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The serious disruption caused to traffic flows through the <keyword id="168216" type="COMPANY" weightage="20" keywordseo="Suez-canal">Suez Canal</keyword> after a container ship went aground, has once again drawn attention to an expanded International North <keyword id="9996536" type="UNKNOWN" weightage="20" keywordseo="south-corridor">South Corridor</keyword> (INSTC) as a superior transit option in the years to come. Russia, Iran, and India have been quietly working on establishing a 7,200 km-long, multimodal trade corridor called INSTC. As it evolves, the INSTC is adding vital new spurs, fast emerging as a gigantic enterprise, which would link South Asia and West Asia with the beating heart of the Eurasian mainland. "The North-South corridor is a great option to replace the Suez Canal with a reduction in <keyword id="11048224" type="UNKNOWN" weightage="20" keywordseo="travel-times">travel times</keyword> to 20 days and savings of up to 30 percent," Iranian Ambassador to Russia Kazem Jalali wrote in a three-language post on his Facebook page late Saturday. The envoy pointed out that the $9 billion damage to the global economy caused by the Ever Given container vessel, that got struck and blocked international shipping, demonstrates that "the need to speed up the completion of infrastructure and the North-South corridor as an alternative to the route through the Suez Canal has become clear and more important than ever." The ultra-bold INSTC project came into being in 2002, when the transport ministers of Russia, Iran, and India signed an agreement to establish a 7200 kilometer multimodal ship, rail and road-based <keyword id="970255" type="PERSON" weightage="20" keywordseo="transport-network">transport network</keyword>. Starting from Mumbai, it would head to Moscow via Iran and the Caspian Sea. Currently, the INSTC is set to spread its radials on a much bigger canvass. Essentially, the new INSTC is a combination of two corridors. One starts as originally conceived, from Mumbai and heads to Bandar Abbas, a famous Iranian port in the Gulf. From here it takes the overland route to Bandar Anzali, which is located on the Caspian Sea coast in the north. Containers are off-loaded here and shipped along the Caspian to its Russian shore at Astrakhan, which becomes the base of further transportation into Eurasia. Over time, other countries are being networked in this rapidly mutating corridor including Azerbaijan and Armenia, in tune with the rise of Eurasia in the 21 st century. The second corridor, or the <keyword id="1955428" type="PERSON" weightage="20" keywordseo="Chabahar">Chabahar</keyword> route also begins at Mumbai, though Gujarat's upstart Mundra port is now acquiring greater resonance. From India's west coast, the corridor heads to Chabahar, Iran's only <keyword id="12350" type="LOCATION" weightage="20" keywordseo="Indian-Ocean">Indian Ocean</keyword> port, which is still a work-in-progress with a vast potential. From Chabahar, in which India is pitching major investment, the route heads towards Afghanistan via Iran's Sistan Baluchistan province along a recent India-built road. Over time, a railway is also envisaged, which will link Chabahar with the Hajigak** iron ore mines in Afghanistan, where India has made major investments. Planners of the INSTC now want to link the two routes into a giant undertaking that will allow landlocked regions of Eurasia, not only to access the increasingly congested Bandar Abbas, but also the rapidly expanding <keyword id="190285" type="COMPANY" weightage="20" keywordseo="Chabahar-port">Chabahar port</keyword> and route. Denting allout criticism that India has been wrongly facing about going overboard with the Indo-pacific Quad and abandoning its "strategic autonomy," New Delhi has actually emerged as a strong votary for the twinning of the two routes, with a vast pan-Eurasian reach. Last month, India and Iran celebrated Chabahar day, where external affairs minister <keyword id="337334" type="PERSON" weightage="20" keywordseo="S-Jaishankar">S. Jaishankar</keyword> proposed the integration of the Chabahar Port with the INSTC. "I am hopeful that during the INSTC Coordination Council meeting, member-states would agree to the expansion of the INSTC route to include the Chabahar Port and also agree on expanding the membership of this project." To develop the composite route further, Russian and Iranian media have been reporting that serious discussions are underway on the construction of a trans-Iranian canal, running from the Persian Gulf to the Caspian Sea. Analysts, however, say that the plans for a Russian-Iranian trans-Iranian canal are not new. They first emerged in the late 19th century. Ambitious Russian engineers had then charted blueprints for a navigable canal, which would offer Moscow a shorter path to the Indian Ocean, bypassing the Turkish Straits and Egypt's Suez Canal. But political crises and revolutions in both countries had kept the idea frozen. However, with the Suez route once again demonstrating its vulnerability, the idea of an alternative trade passage may have finally arrived. SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/pepperfry-co-founder-ashish-shah-gets-candid-about-its-ipo-plans-says-profitability-is-right-around-the-corner/articleshow/81908005.cms">Pepperfry co-founder gets candid about its IPO plans, says profitability is right around the corner</a> <a href="https://www.businessinsider.in/tech/mobile/news/lg-electronics-exits-smartphone-business-world-wide-lg-smartphone-timeline-history/articleshow/81908186.cms">LG Electronics exits the smartphone business – here’s how its mobile fortunes swayed over the last two decades</a> <a href="https://www.businessinsider.in/business/corporates/news/tcs-hcl-tech-infosys-q4-earnings-preview-and-guidance/articleshow/81908765.cms">Record breaking quarter for Indian IT services is a given ⁠— all eyes are now on guidance</a>

Suez Canal issue reprised interest in the North South Corridor being built by India, Russia and Iran as an alternative

<ul><li>Earlier this week, <keyword id="3658" type="LOCATION" weightage="20" keywordseo="India">India</keyword>, <keyword id="41896" type="LOCATION" weightage="20" keywordseo="Iran">Iran</keyword> and <keyword id="6354541" type="LOCATION" weightage="20" keywordseo="afghanistan">Afghanistan</keyword> held trilateral discussions for the first time ever in Kabul. </li><li>The focus of the discussions was the long-delayed <keyword id="1955428" type="CITY" weightage="20" keywordseo="Chabahar">Chabahar</keyword> port project in Iran, which has been a question mark for India following the Trump administration’s decision to reimpose <keyword id="6403436" type="UNKNOWN" weightage="20" keywordseo="sanctions">sanctions</keyword> on Iran. </li><li>During its 2+2 talks with the US last week, India made a case for its participation in the Chabahar port project. The next round of trilateral discussions between India, Iran and Afghanistan is scheduled for 2019. </li></ul>Earlier this week, India, Iran and Afghanistan held trilateral discussions for the first time ever in Kabul. The Indian contingent was spearheaded by Foreign Secretary Vijay Gokhale, who met with the deputy foreign ministers of both countries. While a number of issues were discussed, such as counter-terrorism cooperation and the <keyword id="44844" type="ORGANIZATION" weightage="20" keywordseo="Trade">trade</keyword> of narcotics, the focus of the discussions was the long-delayed Chabahar port project on Iran’s southern coast. The development of the port has been a huge question mark for India following the reimposition of sanctions on Iran by the Trump administration this year after it pulled out from the nuclear deal. A long time in the making First conceived in 2003, the Chabahar port, which can be accessed from India’s western coast, is envisioned as a strategic competitor to the <keyword id="428402" type="PERSON" weightage="20" keywordseo="Gwadar-port">Gwadar port</keyword> that China is developing a 100 kms away in <keyword id="3001" type="LOCATION" weightage="20" keywordseo="Pakistan">Pakistan</keyword>. Once developed, the Chabahar is expected to boost trade not only between India, Iran, Afghanistan but with a host of Central Asian countries, which can transport natural gas to India. It makes sense for India because it can bypass Pakistan when conducting trade with these partners. Pakistan does not allow overland transit for Indian entities. India and Iran signed an agreement in May 2016 to commence work on the port. At the time, the development of the port was to be divided into two phases. India agreed to invest $500 million developing two berths in the first phase of the project, along with $1.6 billion for a rail link from the port to Afghanistan. Phase 1 was <a href="https://www.thehindu.com/news/international/iran-inaugurates-chabahar-port/article21254227.ece">inaugurated</a> by Iran’s President <keyword id="6374564" type="PERSON" weightage="20" keywordseo="hassan-rouhani">Hassan Rouhani</keyword> in December 2017. India wavers, China steps in? Due to repeated delays on the project from India’s end, Iran was said to be mulling a proposal to bring China on as a partner for the project. China’s participation would go against India’s interests, not only because it would lose out on significant trade opportunities but also due to the fact that it would increase China’s footprint in the region. During its 2+2 talks with the US last week, India made a case for its participation in the Chabahar port project, explaining how it would benefit Afghanistan from an economic standpoint - mainly due to direct connectivity with India. The rehabilitation and economic resurgence of the war-ravaged country is an urgent concern for the US, which has had a military presence there since the early 2000s. It is counting on India’s help to stabilise the Afghani economy. India, Iran and Afghanistan decided to hold a more substantive round of talks on the subject in 2019, when the possible effect of sanctions on Iran will be more certain and the former receives an official go-ahead from the US for its participation. The major impetus behind this week’s discussions was to likely show that the three parties, especially India, were committed to developing the port.

