Forging Stronger Connections: Indian Foreign Minister's Diplomatic Odyssey in Latin America
In a historic milestone, India's esteemed Minister of External Affairs, S. Jaishankar, recently concluded his first-ever bilateral visit to several Latin American countries, marking a new chapter in diplomatic relations between the two regions. The comprehensive nine-day tour included Guyana, Panama, Colombia, and the Dominican Republic, emphasizing India's commitment to forging strong ties with Latin America. During the visit, Minister Jaishankar engaged in fruitful discussions with his counterparts on a wide range of crucial topics, including energy, trade, and climate change. The primary objective of the visit was to establish new areas of cooperation while placing a trade at the forefront of the bilateral relationship.
The recent bilateral visit of India's Foreign Minister, S. Jaishankar, to Latin American countries comes at a significant juncture, particularly considering the growing proximity between Latin American nations and the People's Republic of China. In light of recent trade statistics, India's annual trade with the region stands at approximately $50 billion, whereas China's trade volume with Latin American countries amounts to a substantial $400 billion. In this context, one of the prime objectives of Minister Jaishankar's visit was to bolster trade volumes between India and these nations. Accompanying the visit was a business delegation from the Confederation of Indian Industry (CII), reflecting the commitment to expand economic ties and foster closer business connections. As India seeks to increase its trade engagement and contend with China's presence in the region, there was also a focus on engaging with regional organizations such as the Caribbean Community and Common Market (CARICOM) and the Southern Common Market (MERCOSUR).
This visit aimed to not only enhance trade relations but also strategically position India in the face of China's increasing influence. The trade disparity between India and China in the region underscores the importance of concerted efforts to bridge the gap. By deepening economic ties and fostering cooperation, India aims to expand its presence and establish a stronger foothold in the Latin American market. Henceforth, this article will explore the bilateral engagement of each Latin American country with India.
Beginning with Panama, which stands as India's largest trade partner in Central America, reporting an annual trade of $610 million in 2022, discussions with President Nito Cortizo and Foreign Minister Janaina Tewaney unveiled a shared focus on enhancing ties in the pharmaceuticals, renewable energy, and logistics sectors, among others. Panama holds a crucial position in Indian foreign policy due to its significant trade volume compared to other Central American countries. In the pharmaceutical sector, both nations have agreed to collaborate in producing affordable and high-quality medicines for Panama, with India, known as the "Pharmaceutical King," playing a major role. Furthermore, discussions also explored avenues for strengthening overall bilateral ties, including trade, investment, and expanding cooperation, as well as the establishment of logistics hubs by Indian companies. This visit assumes further importance considering the substantial presence of non-resident Indians (NRIs), persons of Indian origin, and overseas Indians in Panama, numbering approximately 4,000, 11,000, and 15,000, respectively.
The Guyana visit of Foreign Minister Jaishankar commenced with a meeting between President Dr Mohammad Irfan Ali, Foreign Minister Hugh Todd, and other high-ranking officials. The discussions encompassed a wide range of sectors, including agriculture, defence, healthcare, infrastructure, technology, energy, and more, although specific details of cooperation were not disclosed. Guyana holds significant importance for India in the near future due to its abundant crude oil reserves among Caribbean countries. As India, being a substantial consumer of crude oil, requires a considerable supply to sustain its economic activities and other needs, establishing bilateral engagement with Guyana becomes crucial. Notably, Guyana can offer crude oil to India at a more affordable price compared to Russia and other Gulf countries, rendering this cooperation highly favorable. Furthermore, this collaboration also serves as a means to diversify India's dependence on the Middle East and Russia for its crude oil requirements. Additionally, this cooperation is significant for India in terms of mitigating the impact of potential United States sanctions, as maintaining close ties with Russia, which is subject to such sanctions, may pose risks for India.
In addition to the discussions held, a noteworthy development took place when Guyanese Foreign Minister Todd, together with President Irfaan Ali, inaugurated the Indian-made ferry MV Ma Lisah. This initiative aims to enhance connectivity and mobility within Guyana, reflecting a strong bond between the two nations. Foreign Minister Jaishankar referred to this endeavor as a "testimony of the close friendship" shared between India and Guyana. Through such cooperation, India endeavors to strengthen its influence in Caribbean nations, where China's significant presence poses challenges to India's efforts in cementing partnerships. Notably, China stands as the second-largest trading partner of Latin American countries, following the United States. Trade statistics reveal that annual trade between China and Latin American countries has surged from $12 billion in 2000 to a substantial $445 billion in 2021. Consequently, the engagement of Foreign Minister Jaishankar plays a pivotal role for both India and Guyana, given the broader regional context.
