Deepening India-US relations bury CAATSA
By Avni Sablok
New Delhi, July 30: The international system has become a spectre of heightened security dilemma as it witnesses a discernible change in power capabilities as well as assertion of dominance by some countries, such as, North Korea, China and most recently by Russia.
The Russian-Ukraine war has triggered a debate on the questions of countering any aggressive actions through sanctions, particularly through Countering America’s Adversaries Through Sanctions Act (CAATSA).
It is worth mentioning here that since Russia’s annexation of Crimea in 2014, US administration has brought in CAATSA regime to threaten with sanctions on countries that purchase major defence hardware from Russia.
However, on July 14, 2022, the US House of Representatives passed a legislative amendment that approves waiver to India from CAATSA.
The move is aimed to help India to acquire defence goods, including the S-400 missile defence system from Russia, to deter China.
Significance of CAATSA
CAATSA, which has been in force since 2 August 2017, entails provisions of sanctions on countries engaged in transactions, particularly defence, with countries such as North Korea, Iran and Russia, considered adversary under the law.
Under this federal law, the US administration can impose sanctions of economic and financial consequences on any country that has ‘significant transactions with Iran, North Korea or Russia’.
Amidst the escalating tensions between the US and Russia over Moscow’s invasion of Ukraine, it has been difficult for many countries, including India, to purchase Russian missiles without being subjected to punitive measures of CAATSA.
In fact, there were apprehensions that India’s purchase of S-400 air defence missile systems from Russia will result in US sanctions under CAATSA.
In the recent past, the US administration invoked Section 231 of CAATSA to impose sanction son Turkey’ Presidency of Defense Industries (SSB) for procuring the S-400 surface-to-air missile system, and thereby deliberately making ‘significant transaction’ with Rosoboronexport, Russia’s main arms export entity.
What does CAATSA waiver entail for Indian security paradigm?
Noteworthy, Russia has been one of the major suppliers of arms and ammunition to India. According to Stockholm International Peace Research Institute (SIPRI) report 2020, Russian arms constitutes half of India’s total military imports.
With the approval of the legislative amendment that exempts India from economic sanctions under CAATSA by the US House of Representatives, the US has accorded strategic importance of India, particularly in the Indo-Pacific. It is also a showcase of the US moving to make sanction regime a past for India in post pandemic global order, with India’s total defense trade growing over $20 billion in 2020.
Indian-American Congressman Ro Khanna, who introduced the legislative amendment seeking a waiver for India, stressed that US administration must take into cognizance the changing dynamics of the world with China as a possible threat and support India to strengthen India’s defence position, including allowing defence transaction with Russia.
This move not only underscores the growing importance of India in the US strategic calculus but also is a recognition of India’s pursuit of an independent foreign policy, particularly its policy of diversification in defence acquisitions for its national interests.
Simultaneously, the waiver will provide India the required strategic depth in the region. The waiver, if finally approved, will allow India to procure S-400 Triumf missile system which will enable India to detect and destroy hostile fighters, strategic bombers, missiles and drones at long range, and deter any potential aggression from both Pakistan, on the western front and China, on the northern front, simultaneously.
In responding to the changing power configuration, particularly in the context of Russia-Ukraine stand-off, India has displayed its capability as a responsible power, distinctive among the major democracies and among US strategic partners, contributing significantly to the maintenance of international peace and security.
The CAATSA waiver, if finally approved, can be a significant boost to India security paradigm not only because the CAATSA waiver can be seen as a first of its kind to exempt any country from the punitive actions, favouring India, but also recognising the escalating aggression of China as a potential threat not only for India but also US.
(Views expressed in the article solely belong to the author, who is a senior researcher with Public Policy Research Centre)
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