G20 Summit: US, India and Gulf states pushing ahead with plans for rail deal

The leaders of the BRICS nations — Brazil, Russia, India, China and South Africa — are trying to increase the group’s influence and counter US power over the global economy and trade, including through the role of the US dollar.

US President Joe Biden and the leaders of India, Saudi Arabia and the United Arab Emirates are pushing ahead with plans for a joint infrastructure deal, but it’s unclear if an agreement will be reached during this weekend’s Group of 20 summit, a top White House aide said.

Biden’s top Asia adviser, Kurt Campbell, declined to handicap the chances of an announcement at the G-20 but told reporters on September 8 that the US was working on the initiative with partner nations. Campbell spoke after Biden met with Indian Prime Minister Narendra Modi.

“Those are not concluded,” Campbell said of the negotiations during a briefing in Delhi. “We’re in the middle of it. I think the important thing for you to hear here, in that bilateral meeting, the strongest supporter of this initiative is India".

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Axios earlier reported that a deal was expected to be announced during the summit as part of Washington’s efforts to balance China’s influence in the region. The plan, which may be announced on September 9, seeks to connect Gulf and Arab countries via a network of railways, Axios said, citing unidentified people with knowledge of the discussions. It will also connect to India through shipping lanes from ports in the region, the report said.

Earlier this year, White House National Security Advisor Jake Sullivan traveled to Saudi Arabia for talks that also included Indian and UAE representatives on the topic.

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“We believe that connectivity from India, across the Middle East to Europe is incredibly important and will bring a significant number of economic benefits, as well as strategic benefits, to all of the countries involved,” Sullivan told reporters September 7 en route to the summit.

US allies Saudi Arabia and the UAE have been moving closer to China as they seek to strengthen ties with fast-growing economies to the east. Last month, the two oil-rich Gulf states said they were joining the BRICS group of emerging market nations after China led a push to open up membership of the bloc.

The leaders of the BRICS nations — Brazil, Russia, India, China and South Africa — are trying to increase the group’s influence and counter US power over the global economy and trade, including through the role of the US dollar.

Separately, a US-backed proposal to speed up land-trade routes between Gulf Arab countries and the Mediterranean Sea has been floated among Israel and Gulf countries, but officials acknowledge there is no set time line for any changes.

The US in recent years has sought to counter President Xi Jinping’s Belt and Road Initiative, which has financed hundreds of billions of dollars worth of infrastructure in emerging markets. China has also boosted ties with the Middle East of late, helping to broker a detente between Saudi Arabia and Iran earlier this year.

Xi is set to host world leaders including Russian President Vladimir Putin at a Belt and Road summit in Beijing next month.