U.S. to Counter China’s Belt-and-Road with Trade Corridor Linking India to Europe via Israel

The United States on Saturday backed the construction of a rail and shipping corridor linking India with Europe, running though Israel and the Middle East. The ‘India-Middle East-Europe Economic Corridor,’ as the project is called, “would stretch across the Arabian Sea from India to the United Arab Emirates, then cross Saudi Arabia, Jordan and Israel before linking up to Europe,” the Financial Times (UK) reported.

The agreement was signed by the U.S., European and Arab leaders at the summit of G20 countries in New Delhi, India. The White House welcomed the project, calling it ‘landmark’ in a statement released on Saturday.

“The planned corridor would link India, Saudi Arabia, the United Arab Emirates, Jordan, Israel and the EU through shipping ports and rail routes, in an effort to make trade quicker and cheaper and to boost economic cooperation and digital connectivity across the region,” British newspaper The Guardian reported.

The U.S.-backed project aims to counter China’s Belt and Road initiative, which runs through Asia and Africa, and strengthens Beijing’s hold over developing economies.

“The initiative would also provide a counterbalance to China’s vast infrastructure corridor, the Belt and Road project, which currently stretches across Asia, Africa and Latin America and has given China sizeable influence over countries that have struggling economies,” the UK daily added.

Indian newspaper The Hindustan Times reported the details of the project:

On the eve of the 10th anniversary of China’s Belt-Road-Initiative next month, India, the US, the UAE, Saudi Arabia, France, Germany, Italy and the European Union literally check-mated President Xi Jinping by signing the MoU to establish the India-Middle East-Europe Economic Corridor (IMEE-EC) to connect Asia and Europe by promoting economic integration.At a time when Italy, a G-7 power, under Prime Minister Giorgia Meloni is poised to withdraw from China-sponsored BRI, it was propitious to note that US President Joe Biden joined hands with estranged friend Saudi Arabian Crown Prince Mohammed bin Salman at the behest of Prime Minister Narendra Modi to solidly back the project. UAE President, a very close friend of PM Modi and an ally of India, was one of the promoters of the project and a firm believer of the Arabian Peninsula acting as an economic bridge between India and Europe. With another close friend Emmanuel Macron providing support, Germany and Italy along with the European Commission have joined hands in the groundbreaking project.The Middle East corridor consists of two separate corridors. The East Corridor will link the Indian port of Mundra on the west coast to Fujairah port and then using the railroad via Saudi Arabia and Jordan transport goods through standardized containers to the Israeli port of Haifa. The west corridor will be from Haifa, from where the Indian goods will reach various ports like Marseille in France and other ports in Italy and Greece.Barring a small stretch of railroad that has to be built by Saudi Arabia, the entire corridor is complete and can be activated in near future. The project is very ambitious as it has the potential to link countries like Vietnam, Thailand, Myanmar and Bangladesh with this corridor if the Myanmar junta allows a dedicated port for this project and walks out of the ever lengthening shadow of China.

The agreement might also explain why China’s President Xi Jinping skipped the annual G20 meet for the first time. In recent years, military clashes have reignited between China and India over a long-standing territorial dispute.

PM Netanyahu welcomes India-Europe corridor

Prime Minister Benjamin Netanjahu welcomed the project which would make Israel a major logistical hub connecting markets of Asia and Europe. Israel and Saudi Arabia, both major players in the Middle East, will be joining the rail and port corridor, further enhancing bilateral cooperation.

The Israeli TV i24NEWS channel reported prime minister’s response:

“Israel is at the focus of an unprecedented international project that will link infrastructure from Asia to Europe,” Netanyahu said in a recorded video statement. “This link will also realize a multi-year vision that will change the face of the Middle East, and Israel, and will affect the entire world. This vision starts in India, passes through the UAE, Saudi Arabia, Jordan and Israel before reaching Europe.”Netanyahu further stated that “the State of Israel will be a central junction in this economic corridor. Our railways and ports will open a new gateway from India, through the Middle East, to Europe, and back.”

Iran, Pakistan left out

Two notable countries to be missing from the project are Iran and Pakistan, both of whom are deeply entangled in China’s Belt and Road projects.

New Delhi had been trying to build a trade route to Europe though Russia via the Iranian port of Chabahar. The project has repeatedly run into troubles due to U.S. and European sanctions on Russia and Iran.

Tags: Europe, European Union, India, Israel, Middle East

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