In an important development for India, the United States House of Representatives approved an India specific-waiver under CAATSA i.e. Countering America’s Adversaries through Sanctions Act on Thursday (July 14). Aimed at deepening defence ties, the legislation is considered the most significant step since the 2008 US-India nuclear deal. It was proposed by the Indian-origin Democrat Ro Khanna.
The CAATSA provides for sanctions by the USA against any country that maintains conducts significant transactions with Iran, North Korea or Russia. Under this federal law, US govt can impose economic and financial penalties on any country that have significant ties with the three nations. For India, it meant US could sanctions for defence ties with Russia, and trades with Iran.
After the CAATSA waiver, India will be able to continue its defence and trade ties with the three nations, especialy with Russia and Iran, without the looming threat of US sanctions. However, the waiver needs to be first approved by the senate and after that signed by the president.
The legislation sought to amend the National Defence Authorization Act (NDAA) to counter the looming threat of China against India’s security. The proposed amendment received the support of 330 Congressmen while 99 voted against it.
Statement from Ro Khanna’s office: Waiver of Caatsa sanctions in best interests of US, US India defence partnership. pic.twitter.com/FDsO6H1RQG
— Sidhant Sibal (@sidhant) July 15, 2022
The CAATSA waiver is particularly important for the S-400 missile defence system deal that India has signed with Russia. US seas this state of the art missile defence system as a threat, and have threatened sanctions against any country that acquires it. India has already some units of the system which have been deployed along the borders. While the US govt undecisive on imposing sanctions on India for this deal, the waiver will mean that the threat of sanctions will cease to exist.
In a statement, House Representative Ro Khanna remarked, “The United States must stand with India in the face of escalating aggression from China. As Vice Chair of the India Caucus, I have been working to strengthen the partnership between our countries and ensure that India can defend itself along the Indian Chinese border.”
“This amendment is of the utmost importance, and I am proud to see it pass the House on a bipartisan basis,” he added. Khanna emphasised that the bilateral ties between India and the United States is rooted in democratic values and critical to counter threats in India-Pacific regions.
There’s no relationship of greater significance to United States strategic interest than US-India partnership. Its necessary to affirm democracies, it is necessary to stop China’s border aggression: Ro Khanna speaks on his NDAA amendment to strengthen US-India Defence Partnership pic.twitter.com/qCe7EzQNqm
— ANI (@ANI) July 14, 2022
Khanna had also proposed that Congress recognised the serious nature of border threats received by India from China. He underlined that the United States must support India in meeting its immediate defence needs and helping it end its reliance on Russian weapons.
The Indian-origin Democrat also hailed the US-India Initiative on Critical and Emerging Technologies (ICET) to accelerate bilateral cooperation in artificial intelligence, semiconductor manufacturing, quantum computing, biotechnology, and aerospace.
A large number of politicians in US see India as an effective counter against growing Chinese influence in the region, and they recognise India’s need to maintain defence ties with Russia due to historical reasons. The CAATSA waiver has been initiated as a result of the same.