In a continuation of his diplomatic efforts to expand cooperation, Foreign Minister Jaishankar's recent visit to Colombia follows similar engagements he had with Brazil, Argentina, and Paraguay last year. This visit holds particular significance as it marks the first-ever bilateral visit by an Indian Foreign Minister to Colombia. During the visit, Minister Jaishankar held productive discussions with Colombian President Alvaro Leyva Duara, resulting in the signing of a "Cultural Exchange Program" for the period of 2023–2026, The discussions encompassed various sectors of cooperation, including health, agriculture, digital technology, infrastructure, energy, and more.
Within the energy sector, Minister Jaishankar highlighted the substantial investments made by India in Colombia's oil sector. Energy constitutes a vital component of Colombia's exports to India, and both countries expressed the intention to further address the increasing energy demands that are expected to emerge in the coming decades. Additionally, potential collaboration in renewable energy and electric mobility was also explored.
In the pharmaceutical field, Minister Jaishankar emphasized the prominent presence of major Indian pharmaceutical companies such as Dr Reddy's, Cipla, MSN, IPCA, and Aurbindo in Colombia. He expressed the desire for increased investments from these companies to facilitate the production of affordable medicines for Colombia.
Overall, the objective of Minister Jaishankar's visit to Colombia is to strengthen economic cooperation and foster a robust partnership between the two countries. The discussions and agreements reached during this visit pave the way for enhanced collaboration and future endeavors that aim to deepen economic ties and promote mutual prosperity.
Foreign Minister S. Jaishankar concluded his visit to the Dominican Republic, marking the highest level of engagement between the two countries since the establishment of diplomatic ties in May 1999. The initial diplomatic relations were formalized through a memorandum of understanding signed in Santo Domingo in 2001, and subsequent visits have further solidified the bilateral ties. Notably, India established its embassy in Santo Domingo in January 2022, currently operating from the Homewood Suites by Hilton.
During the recent visit, discussions encompassed various areas of mutual interest, including trade, mining, and information technology. In addition to bilateral talks, Minister Jaishankar, along with Vice President Raquel Pena, inaugurated the Embassy of India in the Dominican Republic. Furthermore, the Mahatma Gandhi Plaza was established in Santo Domingo in the presence of Foreign Minister Roberto Alvarez.
Trade between India and the Dominican Republic has witnessed a substantial increase, growing from $12 million in 1999 to $1 billion in 2022. The political relations between the two countries are characterized as warm, cordial, and marked by close cooperation in multilateral organizations, particularly within the United Nations, as highlighted by Minister Jaishankar. In addition to pharmaceutical companies such as Cipla, Dr. Reddy's, Glenmark Pharmaceuticals, Hetero, Caplin Point, and Flagship Biotech, prominent Indian automobile giants such as Hero, Bajaj, and Royal Enfield have established local dealerships in the Dominican Republic. Finally, the two countries agree to establish a Joint Economic and Trade Committee (JETCO) with the aim to making it a forum for regular meetings to address the economic and business cooperation opportunities between India and the Dominion Republic.
Conclusion
The nine-day visit of the Foreign Minister to four nations holds immense significance for both India and the visited countries. This diplomatic endeavor has paved the way for the exploration of new areas of cooperation, particularly in the fields of renewables and electric mobility. The bilateral engagement between India and the visited nations has been further strengthened through interactions with important regional groups such as CARICOM (Caribbean Community) and SICA (Central American Integration System), thereby bolstering the overall India-Latin America and Caribbean (LAC) engagement.
The primary objective of this visit can be objectively analyzed as twofold. Firstly, it aims to enhance trade relations between India and the Caribbean countries, seeking to augment economic ties in the post-pandemic scenario. Secondly, it seeks to expand the scope of cooperation by identifying and fostering collaboration in new areas, with particular emphasis on emerging fields and sectors. The engagement with regional groups such as CARICOM and SICA contributes to the strengthening of bilateral engagement between India and the LAC region as a whole. These regional organizations serve as platforms for dialogue, coordination, and collaboration, further facilitating the exploration of mutual interests and fostering stronger ties.
Overall, the visit of the Foreign Minister to the four nations signifies a concerted effort to enhance trade, expand cooperation, and forge new partnerships. The focus on emerging areas of collaboration, alongside engagement with regional organizations, reflects a proactive approach to leveraging opportunities and addressing the challenges of the post-pandemic era.
References
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5. Dr. Jaishankar at the Indian Dominican Republic Business Event.
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6. Dr. Jaishankar at the India Colombia Business Forum.
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7. Dr. S jaishankar at the India SICA Ministerial Meeting.
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8. Dr. S Jiashankar at the Latin American Business Forum in Panama City.
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Pic Courtsey-I Odyssee Belle at unsplash.com
(The views expressed are those of the author and do not represent views of CESCUBE.)