Despite sanctions on Iran, India is still intent on pushing ahead with the Chabahar Port

India and Iran united on the issue of combating <keyword id="6358165" type="COMPANY" weightage="20" keywordseo="terrorism">terrorism</keyword> and radicalism as the two nations signed at least 12 agreements today. The announcement came during Prime Minister <keyword id="6354477" type="PERSON" weightage="20" keywordseo="Narendra-Modi">Narendra Modi</keyword>'s visit which comes months after lifting of international sanctions on Iran following Tehran's historic nuclear deal with the Western powers over its contentious atomic programme. "We have agreed to consult closely and regularly on combating threats of terrorism, radicalism, drug trafficking and cyber crime. We have also agreed to enhance interaction between our defence and security institutions on regional and <keyword id="62000" type="UNKNOWN" weightage="20" keywordseo="Maritime-security">maritime security</keyword>," Prime Minister Narendra Modi said here. 

	PM Rouhani, meanwhile, termed terrorism as a "big problem running rife and rampant in the region", and said that both the nations have discussed the issue and agreed to share intelligence to combat the menace.
 "Due to the importance of stability and security in the region and especially in the countries <keyword id="6354541" type="COUNTRY" weightage="20" keywordseo="afghanistan">Afghanistan</keyword>, Iraq, Syria and Yemen and because a big problem called terrorism is running rife and rampant in the region. 

	"The two countries discussed about political issues as well and how they can cooperate on intelligence sharing and how they can get closer to each other in the fight against terrorism and extremism and how they can contribute to peace and stability in the whole region," Rouhani added.

India, Iran unite on combating terror and radicalism; agree to enhance intelligence sharing

New Delhi, Feb 26 () The government on Wednesday approved the exemption of India Ports Global Ltd from the Department of Public Enterprises (DPE) guidelines for smooth execution of Chabahar Port project. The approval was given during a Union Cabinet meeting chaired by Prime Minister Narendra Modi. "The Union Cabinet...has approved the exemption of the India Ports Global Ltd (IPGL) from the DPE Guidelines, except reservation and vigilance policies," the shipping ministry said in a statement. IPGL was incorporated as a special purpose vehicle jointly promoted by Jawaharlal Nehru Port Trust (JNPT) and Deendayal Port Trust (DPT) for development and management of Shahid Behesthi Port of Chabahar in Iran.Subsequent to the withdrawal of the US from the Joint Comprehensive Plan of Action, the external affairs ministry advised the shipping ministry on October 29, 2018 to exclude JNPT and DPT from possible impact of US sanctions. "Based on this and with the approval of empowered Committee all the shares of JNPT &amp; DPT were purchased by 'Sagarmala Development Company Ltd' (SDCL) on December 17, 2018," it said.SDCL is a central public sector enterprise (CPSE) and therefore IPGL being a subsidiary of SDCL has also become a CPSE. As a result, guidelines of DPE are technically applicable on IPGL.Since Chabahar Port is the country's first overseas port project with strategic objectives, there is an urgent need to allow IPGL to continue to function as a board managed company, duly following the instructions of the shipping as well as external affairs ministries without making the guidelines of DPE applicable to it for a period of five years, the statement said. Accordingly, the shipping ministry has requested exemptions to IPGL from the applicability of the DPE guidelines, for smooth execution of the project. SID SID ANUANU

Cabinet approves exemption of IPGL from DPE guidelines

<ul><li><keyword id="41896" type="COUNTRY" weightage="20" keywordseo="Iran">Iran</keyword>’s deputy ambassador warned that Iran will withdraw the ‘special privileges’ it gives <keyword id="3658" type="LOCATION" weightage="20" keywordseo="India">India</keyword> if the country lowers its import of <keyword id="726417" type="PERSON" weightage="20" keywordseo="iranian-oil">Iranian oil</keyword>. </li><li>He also criticised India for not making investments in the expansion of Chabahar port in Iran as promised with the signing of a pact in May 2016. </li><li>The warning from Iran came after Trump withdrew <keyword id="6355055" type="UNKNOWN" weightage="20" keywordseo="usa">USA</keyword> from the <keyword id="154476" type="PERSON" weightage="20" keywordseo="Iran-nuclear-deal">Iran nuclear deal</keyword> and called out to the Asian countries to bring their Iranian <keyword id="587694" type="PERSON" weightage="20" keywordseo="oil-import">oil import</keyword> to “zero”. </li></ul>On Tuesday, Iran’s deputy ambassador and charge d’affaires, Massoud Rezvanian Rahaghi, clearly <a href="https://thewire.in/diplomacy/iran-india-promised-investments-chabahar">announced</a> that India will lose its ‘special privileges’ if it cuts down on its import of Iranian oil or if it tries to replace the oil with imports from Saudi Arabia, Russia, Iraq, the US and others. He further added that if India does so, “It may have to revert to dollar-denominated imports which mean higher CAD (Current Account Deficit) and deprivation of all other privileges Iran has offered to India”. He made this statement during a seminar on ‘emerging challenges and opportunities in the global diplomacy and its impact on bilateral ties with India’. After Iraq and Saudi Arabia, Iran is India's third-largest oil supplier. In return, India buys <a href="https://www.theguardian.com/news/datablog/2012/feb/06/iran-oil-exports-destination">13%</a> of the total exported crude oil from Iran, which is a huge proposition in itself. He further took the seminar as an opportunity to criticise India for not fulfilling its promise of making investments in the expansion of the Chabahar port in Iran. The port is considered to be a gateway to trade opportunities between the two countries and India had signed a pact in May 2016 promising to invest. This reaction from Iran comes as a response to the <a href="https://economictimes.indiatimes.com/industry/energy/oil-gas/us-wants-india-to-stop-importing-oil-from-iran-by-november/articleshow/64758631.cms">US policy</a> which called out countries to start reducing the import of oil from Iran and bring it to zero by 4 November. The failure to do so would result in the imposition of sanctions from the US. The policy was announced after Trump pulled out from the Iran nuclear deal - the Joint Comprehensive Plan of Action (<a href="https://www.hindustantimes.com/india-news/iran-criticises-india-for-not-making-promised-investments-in-chabahar-port/story-0yRzu8WCt7aIGOjV8UuXfL.html">JCPOA</a>) - which had been signed by Obama in 2015. Iran called US’ approach a “selfish” one and said that it must abandon “its policy of resorting to threats or use of force”. Referring to the US sanctions on oil import from Iran, Rahaghi made it a point to mention that his country has been a reliable energy partner for India and has always followed a “rationale pricing” of oil which ensures the interest of both, consumers and suppliers. He also called India to “work together to immunise the relationship between the two countries” and proposed the adoption of necessary instruments and mechanisms like setting up banking relations, opening new transaction routes and helping each other’s markets and business communities. He further went on to suggest that a <a href="https://timesofindia.indiatimes.com/business/india-business/iran-criticises-india-for-not-making-promised-investments-in-chabahar-port/articleshow/64937334.cms">regional dialogue</a> forum should be set up in the Persian Gulf and West Asia to resolve terrorism and regional crises. According to the data from shipping and industry sources, India's oil imports from Iran declined by 15.9 % in June which was the first month after the US gave its ultimatum. However, the Ministry of External Affairs has maintained that India would consult “all stakeholders” in the matter to ensure energy security.

