CAATSA Act

18 Jul 2022 CAATSA Act

CAATSA Act – Today Current Affairs

• Recently the United States House of Representatives has approved amendments to the National Defense Authorization Act (NDAA), which proposes to keep India out of the purview of sanctions under the Countering America’s Adversaries through Sanctions Act (CAATSA).
• It will allow India to freely buy Russia’s S-400 missile system without fear of US sanctions.
• The National Defense Authorization (NDAA) is legislation that Congress passes each year to change the policies and organization of the United States defense agencies and provide guidance on how funds allocated to the military sector can be spent.

Today Current Affairs

Proposed Amendments:

• The amendment urges the US administration to use its authority to grant India an exemption under the Countering America’s Adversaries through Sanctions Act (CAATSA) to help deter aggressors like China.
• The law states that the United States-India Initiative on Critical and Emerging Technologies (ICET) aims to address the latest advances in artificial intelligence, quantum computing, biotechnology, aerospace and semiconductor manufacturing by governments, academia and industry in both countries. It is a welcome and necessary step to develop closer partnership between.

CAATSA

 US law : The Hindu Analysis

• CAATSA is a US law that was enacted in the year 2017 and its main objective is to counter the aggression of Iran, Russia and North Korea through punitive measures.
• Its Title II primarily deals with sanctions on Russian interests such as its oil and gas industry, defense and security sector, financial institutions in the backdrop of its military interference in Ukraine and its alleged interference in the 2016 US presidential elections.
• Section 231 of the Act empowers the US President to impose at least five of the 12 sanctions listed in Section 235 of the Act on persons engaged in “substantial transactions” with the Russian defense and intelligence sectors.

Sanctions that may affect India : The Hindu Analysis

• There are only two sanctions that can affect India-Russia relations or Indo-US relations.

Prohibition of Banking Transactions : The Hindu Analysis

• The first of these, which is likely to have an impact on India-Russia relations, is the “prohibition of banking transactions”.
• This will result in difficulty in paying Russia in US dollars for the purchase of the S-400 system for India. It will also affect India’s procurement of spare parts, components, raw materials and other services.
• In the year 2020, Turkey was approved for the purchase of the S-400 system.

Export Approval : The Hindu Analysis

• Viewed in the context of the “export clearance” ban, it has the potential to completely derail the India-US strategic and defense partnership, as it would deny licenses and exports of any goods controlled by the US.

Exemption Criteria : The Hindu Analysis

• The US President was empowered to waive CAATSA sanctions on a ‘case-by-case’ basis in 2018.

Russia’s S-400 Triumph Missile System : The Hindu Analysis

• It is a mobile, surface-to-air missile system (SAM) designed by Russia.
• It is the most dangerous operationally deployed ‘Modern Long-Range SAM’ (MLR SAM) in the world, which is considered to be much more advanced than the US-developed ‘Terminal High Altitude Area Defense’ system (THAAD).  The Hindu Analysis
  
• This system is 30 km. At an altitude of up to 400 km.  It can target all types of air targets, including aircraft, unmanned aerial vehicles (UAVs) and ballistic and cruise missiles within range.
• The system can track 100 air targets and hit six of them simultaneously.

Importance for India : The Hindu Analysis

• From India’s point of view, China is also buying defense equipment from Russia. In 2015, China signed an agreement with Russia.  And it was launched in January 2018.
• The acquisition of the S-400 system by China has been seen as a “game changer” in the region. However its effectiveness against India is limited.
• Its acquisition is critical to countering attacks in a two-front war, including even the high-end F-35 US fighter aircraft.

CAATSA exemption on Indo-US relations : The Hindu Analysis

• The NDAA amendment also urged the US to take more steps to help India pivot away from its reliance on Russian-made weapons.
• This amendment is in line with the period of recent bilateral strategic relations.
• The crucial year was 2008 and since then US defense contracts with India are worth at least US$ 20 billion. In the period prior to 2008, it was only US$500 million.
• In addition, in the year 2016, the US recognized India as a major defense partner. Strategic ties have also been strengthened through groups such as Quad and now I2U2.
• It is in its strategic interest for India to move away from Russian platforms.
• Russia’s dependence on China has increased significantly after Russia’s invasion of Ukraine, a situation that is unlikely to change in the future.
• Already, China is second only to India as the second largest recipient of Russian arms exports.
• Given India’s long-standing border management protocol with China, reliance on Russian weapons is unwise.

In this article we mention all information about CAATSA Act  Today Current Affairs.

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