Why US Senators Are Upset With Modi Govt

By coincidence, the United States brandished the sword of sanctions at two of its allies this week — Germany and India. There are common threads in the two situations, although the threat to Germany can also be seen partly as a sop to Texas GOP Sen. Ted Cruz to lift his hold on the senate confirmation of William Burns as President Joe Biden’s CIA director.

On Thursday, the US Secretary of State Antony Blinken sternly warned the companies involved in the construction of the undersea Nord Stream 2 gas pipeline from Russia’s Baltic coast to Germany that they “should immediately abandon work” — or else, the Biden Administration will be sanctioning them.

Earlier, on Wednesday, the powerful US Senate Foreign Relations Committee addressed a communication to the Defence Secretary Lloyd Austin in the context of his current visit to India to “raise the administration’s opposition to India’s reportedly planned purchase of the Russian S-400 missile defence system, which threatens future US-India defence cooperation and puts India at risk of sanctions under Section 231 of the Countering America’s Adversaries Through Sanctions Act.”

Prima facie, in neither case US national security interests are directly affected. Washington is threatening to impose so-called “secondary” or “extraterritorial” sanctions, which affect not only the country that have done things that are wrong in the US perceptions (Russia, in this case) but also two countries (Germany and India) that have done things entirely within their rights as sovereign states (doing business with Russia).

Such secondary sanctions would be in violation of international law. But the US insists that its domestic legislation is also applicable to foreign countries. Clearly, the US is threatening to interfere with Germany and India’s dealings with Russia as sovereign states. Washington has determined that whatever Germany or India does with Russia is the US’ business too. This calls attention to the inherent dangers of a strategic embrace with the superpower. 

The Biden Administration is looking to Europe to develop a coordinated policy to manage an emboldened China, and Germany has a lead role in it. Without German participation, the US lacks the means to block Chinese ambitions on issues like setting standards and regulating the cyber world. Similarly, for managing Vladimir Putin, German support is essential.

When it comes to India, similar considerations are also at work — arguably, even more so, since China’s challenge is primarily to be met with in Asia for which the US needs to get embedded in the region. But through the past decade or more, China has systematically replaced the US as the number one trade and economic partner of the Asian countries.

Consequently, most Asian countries do not want to take sides between the US and China. As for India, it has deeply cherished its strategic autonomy, too. And India’s interests lie in bilaterally addressing its differences and disputes with China. India is wary of identifying with the US’ containment strategy against China.

Admittedly, Germany and India’s respective relationships with Russia impact the US geostrategy. Although the policy class in Berlin and New Delhi attach importance to their relations with the US, they also seek strategic autonomy. The ties with Russia have not only long-term significance for them but also give them space to manoeuver in the prevailing complex international environment.

S400
US threat to sanction India over S-400 missile deal

Both Germany and India have global ambitions and, indeed, they have the potential to be independent players in a multipolar world. Plainly put, the US’ transatlantic leadership on the one hand and the dynamics of the Quad platform in Asia-Pacific on the other hand require respectively that Germany and India roll back their ties with Russia. Washington apprehends that the Nord Stream 2 project and India’s procurement of the S-400 missile system from Russia will significantly boost Germany and India’s relations with Russia and create long-term interdependencies that exclude the US.

Of course, there is also a business angle. The US eyes Germany as  a potentially big market for its shale gas exports. The Nord Stream 2 aims to supply 55 bcm of Russian gas annually to Germany with a potential to carry bigger volume in future. Similarly, the S-400 missile system strengthens Russia’s defence ties with India and also gives an added advantage to Moscow to partner with the Indian Air Force. Russia is far more open than the US to sharing advanced military technology with India and to collaborate in the co-production of weaponry.

Without doubt, the US aspires to replace Russia as India’s number one arms supplier. The US expectation is that under the concept of ‘interoperability’, India can be steadily weaned away as a defence partner from the Russian orbit. Indeed, the US is adept at using the mil-to-mil relationships with partner countries to influence their foreign policies.

All things considered, therefore, the US Senate Foreign Relations Committee’s letter to Austin signals a certain sense of disappointment in the Beltway that India is nowhere near willing to jettison its strategic autonomy and align with the US, the border tensions with China in the recent past notwithstanding. In fact, from the US perspective, there are disconcerting signs that the tensions in India-China relations may even be showing signs of easing, thanks to sustained bilateral talks at multiple levels between the two neighbours.