Will withdraw ‘special privileges’ if oil imports are lowered under US pressure, Iran warns India

In an unsurprising turn of events, US President <keyword id="6354484" type="PERSON" weightage="20" keywordseo="Donald-Trump">Donald Trump</keyword> decided to withdraw from the <keyword id="41896" type="LOCATION" weightage="100" keywordseo="Iran">Iran</keyword> nuclear deal yesterday (May 8th), four days before the May 12th deadline. In doing so, the President, a self-described expert on deals, made good on a long-standing threat to pull out from what he called the “worst deal ever”, which was painstakingly negotiated by seven countries over the course of two years. He has also decided to reimpose the economic sanctions that were placed on Iran prior to the signing of the agreeement, and instructed the Treasury Department to draw up further penalties. While our global edition has offered a rundown on the <a href="http://www.businessinsider.com/winners-and-losers-of-trump-iran-deal-decision-2018-5">nearest winners and losers </a> from the US’s withdrawal, the negative effects of the decision will be felt all over the world, including in India. Here is how India stands to lose in the short term. <keyword id="6359072" type="UNKNOWN" weightage="20" keywordseo="oil">Oil</keyword> prices may increase, and Indian consumers may suffer The imposition of sanctions on Iran will lead to a reduction in the global supply of oil, which in turn will lead to higher prices. Iran’s oil exports, which currently stand at <a href="https://www.reuters.com/article/us-oil-iran-exports/irans-crude-and-condensate-exports-recover-from-march-dip-idUSKBN1HU1LB">2.5 million barrels</a> a day, could fall by as much as <a href="http://www.businessinsider.com/trump-iran-nuclear-deal-impact-oil-gas-prices-tax-cut-savings-2018-5">500,000 barrels a day</a>. Prices are already high owing to a production cutbacks by OPEC countries and falling production in Venezuela. Concurrently, India’s financial health has taken a turn for the worse as oil prices have risen. The country imports 80% of its oil and is already dealing with the depreciation of the rupee, which closed at a 15-month low of 67.13 to the US dollar earlier this week. Higher oil prices will lead to a heavier import bill relative to exports, and India’s <keyword id="183320" type="ORGANIZATION" weightage="20" keywordseo="current-account-deficit">current account deficit</keyword> will widen further. The current account deficit increased by nearly 70% to <a href="https://in.reuters.com/article/india-currentaccount/indias-october-december-current-account-deficit-widens-sharply-on-higher-imports-idINKCN1GS1JG">$13.5 billion last year</a>-, more than 2% of GDP. The widening of the current account deficit means that India will have lower foreign exchange inflows, leading to a further fall in the relative value of the rupee. As a result, Indian consumers will have to deal with higher prices of imported goods other than oil. They will also have to contend with the duties imposed on oil by the government in the last few years when oil prices were low. These are an important source of revenue for the government, and since it needs the money more than ever, it will be forced to pass on the impact of higher oil prices to consumers. A number of deals with Iran will be suspended for the time being and China could benefit In addition to looking elsewhere to supplement its oil import requirements, India could also be forced to suspend a number of deals with Iran amid the ongoing uncertainty. In February 2018, a visit to New Delhi by Iran’s President, Hassan Rouhani, led to the signing of <a href="https://timesofindia.indiatimes.com/india/nine-pacts-deepen-iran-ties-further/articleshow/62965716.cms">nine bilateral deals.</a> The most significant of these was the agreement to develop and lease the Chabahar port in southeastern Iran. As part of a plan to counter China’s regional influence, India has promised to invest $500 million in the port, which will help it bypass the China-Pakistan Economic Corridor and gain access to Central Asia and Afghanistan from Iran. The port will provide new trading routes and greater connectivity to the region. In fact, in October last year, the Indian government successfully <a href="http://mea.gov.in/press-releases.htm?dtl/29062/Flag+off+of+the+first+consignment+of+wheat+assistance+to+Afghanistan+through+Chabahar+port">sent a consignment of wheat</a> to Afghanistan from Chabahar. However, new sanctions from the US could threaten India’s involvement in the port and derail its investment plans. Despite India’s <a href="http://mea.gov.in/bilateral-documents.htm?dtl/29495/IndiaIran_Joint_Statement_during_Visit_of_the_President_of_Iran_to_India_February_17_2018">support for the Iran deal,</a> it is also beholden to the US and its allies in the Middle East - Israel and Saudi Arabia. Additionally, sanctions from the US could also stall the operation of the International North South Transport Corridor, a trade agreement between Iran, Russia and India that will give the latter an unprecedented level of access to the Central Asian region. If India reneges on its commitment to the Chabahar port, Iran could be forced to seek the assistance of China, which will further isolate India. Hence, its ability to counter China’s expanding influence is contingent on it’s relationship with Iran. The <keyword id="6354642" type="PERSON" weightage="20" keywordseo="Modi">Modi</keyword> government’s foreign policy heads will have a tricky balancing act to maintain in the short term.

Here's how Trump's decision to pull out of the Iran nuclear deal may affect India

<ul><li>On the last day of 2018, US President Donald <keyword id="6354862" type="UNKNOWN" weightage="20" keywordseo="trump">Trump</keyword> signed the Asia Reassurance Initiative Act. </li><li>Under the act, around $1.5 billion worth of funding will be channeled into improving US ties with partners in the region for the next five years. </li><li>While the act frames a comprehensive strategy for the US in the Asia, it singles out <keyword id="3658" type="LOCATION" weightage="20" keywordseo="India">India</keyword> as an important military partner with a key role in maintaining peace and stability in the region. </li><li>The act also highlights threats from <keyword id="1334" type="LOCATION" weightage="20" keywordseo="China">China</keyword>, citing the country’s “illegal construction and militarization of artificial features in the South China Sea” as well as its “coercive economic practices.” </li></ul> The US President Donald Trump signed a number of acts on the last day 2018. A particularly noteworthy one, with respect to India, was the <a href="https://www.congress.gov/bill/115th-congress/senate-bill/2736/text#toc-H00AC660EEB9C435D8D91F69FBF988311">Asia Reassurance Initiative Act</a> (ARIA). The US Senate passed the act in the first week of December, with the US Congress following suit in the second week. Under the act, around $1.5 billion worth of funding will be channeled into improving US ties with partners in the region for the next five years. It is likely to put the fears of a US retreat from the region to rest. While the act frames a comprehensive strategy for the US in the Asia, it singles out India as an important military partner with a key role in maintaining peace and stability in the region. It also calls for a strengthening in trade and diplomatic ties with India and well as increased exchange of military technologies and information. The US reiterated its commitment to all bilateral pacts signed with India, including the 2012 United States-India Defense Technology and Trade Initiative and the 2015 Joint Strategic Vision for the <keyword id="1551039" type="PERSON" weightage="20" keywordseo="Indo-Pacific">Indo-Pacific</keyword> and Indian Ocean Region. The act also stressed the importance of the Quadrilateral security dialogue between the US, Australia, India, and Japan. In September last year, India signed the the <a href="https://www.businessinsider.in/india-and-the-us-just-signed-a-landmark-military-intelligence-sharing-agreement/articleshow/65716448.cms">Communications Compatibility and Security Agreement (COMCASA),</a> which facilitates the sharing of military intelligence with the US. Under the pact, India will be given access to a host of technologies like advanced drones and communication platforms. Of course, since this is an act about the US’s strategy in Asia, China receives significant mention given the government’s fears about China upsetting the current power order in the world. The act highlights the country’s “illegal construction and militarization of artificial features in the South China Sea” as well as its “coercive economic practices,” the latter referring to China’s trade policies, as threats. In a clause that could prove controversial, it also recommends increasing the sale of arms to Taiwan to help defend it from possible incursions by China. The Trump administration’s foreign policy stance has largely been transactional -- ‘Help us and we will help you’. It’s no different with respect to India. The ARIA makes it clear that the US requires India’s help to counter China’s influence in Asia if the two are to become better friends. As 2019 progresses, India will look to the US for a number of concessions, such as the lifting of trade restrictions, a go-ahead for the Chabahar Port project in Iran and an exemption from sanctions for buying a missile shield system from Russia. SEE ALSO: <a href="https://www.businessinsider.in/india-and-the-us-just-signed-a-landmark-military-intelligence-sharing-agreement/articleshow/65716448.cms">India and the US just signed a landmark military-intelligence sharing agreement</a> <a href="https://www.businessinsider.in/senior-chinese-military-officer-calls-for-attacks-on-us-ships-in-the-south-china-sea/articleshow/67029057.cms">Senior Chinese military officer calls for attacks on US ships in the South China Sea</a> <a href="https://www.businessinsider.in/heres-what-trump-had-to-say-about-india-at-the-un-general-assembly/articleshow/65960850.cms">Here’s what Trump had to say about India at the UN General Assembly</a>

