06 November, 2019
4 Min Read
Syllabus subtopic: Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.
News: Iran has taken further steps away from its crumbling nuclear deal with world powers by announcing it is doubling the number of its advanced centrifuges, calling the move a direct result of the United States’ withdrawal from the agreement last year.
Prelims focus: Joint Comprehensive Plan of Action (JCPOA) – objectives
Mains focus :US withdrawal from the deal, global implications and the need of the hour.
About Iran nuclear deal?
Why did Iran agree to the deal?
It had been hit with devastating economic sanctions by the United Nations, United States and the European Union that are estimated to have cost it tens of billions of pounds a year in lost oil export revenues. Billions in overseas assets had also been frozen.
Why did US pull out of the deal?
Trump and opponents to the deal say it is flawed because it gives Iran access to billions of dollars but does not address Iran’s support for groups the U.S. considers terrorists, like Hamas and Hezbollah. They note it also doesn’t curb Iran’s development of ballistic missiles and that the deal phases out by 2030. They say Iran has lied about its nuclear program in the past.
Impact of escalated tensions between Iran and the US:
Implications for India:
Oil and Gas: The impact on world oil prices will be the immediately visible impact of the U.S. decision. Iran is presently India’s third biggest supplier (after Iraq and Saudi Arabia), and any increase in prices will hit both inflation levels as well as the Indian rupee.
It would impact the development of Chabahar port.
New U.S. sanctions will affect these plans, especially if any of the countries along the route or banking and insurance companies dealing with the INSTC plan also decide to adhere to U.S. restrictions on trade with Iran.
Shanghai Cooperation Organisation: China may consider inducting Iran into the SCO. If the proposal is accepted by the SCO, which is led by China and Russia, India will become a member of a bloc that will be seen as anti-American, and will run counter to some of the government’s other initiatives like the Indo-Pacific quadrilateral with the U.S., Australia and Japan.
Rules-based order: By walking out of the JCPOA, the U.S. government has overturned the precept that such international agreements are made by “States” not just with prevailing governments or regimes.
What role does the U.N. Security Council play in this crisis?
The Security Council adopted a resolution in 2015 that endorsed the nuclear agreement and ended U.N. sanctions against Iran. The resolution, 2231, includes what is known as a “snapback” provision that could reinstate those sanctions if other parties to the agreement complained that Iran was cheating. Such a step would likely doom the agreement.
Source: Indian Express
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