Major G20 partners are set to announce plans on Saturday aimed at boosting trade between India, the Middle East, and Europe, effectively establishing a contemporary Spice Route. This initiative provides an alternative to China’s extensive infrastructure investments known as “Belt & Road” initiative or “New Silk Road”.
Major G20 partners will unveil ambitious plans Saturday to bolster trade between India, the Middle East and Europe, a modern-day Spice Route to bind regions that account for about a third of the global economy.
Washington, Saudi Arabia, the EU, the United Arab Emirates and others will sign an agreement on the sidelines of the G20 summit in New Delhi, presenting an alternative to China’s wide-ranging strategic infrastructure investments.
One proposed project would link railway and port facilities across the Middle East, including the United Arab Emirates, Saudi Arabia, Jordan and Israel, potentially speeding trade between India and Europe by up to 40 percent.
The agreement would boost trade but is also seen as another significant step towards Arab Gulf states normalising relations with Israel.
Washington is actively prodding Riyadh, a major oil producer and security partner, to normalise ties with Israel after decades of conflict and closed borders.
US involvement could also help mend deeply damaged ties between Riyadh and Washington, which frayed after the US-Iran nuclear deal and the 2018 murder of dissident journalist Jamal Khashoggi.
“If finalised, it would be a game changer that strengthens connectivity between India and the Middle East and would aim to counter BRI (China’s Belt and Road Initiative),” Michael Kugelman, South Asia Institute director at The Wilson Center posted on X.
Katrine Dige Houmøller, with AFP
