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India with global community in UN denounces US recognition of Jerusalem as Israel’s capital

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[vc_row][vc_column][vc_column_text]India put aside concerns about its growing closeness to US and Israel to stand with global community in voting against Trump administration’s decision to recognise Jerusalem as Israel’s capital.

There were threats from the US delegation to the United Nations (UN) and from US President Donald Trump himself earlier in the week that he was considering cutting off funding to any country that voted against the US.

Despite the attempt at coercion, the UN General Assembly (UNGA) passed the draft resolution declaring the Jerusalem decision to be ‘null and void’ by an overwhelming margin: 128 states in favour and nine against, with 35 abstentions, while 21 others stayed away – they were absent.

While India refrained from speaking in the UNGA ahead of the vote, it had said that its Palestine position was independent and consistent after Trump recognised the holy city of Jerusalem as the capital of Israel.

In her intervention at the non-aligned movement’s ministerial meeting on Palestine on the sidelines of the UNGA in September, External Affairs Minister Sushma Swaraj had said the path to Israel-Jerusalem peace clearly lay in an early negotiated solution between Israel and Palestine based on mutual recognition and security arrangements.

Jerusalem holds Muslim, Jewish and Christian holy sites. Its status is one of the thorniest obstacles to a peace deal between Israel and the Palestinians, who were furious over Trump’s move. The international community does not recognise Israeli sovereignty over the full city.

Earlier this month, Trump reversed decades of US policy by announcing the United States recognised Jerusalem as the capital of Israel and would move its embassy there.

The vote in UNGA was called at the request of Arab and Muslim countries after the US on Monday vetoed a resolution put to the 15-member Security Council rejecting Washington’s decision to recognize Jerusalem and relocate its embassy there. The remaining 14 Security Council members voted in favour of the Egyptian-drafted resolution, which did not specifically mention the United States or Trump but which expressed “deep regret at recent decisions concerning the status of Jerusalem.”

The resolution adopted by UNGA has language similar to the measure US vetoed in the Security Council. It “affirms that any decisions and actions which purport to have altered the character, status or demographic composition of the holy city of Jerusalem have no legal effect, are null and void and must be rescinded.”

A UNGA resolution cannot be vetoed and is adopted by a majority of votes. A day before the issue came up for vote, Trump suggested that countries voting against the US in the voting could face repercussions. “They take hundreds of millions of dollars and even billions of dollars, and then they vote against us. Well, we’re watching those votes,” Trump had said on Wednesday, Dec 20.

Anticipating the outcome of the UNGA vote, Israeli Prime Minister Benjamin Netanyahu described the United Nations as a ‘house of lies’ ahead of the vote. “The State of Israel totally rejects this vote, even before (the resolution’s) approval,” Netanyahu said in a speech in the port city of Ashdod.

Ahead of the vote at UNGA, the United States said it was ‘singled out for attack’ at the United Nations over Jerusalem. “The United States will remember this day in which it was singled out for attack in the General Assembly for the very act of exercising our right as a sovereign nation,” US Ambassador to the UN, Nikki Haley, told the 193-member General Assembly.

Repeating Trump’s warning, she said, “We will remember it when we are called upon to once again make the world’s largest contribution to the United Nations, and so many countries come calling on us, as they so often do, to pay even more and to use our influence for their benefit.”

Aerial-Jerusalem-Temple_Mount

As the largest donor to the international body, the US had ‘a legitimate expectation’ that its goodwill would be ‘recognised and respected’, she said. “When a nation is singled out for attack in this organisation, that nation is disrespected. What’s more, that nation is asked to pay for the privilege of being disrespected. In the case of the US, we are asked to pay more than anyone else for that dubious privilege,” Haley said. “If our investment fails, we have an obligation to spend our resources in more productive ways.”

The US pressure could not alter the outcome of the vote, though it did seem to have had some impact, seen in the high number of abstentions.

Thirty-five countries abstained from the vote, including five EU states, and other US allies including Australia, Canada, Colombia and Mexico, as also Rwanda and Uganda. Another 21 delegations were absent from the vote. However, according to a report, Ambassadors from several abstaining countries, including Mexico, used their time on the podium to criticise Trump’s unilateral move.