Three things need to be noted here. First, the US senate foreign relations committee has waded into the US-Indian relationship and expressed its unhappiness soon after the first-ever summit meeting of the Quad on March 12, which in the first place took place at the initiative of President Biden. Second, it is a fact of US diplomatic history that the senate foreign relations committee makes such belligerent “bipartisan” moves affecting the US’ relations with an important foreign country only with the prior knowledge and concurrence — or at the very least the acquiescence — of the Administration at an informal level.

Third, in the present case, the US senators have launched a wide-ranging diatribe against the Modi government’s internal policies as well. They even shed crocodile tears over the farmers’ agitation. Now, this is rank hypocrisy, since in reality, the Biden administration is eager to drive India’s neoliberal economic reforms forward, and it supports the new agricultural laws, viewing all this through a strategic lens.

As a British commentator pointed out recently, “The three agriculture reform laws passed by Modi’s Bharatiya Janata Party in September… promise a bonanza for American farmers, the kind the previous White House administration strived to carve out with China. This undoubtedly would provide the underbelly of any future India-US trade agreement, allow Biden to pitch himself as providing for American jobs and farmers first.”

Herein lies the paradox. The US cannot afford to openly state what is on its mind that rankles. Instead, the senators have brought in the Modi’s government’s internal policies and the S-400 missile deal with Russia to bring pressure on India. The Pentagon’s minimal expectation will be that the Indian government at the very least would try to appease Austin by placing some big orders with American arms vendors who may be accompanying him. Austin previously served as board member in Raytheon. Blinken also ran a consultancy firm lobbying for big arms manufacturers. Presumably, a tradeoff with them is always possible.

Suffice to say, President Joe Biden had given an impression that his era would be “different”. He held out a raft of promises that diplomacy is back at the centre of US foreign policy. By doing so, Biden won enormous credit with world capitals. Yet, before the Biden presidency reaches the 100-day mark, the new administration is busy weaponising sanctions and acting like a bully on the world stage.

Source: The Indian Punchline

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One Comment
  1. SAMIR SARDANA

    WHY IS THE USA TALKING TO CHAIWALA MODI ? THIS MAN HAS DESTROYED INDIA – AND ALL THAT REMAINS IS THE DISINTEGRATION OF INDIA !

    There are 130 crore Indians.Out of which,60 crores live on farming,DIRECTLY.

    GOI is bankrupt,Banks are bankrupt.Therefore,the GOI HAS TO privatise and outsource – NOT TO RAISE CAPITAL – but to DOWNSIZE STAFF FOREVER.Those Jobs will go forever.

    The Methodology is Simple – Take Banks,ports,Hotels … of GOI.`1st the GOI destroys these PSUs,by corruption and mismanagement and overstaffing – and then PAID NEWS IN THE BANIA MEDIA – HIGHLIGHTS THE “OPPORTUNITY” to PRIVATISE, and that the savings will be used for GAU MATA.Then comes in the “INDIAN CONSULTANT”, who is paid a bribe to make a PRIVATISATION RECOMMENDATION.

    Then ANOTHER CONSULTANT IS HIRED,FOR RFQ/RFI/RFP,to rig the tender in favour of the pets of Chaiwala and Fat Pancho – Amit Shah.

    Another SOP of Chaiwala ! Set up a sea port where there is NO SEA or an AIRPORT where a plane CANNOT LAND.So it will make losses. Losses are good,as it ENSURES THAT NO STAFF IS HIRED (which is a good excuse NOT TO HIRE).Then privatise – FOR THE REAL ESTATE.

    FOR THE PSUs which are NOT privatised,the GOI INCREASES THE QUOTAS,BUT ALSO THE QUALIFICATIONS,AND THESE JOBS ARE NEVER FILLED (as the Dalits have no education and cannot pass or meet the standards). Total Job Destruction !

    Then we come to the Banks,which are bust.What does the GOI do ? Demonetisation of deposits – through sleight of hand. 1st,REDUCE SAVINGS BANKS INTEREST RATES,so the BANKS GET RECAPITALISED BY PROFITS,and the POOR DEPOSITOR GETS NIL REAL INTEREST,AS THE “TINA” OPTION comes in.The Option is the DISASTER OF CHIT FUNDS AND CO-OPERATIVE !

