New Delhi, US President Joe Biden and his allies announced plans to build a rail and sea corridor linking India with the Middle East and Europe, an ambitious project aimed at boosting economic growth and political cooperation.
The agreement comes at a critical time, as US President Joe Biden seeks to counter the Chinese push towards global infrastructure through the Belt and Road Initiative (the New Silk Road).
Biden said it was a “great deal” that would unite ports on two continents and contribute to “a more stable, more prosperous and integrated Middle East”. “This is a really big thing,” he said.
Uncertain project cost
At an event announcing the agreement, he stated that the infrastructure project will provide “countless opportunities” for clean energy, clean electricity and cables to connect communities.
The goal of the track is to link the countries of the Middle East by rail and connect them with India by port, which will contribute to the flow of energy and trade from the Persian Gulf to Europe, by reducing transportation times, costs and energy consumption. fuel, US officials said.
The corridor, which was identified at the annual summit of the Group of Twenty of the world’s leading economies (G-20), will help boost trade, save energy resources and improve digital connectivity. This would include India, Saudi Arabia, the United Arab Emirates, Jordan, Israel and the European Union, said Jake Sullivan, Biden’s national security adviser.
John Feiner, US deputy national security adviser, told reporters during the bloc’s annual summit in New Delhi that the deal would benefit low- and middle-income countries in the region and allow the Middle East to play a decisive role in global trade.
Indian Prime Minister Narendra Modi, European Commission President Ursula von der Leyen and leaders of other countries participated in the declaration.
White House officials have not set a timeline for completing the project. The corridor would provide a physical and ideological alternative to China’s nationwide infrastructure programme.
The White House did not provide details about the cost or financing of the project, although Saudi Crown Prince Mohammed bin Salman mentioned the $20 billion figure during the announcement. It was not clear if this amount applied only to the Saudi commitment.
The G20 consists of Germany, Saudi Arabia, Argentina, Australia, Brazil, Canada, China, South Korea, the United States, France, India, Indonesia, Italy, Japan, Mexico, the United Kingdom, Russia and South Africa. Turkey and the European Union, which together represent 80 percent of the global economy, two-thirds of the world’s population, and 75 percent of international trade. The African Union became a permanent member of the G20 on Saturday, during the opening of the summit.
Leaders call for reform of the World Trade Organization
G20 leaders called for reform of the World Trade Organization in their final declaration adopted at the New Delhi summit, considering “a rules-based, non-discriminatory, fair, open, inclusive and equitable multilateral trading system as indispensable.” “Sustainable and transparent, with the World Trade Organization at its centre,” they said in the text.
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