VIF News Digest: International Developments (15 Oct – 21 Oct 2018)
USA
US urges India to soften stance on data localisation
15 Oct 2018

Two US senators have called on Prime Minister Narendra Modi to soften India’s stance on data localisation, warning that measures requiring it represent “key trade barriers” between the two nations. In a letter to Modi dated Friday and seen by Reuters, US Senators John Cornyn and Mark Warner — co-chairmen of the Senate’s India caucus — urged India to instead adopt a “light touch” regulatory framework that would allow data to flow freely across borders.

The letter comes as relations between Washington and New Delhi are strained over multiple issues, including an Indo-Russian defence contract, Indian tariffs on electronics and other items, and India’s push to purchase oil from Iran despite upcoming US sanctions. Click here to read...

Forgoing trade deal between India and US will force America to consider alternatives, says USISPF
17 Oct 2018

The head of an influential business advocacy on Indo-US ties has warned that forgoing a trade deal between the two countries will force the Trump administration to consider alternatives. Observing that relationship does not work in silos, Mukesh Aghi, President of the US-India Strategic and Partnership Forum (USISPF), said the alternatives could start with the suspension of Generalised System of Preferences (GSP) benefits and end with trade skirmishes over Twitter that hurt both the economies.

Last week, White House chief economic advisor Larry Kudlow said that discussions on a trade deal with India has begun. But he did not give any details. In recent weeks, President Donald Trump has said that India wants a trade deal with India and accused New Delhi of having excess of tariffs. Click here to read...

U.S. Credit Card Giants Flout India’s New Law on Personal Data
15 Oct 2018

When the clock struck midnight in Delhi at the end of Monday, Visa, Mastercard and American Express were suddenly in violation of the law every time an Indian swiped a credit or debit card. They also became unwilling warriors in a budding conflict between America’s technology giants and the Indian government, which wants more control over the data they collect on India’s 1.3 billion residents.

The spark for the current fight is a new regulation, issued in April and in effect starting Tuesday, that requires payments companies to store all information about transactions involving Indians solely on computers in the country. The rule and the hubbub over it are part of a debate over a concept known as “data localization,” in which a country places restrictions on data as a way to gain better control over it and potentially curb the power of international companies. American firms have lobbied hard against data localization rules around the world. Click here to read...

India to set up three new agencies, including cyber and space, to boost defence capabilities
16 Oct 2018

India has moved a step closer to dealing with contemporary and new threats with the Cabinet Committee on Security recently clearing the formation of three agencies, the Defence Cyber Agency, the Defence Space Agency and the Special Operation Division, a Government official familiar with the matter said on condition of anonymity. All three will be tri-service agencies, which means they will draw from each service and serve under the command of the Chairman, Chief of Staff Committee, a second official confirmed.

In 2012, the Chiefs of Staff Committee recommended the formation of three separate joint commands — cyber, space and special operations —to deal with new and emerging threats. The Centre has also been pushing for more synergy and “jointness” to prepare for threats from the “emerging triad” of space, cyberspace and special operations for future combat. Click here to read...

India attracted USD 22 billion of FDI flows in first half of 2018, says UN report
16 Oct 2018

India attracted USD 22 billion of FDI flows in the first half of 2018, according to a UN report which states that the global foreign direct investment dropped by 41 per cent in the same period due to tax reforms carried out by the Trump administration. The UN Conference on Trade and Development (UNCTAD) said on Monday in its ‘Investment Trends Monitor’ report that in South Asia, India attracted USD 22 billion of FDI (foreign direct investment) flows, contributing to the sub-region’s 13 per cent rise in FDI in the first half of the year.

The report, however, said that with the USD 22 billion FDI, India just about managed to make it to the top 10 host economies receiving the most FDI during the period. Click here to read...

India-US talks over S-400 deal, Iran oil continue amid sanctions, CAATSA
18 Oct 2018

India is continuing to engage with the US and all other stakeholders regarding the S-400 missile deal with Russia and import of crude oil from Iran following Washington's sanctions on Moscow and Tehran, the Ministry of External Affairs said on Thursday. "On S-400, I can tell you that this is dictated by our national interests," ministry spokesperson Raveesh Kumar said at a media briefing here. "We are engaged with the US on this matter and we have shared our position with the US at different levels," Kumar said.

