On the eve of the G20 conference in New Delhi, world leaders unveiled a multilateral rail and port agreement connecting the Middle East and South Asia.
The agreement comes at a crucial time as American President Joe Biden works to oppose China’s Belt and Road initiative on global infrastructure by positioning the United States as an alternative partner and investor for poor nations at the G20 summit.
Biden called it a “real big deal” that it would connect ports on two continents and create a “more stable, prosperous, and integrated Middle East.”
He said that it would open up “endless opportunities” for renewable energy, clean electricity, and installing cable to connect villages at a ceremony when the agreement was announced.
The summit’s host country, India, led by Prime Minister Narendra Modi, stated: “Today, as we embark upon such a big connectivity initiative, we are sowing the seeds for future generations to dream bigger.”
According to Jon Finer, the U.S. deputy national security advisor, during the bloc’s annual summit in New Delhi, the accord will benefit low- and middle-income countries in the area and enable the Middle East to play a crucial role in international trade.
According to U.S. authorities, it will facilitate the flow of energy and trade from the Gulf to Europe by reducing shipping delays, costs, and fuel use by connecting Middle Eastern countries by train and connecting them to India by port.
The European Union, India, Saudi Arabia, the United Arab Emirates, the United States, and other G20 partners signed a memorandum of understanding on the IMEC, or India-Middle East-Europe Economic Corridor.
According to the MOU, the IMEC will have two distinct corridors: an east corridor linking India to the Arabian Gulf and a northern corridor linking the Arabian Gulf with Europe.
Participants want to install power and data cables, as well as pipelines for hydrogen produced from renewable energy for use in power generation, along the train track.
According to French President Emmanuel Macron, the treaty offers chances for people, manufacturing, and innovation. At the ceremony, he stated, “But our objective is to make it real and to make sure that following this pledge we have concrete results. There were no immediate specifics available regarding the deal’s worth.
The action coincides with American efforts to broker a wider Middle Eastern diplomatic agreement that would see Saudi Arabia recognize Israel.
According to Finer, the agreement “addresses a conflict where we see it” and “turns the temperature down across the region” from the American perspective.
