CUTS International Washington DC Center
Monthly Brief #66, September 2023
From G20 to G21
 
The inclusion of the African Union (AU) as part of the G20 presidency marked a historic milestone in global diplomacy. This significant development made the AU, representing a group of 55 African country members, only the second regional organisation to attain permanent membership within the G20. We hope the group is renamed as G21. Finally, our long-term efforts have succeeded!
 
This move underscored the growing recognition of Africa's importance in global affairs and its vital role in addressing pressing international issues. The Indian Prime Minister Narendra Modi warmly welcomed AU Chairperson Azali Assoumani at the Summit in New Delhi, symbolising the spirit of unity and collaboration.
 
I would join Eric Garcetti, the incumbent U.S. Ambassador to India, on the well-organised conduction of the G20 summit. Here, let me quote him, “India has had marvellous growth. Its rapid rise, its leadership in the world today has demonstrated the most successful G20 in the history of that organisation,". This glowing acknowledgment encapsulated the remarkable journey of India within the G20, wherefrom it has emerged as a prominent global leader. All kudos to the Prime Minister and his team which managed the summit and its outcome.
 
The adoption of the G20 declaration by all participating members, signifying unanimous consensus on critical issues ranging from economic growth to climate change and gender equality, served as a tangible testament to the G20's achievements and the skills of Indian negotiators. These shared commitments underscored the G20's role in shaping global policies and addressing pressing challenges, reflecting its effectiveness and impact on the world stage.
 
Having said this, the baton of the G20 presidency is going to pass onto Brazil, under President Lula's leadership, and from there on to South Africa. It will tackle the urgent matter of climate change and biodiversity, recognising its significance, especially in the context of the challenges Brazil faces.
 
Furthermore, Lula has already announced the emphasis of the Brazil G20 summit on hunger and food security, which is a fundamental concern that resonates globally. Here, we would like to highlight the role of consumer rights which underpins the Right to Food.
 
Now, during Brazil’s presidency – we at CUTS International would take forward our ongoing advocacy for consumer protection, climate finance and just transition through initiatives under the India Brazil South Africa (IBSA) banner. We also propose that a Consumer Summit be organised by Brazil to discuss the Right to Food along with other social sector issues which are becoming a problem for ordinary human beings.
      
Pradeep S. Mehta
Editor

P.S.: Alas, the crucial issue of reviving the dispute settlement system in the WTO did not get the attention it deserves. After all the WTO is a functioning cog in the multilateral wheel and we need closer international cooperation to deal with the numerous problems we are facing today, and will face tomorrow.
 
Message for our Readers
This is the sixty-sixth edition of the Monthly Brief from the Center, which carries select published news or comments on a relevant issue. There are equally important issues which may have been missed out to keep the Monthly Brief short and swiftly readable.
 
This newsletter contains copyrighted material whose use has not been specifically authorised by the copyright owners. Consumer Unity & Trust Society (CUTS) is making these articles available in our efforts to advance understanding of bilateral trade and economic issues. We believe that this constitutes a ‘fair use’ of the copyrighted material as provided for in Article 10 of the Berne Convention for the Protection of Literary and Artistic Works (Paris Text 1971) and in section 107 of the US Copyright Law. If anybody wishes to use materials from this publication for purposes that go beyond ‘fair use’, s/he must obtain permission from the copyright owner. CUTS will not draw any profit from this publication, since it is solely for informative and educational purposes.
 
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India, U.S. mutually resolve 2 trade disputes: WTO
The World Trade Organisation (WTO) on August 08, 2023 said that two separate dispute settlement panels have stated that India and the U.S have mutually resolved disputes with regard to certain measures on steel and aluminium products, and additional duties on certain products from the U.S. On July 13, the two countries notified that they had reached a mutually agreed solution to the matters raised in the two disputes.