The US government is enforcing an act that calls for a stronger partnership with India in order to ensure peace and stability in the Indo-Pacific region

(Image source- Reuters) <ul><li>Over the course of 2018, <keyword id="3658" type="LOCATION" weightage="20" keywordseo="India">India</keyword>’s <keyword id="6375197" type="UNKNOWN" weightage="20" keywordseo="tea">tea</keyword> <keyword id="35090" type="COMPANY" weightage="20" keywordseo="exports">exports</keyword> to <keyword id="41896" type="COUNTRY" weightage="20" keywordseo="Iran">Iran</keyword>, its second largest export market for tea, have declined considerably because of the uncertainty over the imposition of <keyword id="44844" type="ORGANIZATION" weightage="20" keywordseo="Trade">trade</keyword> sanctions by the US. </li><li>Amid this uncertainty, India could tap an old trading partner to offset the slowdown in tea exports to the Middle East: <keyword id="6355112" type="LOCATION" weightage="20" keywordseo="Iraq">Iraq</keyword>. </li><li>The move has been in the works since July, but likely gained momentum following a recent visit to Iraq by representatives from the Trade Promotion of Council of India.</li></ul>Over the course of 2018, India’s tea exports to Iran, its second largest export market for tea, have declined considerably owing to uncertainty over the imposition of trade sanctions by the US. This has probably led to an excess of supply, given India’s status as the one of the <a href="https://www.businesswire.com/news/home/20181204005711/en/Assessment-Indian-Tea-Industry-2018-Highest-Production">largest producers of tea</a> this year. India’s tea exports have <a href="https://www.thehindubusinessline.com/economy/agri-business/tea-exports-in-q3-rise-on-all-parameters/article25518820.ece">remained flat</a> at 173.80 million kgs between January and September 2018, partly owing to a decline in shipments to Iran. Amid this uncertainty, India could tap an old trading partner to offset the slowdown in tea exports to the Middle East: Iraq. The move has been in the works <a href="https://www.business-standard.com/article/companies/indian-companies-to-resume-large-scale-exports-to-iraq-amid-global-blues-118071001380_1.html">since July</a>, but likely gained momentum following a recent visit to Iraq by representatives from the Trade Promotion of Council of India. Sujit Patra, the secretary of the <keyword id="174405" type="COMPANY" weightage="20" keywordseo="Indian-Tea-Association">Indian Tea Association</keyword> told <a href="https://economictimes.indiatimes.com/markets/commodities/news/iraq-keen-on-resuming-tea-imports-from-india/articleshow/66964716.cms">ET</a> that buyers in four cities - Baghdad, Erb, Najaf and Karbala - had expressed interest in sourcing tea from India. India’s exports of tea to Iraq burgeoned in the first decade of the 21st century, despite the US occupation of the country. However, they came to a standstill after 2013-14, when around 50 million kgs were exported, as the conflict with Islamic State and regional tensions reached a fever pitch. Between 2006 and 2008, Iraqi importers also <a href="https://www.livemint.com/Politics/oPpbymv3EOLm8l7JadFbDN/Iraq-still-has-to-pay-a-portion-of-its-2006-Indian-tea-bills.html">defaulted</a> on their payments which hit the trading relationship. After India halted exports, Iraq ramped up its tea imports from Vietnam and Sri Lanka. In fact, Sri Lanka reportedly fulfills 80% of Iraq’s tea imports - a market share that India could soon muscle in on. India’s tea is said to be slightly more expensive than Sri Lanka’s. However, Patra explained that this wouldn’t be an issue as the importers he met were reportedly prepared to pay a premium for “higher quality” orthodox teas. This is good news for India’s tea manufacturers, especially as they deal with <a href="https://timesofindia.indiatimes.com/city/guwahati/wage-hike-insurance-for-tea-garden-workers/articleshow/64904643.cms">increasing labour costs</a> at home. The timing for the revival in tea exports to Iraq is momentous. As opposed to in the past, when the government sourced low-quality brews, purchasing privileges have now devolved to private players, who are looking to buy more high-quality tea. The Indian government is also preparing a <a href="https://economictimes.indiatimes.com/news/economy/agriculture/cabinet-likely-to-clear-policy-to-boost-exports-of-agri-commodities/articleshow/66959439.cms">policy to boost exports</a> of agricultural commodities by improving shipping infrastructure and removing quota and minimum price restrictions. SEE ALSO: <a href="https://www.businessinsider.in/india-among-the-eight-countries-allowed-to-continue-buying-oil-from-iran-even-after-the-us-reimposes-sanctions-but-theres-a-catch/articleshow/66475463.cms">India among the eight countries allowed to continue buying oil from Iran even after the US reimposes sanctions — But there’s a catch</a> <a href="https://www.businessinsider.in/india-will-count-on-saudi-arabia-and-iraq-to-make-up-for-a-decline-in-iranian-oil-imports/articleshow/66216451.cms">India will count on Saudi Arabia and Iraq to make up for a decline in Iranian oil imports</a> <a href="https://www.businessinsider.in/despite-sanctions-on-iran-india-is-still-intent-on-pushing-ahead-with-the-chabahar-port/articleshow/65783391.cms">Despite sanctions on Iran, India is still intent on pushing ahead with the Chabahar Port</a>

India might revive tea exports to Iraq as sanctions on trade with Iran loom

PM Modi’s two-day visit to Iran has resulted in an agreement stating that India will be investing billions of dollars in setting up various industries like aluminum smelter and urea plants in Iran's Chabahar free trade zone. A pact has also been signed to operate a strategic port on the Iran’s southern coast, which would allow India to access Afghanistan, Russia and Europe without going through Pakistan. 
 "The distance between Kandla and the Chabahar port is less than the distance between New Delhi and Mumbai, and so what this agreement does is to enable us quick movement of goods first to Iran and then onwards to Afghanistan and Russia through a new rail and road link," Road Transport, Highways and Shipping Minister <keyword id="26680" type="PERSON" weightage="100" keywordseo="Nitin-gadkari">Nitin Gadkari</keyword> said. 
 
