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Question-2:  Explain the key features and importance of CAATSA. Also discuss its implications on India.


Answer:  Countering America’s Adversaries through Sanctions Act (CAATSA) is a US federal law that puts sanctions on Iran, North Korea and Russia. The law allows US to restrict trade and other financial transactions with these countries.

Features of CAATSA

  • Directed on specific countries
    The law has been designed to apply to countries such as Russia, Iran and North Korea. It does not apply to other countries directly.
  • Secondary sanctions
    Secondary sanctions are features of the act. Under this, countries having strategic trade relations with sanctioned countries are liable to be sanctioned.

Importance of CAATSA

  • CAATSA makes it necessary for countries to follow international order as failure to do so can result in sanctions.
  • Rogue nations such as North Korea can be kept under control through forceful measures like CAATSA.

Implications on India

  • Restricts India’s trade
    CAATSA will have a long lasting effect on India’s trade with sanctioned countries. Economic and strategic losses are inevitable.
  • Affects diplomatic relations
    India has maintained a neutral relationship with all major power. Conflicts between different countries will force India to choose sides, affecting diplomatic relations.

Thus, CAATSA is criticized as one-sided legislation that has been framed based on America’s interests. Non aligned countries such as India must try to balance its own interests.

Tags: GS 2 (International Relations)

By- Prashant Tiwari

Updated on 11 May 2022 |   Added on .09 May 2022  |  by admin