What Does US Waiver Mean
The US Presidential waiver of its controversial Countering America’s Adversaries Through Sanctions Act (CAATSA) will be greeted with a sense of relief in both New Delhi and Washington. The two governments have been working hard to avert a stand-off over the issue. The matter was particularly heated with India making it clear it would go ahead with the S-400 Triumf missile system deal with Russia regardless of the US law and the threat of sanctions. CAATSA, signed reluctantly by President Donald Trump last August would have forced his administration to impose sanctions on any country carrying out significant defense and energy trade with sanctioned entities in Russia, Iran and North Korea. While the resolution of CAATSA-related sanctions is welcome, it isn’t the only irritant in the U.S.-India relationship that needs the attention of the External Affairs and Defense Ministers at the ‘2+2 dialogue’ with their American counterparts scheduled for September. The sanctions proposed by the Trump administration for energy trade with Iran still loom, as do possible punitive measures at the World Trade Organization over tariffs and counter-tariffs the two countries have imposed on each other.