Unlocking US-India Trade Potential

Atlantic Council SOUTH ASIA CENTER

ISSUE BRIEF Unlocking US-India Trade Potential

MUKESH AGHI AND SEPTEMBER 2018 BHARATH GOPALASWAMY

INTRODUCTION Over the last decade, trade between the United States and India has grown exponentially to over $126 billion and two-way investment to approximately $40 billion. This crucial strategic relationship is also being shaped by broader forces, namely India’s growing centrality as a bastion of stability in the Indo-Pacific region as well as the close and growing collaboration on defense technology between the United States and India.

In his October 2017 address on growing US-India cooperation at the Center for Strategic and International Studies (CSIS), Secretary Rex Tillerson routinely mentioned the phrase “free trade” alongside “rule of law,” both of which are hugely significant in the context of the resur- gence of the Quadrilateral Security Dialogue—the set of nations (Japan, The South Asia Center works to Australia, the United States and India) which are committed to the lib- overcome entrenched rivalries eral international economic order and a shared commitment to mari- and foster collaboration in one of time security in the Indo-Pacific basin. the world’s most volatile, dynamic, and strategically significant It is naturally in the United States’ geostrategic interest to help India regions. actualize as a regional power in the Indian Ocean region so that it may contribute toward efforts to provide security for the regional commons, ISSUE BRIEF Unlocking US-India Trade Potential

and to guarantee enhanced trade stability to the re- occurred within the last five years, but certain chal- gion in addition to serving as an important counterbal- lenges continue to pose a threat to the actualization of ance to other regional powers which do not hold the success in the sectors mentioned as part of the confer- same level of respect for the rule of law and interna- ence themes. tional norms that India, and its Western partners may. Given the US-India synergy in defense and security To address the many complex challenges and opportu- concerns, it is not a surprise that the growth in defense nities confronting greater US—India trade, the Atlantic trade has been a resounding success. However, suc- Council’s South Asia Center and the US Consulate cess in defense convergence must be accompanied by General Chennai, with support from the Takshashila similar progress in other areas within the bilateral re- Institution, the Federation of Karnataka Chambers lationship. Without such equivalent progress, the lon- of Commerce and Industry (FKCCI), and the Indo- gevity and resilience of the US-India relationship could American Chamber of Commerce (IACC), launched be placed at risk. the “Unlocking US-India Trade Potential” conference, November 6–8, 2017. This report follows the broad con- Defense Cooperation: There has been huge growth tours of the conversation that unfolded at the confer- in the US-India defense trade, this growth preced- ence, and the recommendations offered by the experts ing President Obama’s tenure. As the defense part- to elevate the bilateral trade relationship to new heights. nership has grown from $200 million USD in 2000 to over $15 billion USD in 2016, it is necessary for CONFERENCE OBJECTIVES the increasingly convergent Indo-Pacific partners to move past these barriers to unlock the potential of To explore the economic partnership between the defense trade to sustain and exceed this momen- United States and India. The conference brought tum over the next decade. The mutual desire for this together representatives from the international busi- is evidenced by the extent to which US giants like ness and trade sectors in the United States and India, Boeing, General Atomics, Raytheon, and Lockheed to enable direct interactions among global economic Martin are vying for Indian defense contracts. The stakeholders, thought leaders, and policy makers conference laid the foundations for new, lasting re- aimed at curating sound economic policies to bolster lationships between private firms and government bilateral trade. contractors in the United States and India that work on issues related to the bilateral defense relation- To integrate US-Indian economic partnerships ship, as well as the objective of securing regional on a regional, national, and international level. stability. India’s regional outlook is still constrained The following themes were addressed during the by its traditional posture of nonalignment causing two-day conference: Expanding US-India Defense the country to not exercise its full potential in main- Cooperation, Ease of Doing Business in India and Trade taining regional stability. Current sanctions policies Facilitation, Expanding US-India Energy Cooperation, of the United States could potentially affect defense I.T. and Services, Advancements in Infrastructure, trade with India, given the extent to which American Connectivity, Smart Cities and Special Economic giants like Boeing, General Atomics, and Lockheed Zones, and IPR in Media and Entertainment. By iden- Martin in the United States are expected to impact tifying factors that may impede increased trade and local American economies through their manufac- developing potential solutions to overcome these turing plants. challenges, the conference helped the two countries identify solutions that will bring about major improve- The experience of leading American defense firms ments to the trade relationship. in India is hindered by India’s difficult business climate. Many foreign companies have a hard time go- MAJOR DEVELOPMENTS & CHALLENGES ing through the Indian bureaucracy, which they cite as the number one bottleneck to their operations in The US-India trade relationship has blossomed over India. Additionally, the Indian defense industry is com- the last decade. Throughout the course of the con- posed of ten to fifteen companies, comprising mainly ference, participants discussed the following principal small to mid-tier players, that attract governmental breakthroughs in the bilateral relationship that have attention and support. Another hindrance is the lack