Guatemala, Honduras, Marshall Islands, Micronesia, Nauru, Palau and Togo voted against the resolution, alongside the US and Israel.

Going against US and Israel, 22 of the 28 EU countries voted for the resolution, including the UK and France. Germany – which in the past has abstained on measures relating to Israel – also voted in favour.

There were major US aid recipients including Afghanistan, Egypt, Jordan, Pakistan, Nigeria, Ethiopia, Tanzania and South Africa who supported the resolution. Egypt received roughly $1.4 billion in U.S. aid this year, and Jordan about $1.3 billion.

The absent countries included Kenya, which was the fifth-largest recipient of U.S. aid last year, Georgia and Ukraine, all of which have close U.S. ties.

After the vote, US Ambassador to UN Haley tweeted a photo naming the 65 nations that voted no, abstained or were absent, and said- “We appreciate these countries for not falling to the irresponsible ways of the UN.”

She later sent invitations to the 65 ambassadors inviting them to a reception on Jan 3 to thank them for their friendship with the United States, said a report in The Hindu.

It remains to be seen whether Trump carries out his his threat against those who voted for the resolution and against US. The US is scheduled to dispense $25.8 billion in foreign aid for 2018, reported The Hindu.

In an indication that the Trump administration could be backing away from its funding threats, State Department spokesperson Heather Nauert said cuts to countries that opposed the US are not a foregone conclusion.

Media reports quoting news agency AP said a senior Trump administration official said there was no plan as of Thursday for moving ahead with eliminating aid to countries that rebuked the president.

Analysts said it would be unlikely for US to follow through on Trump’s warning. Al Jazeera quoted Juan Cole, history professor at the University of Michigan, as saying, among other things, that it would also harm US companies since a large amount of US aid comes in the forms of American-made military equipment.

Cole wrote in his blog: “The Egyptian government has more military helicopters than it knows what to do with, and they’re just stacked in warehouses. So the money actually went to US arms manufacturers, and Egypt gets a fairly useless shiny military toy. Trump would be hurting US corporations more than Egypt if he cut it off.”

US interests would also suffer if, without US influence in the form of foreign aid, countries like China and Russia might step in, he added.

John Kirby, CNN National Security Analyst also wrote: “…our aid and assistance packages serve our national interests. …Foreign aid and assistance is not charity. It’s vital to our security and to the security of our allies and partners.”[/vc_column_text][/vc_column][/vc_row]

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UK Foreign Secretary Yvette Cooper visits India to strengthen bilateral partnership

UK Foreign Secretary Yvette Cooper held high-level meetings in New Delhi during her first official visit to India, underscoring efforts to deepen cooperation in trade, security, technology and regional stability.

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UK Foreign Secretary Yvette Cooper visited New Delhi for her first official trip to India since assuming office, holding key meetings with Prime Minister Narendra Modi and External Affairs Minister S. Jaishankar as both countries seek to deepen cooperation across trade, security and strategic sectors.

The visit comes at a significant time in India-UK relations, with both governments working toward the implementation of their recently concluded trade agreement while also expanding collaboration in areas such as technology, climate action, supply chains and regional security.

Focus on trade and strategic cooperation

During her engagements in New Delhi, Cooper discussed ways to strengthen the comprehensive strategic partnership between the two countries. Conversations also touched on accelerating the implementation of the India-UK trade agreement and enhancing economic cooperation.

Her visit followed recent discussions between Indian Commerce Minister Piyush Goyal and UK Business and Trade Secretary Peter Kyle regarding the rollout of the bilateral trade pact.

New initiatives announced

India and the UK also announced fresh cooperation initiatives during the visit, including the launch of a Critical Minerals Global Supply Chain Observatory aimed at strengthening collaboration on critical minerals and supply-chain resilience.

Officials described the initiative as an important step in expanding cooperation in emerging strategic sectors and supporting resilient global supply chains.

Addressing global challenges

Apart from bilateral issues, discussions covered wider global concerns, including regional stability, economic disruptions arising from international conflicts and maritime security. The visit reflects the growing importance both countries attach to their strategic partnership amid evolving geopolitical challenges.