"Over Rs 1 lakh crore investment can happen in Chabahar free trade zone," he added. 
 
He further added that Iran has cheap natural gas and power which would allow Indian firms to build a 0.5-million tonne aluminium smelter plant and urea manufacturing units in the country. 
 
"We spend Rs 45,000 crore annually on urea subsidy, and if we can manufacture it in the Chabahar free trade zone and move it through the port to Kandla and onward to hinterland, we can save that amount," he explained. 
 
Railway PSU IRCON will also be building a rail line at Chabahar so that goods can be moved right up to Afghanistan. 
 
As of now, India can't enter Afghanistan, and thus the rest of Central Asia via land because Pakistan sees India's expansive diplomacy in the region as a threat. 
 
File Photo | <a href="http://www.indianlink.com.au/wp-content/uploads/2015/07/modi-iran.jpg">Image source</a>

India to invest 1 lakh crore in Iran so that it can enter Central Asia without stepping into Pakistan

Prime Minister <keyword id="6354477" type="PERSON" weightage="20" keywordseo="Narendra-Modi">Narendra Modi</keyword>’s travel diary could soon be having some more new places. Come July, Modi would be visiting five Central Asian countries with an intent to tap huge natural resources including hydrocarbon and uranium. As per a news report in The Economic Times, Modi plans to spend a day each in Kazakhstan, Uzbekistan, Kyrgyzstan, Turkmenistan and <keyword id="169344" type="COUNTRY" weightage="20" keywordseo="Tajikistan">Tajikistan</keyword>, diplomatic sources told the financial daily. The trip is being clubbed with Modi's maiden visit to <keyword id="6358826" type="COUNTRY" weightage="20" keywordseo="Russia">Russia</keyword> for the Brics summit in <keyword id="271311" type="CITY" weightage="20" keywordseo="Ufa">Ufa</keyword> on July 8 and 9, sources hinted. Modi is also expected to attend the <keyword id="157954" type="ORGANIZATION" weightage="20" keywordseo="Shanghai-Cooperation-Organisation">Shanghai Cooperation Organisation</keyword> summit in the same city on July 9 and 10. 
 <keyword id="1333" type="COMPANY" weightage="20" keywordseo="Beijing">Beijing</keyword> has made huge inroads in the region, with which it shares geographical boundaries, by laying pipelines to harness hydrocarbon and constructing railway and road network to connect Europe via <keyword id="6360296" type="UNKNOWN" weightage="20" keywordseo="Central-Asia">Central Asia</keyword>. Prime ministerial trips to Central Asia have been few and far between notwithstanding its geographical proximity, strategic importance and abundance of natural resources. 
 While many former Prime Minsters from <keyword id="6358441" type="PERSON" weightage="20" keywordseo="Narasimha-Rao">Narasimha Rao</keyword> to <keyword id="47100" type="PERSON" weightage="20" keywordseo="Atal-Bihari-Vajpayee">Atal Bihari Vajpayee</keyword> and <keyword id="6359397" type="PERSON" weightage="20" keywordseo="Manmohan-Singh">Manmohan Singh</keyword> have visited these countries lack of road and sea access has not allowed India to realise full trade potential with the region. This could change after India develops the Chabahar port in <keyword id="41896" type="COUNTRY" weightage="20" keywordseo="Iran">Iran</keyword> and will use the nation as a transit for Central Asia. India's defence ties with some countries of the region have been upgraded in recent years. India also shares historical bonds with Central Asia and enjoys goodwill in the region, thanks to its ties with the erstwhile <keyword id="6365126" type="COUNTRY" weightage="20" keywordseo="Soviet-Union">Soviet Union</keyword> of which the nations were a part. 
 (Image: <keyword id="-101" type="COMPANY" weightage="20" keywordseo="India-Times">India Times</keyword>)

Modi to fly overseas yet
again in July! This time to 5 Central Asian
countries

<div class="KonaFilter image-container display-table"><div><div class="image on-image">AP Photo/Manish SwarupIndian Prime Minister Narendra Modi with Chinese President Xi Jinping at the BRICS summit in Goa, India, October 16, 2016.</div></div></div><ul><li>China has been expanding its foreign involvement, in part through development projects around the world.</li><li>Beijing's growing influence has concerned its neighbors - chief among them India and Japan.</li><li>To counter China, Tokyo is looking for a bigger role in the region, working with India to get it.</li></ul>China's growing presence in the Indian Ocean region worries India, which has sought to counter Beijing's influence there. But India is not the only country in Asia looking to <a href="http://www.businessinsider.com/ways-countries-in-asia-are-responding-to-china-2018-5" target="_blank" rel="noopener">balance against a rising China</a>.Japan, which has long deferred to the US, is now pursuing a bigger role, expanding security partnerships in the region and boosting its involvement in infrastructure projects - many of which rival China's own projects.In 2015, Tokyo announced plans to spend hundreds of billions on infrastructure projects in Asia, Oceania, and Africa in coming years, and since 2016, Japan has committed <a href="https://www.lowyinstitute.org/the-interpreter/japan-plans-build-free-and-open-indian-ocean" target="_blank" rel="noopener">nearly $8 billion</a> to projects to develop ports and related infrastructure around the Indian Ocean."The scale of [Japan's] infrastructure investments in the region rivals, and sometimes exceeds, that of China," David Brewster, a specialist in South Asian and Indian Ocean strategic affairs at the Australian National University, <a href="https://www.lowyinstitute.org/the-interpreter/japan-plans-build-free-and-open-indian-ocean" target="_blank" rel="noopener">wrote this week</a> for the Lowy Institute's Interpreter.Such projects are part of Japanese Prime Minister Shinzo Abe's Free and Open Indo-Pacific (FOIP) Strategy, meant to further connect Asia and Africa and the Pacific and Indian Oceans while promoting stability and prosperity.