    By lowering bank savings interest,the govtt and corporate borrowing costs ALSO REDUCE.Corporate profits rise and the tax thereon,FLOWS TO THE GOI

    SME and SME jobs ARE DESTROYED by GST and DEMO – as a part of a plan.EVEN COVID is AN OPPORTUNITY FOR THE STATE TO DESTROY SME.SME ARE A BURDEN ON POWER INFRA AND TAX INFRA.They pay No tax (GST and Profit Tax),No power,No PF,No ESI and deal in cash.All the SME business has gone to TYCOOONS,AND they are NOW PAYING TAX ON INCREMENTAL PROFITS.In the next BUDGET the TAX RATES ON THESE TYCOONS WILL BE LOWERED ! The Stock prices of these Tycoons has gone up and so has the STT earned by the GOI.SO THE DESTRUCTION OF THE SME HAS MET THE PURPOSE.

    Agriculture is doomed.All inputs rate are up and farm gate prices are the same or lower.There is NO MSP in India.THE GOI HAS NO MONEY.THE GOI finds ingenious ways to,NOT PAY MSP.AI and Farm tebchology will DESTROY 90% OF INDIAN FARMERS.THEY ARE NOT REQUIRED ! ALL THAT THEY PRODUCE,CAN BE IMPORTED,AT HALF THE COST.THERE ARE NO JOBS FOR FARMERS – AS THEY HAVE NO EDUCATION OR SKILLS.THIS HUGE DISASTER WILL LOWER LABOUR COSTS (FOR THE BENEFIT OF TYCOONS)

    Because of the LOOT of the BANIAS and MARWARIS over 70 years, EDIBLE OIL IS IMPORTED AT 100% DUTY,AND THERE IS A 200% TAX ON DIESEL ! And that is Y the savings banks rates,will go to NEAR ZERO – as the GOI needs the DUMB INDIANS,TO LEND MONEY AT ZERO RATES OR NEGATIVE REAL INTEREST RATES.

    The RBI model is simple ! Con the DUMB INDIANS to put the money in banks (at close to zero rates),tax the interest,AND THEN LET THE BANIA COMPANY LOOT THE BANKS VIA LOANS AND PAY OFF THE NETAS.Y do the DUMB INDIANS put the money into banks ? Simple ! RBI has ensured that ALL OTHER OPTIONS ARE EITHER DISASTER (FRAUD) OR NO SECURED BENEFITS OR MUCH LOWER RATES.

    The Last STEP of Chaiwala will be RETAIL.That will WIPE OUT THE BANIA SHOPKEEPERS AND BRING THE RETAIL PROFIT IN THE TAX NET !The excuse will be,that IT WILL RAISE FARM GATE PRICES !

    NET CONCLUSION – THERE WILL BE NO GOVTT JOBS AND THERE WILL NO PRIVATE JOBS FOR THE SEMI SKILLED AND LOWER SKILLED PERSONS.

    AGRI IS DOOMED – BY AI AND TECHNOLOGY – SOLUTION IS PARTITION !

    If farmers get higher rates and higher yield,the GOI takes it back in the form of fertiliser and other prices (which lowers the subsidy bill).OUT OF ALL THE MONEY SAVED BY THE CHAIWALA – by KILLING THE JOBS,the farmers are paid a monthly dole of Rs 1000,AND THE FARMERS ARE MIGHTY THRILLED.dindooohindoo

    THE CLIMAX ! AND SO,1 DAY WILL COME A DEMAGOGUE LIKE ALFIE IN BERLIN – AND EDUCATE THE PEOPLE OF INDIA ABOUT THE ABOVE AND THEN THE PHOENIX WILL TEAR INDIA TO PIECES ! 1ST THEY WILL TARGET THE INDIAN SEMITES – BANIAS AND BRAHMINS – THE ROOT CAUSE OF ALL EVIL IN INDIA

    IT IS ALL IN THE NUMBERS OF INDIA.ITS POPULATION AND THE DNA OF CORRUPTION IS THE DOOM OF INDIA !

    NUMBERS ! NUMBERS ! NUMBERS

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