By Dr. Aprajita Kashyap
CELAC (Community of Latin American and Caribbean States), is a unique regional bloc that brings together all Latin America and Caribbean countries. It epitomises accurately a regional integration program based on principles of egalitarianism between states, decision-making based on consensus. The objective is to formulate policies that endorse social, political and economic cooperation. As a conglomerate, CELAC is the third largest economy in the world with a GDP of around $ 7 trillion dollars, the largest food producer in the world and the third largest producer of electricity.
The convergence of India and CELAC as partners is a derivative of the common principles behind which both India and CELAC stand firm grounds viz., respect for international law, peaceful resolution of differences or conflicts, promotion and protection of human rights, advancement of sustainable development and consolidation of a multi-polar and balanced world order.
Abhorrence of colonialism and the commitment to strengthening the South-South Cooperation could be other factors of attraction towards each other. CELAC is in news due to the meeting of EAM of India Dr. S. Jaishankar with the CELAC Quartet (represented by the Foreign Ministers of Argentina, Santiago Cafiero; Guatemala, Mario Adolfo Bucaro Flores; Trinidad and Tobago, Dr. Amery Browne, and the Deputy Minister for Multilateral Affairs of Colombia, Laura Gil Savastano) at New York on September 19, 2022.
Gains for India
For India, the advantages of cooperation are that through this grouping entire Latin America and the Caribbean region can be within reach. This would imply doing away with barriers that hamper trade with individual countries or signing bilateral commercial agreements and investment policies. The other advantage is that it could become a member of the Inter-American Developmental Bank, thus gaining access to greater credit facilities for Indian investors in Latin America.
Partnership with CELAC can become a game-changer and be more sustainable due to large number of partners and varied agenda, which is not the case with smaller groupings with specific objectives. The social aspect may lead to the strengthening of diasporic ties with the Caribbean. The political, economic and social relations can be augmented using the multi-pronged reach of this one platform.
Benefits for CELAC
CELAC had carefully chosen India as the first dialogue partner due to its size, similar political positions and affinity toward developing countries. India is amongst Latin America’s top export markets for renewable sources of energy, soybean and precious minerals. The size of the Indian market is colossal and that augurs well for routing their primary products and semi-processed goods. India has emerged as an important partner in goods, services and investment. The Indian service industry especially the IT sector has made a valuable contribution as technological endowment in many countries. The soft power elements of India are moderately visible in the region in the form of cuisine, crafts, dance, music and yoga.
Cementing the Cooperation
Soon after the formation of CELAC in 2011, the then Foreign Minister, SM Krishna, had held a dialogue with this grouping in 2012. The intention to expand and diversify trade and boost investments was endorsed by the India-CELAC Joint Statement that had proposed to set up a Business Council, a CEO Forum, an Energy Forum, a Science Forum and an Agricultural Experts group. Besides, climate change and terrorism were recognised as the most potent global challenges. However, the intent was not backed by prioritization of the commitment and, therefore, a period of lull followed.
What to expect?
Coupled with the earlier visit to Argentina, Brazil and Paraguay, this trip lends a renewed focus on South America by the EAM. It could become a counter-force to the China-CELAC forum. Despite the sizeable presence of Chinese investment India has been seen as a benevolent partner with similar aspirations. The meeting endorses the spirit of the Argentine Foreign Affairs Minister Santiago Cafiero (Argentina holds the pro tempore Presidency of CELAC), who had earlier announced that during his tenure he will promote dialogue with the European Union (EU) and countries such as China, Russia and India.
This CELAC-India meeting is an accomplishment of this aspiration. The leaders at the helm were upbeat about their cooperation in UN and other multilateral fora. Several prospective areas of cooperation have been identified which importantly include endeavours towards post-pandemic economic recovery; revitalising trade relations; collaborating in areas of healthcare and vaccine production; venturing into space cooperation; and providing food security through partnering in agricultural sector. UN reforms and climate change tackling could become other areas of association.
Taking it forward
In the present context, CELAC acquires a central relevance since the region can speak with a single voice and this would simplify the multiplicity of efforts to sustain India-LAC ties. CELAC can help in dispelling the dilemma of India to collaborate with a plethora of regional groupings in the LAC region and rather concentrate on a few. Moreover, partnership with CELAC coupled with bilateral links through embassies in more than 20 LAC countries can deepen the relations further.
Vital stands in this regard could be instituting commitments within established timelines, initiation of direct connectivity, facilitating issuance of visas and enabling trade through incentives and simplification of tariffs. Additional areas of cooperation can be identified especially in defence and space technology.
Originally published: Financial Express, September 20, 2022
Posted here with the authorization of the author.
Dr Aprajita Kashyap is Faculty in Latin American Division, CCUS&LAS, SIS, JNU, New Delhi. Email: aprajitakash@gmail.com
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