India and the UK have increasingly broadened cooperation across defence, technology, innovation, clean energy and people-to-people ties, with both sides aiming to further strengthen engagement in the coming years.

Fact-check assessment

The core angle—Yvette Cooper’s first official visit to India, meetings with PM Modi and S. Jaishankar, focus on trade, security, strategic cooperation and the launch of new bilateral initiatives—is supported by multiple current reports and appears factually sound.

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Trump says India-US trade deal likely soon, calls PM Modi a good friend

Donald Trump has expressed confidence that India and the United States will soon finalize a trade agreement, while praising Prime Minister Narendra Modi and highlighting ongoing bilateral negotiations.

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Donald Trump statement

US President Donald Trump has expressed confidence that the United States and India will reach a trade agreement in the near future, even as discussions continue amid concerns over potential new tariffs. Trump also praised Prime Minister Narendra Modi, describing him as a good friend and highlighting the strong relationship between the two leaders.

Speaking to reporters at the White House, Trump said he expects the two countries to finalize a deal and pointed to his personal rapport with Prime Minister Modi. He said the relationship between Washington and New Delhi remains strong and that ongoing negotiations are moving toward an agreement.

The remarks come shortly after a US trade delegation concluded discussions in India on an interim bilateral trade arrangement. According to Indian officials, the talks were conducted in a cooperative atmosphere, with both sides reaffirming their commitment to a mutually beneficial agreement aimed at strengthening economic ties.

During the interaction, Trump also repeated his criticism of India’s past tariff policies, arguing that India had imposed high duties on American goods for many years. He claimed recent US trade measures were intended to address what he views as an imbalance in the trading relationship.

His comments come days after the US administration proposed additional tariffs on imports from India and several other economies under a separate trade investigation related to forced-labour concerns. The proposal remains under review and has become one of the issues running alongside broader trade negotiations between the two countries.

Despite the tariff dispute, both governments have continued negotiations. Recent statements from officials on both sides suggest that substantial progress has already been made on several aspects of the proposed agreement, with discussions focused on resolving the remaining issues.

The United States is one of India’s largest trading partners, and a bilateral agreement is expected to further expand trade and investment flows between the two countries. Trump’s latest remarks are being seen as a sign that both sides remain committed to finding common ground despite ongoing trade disagreements.

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India considers tax relief to attract foreign investors amid Iran war impact

India is evaluating tax incentives, including a possible capital gains tax exemption on government securities for foreign investors, to support capital inflows amid economic pressures linked to the Iran war.

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India is considering a set of measures aimed at attracting more foreign investment as the ongoing Iran war continues to create pressure on the country’s economy, according to reports citing government sources. One of the key proposals under discussion is the removal of capital gains tax on investments made by foreign portfolio investors (FPIs) in government securities.

The move comes at a time when geopolitical tensions in West Asia have pushed up global oil prices, weakened investor sentiment and increased pressure on the Indian rupee. India, which imports a significant share of its crude oil requirements, has been among the countries closely monitoring the economic fallout from the conflict.

Government exploring ways to boost capital inflows

Officials are reportedly evaluating tax-related incentives to make Indian debt markets more attractive to overseas investors. The proposed exemption on capital gains from government securities is aimed at encouraging foreign portfolio investment and supporting capital inflows during a period of heightened global uncertainty.

The government is seeking to counter the impact of foreign capital outflows that have intensified amid concerns over the Iran conflict and its implications for energy markets and global economic growth.

Rupee and markets under pressure

Recent weeks have seen increased volatility in financial markets, with foreign investors pulling money out of Indian equities. Analysts have linked part of the pressure on the rupee to rising oil prices and continued overseas investor withdrawals.

Market participants believe that measures aimed at attracting foreign investment into government securities could help improve investor confidence and provide support to the domestic currency.

Broader economic concerns

The Iran war has added to concerns about inflation, economic growth and India’s external sector. Higher energy prices can increase import costs and put pressure on inflation, while sustained foreign capital outflows may affect financial market stability.

While no final decision has been announced, discussions on easing tax rules for foreign investors reflect the government’s efforts to strengthen capital inflows and cushion the economy from external shocks.

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