"These discussions have contributed to a better understanding by the US on our objectives, our concerns, as well as our sensitivities and expectations." Click here to read...

India to hold combat exercises with US, Russia and Japan before it resumes drills with China
18 Oct 2018

India will next month hold military exercises with three of its strategic partners, the US, Russia and Japan, just before resuming its annual combat drill with China in December after the Doklam troop face-off last year led to a freeze in the bilateral military-to-military ties.

The exercise named “Dharma Guardian” with Japan, which will be held at the Army’s Counter-Insurgency Warfare School at Vairengte (Mizoram) from November 1 to 14, is especially significant since it will be the first-ever joint land military exercise between the two countries. This will be followed by the “Indra” mechanized infantry exercise with Russia at Babina from November 16 to 29. The “Vajra Prahar” combat drills between the Special Forces of India and US, in turn, will be held at the Mahajan field firing ranges from November 19 to December 2.

“Such exercises constitute an effective diplomatic tool to enhance overall strategic ties and military-to-military cooperation with friendly countries. The resumption of the Hand-in-Hand exercise with China is more of a confidence-building measure between the two armies deployed along the Line of Actual Control from Ladakh to Arunachal Pradesh,” said a senior officer. Click here to read...

IT stocks sink as US considers plans to change H-1B visa norms
19 Oct 2018

Information Technology (IT) stocks crashed in trade today after Washington said it was planning to "revise" the definition of employment and specialty occupations under the H-1B visas by January, a move which will have an adverse impact on Indian IT companies in the US. TCS dropped 0.92%, Wipro was down 0.92% and Infosys lost 2.95% on the BSE. The BSE IT index fell 423 points or 2.88% to 14,254 on the BSE. The index had closed at 14,677 level on Wednesday. Top losers on the IT index were MindTree (16.42%) Mastek (5.16%), Mphasis (4.91%) and HCL Technologies (6.24% ).

The Department of Homeland Security (DHS) said on Wednesday that the US Citizenship and Immigration Services (USCIS) plans to come out with its new proposal by January 2019. Click here to read...

US says it could remove India from its currency monitoring list
18 Oct 2018

The US could remove India from its currency monitoring list of major trading partners, the Treasury Department has said, citing certain developments and steps being taken by New Delhi which address some of its major concerns. India for the first time was placed by the US in its currency monitoring list of countries with potentially questionable foreign exchange policies in April along with five other countries - China, Germany, Japan, South Korea and Switzerland.

The Department of Treasury maintained the same monitoring list in its latest report released on Wednesday but said if India continues with the same practices as in the last six months, it would be removed from its next bi-annual report. "India's circumstances have shifted markedly, as the central bank's net sales of foreign exchange over the first six months of 2018 led net purchases over the four quarters through June 2018 to fall to $4 billion, or 0.2 per cent of the GDP," the Treasury said in its latest semi-annual Report on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the US. Click here to read...

Donald Trump says ‘anyone entering US illegally will be arrested, detained and deported’
17 Oct 2018

Anyone entering the US illegally would be arrested, detained and then deported back, President Donald Trump has warned as he threatened three Central American nations to halt a migrant caravan from heading to America or lose millions of dollars in foreign aid.

Trump’s warning comes amidst reports that a new migrant caravan from Honduras comprising about 1600 people is moving towards the US via Guatemala. The caravan, formed in the Honduran city of San Pedro Sula on Saturday, crossed into Guatemala on Monday. Guatemala detained one of its coordinators on Tuesday, but other members of the caravan are advancing through Guatemala with hopes of reaching the US border. “Anybody entering the United States illegally will be arrested and detained, prior to being sent back to their country!” Trump said in a late-night tweet. Click here to read...

Germany tells US to stop meddling in their energy policies
16 Oct 2018

Tensions between the United States and Germany are escalating, with the two sides at odds over where the European Union should purchase its natural gas. Foreign Ministry State Secretary Andreas Michaelis, a top German diplomat, railed against American influence of the European Union’s energy agenda. Speaking at a conference hosted by the Aspen Institute, Michaelis said that Germany will move forward with a controversial plan to build a natural gas pipeline from Russia, regardless of what the U.S. has to say. “This is part of European core interests,” Michaelis said Tuesday. “I don’t want European energy policy to be defined in Washington.”

