INTERNATIONAL TRADE LAW PSDA ON

The Quad Alliance: India’s Trade Aspirations In Indo-Pacific

In Partial Fulfilment of the degree of Bachelors In Law

Submitted by- Submitted to-

(group work)

Shantanu Sharma Ms. Anushka Ukrani

Vageesha Dwivedi (Asst. Professor), DME
BA LLB 4C

DELHI METROPOLITAN EDUCATION,

NOIDA
Abstract-
Shedding its history of nonalignment and protectionist approach of the past century with
every passing decade, India has been liberalising its trade and economy, with pace. Globally
too, trade is being positioned in the heart of strategic issues. Thereby making it the nation's
soft power. Economic growth and stability of a country only decides its strategic and
geopolitical dominance over other players, making it a rabbit race. When competition
becomes nail biting, then sides are chosen, groups are made to defend and mark one’s own
superiority. Economic strength in contemporary times is the need of the hour. Which explains
the need for alliances like - QUAD. Because, trade is a strategic instrument.

Keywords- trade, liberalisation, economic growth, strategic alliance

Introduction - From Quad to Quad 2.0

It was in the year of 2004, when the deadliest human disaster in human history - oceanic
earthquake and Tsunami hit the Southeast Asian and pacific region. Misery being
unprecedented and insurmountable with an estimate of more than 2 lac people affected across
14 countries of the region. India launched its relief and rescue aid promptly, extending to the
affected neighbouring countries. Meanwhile Japan, Australia and USA also joined in the
operation. This was made into an ad hoc grouping named Tsunami Core Group. The group of
4 worked toward tsunami relief and reconstruction. Thousands of troops, humanitarian
responders and disaster relief were contributed. Although the group didn't form any
secretariat or made any communiqué. Consequently the group dissolved as soon as its
purpose was solved. Impressing the world this new style of diplomacy gained momentum.
Although short lived. Heavily inspired by the success of the quadrilateral template, former
Japanese PM, Shinzo Abe, proposed, “An arc of freedom and prosperity”. Objective of the
group to promote freedom and rule of law. Soon then PM of India, Dr. Manmohan Singh
visited Japan and the two countries issued a joint statement expressing eagerness to begin a
dialogue with like minded countries in the Asia-pacific region. This attracted US’s interest in
the same and it signalled for its participation in the Quad Dialogue. Later in 2007, the first
meeting for the initial quad was held, this was on the sidelines of the ASEAN regional forum
in Manila. This raised China's concern which got more evident when Japan and Australia
joined the US-India Malabar exercises. Voicing out its concern, comparing it with terms like
‘Asian Nato’, China tried its best to attack Quad. China issued formal diplomatic protests to
the members of the Quad. Soon the Quad began to crumble. Followed by this, Australia
withdrew in 2008 from the forum, ostensibly, due to political pressure from the Chinese
government, and, following the growing conflict between the US and China in the
Asia-Pacific region. However, in 2010, Australia again joined the Quad’s naval exercises &
enhanced military cooperation between the US and Australia was resumed. A decade later in
2017, the stage was all set for the Quad to return. India and the US had signed the Logistic
Exchange Memorandum of Understanding, 2016. India and Japan had signed the Civil
Nuclear Cooperation Agreement, 2016. Japan had permanently joined the Malabar Exercises.
The right liberal wing of Australia won the election and this time facing off china’s
manipulation. The three quad countries realised that there was a need of democratic security
diamond - QUAD 2.0, in the region to combat the dragon’s warrior wolf approach, and its
growing footprint in the region which posed a great threat at multiple strategic layers, one of
them being trade.

Why India Joined Quad - Its objective and aspirations

An informal strategic forum for an all inclusive, open and free indo-pacific region, quad
aims bolster- strategic , military, economic and trade cooperation in a region which of late has
become hotbed for China’s hegemonic action in the region. It's much criticised Belt and Road
Initiative (BRI) , also referred to as ‘New Silk Road ', gives China an upper hand in the trade
sector of this region, while also posing a foreseeable threat to other countries whose economy
depends extensively on trade and commerce. What took off as military and maritime
cooperation soon shifted to trade and economic aliance. The motive behind the Quad is to
keep the strategic sea routes in the Indo-Pacific, free of any military or political influence. It
is basically seen as a strategic grouping, aimed at reducing Chinese domination. Although
Quad does not exist simply to counter China or its influence, the aggressiveness, the coercive
nature with which China tries to press its claims, is certainly a frequent topic of discussion
with all the allies and partners of India, and inside the Quad. The Quad arrangement gives
India an opportunity to work multilateral trade on all kinds of initiatives that can help create a
free and open Indo Pacific region. The core objective of the Quad is, to secure a rules-based
global order, freedom of navigation and a liberal trading system. The coalition also aims to
offer alternative debt financing for nations in the Indo-Pacific region. In November 2017,
India, Japan, US and Australia gave shape to the long-pending proposal of setting up the
Quad, to develop a new strategy to keep the critical sea routes in the resource-rich
Indo-Pacific, free of any influence, to bolster trade, amidst China’s growing military presence
in the strategic region. In this scenario, India used the QUAD as a platform to carve out
bilateral and trilateral initiatives with other member countries to expand and enhance regional
connectivity. At the same time, India also set the ‘terms of engagement’ as other member
countries of the QUAD are doing so that rising China does not remain inimical to their
interests. It will surely happen that, major or minor power will continue to engage with China
but the war is won by the country who will set the terms of engagement by paying attention
to the specific needs, vulnerability of any kind of a particular country. India’s deep economic
connection with QUAD economies is reflected in its bilateral trade volume with each of the
members. Collectively these three economies accounted for 15 percent of India’s total trade
during 2019-2020. The USA contributes the highest share with 11 percent followed by Japan
and Australia with 2.15 percent and 1.6 respectively. In addition, India already has a trade
agreement with Japan, enforced in 2011 while the negotiation is underway with Australia and
the USA. India can now use this vital multilateral forum to accelerate its trade negotiations
and boost its trade with the member economies. The QUAD has a strong focus on promoting
a rule-based order in the Indo-Pacific region, which could potentially involve trade
agreements and other economic cooperation. In particular, India stands to benefit from
greater trade and investment flow, although at a gradual pace, due to regulatory hurdles. It is
important to note that the QUAD is still an informal grouping and has not yet taken any
concrete steps towards formalising trade or economic cooperation. Further developments will
be needed to determine whether the QUAD is indeed transforming itself into a trade block.