CUTS International Washington DC Center
Monthly Brief #62, May 2023
Climate, Energy and Prosperous Indo-Pacific takes centre stage at Hiroshima
 
Last month, Japan hosted two multilateral summits – the G7 and the Quad. This brought the discussions on geo-economics and geo-politics to Hiroshima. Spanning over three days, the leaders discussed a number of challenges related to the environment, global economy, peace and prosperity among others faced by the global order. This was in consultation with invited guests such as the leaders of Australia, Brazil, Comoros, the Cook Islands, India, Indonesia, the Republic of Korea, Ukraine, and Vietnam.

While some invitees including India have been part of the earlier G7 summits but this year’s summit to include countries from the Pacific, middle-income and Global South marks a new beginning for the Japanese PM, Fumio Kishida and the G7 collectively. Leaders also reaffirmed the importance of peace and stability across Eurasia and the Indo-Pacific region.

Among the major takeaways, and agendas common to these sixteen members and guests include the launch of the “Coordination Platform on Economic Coercion”, focused to increase collective assessment, preparedness, deterrence and response to economic coercion. 

In the context of climate change, the leaders committed to work together to ensure regulations and investments that will make clean energy technologies more affordable for all nations and help drive a global, just energy transition for workers and communities. Alas, the issue of funding did not get the priority it deserves.

However, the Quad Leader’s Summit, which also took place on the sidelines of this G7 summit, reaffirmed Quad Climate Working Group and reviewed progress made under Quad Clean Energy Partnership. Let’s see how these help the crises.

Also, an announcement of the “Hiroshima Action Statement for Resilient Global Food Security” to address the critical global food insecurity and the need to build more resilient, sustainable, and inclusive food systems will most likely help to address hunger in countries where it is endemic.

Furthermore, addressing the environment, security, and joint cooperation with Palau in the Pacific area to establish a deployment of Open Radio Access Networks (Open RAN). Furthermore, and the launch of the private sector-led Quad Investors Network (QUIN), which facilitates investments in strategic technologies, including clean energy, semiconductors, critical minerals, and quantum marks the major achievements of this third in-person Quad Leaders’ Summit.
      
Pradeep S. Mehta
Editor

P.S.: Does the announcement of the “Hiroshima Vision on Nuclear Disarmament”, in the city which has been the victim of the only nuclear bombing in our world, ring a bell of similar past promises on disarmament? Or this is a start of a new era for peaceful adherence to deterrence and proliferation?
 
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How India can punch above its weight in global trade
Despite poor projections on the slowdown in international trade, India has set itself an ambitious target of achieving US$2 trillion exports by 2030. For this, India needs to cultivate an overall narrative of trade optimism that goes beyond just the numbers. By astutely combining narrative and numbers, India can punch above its weight in global trade (Paywall).

Let us fortify competitiveness and shun protectionism
India needs to prevent any protectionist backsliding in its trade policy. In the past few years, there has been a tendency to match reforms in trade and economic policy with measures which effectively aim at reducing imports and insulating domestic producers from foreign competition. Such an approach is ill-advised and will prove detrimental to India’s economic interests in the longer term.

India, U.S. to hold 1st Strategic Trade Dialogue meet in June
Expanding their multi-level engagement, India and U.S. will hold the first meeting of Strategic Trade Dialogue on June 4-5 to implement the outcomes of the Initiative on Critical and Emerging Technology (iCET) by streamlining export controls, enhancing high-tech commerce and facilitating tech transfer between the two countries. The first iCET dialogue between the National Security Advisors of the two countries took place on January 31, and the decision to hold the strategic trade meeting was taken when U.S. Commerce Secretary Gina Raimondo came to India for relaunching the bilateral commercial dialogue on March 10.

U.S.-led trade talks with 14 countries, including India, close to reaching supply chains pact
Fourteen countries in U.S.-led Indo-Pacific trade talks are nearing an agreement on supply chain coordination and may announce a deal, according to people familiar with the discussions. Negotiators would like to announce an agreement at a meeting of ministers in Detroit on May 27, added the people, who asked not to be identified because conversations are unfolding behind closed doors. The talks are focused on systems to provide early warnings when countries see a risk of supply chains being interrupted. The intention is to avoid the kind of global disruptions experienced during the coronavirus pandemic.