At issue between the U.S. and German officials is construction of the Nord Stream-2 gas pipeline, a project that will deliver natural gas from Russia to Germany when completed. The pipeline project is being led by Gazprom, a natural gas company owned mostly by the Russian government. Click here to read...

RUSSIA
World War 3: Russia vows to protect Syria with missiles as Assad aims to increase allies
17 Oct 2018

Syrian Foreign Minister Walid al-Muallem and Iraqi Foreign Minister Ibrahim al-Jaafari spoke together and praised their countries’ victories over ISIS. Mr Al-Muallem said that the defeat of ISIS "will benefit all the countries of the region and the world”. Over the past seven years, Syria has faced battles with not only ISIS but airstrikes from Israeli fighter jets as well.

Russia had hoped to maintain a balance between Syria and Israel, but, earlier this year, a Russian II-20 surveillance plane was shot down by Syrian anti-air defence during a response to an Israeli air raid. Following the incident, Moscow decided to send Damascus multiple S-300 surface-to-air missile systems as a way of enhancing their ally’s defences. The Syrian foreign minister said: "Not only Syria will feel safer owing to supplies of S-300 air defence missile systems. Click here to read...

U.S. seeks Russia's cooperation on North Korea
17 Oct 2018

The U.S. envoy for North Korea met with his Russian counterparts Tuesday to ensure full coordination on efforts to dismantle the North's nuclear weapons program, the State Department said. Stephen Biegun, U.S. special representative for North Korea, held talks in Moscow with Russian Deputy Foreign Minister Igor Morgulov and Deputy Foreign Minister Sergey Ryabkov. The three men discussed efforts to achieve the "final, fully verified" denuclearization of North Korea, a department spokesperson said, and the conversation was "warm and friendly and explored a number of areas of cooperation."

"The United States is committed to working with interested parties, including Russia, on the robust and sustained implementation of U.N. sanctions in order to move forward with denuclearization," the spokesperson said in response to a Yonhap query. Biegun "emphasized to his counterparts the need to continue fully coordinated communication to ensure that denuclearization proceeds as quickly as possible and permit the steps that will create a brighter future for North Korea," she added. Click here to read...

Russia, Israel discuss Russian-US relations
16 Oct 2018

Russian Deputy Foreign Minister Sergei Ryabkov has discussed arms control and relations between Moscow and Washington with a delegation from Israel, the Russian Foreign Ministry informs. Deputy Director General of the Israeli Foreign Ministry Alexander Ben-Zvi heads the Israeli delegation, which is currently on a visit to Moscow. "The sides have exchanged opinions on a broad agenda, including current issues of Russian-US relations, international security, issues of arms control and non-proliferation of weapons of mass destruction with special attention paid to the situation in the Middle East," the ministry stated.

Historically, the US has been a key ally of Israel, also playing an important role in Syria, where they control the eastern shore of Euphrates. Meanwhile, the Russian-Israeli relations suffered a blow after the Il-20 aircraft crash. Click here to read...

Kim Jong-un to visit Russia before US midterm elections, Russian newspaper reports
17 Oct 2018

North Korean leader Kim Jong-un is planning to visit Russia before the US midterm elections that will be held early next month, a Russian newspaper reported on Oct. 16. Kim will be visiting Russia at the end of October or the beginning of November, before the midterm elections on November 6, daily newspaper Izvestia reported, quoting three South Korean diplomatic sources. According to the newspaper, Moscow and Vladivostok are being considered as locations for the summit.
“The North Korean leader [Kim Jong-un] has been invited to visit Russia. We’re reviewing the possible date, location and manner of visit,” said Kremlin Press Secretary Dmitry Peskov. The North Korean embassy in Moscow told Izvestia that it didn’t have any information about Kim’s visit to Russia but that “the exact date will depend on the decision of the two leaders.” Click here to read...

Russia’s grand strategy: How Putin is using Syria conflict to turn Turkey into Moscow’s proxy
17 Oct 2018

Turkey, Russia and Iran have actively involved themselves in the Syrian conflict, each with their own divergent interests. Moscow and Tehran have put their support behind the regime of the Syrian president, Bashar al-Assad, hoping it retains its influence over the strategic Syrian region. Meanwhile, since the very beginning of the crisis in 2011, Turkey has been obsessed with removing Assad.