Remarks by Ambassador Katherine Tai on the World Trade Organisation and the Multilateral Trading System
U.S. Trade Representative Katherine Tai delivered remarks at the Center for Strategic and International Studies on the World Trade Organisation (WTO) and the multilateral trading system. In her remarks, Ambassador Tai affirmed the Biden-Harris Administration’s commitment to a reformed WTO and underscored that the institution must adapt to address today’s pressing challenges, including climate change and non-market economic policies. Ambassador Tai also emphasised that the WTO’s rules were never meant to be static and that being committed to the organisation means being committed to a substantive reform agenda.

India will play an important role in trade realignment globally: Former U.S. Assistant Commerce Secretary Arun Kumar
Over centralising manufacturing in China wreaked havoc on global trade and supply chains, and nations have learnt from this, says Arun Kumar, the former Assistant Secretary of Commerce for Global Markets and Director General of U.S. and Foreign Commercial Service in U.S. President Barack Obama’s Administration. Speaking to The Hindu about his new book “The Global Trade Paradigm: Rethinking International Business in the Post-Pandemic World” (HarperCollins India, 2023). He envisioned India playing a pivotal role in global manufacturing.

Why does India trade with China?
It is often asked why despite India’s enmity against China, is there still a US$136 billion business between them. It is a fact that India shares quite unpalatable and hostile terms with China as it’s one of the closest neighbours in Asia. But despite several border issues and dicey security threats to India flowing from China, the last year’s (2022) bilateral trade between them was of US$136 billion. And just because of these high-yielding business figures, people tend to fall in ambiguity about India-China bilateral relations which are still financially affluent despite border disputes and China was being marked as Covid’s epi centre by India.

 

India and U.S. in talks for collaboration in battery technology, critical minerals
Amid the quest for energy transition and ambitious net zero goals, India and the U.S. are in talks for collaboration in the spaces of battery technologies and critical minerals, Tarun Kapoor, Advisor to the Prime Minister of India. "Batteries and critical minerals are two areas where we are looking forward to good collaboration because in order to secure our energy requirements, we have to move from absolute basics, which means the minerals such as lithium, which are so critical, also need to be tied up for which we have discussions going on at present,” Kapoor said.

India and U.S. Strengthen Defense, Space, and Clean Energy ties in High-Level Talks
India and the U.S. have reaffirmed their commitment to collaboration in defence, space, and clean energy during a meeting between External Affairs Minister S Jaishankar and Secretary of State Antony Blinken in Washington DC. The discussions marked a significant diplomatic engagement, following the recent G20 Summit in New Delhi. In a tweet, Jaishankar expressed his pleasure at meeting Secretary Blinken, highlighting the wide-ranging discussion that followed up on Prime Minister Narendra Modi's June visit. The diplomats covered various global developments and set the groundwork for an upcoming 2+2 meeting.
 
How India can transition its EV battery waste crisis into a green energy opportunity
India, with its ambitious goals of transitioning to 40 percent renewable energy by 2030 and achieving significant Electric Vehicle (EV) penetration, is entering its lithiumion battery revolution in full swing. EV sales are witnessing steady growth, propelled by supportive policies, incentives, and higher awareness of environmental issues than ever. Yet, the surge in battery demand raises alarming concerns about the disposal and environmental impact of spent batteries, as well as the ethical sourcing of energy transition materials for battery manufacturing.

How India plans to use Nuclear Energy to Achieve Net Zero Emissions
India on September 27, 2023 spelled out plans to generate 22 GW power through nuclear energy to achieve Net Zero emissions for addressing the challenges posed by climate change. At the International Atomic Energy Agency (IAEA) in Vienna, Atomic Energy Commission Chairman Ajit Kumar Mohanty shared India’s ambitious plans to step up nuclear power generation during a meeting with IAEA Director General Rafael Mariano Grossi.

