- Multinational Rail and Port Agreement Announced
- US Counters China’s Belt and Road Initiative
- Aims and Signatories of the Agreement
On Saturday in New Delhi, G20 leaders signed a Middle East-South Asia rail and port accord.
The agreement comes at a crucial moment, as US President Joe Biden seeks to counter China’s Belt and Road initiative on global infrastructure by promoting the United States as an alternative partner and investor for developing nations within the G20.
A “real big deal” that would join two continents’ ports and create a “more stable, prosperous, and integrated Middle East.” At the event where he announced the agreement, he stated that it would open up “limitless opportunities” for renewable energy, clean electricity, and the laying of cable to connect communities.
Prime Minister Narendra Modi of summit host India stated, “Today, as we embark on such a massive connectivity initiative. We are planting the seeds for future generations to have grander aspirations.”
Jon Finer, the US deputy national security adviser, told reporters at the bloc’s annual summit in New Delhi that the agreement will benefit low- and middle-income countries in the region and allow the Middle East to play a crucial role in global commerce.
It seeks to link Middle Eastern countries by rail and connect them to India by seaport, aiding the flow of energy and trade from the Persian Gulf to Europe by reducing shipping times, costs, and fuel consumption, according to US officials.
The EU, India, Saudi Arabia, the UAE, the US, and other G20 partners were to sign a memorandum of understanding.
“Linking these important regions is a tremendous opportunity,” said Finer.
There were no immediate details regarding the deal’s value.
The action coincides with US diplomatic efforts in the Middle East aimed at securing Saudi Arabia’s recognition of Israel.
Finer said the pact helps the US “cool down the region” and “address a conflict where we see it.”