So far, the three countries have managed to accommodate their various aims. And the meetings between the three powers in 2017 and 2018 – in Sochi, Astana, Tehran and then again in Sochi – have all played a part in this. In fact, it appears that Russian president Vladimir Putin’s main strategy since 2017 has been the continuation of this accommodation. Click here to read...

Africa
Ethiopia's new cabinet 50 percent women, including defense: VOA
16 October 2018

Ethiopia's new Cabinet is now a record 50 percent female, including the country's first woman defense minister, after lawmakers on Tuesday unanimously approved the nominations put forward by reformist Prime Minister Abiy Ahmed. "Our women ministers will disprove the old adage that women can't lead," Abiy said while presenting his choices. "This decision is the first in the history of Ethiopia and probably in Africa." Click here to read...

HRW says bauxite mining boom in Guinea threatens locals: VOA

16 October 2018

Mabinty lives in a village in Guinea’s Boké region, about 250 kilometers northwest of Conakry, the capital. Like much of Boké, Mabinty’s village has been covered in a film of red dirt. A spring that once supplied fresh water to her village has been filled with thick mud. Nearby streams have dried up. The landscape, once green and brown, is now mostly rust-colored. These are the effects of bauxite mining.

In Guinea, the bauxite business is booming. But the government, eager to grab a share of the global market, has done little to protect villagers and wildlife, Human Rights Watch concluded in a report published this month. Click here to read...

Water, power supplies cut off on strife-torn Comoros Island – Reuters

18 October 2018

Comoros authorities have cut off water and power supplies in the capital city of Anjouan province as part of efforts to quell unrest against constitutional changes to extend presidential term limits, residents said on Thursday. Anjouan has been rattled by clashes pitting soldiers against protesters angry at President Azali Assoumani’s plans to end a rotating tenure in his post in a way critics say could leave the small island permanently excluded from power in the Indian Ocean archipelago nation.

On Wednesday, government officials said soldiers shot dead two people and wounded four after violence broke out in the Anjouan capital Mutsumudu between masked men and the military. Click here to read...

Africa's youngest billionaire returns home after kidnapping: allAfrica
20 October 2018

Mohammed Dewji, the 43-year-old CEO of the METL Group family conglomerate, has returned home safely after being kidnapped at gunpoint. Dewji, who has been described as Africa's youngest billionaire, was abducted by gunmen outside a luxury hotel in Tanzania's economic capital Dar es Salaam last week. As one of Tanzania's most prominent businessmen, Dewji's abduction caused major consternation in the east African country. However, he announced early Saturday on the METL Group Twitter feed that he had "returned home safely."

"I thank all my fellow Tanzanians, and everyone around the world for their prayers," he said. "I thank the authorities of Tanzania, including the Police Force for working for my safe return." Neither he nor the company provided details about how he was freed or managed to escape his captors. Click here to read...

Kenya's Opposition Leader Raila Odinga named AU Envoy: africanews
20 October 2018

Kenyan opposition leader Raila Odinga was on Saturday appointed High Representative for Infrastructure Development in Africa. In a communique by the Commission’s chairperson Moussa Faki Mahamat, Odinga’s appointment is part of the African Union’s (AU) drive to expedite the integration of the continent through infrastructure, in order to promote economic growth and sustainable development.

Mahamat also praised ‘Raila’s strong commitment to the ideals of Pan-Africanism and African integration’. The National Super Alliance (NASA) leader’s appointment brings to an end speculation that he was to land a juicy job with the African Union as part of his truce with Kenyan president Uhuru Kenyatta. Odinga lost a bitterly contested election to Kenyatta last year. He mounted a succesful court challenge which ordered a fresh poll. He however boycotted the second contest citing a biased electoral commission. Click here to read...

Nigeria: Intercommunal violence kills 55 – africanews

21 October 2018

At least 55 people died this week in Kaduna state in Northen Nigeria following fresh clashes between Muslims and Christians. AFP reports that Violence broke out between Hausa Muslim wheelbarrow porters and Adara Christian youths on Thursday, following a dispute in the Kasuwan Magani market, a town about 50 km from Kaduna.

President Muhammadu Buhari has condemned the recent communal violence which claimed 55 lives. He said “No culture and religion supports the disregard for the sanctity of life.” Click here to read...

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