 

We need innovative ways to fill the climate funding gap
Rising carbon emissions and biodiversity losses have resulted in huge imbalances and pose one of the gravest threats to the existence of mankind. The vagaries of human-induced environmental threats spare none. Vulnerability of socially and economically weaker sections is compounded by their position, but it does not mean that the more privileged are likely to get away. This calls on the privileged few to think of and put in place innovative finance solutions (Paywall) to deal with the crises.

Agrivoltaics in India: Challenges and opportunities for scale-up
In the future, many countries, including India, may witness growing competition for land resources between agriculture and renewable energy. Agrivoltaics - the simultaneous use of land for both agriculture and photovoltaic power generation offers a potential solution. Studies show potential for increasing crop yield and panel efficiency, making agrivoltaics an attractive option for farmers and solar developers. Agrivoltaics has grown swiftly across the world in recent years, and India is taking the first steps in its adoption, with more than a dozen pilot projects already deployed across the country.
 
India committed to just energy transition through international cooperation
India, through the Presidency of the G20, is committed to an accelerated, responsible and just energy transition (Paywall) through international cooperation and collaboration, said Bhupinder Singh Bhalla, Secretary, Union Ministry of New and Renewable Energy (MNRE). As part of the third Energy Transition Working Group (ETWG) meeting of India’s G20 Presidency, MNRE, together with the Indian Renewable Energy Development Agency (IREDA), and International Renewable Energy Agency (IRENA) hosted the official side event, ‘Low-cost Finance for New and Emerging Energy Technologies’ in Mumbai.

India-EU collaborate on Clean Energy and Climate Partnership
The Union Power and New & Renewable Energy Minister R. K. Singh held a meeting with Frans Timmermans, Executive Vice President, European Green Deal, European Union (EU) in New Delhi on May 26, 2023. The meeting was held to discuss cooperation under the EU – India Clean Energy and Climate Partnership. The discussion touched upon energy efficiency; renewable energy, including solar and offshore wind, green hydrogen; energy storage, diversification of global supply chain for energy sector, the International Solar Alliance, India’s Presidency of the G20 and how India and EU can partner each other on the clean energy transition.

 

China wants control over entire India-Pacific
China has territorial disputes with more countries than it shares its borders with. The Chinese Communist Party (CCP), with Xi Jinping at the helm, has used deceitful tactics and manipulation in order to attempt to assert territorial control over other sovereign territories. Beijing has flouted all international norms in its expansionist bid to control more territory. China is aggressively trying to increase its influence in the Indo-Pacific region, which is home to 65 nearly percent of the world's population.

Australia and India’s relations are flourishing - With an Eye on China
Relations between Australia and India (Paywall) are at a critical juncture, amid a deepening of bilateral ties and proactive efforts to embed them within a broader regional partnership in the strategically vital Indo-Pacific. Engagement between the two sides is currently at an all-time high, with defence and security, trade, cultural partnerships, technology and education being key areas of collaboration.

India’s partnership is key to free, prosperous Indo-Pacific
U.S. Ambassador to India, Eric Garcetti, on May 11, 2023, said that New Delhi’s partnership is the key to a free and prosperous Indo-Pacific and beyond. After President Droupadi Murmu accepted the credentials, Eric Garcetti, in a video message said, “The world’s oldest and largest democracies, two nations that believe in our hearts about the power of people, have a great chapter to write together in the years ahead. India’s partnership is the key to a free and prosperous Indo-Pacific and beyond.”

India, U.S. look to enhance defence industrial cooperation
More than a month ahead of Prime Minister Narendra Modi's visit to Washington, India and the U.S. on May 17, 2023 held extensive talks focusing on operationalising their 'Major Defence Partnership' and co-development of military platforms. Boosting defence industrial cooperation, sharing of critical technology and having joint long-term research were also the focus of the 17th meeting of India-U.S. Defence Policy Group (DPG) that was held in Washington.