<div class="KonaFilter image-container display-table"><div><div class="image on-image">REUTERS/Adnan AbidiJapanese Prime Minister Shinzo Abe and his Indian counterpart, Narendra Modi, in New Delhi, December 12, 2015.</div></div></div>FOIP projects currently <a href="http://the-japan-news.com/news/article/0004465715?m=jnnl" target="_blank" rel="noopener">under consideration</a> include a joint project with India and Sri Lanka to expand an existing port at Trincomalee in Sri Lanka, a joint project with Myanmar and Thailand to build a new port and special economic zone around Dawei in Myanmar, and a project with Bangladesh to build a new port at Matabari to handle half that country's cargo volume.Japan has started behind-the-scenes talks with those governments, and Japan's International Cooperation Agency has started drafting plans for those projects, <a href="http://the-japan-news.com/news/article/0004465715?m=jnnl" target="_blank" rel="noopener">according</a> to Japanese newspaper Yomiuri Shimbun.While China recently acquired a 99-year lease of a Sri Lankan port at Hambantota, which <a href="http://www.businessinsider.com/indias-concern-with-beijing-expansion-grows-with-sri-lanka-port-deal-2017-8" target="_blank" rel="noopener">raised ire in India</a>, The Yomiuri Shimbun reported that China failed to make progress on similar projects in Myanmar and Bangladesh due to Japan's development plans.Delhi helped influence Bangladesh's decision to award the Matarbari project to Tokyo, and Japan and India <a href="https://www.lowyinstitute.org/the-interpreter/japan-plans-build-free-and-open-indian-ocean" target="_blank" rel="noopener">could cooperate</a> on future projects, including at Trincomalee and on Iran's Chabahar port, which India sees as <a href="http://www.businessinsider.com/india-steering-a-tricky-path-through-us-allies-and-foes-in-south-asia-2017-11" target="_blank" rel="noopener">a valuable link to central Asian markets</a> (though that project could be affected by US sanctions on Iran.)Japan's interest in a bigger regional role <a href="http://foreignpolicy.com/2018/02/09/japan-takes-the-lead-in-countering-chinas-belt-and-road/" target="_blank" rel="noopener">isn't new</a>, but has grown in recent months, amid <a href="http://www.businessinsider.com/ways-countries-in-asia-are-responding-to-china-2018-5" target="_blank" rel="noopener">doubts about US policy</a> in the region. But, Brewster writes, Japan's approach is <a href="https://www.lowyinstitute.org/the-interpreter/japan-plans-build-free-and-open-indian-ocean" target="_blank" rel="noopener">in clear competition</a> with China's Belt and Road Initiative (BRI).The BRI has been criticized as being unsustainable and lacking transparency, and China has been accused of using it to further "<a href="http://www.businessinsider.com/china-influence-pacific-western-countries-push-back-2018-4" target="_blank" rel="noopener">debt-trap diplomacy</a>." US officials have warned that Beijing is "<a href="http://www.businessinsider.com/china-weaponizing-capital-us-navy-chief-awake-at-night-2018-3" target="_blank" rel="noopener">weaponizing capital</a>" through the initiative, and the International Monetary Fund has warned China and its possible partners about deals that could <a href="http://www.businessinsider.com/china-influence-pacific-western-countries-push-back-2018-4" target="_blank" rel="noopener">create mounting debt</a>.<div class="KonaFilter image-container display-table"><div><div class="image on-image">ReutersProjects subsumed under One Belt, One Road program by China, as of March 2017.</div></div></div>Japan has said its approach is distinct from the BRI in important ways, according to Brewster, including its emphasis on safety, reliability, social and environmental considerations, and on aligning with local development goals and a broader rules-based order. Japan also includes India as a partner and economic hub, whereas China's BRI avoids India.India and Japan also announced the Asia-Africa Growth Corridor in May 2017 to further expand ties. It was supported by several African countries, including South Africa, and is poised to be another alternative to China's BRI. Beijing has tried <a href="https://economictimes.indiatimes.com/articleshow/60345807.cms" target="_blank" rel="noopener">to undercut it</a>, pushing India and South Africa to merge the project with the BRICS platform, which would exclude Japan and dilute Delhi's influence.There are <a href="http://foreignpolicy.com/2018/02/09/japan-takes-the-lead-in-countering-chinas-belt-and-road/" target="_blank" rel="noopener">doubts</a> about whether Japan has the resources to compete with China's infrastructure push, and even though Japan has positioned its offerings as alternatives to China's, Tokyo hasn't precluded future cooperation - Japanese officials <a href="https://thediplomat.com/2017/11/aimai-japans-ambiguous-approach-to-chinas-belt-and-road/" target="_blank" rel="noopener">have even said</a> the BRI could ultimately benefit the global economy, depending on how it's implemented.But there is little doubt Tokyo and Delhi are have their eyes on countering their bigger neighbor."Japan is concerned about a rising Chinese profile beyond the Western Pacific, and India is equally concerned about the strategic implications of China's commercial engagements in its neighborhood," Darshana Baruah, an analyst at Carnegie India, <a href="http://foreignpolicy.com/2018/02/09/japan-takes-the-lead-in-countering-chinas-belt-and-road/" target="_blank" rel="noopener">told Foreign Policy</a> earlier this year. "These projects are aimed at creating an alternative to China's Belt and Road." <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/why-the-yuan-not-euro-could-become-global-currency-dollar-china-usa-eu-dharshini-david-2018-4">Why China's Yuan, not the Euro, could become the dominant global currency</a></h3> <div> </div> </div>

