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DAILY NEWS ANALYSIS

  • 09 July, 2020

  • 4 Min Read

CAATSA and USA

CAATSA and USA

Part of: GS-II- International Relation USA (PT-MAINS-PERSONALITY TEST)

Countering America’s Adversaries through Sanctions Act: CAATSA is a United States federal law that imposed sanctions on Iran, North Korea, and Russia. It includes sanctions against countries that engage in significant transactions with Russia's defense and intelligence sectors.

Recently, the USA has reiterated its position and asked all its allies and partners, including India, to stop transactions with Russia. It can risk triggering sanctions under the Countering America’s Adversaries through Sanctions Act (CAATSA).

  • USA’s Stand: The USA has reiterated its position on CAATSA in the context of India’s planned jet fighter deal with Russia at an estimated Rs. 18,148 crores. Recently, the Defence Acquisition Council approved the procurement of 21 MiG-29 fighter jets for the Indian Air Force (IAF), an upgrade for 59 of these Russian aircraft and the acquisition of 12 Su-30 MKI aircraft.
  • India could also face USA sanctions for purchasing the S-400 Triumf missile defense system from Russia under the CAATSA.
  • The USA suspended Turkey from its F-35 aircraft programme and barred it from purchasing the jet, following Turkey’s purchase of the S-400 from Russia. However, this was done without invoking CAATSA.
  • Major Defence Partner: The USA recognised India as a Major Defence Partner in 2016.
  • The designation allows India to buy more advanced and sensitive technologies from America at par with that of the USA’s closest allies and partners.
  • Issues with Purchase from Adversary: The USA fears that acquisitions by countries like India on significant systems would either expose or put at risk platforms and their technologies to an adversary.
  • It has declared that the S-400 purchase by Turkey from Russia has put a risk to its F-35 aircraft system.
  • Waiver Criteria under CAATSA: The USA President was given the authority in 2018 to waive CAATSA sanctions on a case-by-case basis. However, the USA has repeatedly stated that India should not assume it will get a waiver.

**The S-400 is known as Russia’s most advanced long-range surface-to-air missile defence system. China was the first foreign buyer to seal a government-to-government deal with Russia in 2014 for the system.

The defence procurement for India has become significant amid deadly clashes with China on the Line of Actual Control (LAC). Russia is an all-weather defence partner of India. However, India needs to balance its relationship with both Russia and USA, so that its national interest is not compromised.

Source: TH


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