India - Middle East Economic Corridor faces a big setback
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The India-Middle East-Europe Economic Corridor's effectiveness and feasibility came into question during a recent press briefing conducted by State Department Spokesperson Matthew Miller on a Monday. In response to inquiries about the current trade route connecting Asia, the Middle East, and Europe, Miller mentioned that currently, ships can traverse from India to Saudi Arabia.
Furthermore, he expressed optimism that this corridor could potentially lead to the creation of a new transportation network, involving both shipping and rail.
The announcement of this corridor occurred at the G20 summit, with Indian Prime Minister and the European Union Commissioner jointly unveiling it as a symbol of the warming relations between India and Saudi Arabia. However, skepticism arose from an expert who pointed out that the map presented by Indian media outlets may not provide an accurate representation of the project.
Miller, while acknowledging the memorandum of understanding (MOU) for this corridor, refrained from providing specific details, emphasizing that further information would be disclosed as the MOU is fully implemented.
Miller also sought to allay concerns about the potential impact of this corridor on Egypt's economy and its Suez Canal. He maintained that they did not believe it would harm Egypt and, in fact, argued that it would bring positive economic benefits to the entire region. However, he emphasized that the Suez Canal held a unique place in global trade, and the economic corridor would not replace it but rather complement it, ultimately benefiting the entire region.
Currently, the Suez Canal stands as a vital trade route, facilitating approximately 12% of global trade annually. Miller concluded by reiterating that the recent agreement was a signing of an MOU and that further details would be forthcoming as the involved countries work to fully implement it in the months ahead
