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G20: Why is EU-Middle East-India rail, ports deal ‘nothing less than historic’?
India-Middle East-Europe' economic corridor: White House said the rail and ports deal will be announced on the sidelines of G20 Summit.
US President Joe Biden and G20 partners plan to roll out plans on Saturday for a shipping corridor that would connect India with the Middle East and ultimately Europe — which could be a game changer for global trade.
President Biden and Prime Minister Narendra Modi spoke for nearly an hour on Friday and their discussion also featured a "major breakthrough" related to infrastructure and communications that would link India with the Middle East and Europe that could be announced on Saturday, Kurt Campbell, the senior US official for Indo-Pacific policy, told reporters after the discussions.
A White House official said the multinational rail and ports deal linking the Middle East and South Asia will be announced on Saturday on the sidelines of the G20 Summit in New Delhi.
Officials said the US, Saudi Arabia, the European Union, the United Arab Emirates and others will sign the agreement to augment trade flows between Europe and India.
G20 Summit: What is the rail and ports deal?
1. The deal will benefit low and middle-income countries in the region, and enable a critical role for the Middle East in global commerce, US deputy national security adviser Jon Finer told reporters at the G20 annual summit.
2. The development comes at a critical time as US President Joe Biden seeks to counter China's Belt and Road push on global infrastructure by pitching Washington as an alternative partner and investor for developing countries at the G20 partners.
3. The pact aims to link Middle East countries by railway and connect them to India by port, helping the flow of energy and trade from the Gulf to Europe, US officials have said, by cutting shipping times, costs and fuel use.
4. "Linking these key regions, we think, is a huge opportunity," said Finer. No immediate details of the value of the deal were available.
5. From the US perspective, Finer said the agreement helps “turn the temperature down across the region” and “address a conflict where we see it”.
6. The rail and shipping corridor would enable greater trade among the countries, including energy products.
7. "The India - Middle East - Europe economic corridor" is "nothing less than historic" European Union leaders are expected to say when the details of the plans are unveiled, news agency AFP reported.
8. Finer laid out three big rationales for the project in a call with reporters. He said first that the corridor would increase prosperity among the countries involved by increasing the flow of energy and digital communications. Second, the project would help to address the lack of infrastructure needed for growth in lower- and middle-income nations. And third, Finer said it could help “turn the temperature down” on “turbulence and insecurity” coming out of the Middle East.
(With inputs from agencies)