Japan is quietly gaining an edge amid a growing competition between India and China

<div class="KonaFilter image-container display-table"><div><div class="image on-image">REUTERS/Jonathan ErnstPresident Donald Trump displays a presidential memorandum after announcing his intent to withdraw from the JCPOA Iran nuclear agreement in the Diplomatic Room at the White House in Washington, U.S., May 8, 2018.</div></div></div><ul class="summary-list"><li>The Trump administration's strategy of maximum pressure on Iran hasn't achieved its intended impact.</li><li>To fight the oil sanctions, Tehran has found workarounds. It now sells its crude on an anonymous Energy Exchange platform to customers whose identity will remain secret.</li><li>According to the National Security Adviser John Bolton, more sanctions and stricter enforcement are on their way. They are sorely needed.</li></ul>The Trump administration's strategy of maximum pressure on Iran took full effect on Nov. 5. It included the re-imposition of oil sanctions and designation of more than 700 Iranian entities, individuals, aircraft, and vessels. However, so far, the impact has fallen short of what will be required for true maximum pressure, though the administration is on the right path. Iran's currency, the rial, has shown surprising resiliency. On Nov. 4, the price of the U.S. dollar in Tehran reached <a href="https://www.bonbast.com/historical/usd/2018/11" data-saferedirecturl="https://www.google.com/url?q=https://www.bonbast.com/historical/usd/2018/11&amp;source=gmail&amp;ust=1542471592853000&amp;usg=AFQjCNF1js3xS9jECFB_8OfwgTm1rNmQ4g">149,000 rial</a>. One week later, on Nov. 12, the price decreased by 7% to <a href="https://www.bonbast.com/historical/usd/2018/11" data-saferedirecturl="https://www.google.com/url?q=https://www.bonbast.com/historical/usd/2018/11&amp;source=gmail&amp;ust=1542471592853000&amp;usg=AFQjCNF1js3xS9jECFB_8OfwgTm1rNmQ4g">138,500</a> rial. Admittedly, Iran's underground forex market is shallow and subject to heavy manipulation by the Central Bank, but the rial appreciation is in line with other signals.The Tehran Stock Exchange has shown similar signs of life. The Overall Index on Nov. 4 was 182,918. One week later, on Nov. 12, it stood at 182,211 - a drop of only 0.4 percent. And in terms of the dollar value of the index, it actually shows a significant 7 % increase in value. Meanwhile, Tehran's Energy Exchange celebrated its second crude oil deal this week. To fight the oil sanctions, Tehran found a workaround. It now sells its crude on an anonymous Energy Exchange platform to customers whose identity will remain secret. These customers, in turn, sell the oil in the international markets. This is how unknown buyers purchased <a href="https://twitter.com/search?src=typd&amp;q=%22%D9%82%D8%A7%D8%B3%D9%85%DB%8C%20%D9%86%DA%98%D8%A7%D8%AF%22" data-saferedirecturl="https://www.google.com/url?q=https://twitter.com/search?src%3Dtypd%26q%3D%2522%25D9%2582%25D8%25A7%25D8%25B3%25D9%2585%25DB%258C%2520%25D9%2586%25DA%2598%25D8%25A7%25D8%25AF%2522&amp;source=gmail&amp;ust=1542471592853000&amp;usg=AFQjCNHefXCm7FNRV6LwN_CRRzaf6af_lw">700,000 barrels</a> of Iran's crude oil on Nov. 11 for $64.97 per barrel. The cost was roughly 9% below the going rate posted by the National Iranian Oil Company. But it was a victory nevertheless in that sanction busters around the world now see a possible way around U.S. restrictions.<div class="KonaFilter image-container display-table"><div><div class="image on-image"><a href="https://www.reutersconnect.com/all?id=tag%3Areuters.com%2C2018%3Anewsml_RC1F40EC97A0%3A1766344808&amp;search=all%3ANAZANIN%20TABATABAEE%20YAZDI%2F%20TIMA%20">Alistair Bell/Reuters</a></div></div></div>In an even more significant development, the Saudis are now pushing for an <a href="https://www.cnbc.com/2018/11/11/saudi-arabia-in-talks-to-cut-oil-output-after-us-waivers-hit-prices.html" data-saferedirecturl="https://www.google.com/url?q=https://www.cnbc.com/2018/11/11/saudi-arabia-in-talks-to-cut-oil-output-after-us-waivers-hit-prices.html&amp;source=gmail&amp;ust=1542471592853000&amp;usg=AFQjCNGOpT1qUq1P6cFYcEWd3jrnsj4fbQ">output cut</a>. Riyadh had previously pledged to flood the market to ensure that Iran could not cash in on high prices resulting from a restricted market stemming from U.S. sanctions. Higher prices mean more revenue from the oil that Iran does sell. Furthermore, by issuing waivers for eight countries, the U.S. has not reduced Iran's oil exports to zero, though it has <a href="https://www.fdd.org/analysis/2018/11/09/iranian-oil-exports-already-down-before-sanctions-came-back-online/" data-saferedirecturl="https://www.google.com/url?q=https://www.fdd.org/analysis/2018/11/09/iranian-oil-exports-already-down-before-sanctions-came-back-online/&amp;source=gmail&amp;ust=1542471592853000&amp;usg=AFQjCNEBYdMk1FdRFCI60HDN2devRfFPVg">taken offline 1 million barrels</a> per day in six months without spiking oil prices - an impressive achievement. Iranian funds now will be locked up in escrow accounts that can only be accessed for approved humanitarian and limited commercial purposes, further squeezing accessible Iranian foreign exchange reserves. But much more needs to be done to collapse Iranian oil exports and police the escrow accounts to prevent the wide-scale sanctions busting that occurred last time around.U.S. policy on SWIFT, the ubiquitous electronic banking transfer system, received some long-awaited clarity with the disconnection of the Central Bank of Iran and a number of designated Iranian banks. The administration permitted some Iranian banks to remain on the SWIFT system for humanitarian transactions but, as my colleagues Mark Dubowitz and Annie Fixler <a href="https://www.fdd.org/analysis/2018/11/02/dont-let-irans-rulers-abuse-the-humanitarian-channel-to-the-detriment-of-the-people/" data-saferedirecturl="https://www.google.com/url?q=https://www.fdd.org/analysis/2018/11/02/dont-let-irans-rulers-abuse-the-humanitarian-channel-to-the-detriment-of-the-people/&amp;source=gmail&amp;ust=1542471592853000&amp;usg=AFQjCNFWu7Bo-ffTnYzloxPnlk6ODQdKKA">argued</a>, the administration will have to redouble its efforts to police this humanitarian channel. Iran has used humanitarian exemptions to U.S. sanctions in the past to run massive sanctions-busting schemes. Moreover, the U.S. has issued waivers for Iraq and Afghanistan to trade with Iran. Both countries suffer from corruption and lack of transparency, which make them fertile grounds for Tehran's sophisticated sanctions-busting operations. Iraq, in particular, has become a <a href="https://home.treasury.gov/news/press-releases/sm546" data-saferedirecturl="https://www.google.com/url?q=https://home.treasury.gov/news/press-releases/sm546&amp;source=gmail&amp;ust=1542471592853000&amp;usg=AFQjCNE9se2DMYoOQ3jdgnw_qOX3jPIJZw">major destination</a> for Iranian goods and services. Finally, there is the waiver issued for India's <a href="https://timesofindia.indiatimes.com/india/us-exempts-india-from-certain-sanctions-for-development-of-chabahar-port-in-iran/articleshow/66531453.cms" data-saferedirecturl="https://www.google.com/url?q=https://timesofindia.indiatimes.com/india/us-exempts-india-from-certain-sanctions-for-development-of-chabahar-port-in-iran/articleshow/66531453.cms&amp;source=gmail&amp;ust=1542471592853000&amp;usg=AFQjCNFR6vptjiTUfbS094d0U40wDprabA">Chabahar port</a> in Iran. Delhi was desperate for the exemption to permit a land-based supply route to Afghanistan as a substitute for the one controlled by its archenemy Pakistan. But Washington needs to understand the tradeoff. This port will allow India to grow its trade relationship with Iran. Delhi already is one of Tehran's top trade partners.According to the National Security Advisor <a href="https://www.voanews.com/a/trump-security-chief-bolton-vows-to-squeeze-iran/4656670.html" data-saferedirecturl="https://www.google.com/url?q=https://www.voanews.com/a/trump-security-chief-bolton-vows-to-squeeze-iran/4656670.html&amp;source=gmail&amp;ust=1542471592853000&amp;usg=AFQjCNHFxWD4ZDdKXCHVOB1f037l91nqlw">John Bolton</a>, more sanctions and stricter enforcement are on their way. They are sorely needed. The impact of the new sanctions to date is not sufficient to change the Iranian regime's behavior. To ensure maximum pressure, the U.S. sanctions campaign needs to cut Iran oil export to no more than 500,000 barrels per day in the next six months. The United States should continue to push countries like China, Turkey, and India to reduce trade, especially oil purchases. Iran's access to the escrow funds should be limited to humanitarian transactions only, with strict oversight to ensure there is no abuse.From there, Washington should aggressively target Tehran's network of illicit financing and procurement in East Asia, Canada, Europe, Latin America, Turkey, the Caucuses, and Persian Gulf. Additionally, the U.S. needs to drain Tehran's resources by sanctioning and weakening its proxies in the region, especially in Syria and Lebanon, which Tehran sees as strategic strongholds.Although Iran's economy has shown resiliency in the immediate aftermath of the latest round of sanctions, Tehran is on shaky ground. Its economy is still under strain, and its access to hard currency is shrinking. Meanwhile, discontent among everyday Iranians is on the rise. The Trump administration has a historic chance to force the clerical regime to alter its dangerous course, but such an extraordinary result requires extraordinary measures.Saeed Ghasseminejad is a senior advisor on Iran at the Foundation for Defense of Democracies, a Washington-based nonpartisan research institute focusing on national security and foreign policy.Get the latest Oil WTI price<a href="http://markets.businessinsider.com/commodities/oil-price?type=WTI"> here.</a> <div class="margin-top"> <h3>NOW WATCH: <a href="https://www.businessinsider.com/nuclear-bomb-launch-procedure-us-government-president-2017-11">Here's how easy it is for the US president to launch a nuclear weapon</a></h3> <div> </div> </div>