 

           
India-U.S. collaboration necessary for free, open and resilient Indo-Pacific: CUTS International
The U.S. Consulate General Kolkata and CUTS International organised a day-long workshop titled “Defense News Conclave: Stories of U.S.-India Defense and Security Partnership,” in Jaipur to create awareness about various aspects of growing India-U.S. defense partnership. An enormous range of Americans have a stake in utilising the full potential of U.S.-India defence ties as it spans the scope of human endeavour from sea to space, from security to health, and from energy to education. In the vision of India being a developed country by 2047, the U.S. is going to play a major role in it, said Pradeep S Mehta, Secretary General, CUTS International in his opening remarks.

Strengthening Indo-Pacific Unity: QUAD Nations Commit to a Peaceful and Prosperous Future
The QUAD member countries have stated their firm support for a free and open Indo-Pacific region that promotes inclusivity and resilience. On the sidelines of the 78th United Nations General Assembly, key representatives from the U.S., Australia, India, and Japan met in New York City to reinforce their commitment to international cooperation. The meeting was aimed to emphasise their dedication to upholding established rules, norms, and standards while further deepening cooperation within the QUAD framework.

U.S. in active talks with India to look at producing military systems
The U.S. is in active talks with the Indian government to look at producing military systems (Paywall) in areas related to (Interrupt Service Routine (ISR) and ground-based conventional warfare, a senior Pentagon official said. Efforts are also on to establish a reciprocal defence procurement agreement with India, Siddharth Iyer, Director for South Asia Policy, Office of the Secretary of Defence said in Washington at an event organised by the prestigious Hudson Institute.

At 2+2 dialogue, U.S.-India emphasise transformative momentum in ties for Indo-Pacific security
Top U.S. Defence and State Department officials co-chaired the seventh 2+2 Intersessional Dialogue with their Indian counterparts here on September 26 and laid their emphasis on the transformative momentum in U.S.-India ties and reiterated the need to uphold security in the Indo-Pacific region, the Pentagon said. The U.S. Defence Department said they reviewed progress toward operationalising major bilateral initiatives on information-sharing, defence industrial cooperation, and joint service engagements.

 

India, Australia collaboration important for shaping governance of emerging technologies
India and Australia have an important role in contributing to the development of critical and emerging technologies and shaping their governance framework, said Sarah Storey, Deputy High Commissioner for the Australian High Commission to India. Storey, while highlighting the opportunities between the two countries to work on technologies such as Artificial Intelligence (AI), blockchain, and 6G, added that technology should be designed, developed, governed, and used based on shared democratic values.

Transforming Space Data into Solutions: I2U2’s Joint Venture for a Sustainable Future
The I2U2 group, consisting of India, Israel, the United Arab Emirates (UAE), and the U.S., has unveiled an exciting joint venture in the field of space exploration. This announcement was made during the United Nations General Assembly in New York. These countries are all participants in the Artemis Accords, a set of guidelines for peaceful and responsible space exploration. This collaborative project centers on utilising space-based observation data and capabilities provided by the four I2U2 partner nations.

India and U.S. come together to strengthen global semiconductor supply chain
India and the U.S. have jointly expressed their commitment to strengthening the global semiconductor supply chain, emphasising their dedication to ongoing high-level collaboration between governments, industries, and educational institutions. During their bilateral discussions in New Delhi, Prime Minister Narendra Modi and U.S. President Joseph Biden underscored the importance of building a resilient global semiconductor supply chain while reiterating their commitment to expanding the India-U.S. Strategic Partnership based on trust and mutual understanding.
 
The U.S. and India take the next step: Unpacking U.S.-India technology cooperation and the Biden-Modi summit
June’s meeting between U.S. President Biden and India’s Prime Minister Modi advanced the U.S.-India connection to a new level. While the relationship falls short of an actual alliance and India and the U.S. may often differ, the alignment of national interests continues to deepen. This was evident in the scope and breadth of cooperative agreements that the meeting either announced or confirmed.  Much of the focus was on technology, which plays an increasingly central role in the relationship.

