G20 Summit: PM Modi, Joe Biden to unveil rail and shipping corridor linking India to Middle East, Europe
President Joe Biden and his allies intend to unveil a proposal on Saturday that outlines a shipping route linking India to the Middle East and potentially extending to Europe.
This development could have a significant impact on global trade and is set to be announced during the Group of 20 summit.
As reported by AP, the suggested agreement for a shipping and railway transport corridor would encompass the United States, India, Saudi Arabia, the United Arab Emirates, the European Union, and additional G20 nations, as confirmed by Jon Finer, the deputy national security adviser to the president.
President Joe Biden and Prime Minister Narendra Modi intend to reveal this project within the framework of the Partnership for Global Infrastructure Investment. This initiative, comprising a rail and shipping corridor, is aimed at facilitating increased trade between the participating nations, including the exchange of energy products, AP noted.
Also Read: ‘G20 declaration in final stages, time to find consensus’
Additionally, it has the potential to serve as a substantial response to China’s Belt and Road Initiative, which aimed to link various parts of the world to the Chinese economy.
During a call with reporters, Jon Finer outlined three key justifications for the project. Firstly, he emphasized that the corridor would boost economic prosperity among the participating countries by enhancing the transportation of energy resources and digital communications. Secondly, the initiative aims to tackle the infrastructure deficit that hampers growth in lower- and middle-income nations. Lastly, Finer suggested that the project could contribute to reducing tensions and instability in the Middle East, thereby improving overall regional security.
“We see this as having a high appeal to the countries involved, and also globally, because it is transparent, because it is a high standard, because it is not coercive,” Finer said.
Finer also presented President Biden’s objectives for the G20 summit. The initial segment of the summit is centered around the “One Earth” theme. Within this context, the US president intends to advocate for increased investments in combating climate change, including promoting his own domestic initiatives that encourage the adoption of renewable energy sources.
Also Read: G20 Summit: PM Modi, Prez Biden hold bilateral talks; discuss technology, democracy
Additionally, Biden aims to highlight the adverse global repercussions of Russia’s conflict in Ukraine. This includes the impact on various nations, which have had to contend with elevated costs for food and energy, as well as higher interest rates on their debt, AP further informed.
The second section of the summit is about “One Family.” Biden plans to use this portion to discuss his request to Congress for additional funding for the World Bank that could generate more than $25 billion in new lending for economic development.
The White House more broadly is trying to strengthen the G20 as an international forum, while Chinese President Xi Jinping and Russian President Vladimir Putin have chosen not to attend. Still, China and Russia are represented at the summit and that could make it difficult for the G20 to produce a joint statement on the war in Ukraine, Finer said.
(With inputs from agencies)