Trump's Iran sanctions aren't working as planned

<div class="KonaFilter image-container display-table"><div><div class="image on-image">REUTERS/Raheb HomavandiA speed boat passes oil docks at the port of Kalantari in the city of Chabahar, 186 miles east of the Strait of Hormuz, January 17, 2012.</div></div></div><ul><li>India is working with Iran to develop and overland route to Afghanistan.</li><li>The US, which wants India's help in Afghanistan, appears to have accepted that India and Iran will have some kind of relationship going foward.</li><li>India is also trying to build influence around the Indian Ocean.</li></ul> Just days after the first shipment of Indian wheat arrived in the southeastern Iranian port of Chabahar on its way to Afghanistan, Indian officials <a href="http://www.reuters.com/article/india-iran-port/india-cracks-open-iran-sea-route-to-afghanistan-bypassing-rival-idUSL3N1NC54V" target="_blank" rel="noopener noreferrer">said</a> they were in talks with Tehran to begin interim operations at the port.India's activity at Chabahar is more than <a href="https://thediplomat.com/2017/10/first-indian-wheat-shipment-leaves-for-afghanistan-via-irans-strategic-chabahar-port/" target="_blank" rel="noopener noreferrer">a decade</a> in the making, but the country now finds itself steering between its own rival in Pakistan and an arch US foe in Iran in order to reach Afghanistan, where the Trump administration is eager to see New Delhi offer economic and security assistance.India's and Afghanistan's foreign ministers <a href="http://mea.gov.in/press-releases.htm?dtl/29062/Flag_off_of_the_first_consignment_of_wheat_assistance_to_Afghanistan_through_Chabahar_port" target="_blank" rel="noopener noreferrer">heralded</a> the first of seven shipments of 1.1 million metric tons of wheat headed to the latter country."The shipment of wheat is a landmark moment as it will pave the way for operationalisation of the Chabahar port as an alternate, reliable and robust connectivity for Afghanistan" and "enhance trade and commerce between the three countries and the wider region," India's Ministry of External Affairs <a href="http://mea.gov.in/press-releases.htm?dtl/29062/Flag_off_of_the_first_consignment_of_wheat_assistance_to_Afghanistan_through_Chabahar_port" target="_blank" rel="noopener noreferrer">said</a> in a statement.<div class="KonaFilter image-container display-table"><div><div class="image on-image">Google Maps</div></div></div>India <a href="https://thediplomat.com/2016/04/india-iran-afghanistan-finalize-chabahar-port-agreement/" target="_blank" rel="noopener noreferrer">signed</a> the Chabahar Agreement with Afghanistan and Iran in spring 2016, allowing India to access Afghanistan through the port. India has committed <a href="http://www.reuters.com/article/india-iran-port/india-cracks-open-iran-sea-route-to-afghanistan-bypassing-rival-idUSL3N1NC54V" target="_blank" rel="noopener noreferrer">$500 million</a> to develop the port, alongside plans for overland-transit routes, including a railway for which India has said it would supply <a href="https://economictimes.indiatimes.com/news/economy/foreign-trade/india-afghanistan-and-iran-finalise-chabahar-agreement/articleshow/51867141.cms" target="_blank" rel="noopener noreferrer">$400 million worth</a> of steel rails.Washington is keen to see India do more to help stabilize Afghanistan, where the Trump administration has recommitted the US to its <a href="http://www.businessinsider.com/mattis-us-not-winning-longest-war-in-afghanistan-photos-2017-6" target="_blank" rel="noopener noreferrer">16-year-long war</a>. Earlier this year, Trump appeared to <a href="http://www.businessinsider.com/ap-trumps-afghanistan-strategy-includes-new-ultimatum-on-india-2017-8" target="_blank" rel="noopener noreferrer">to tie India's</a> trade relationship with the US to its role in Afghanistan, and his administration has <a href="http://www.businessinsider.com/us-holds-255-million-pakistan-for-afghanistan-2017-8" target="_blank" rel="noopener noreferrer">withheld</a> hundreds of millions from Pakistan in order to get it to do more to secure the war-torn country.India also has its own interest in developing new routes to Afghanistan.India is Afghanistan's top destination for exports, receiving $220 million of the latter country's $483 million in total trade in 2016, <a href="https://thediplomat.com/2017/10/first-indian-wheat-shipment-leaves-for-afghanistan-via-irans-strategic-chabahar-port/" target="_blank" rel="noopener noreferrer">according</a> to The Diplomat. A significant portion of Afghanistan's manufactured goods have traveled through Karachi in Pakistan on their way to India; however, deteriorating relations with Islamabad have <a href="https://thediplomat.com/2016/04/india-iran-afghanistan-finalize-chabahar-port-agreement/" target="_blank" rel="noopener noreferrer">severely crimped</a> that flow.Pakistan has had poor relations with India and Afghanistan, and it does not allow those two countries to use its territory for overland trade. Pakistan has also accused India of using Afghanistan as a base from which to undermine Pakistan - though a Pakistani Foreign Office official reportedly <a href="https://tribune.com.pk/story/1550999/1-chabahar-port-not-alliance-pakistan-fo/" target="_blank" rel="noopener noreferrer">said this week</a> that Islamabad does not see India-Afghanistan trade via Iran as "any kind of alliance against us."Developing an overland route through Iran is also a potentially touchy subject with the US.<div class="KonaFilter image-container display-table"><div><div class="image on-image">REUTERS/Kevin LamarquePresident Donald Trump with Indian Prime Minister Narendra Modi during a joint news conference at the White House, June 26, 2017.</div></div></div>New Delhi has <a href="http://www.reuters.com/article/india-iran-port/india-cracks-open-iran-sea-route-to-afghanistan-bypassing-rival-idUSL3N1NC54V" target="_blank" rel="noopener noreferrer">framed its engagement</a> with the Chabahar project as more about reaching Afghanistan than about building ties with Iran, and India has in the past cut its oil imports from Iran in response to international sanctions.And Washington appears to be assenting to limited cooperation between India and Iran. Secretary of State Rex Tillerson <a href="http://www.reuters.com/article/india-iran-port/india-cracks-open-iran-sea-route-to-afghanistan-bypassing-rival-idUSL3N1NC54V" target="_blank" rel="noopener noreferrer">said</a> during a visit to India in October that the US would not block projects to help Iranians (though he stressed that the US would act against financial benefits reaped by Iran's Revolutionary Guard Corps).Jeff Smith, a South Asia expert at The Heritage Foundation in Washington, told Reuters he had the impression conservative analysts in the US "have accepted" that India and Iran will maintain some kind of relationship."They recognize that for India, Iran is more about a transport corridor to Afghanistan; that it has no interest in advancing Iran's agenda in the Middle East; and that whatever space India evacuates there will be filled by China," Smith <a href="http://www.reuters.com/article/india-iran-port/india-cracks-open-iran-sea-route-to-afghanistan-bypassing-rival-idUSL3N1NC54V" target="_blank" rel="noopener noreferrer">said</a>.Balancing against China in the Indian and Pacific Oceans is an important goal for the US and India, but perhaps more so for India.<div class="KonaFilter image-container display-table"><div><div class="image on-image">REUTERS/Romeo RanocoIndian sailors aboard INS Kadmatt arrive for a four-day goodwill visit, aiming to strengthen ties between India and the Philippines, in Manila, October 3, 2017.</div></div></div>China has in recent years developed a string of bases and ports along the Indian Ocean coast and signed on to infrastructure deals with countries in the region - ranging from <a href="http://www.businessinsider.com/r-china-launches-charm-offensive-for-first-overseas-naval-base-2016-3" target="_blank" rel="noopener noreferrer">Bangladesh to Myanmar</a> to <a href="http://www.businessinsider.com/indias-concern-with-beijing-expansion-grows-with-sri-lanka-port-deal-2017-8" target="_blank" rel="noopener noreferrer">Sri Lanka</a> to <a href="http://www.businessinsider.com/china-troops-to-overseas-base-operational-security-concerns-for-us-2017-7" target="_blank" rel="noopener noreferrer">Pakistan</a> to <a href="http://www.businessinsider.com/china-troops-to-overseas-base-operational-security-concerns-for-us-2017-7" target="_blank" rel="noopener noreferrer">Djibouti</a>.India appears to be taking a <a href="http://www.businessinsider.com/amid-simmering-tension-with-china-india-is-increasing-naval-strength-2017-11" target="_blank" rel="noopener noreferrer">more muscular approach</a> to defending its interests in the region, expanding its weapons purchases - particularly of naval armaments - and investing in its domestic <keyword id="6354810" type="ORGANIZATION" weightage="100" keywordseo="Defense">defense</keyword> industry.While India remains wary of <a href="http://www.businessinsider.com/video-of-chinese-indian-troops-fighting-with-stones-at-himalaya-border-2017-8" target="_blank" rel="noopener noreferrer">Chinese activity</a> along their shared northern border, its attention now appears to be turning to its southern, maritime approaches."This is a tectonic shift in India's security calculus, that it has to protect its southern flank," Brahma Chellaney, a strategic-studies professor at the Center for Policy Research, <a href="https://www.nytimes.com/2017/07/10/world/asia/india-us-japan-war-games-china.html?smid=tw-nytimesworld&amp;smtyp=cur&amp;_r=0" target="_blank" rel="noopener noreferrer">told</a> The New York Times this summer. <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/animated-map-changes-way-see-world-india-greenland-texas-united-states-africa-south-america-2017-4">These 10 maps will change the way you see the world</a></h3> <div> </div> </div>

You Searched For "Chabahar Port" and got 13 results

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