 

Two factors have brightened U.S. market prospects for Indian pharma. But there’s a catch.
Of late, there has been renewed optimism around the U.S. business of Indian pharmaceutical companies (Paywall). Once deemed as a big opportunity and a promising market, the U.S. had become a drag on Indian companies in the last few years due to high price erosion and compliance issues. But the situation has been improving. In the first quarter of FY24, leading Indian generic drug makers, which have a significant presence in the U.S. market, posted strong growth.

The Indian Pharmaceutical Industry: A Remarkable Journey
The Indian pharmaceutical industry holds a significant place in the global economy. It ranks third in volume and fourteenth in value worldwide. During the COVID-19 pandemic, it showcased exceptional performance, making a mark on the global stage. Despite a nationwide lockdown, the industry ensured a steady supply of medicines and vaccines. It played a vital role in vaccinating 2.2 billion Indians and providing over 290 million vaccine doses to more than 100 countries through the 'Vaccine Maitri' initiative.

India could become a medical devices powerhouse
Medical devices market (Paywall) is set to grow at CAGR of 25 percent as per Niti Aayog. National Medical Devices Policy implementation would help the industry reach its potential PLI scheme for medical devices are skewed towards large firms. Small devices producers must be given tax incentives and grants. India can learn from China’s experience in medical device manufacturing. While the Indian pharma industry gained leadership on the global stage a while back, the Indian medical devices sector took some time to come.
 
Pharma sector must focus on innovation to become global leader
Union Health Minister Mansukh Mandaviya on September 26, 2023 asked domestic pharmaceutical industry to focus on the research and development of innovative products to move up the value chain and achieve global leadership. Mandaviya, who also holds the Chemical and Fertilisers portfolio, asked medical technology companies to produce critical equipment in India for the global markets. While formally unveiling the National Policy on Research and Development and Innovation in the Pharma-Med Tech Sector, he said the domestic pharmaceutical companies invest less on research and development when compared to multinational companies.

 

Elevating consumer protection on G20 agenda for a balanced future
In spite of the fact that consumer protection did not feature in the G20 deliberations in India this year, Prime Minister Narendra Modi did not allow it to slip through the cracks. Addressing the B20 summit on 27 August, he called for businesses to care for their consumers and also organise an International Consumer Care Day. He emphasis on balanced global commerce and consumer-centric policies reflects a comprehensive understanding of the intricate dynamics that drive today's economies.

Why G20 must work to restore WTO's dispute settlement system
It will soon be four years since the Appellate Body (AB), the second tier of the two-stage dispute-settlement mechanism of World Trade Organisation (WTO), became defunct, thus affecting developing countries adversely. One hopes that Prime Minister Narendra Modi can impress upon U.S. President Joe Biden at the G20 summit to restore it and help the global south and multilateralism. Under India's G20 Presidency, it was hoped that G20 economies would demonstrate their collective commitment to AB's restoration.

Hunger Crisis: 700 million people don't know when they will eat next, says UN Food Programme Chief
Owing to a number of complex issues ranging from economy and conflict to climate change, hunger crisis continues to exacerbate across the globe like never before. According to the head of the United Nation's flagship initiative World Food Programme (WFP), Cindy McCain, today 700 million people in the world do not even know when or if they will eat again. While humanitarian funding is drying up, demand for food is rising relentlessly.

MSMEs: The unsung heroes of Atmanirbhar Bharat in defence
“Atmanirbhara Bharat” is one of the ambitious projects of the Government of India. The project emphasises on maximum indigenisation and promotes Indian products in the market. Under this project, the Government of India launched the “Make in India” scheme, which promotes the establishment of manufacturing units and plants in India, eventually decreasing dependency on imports. While discussing Atmanirbhara Bharat and indigenisation, we cannot neglect the unmatched growth of the Indian defence sector and particularly the Micro, Small and Medium Enterprises (MSME’s) sector’s role.