions of the Arctic Council are taken by consensus among the 8 Arctic Council States, with full

consultation and involvement of the Permanent Participants.

- Secretariat - in Tromsø, Norway

- The work of the Council is primarily carried out in 6 Working Groups.

- The Chairmanship of the Arctic Council rotates every 2 years among the Arctic States.

- The first country to chair the Arctic Council was Canada (1996-1998). Currently.

• 3 Legally binding Agreements among 8 Arctic Countries

- Agreement on Cooperation on Aeronautical and Maritime Search and Rescue in the Arctic (2011)

- Agreement on Cooperation on Marine Oil Pollution Preparedness and Response (2013)

- Agreement on Enhancing International Arctic Scientific Cooperation (2017)

• Point to Note:

- The Arctic Council is a forum and not a treaty based international legal entity.

- It has no programming budget. All projects/initiatives are sponsored by one or more Arctic States.

- The Arctic Council does not and cannot implement or enforce its guidelines, assessments or

recommendations. That responsibility belongs to each individual Arctic State.

- The Arctic Council’s mandate, as articulated in the Ottawa Declaration, explicitly excludes military

security.

India’s Initiatives in Arctic

• At present, India’s interests in the Arctic region are scientific,

environmental, commercial as well as strategic.

• India’s engagement with the Arctic dates back to nearly 10

decades when it signed the ‘Svalbard Treaty’ in 1920.

• India launched its first scientific expedition to the Arctic Ocean

in 2007.

• National Centre for Polar and Ocean research –

- In keeping with its priorities in Arctic region, India renamed

National Centre for Antarctic and Ocean Research (NCAOR),

Goa, as the National Centre for Polar and Ocean Research

(NCPOR).

- It is an autonomous R&D Institution of the Ministry of Earth

Sciences, established in 1998.

- It is the nodal agency for the Indian Arctic & Antarctic

Programmes.

• Indian Arctic station - ‘Himadri’

- It is an Indian observatory expected to help scientists

understand the Arctic climate process and its influence on

the Indian monsoon system.

- Located at Ny Alesund, Spitsbergen Island, Norway and

serves as a hub of Indian scientific investigations since

2008.

India’s Research Stations in Antarctica

• First permanent research station “Dakshin Gangotri” in 1983 (now abandoned).

• Maitri – Operational since 1988

• Bharati – Operational since 2012

• Observations and studies are carried out in atmospheric, biological, geological, ecological sciences etc.

‘Svalbard Treaty’

• The treaty provides for Norwegian sovereignty over Svalbard.

• Citizens and companies from all 43 treaty nations enjoy the same right of access to and residence in Svalbard (subjected to Norway legislations).

• Norway is required to make sure that no fortresses or naval bases are established.

• The treaty imposes the obligation, on Norway, to protect Svalbard's natural environment.




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• IndARC:

- It is India’s first underwater moored observatory in the Kongsfjorden fjord, halfway between

Norway and the North Pole, deployed in 2014.

- Designed & developed by - scientists from the Earth System Science Organisation (ESSO), National

Centre for Polar and Ocean Research (NCPOR), National Institute of Ocean Technology (NIOT) and

Indian National Centre for Ocean Information Services (INCOIS).

- The arctic observatory is anchored at a depth of 192 m and has an array of 10 state-of-the-art

oceanographic sensors strategically positioned at various depths in the water.

- Significance

✓ The interaction between the Arctic ice shelf and the deep sea and its influence on climate shift

requires long term monitoring. IndARC addresses the logistical constraints in accessing the

harsh Arctic region.

✓ The data provided by IndARC helps to understand the Arctic processes and their influence on

the Indian monsoon system through climate modelling studies.

• India has secured an observer status in the Arctic Council.

• India’s Bilateral Cooperation with Arctic Littoral States

- Norway - Norwegian Programme for Research Cooperation with India (INDNOR).

- Russia – ONGC Videsh holds a 26% stake in Russia’s Vankorneft & 20% stake in the Sakhalin-I project;

GAIL has a 20-year LNG supply agreement with Russia’s Gazprom etc.

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