 

QUAD leaders issue principles for critical tech; secure software and clean energy
The QUAD leaders, in their third in-person summit, held in Hiroshima on May 20, 2023 affirmed that the four countries are committed to bringing enduring benefit to the Indo-Pacific region by providing options that build resilience, open communication and economic growth as they issued Joint Principles for Secure Software, Principles for Critical and Emerging Technology Standards and Principles for Clean Energy Supply Chains in the Indo-Pacific.

India poised to catapult to forefront of digital innovation with thriving digital economy, tech use
India with its vast population, thriving digital economy and technology use is poised to leverage transformative power of 5G, and in future 6G, to catapult itself to the forefront of digital innovation” U.S. Ambassador to India, Eric Garcetti said on May 23, 2023. Speaking at inaugural ceremony of U.S.-India 5G and next generation networks workshop, he said India and the U.S. through their shared values recognise that technology is not only about faster speeds or better connectivity, but also a gateway to progress, and a reflection of development.

Hugs, jets & bots: Modi, Biden have some knotty things to work out for Indo-U.S. ties to reach the next level: among them are military tech transfers for Make-in-India and AI collaboration
It’s “let’s-love-America” time once again. Amid a fast-changing world order and through the inevitable conflict of American exceptionalism coming up against Indian exceptionalism, these two countries are literally gritting their teeth to stitch together a relationship that is already the most consequential. In just four months, Modi and Biden are supposed to be hugging in Hiroshima, crossing paths in Port Moresby, playing cricket in Canberra and doing dinner in Washington.
 
G7 calls for developing global technical standards for AI
Leaders of the Group of Seven (G7) nations on May 20, 2023 called for the development and adoption of technical standards to keep Artificial Intelligence (AI) "trustworthy", saying governance of the technology has not kept pace with its growth. While the G7 leaders, meeting in Hiroshima, Japan, recognised that the approaches to achieving "the common vision and goal of trustworthy AI may vary", they said in a statement the rules for digital technologies like AI (Paywall) should be "in line with our shared democratic values”.

 

Goodbye to the American Century China, India, and the emerging new world order
Not so long ago, political analysts were speaking of the “G2” - that is, of a potential working alliance between the U.S. and China aimed at managing global problems for their mutual benefit. Such a collaborative twosome was seen as potentially even more powerful than the G7 group of leading Western economies. As former Under Secretary of the Treasury C. Fred Bergsten, who originally imagined such a partnership, wrote in 2008, “The basic idea would be to develop a G2 between the U.S. and China to steer the global governance process.”

Indians in Australia: New Delhi must leverage the Diaspora to its advantage
The winds of change have begun to blow. India realises that the shifting demographics, driven by heightened migration, would certainly impact the political, social, and cultural landscape across the globe. The U.S. vice president and the prime ministers of the UK, Portugal and Ireland are prime examples drawn from recent history. These are other than countries where Indian-origin people are a substantial majority such as Mauritius, Trinidad and Tobago or Fiji that have been at the head of the government. Engaging with and cultivating the diaspora, consequently, is an integral part of India’s foreign policy.

Indian FDI in U.S. exceeds US$40 billion
In a sign of the growing global reach of Indian capital, Indian companies have invested over US$40 billion in the U.S. and created over 4,25,000 direct jobs, according to the latest edition of the Confederation of Indian Industries (CII) report on the Indian industry’s footprint in the U.S. titled Indian Roots, American Soil. The previous edition of the report, released in 2020, said that 155 companies had invested US$22 billion and created 125,000 jobs.
 
U.S. ‘natural partner’ in Atmanirbhar Bharat initiative, says Vivek Lall
Describing “Atmanirbhar Bharat” as a brilliant initiative which was long overdue, a top Indian-American CEO has said that the U.S. is a natural partner in India’s initiative to make the country self-reliant in various fields, particularly in defence. The remarks by Vivek Lall, Chief Executive of General Atomics Global Corporation, came ahead of Prime Minister Narendra Modi’s State visit to the U.S. in June.