2 ATLANTIC COUNCIL ISSUE BRIEF Unlocking US-India Trade Potential

of transparency surrounding logistics in India in ad- to enormous entrepreneurial activity, there are se- dition to the constant lack of predictability in trade rious physical bottlenecks which impede progress and investment regulations in the country. The fact namely the bad infrastructural connectivity that pre- that India’s new insolvency regulations have been ac- vents people from getting to their work on time thus tive for over one year without “disclosure norms or giving way to serious inefficiencies. These bottle- mandatory transparency regulations” is a major bot- necks are not confined to one city but are present in tleneck to enhanced bilateral trade cooperation with Indian cities of all tiers. This would affect the supply the United States. The proliferation of corporate bad chains which compose the grander US-India trade loans that have happened in India, under a shroud of framework. This is an issue which affects every ma- opaqueness, is disquieting for Indian investors and jor Indian city. On the World Bank’s Logistics score, corporate professionals alike, as well as for foreign India scores poorly on Infrastructure with a score of investors. In 2017, Indian banks’ sour loans reached 3.34, punching below many of its developing world $145.56 billion demonstrating a real problem in the peers, including China and South Africa. According transparency of India’s financial sector. India’s pro- to a joint study by the World Economic Forum and tection and enforcement of the intellectual property the Confederation of Indian Industry, “the top ma- rights (IPR) at stake in these transactions is a further jor constraints in infrastructure development over major risk factor in its economic relations with the the next three years are thought to be corruption, United States. As it stands, India is presently on a US political and regulatory risk, access to financing and watch list priority for failing to protect US companies’ macroeconomic instability.”1 intellectual property rights, through lax rules against trade secret theft and poor patent protection. In the Additionally, an Economic Survey put out in 2018 eyes of the US government, India is home to several by the Indian government heralded that India will “Notorious Markets” and has extremely weak en- have a “$526 billion infrastructure investment gap forcement of its copyright laws contributing to wide- by 2040,” if present trends are to be continued as spread digital piracy. they currently exist.2 In the context of India’s enormous rural to urban migration, which is expected to Indian Infrastructure: Connectivity, Smart Cities be “roughly half of the total population by 2031, and and Special Economic Zones: Prime Minister the expected scorching pace of growth,” it is cru- Narendra Modi’s stated objective to build one hun- cial that India finds a way to improve its infrastruc- dred smart cities across the country by 2030 was a tural logistics. This would see improvements across significant step in addressing India’s urban bottle- India’s logistical landscape. Presently, as discussed necks. Given the enormous significance of digital by conference participants, there is “high cost and connectivity to India’s domestic growth, regional delay” as a result of shoddy domestic transporta- and global stature and ability to facilitate greater tion in India and inappropriate telecommunication quality of life for its citizens, the Indian government’s infrastructure allowing for most costly imports. If digitization of many logistics services is a key step these issues, two of many within the sphere of in- forward. The conference convened experts from the frastructure, could be addressed under the Indian public and private sectors in both countries to eval- government’s initiative to boost digital connectivity, uate how India’s infrastructure, traditionally a major it would become much easier to export to India from bottleneck to the country’s economic and commer- the United States. cial ambitions, can be further developed to facilitate the unlocking of greater bilateral trade potential. IT and Services: The United States and India have a new framework within which to enhance their trade While there are many Fortune 500 Companies that because of the enormous potential of their tech- are headquartered in Bangalore, which in turn is an nological innovation and the global transition to a extremely vibrant and dynamic city that gives rise data economy. In context of the rapidly accelerat-

1 “What’s holding up India’s infrastructure?,” World Economic Forum, last updated November 6, 2015, https://www.weforum.org/ agenda/2015/11/india-infrastructure/. 2 Jyotika Sood, “India to face $526 billion infrastructure investment gap by 2040: Economic Survey,” Live Mint, January 30, 2018, https://www. livemint.com/Politics/y3SpVyXF0moEuGtfkB3izO/India-to-face-526-billion-infrastructure-investment-gap-by.html.

ATLANTIC COUNCIL 3 ISSUE BRIEF Unlocking US-India Trade Potential

ing significance of IT worldwide, the interlinkages poration of women in the workforce affects a poten- of the United States and India in this sphere would tial export to the rest of the world as well as India’s facilitate a broader set of convergences that rein- domestic productivity in the sphere of technology. force joint security capacity, defense interoperability, and contribute to regional stability, peace, and Another key issue, which prevents greater trade in prosperity. Additionally, a bilateral agreement in high technology and related services, is the issue of the IT sector would have positive benefits for many protectionism. Traditionally, protectionist policies other sectors namely defense, people to people ties, such as tariffs and product testing have given do- banking, aerospace, science and technology, and mestic Indian firms an unfair advantage in the con- infrastructure. sumer electronics and IT sector that have been a hindrance to trade relations with the United States— One major bottleneck preventing closer and more hindered mostly by regulatory, geostrategic, but collaborative cooperation is the fact that tradition- also psychological barriers. This is a key challenge ally, India has been a very difficult market to do in enhancing trade and economic cooperation with business in and this has hindered its trade potential the United States, given the extent to which protec- with the United States. India still has a long way to tionism is a widespread assumption on the ground go before it achieves a business environment that in India. This is a result of that country’s history as is conducive to the aspirations of its dynamic pri- a socialist republic that has only recently embarked vate sector and foreign investors, despite the recent on the throes of neo-liberalization in 1991 in addition increase in its ranking on the World Bank “Ease of to their domestic significance in a developing econ- Doing Business Index.” India still ranks below be- omy and middle-income society. As mentioned in low all fellow BRICS countries except Russia and is the conference, the United States International Trade outranked by many Northeast and Southeast Asian Commission (USITC) has stated that 26.1 percent of economies such as South Korea, China, Japan, US companies are adversely affected by restrictive Singapore as well as Thailand and Malaysia. This Indian policies and that this number can go up to 44 not only prevents investment in India from foreign percent. There are numerous on-the-ground infra- IT firms, but also makes it difficult for key innova- structural issues, specific to the domain of digitali- tion to take place in India given the extent to which zation given the proliferation of manual operations leading Indian IT companies seek to invest in R&D in at many ports allowing for the widespread duplica- other jurisdictions. Within this broader issue, is a de- tion of documents. mographic and human resource challenge to both American and Indian society, as well as to compa- US-India Energy Cooperation: The first exports of nies that operate in both jurisdictions and that is US crude to India in more than forty years happened the issue of women in the technology sector. In the in October 2017, heralding an area of great poten- United States, there were many cultural factors and tial growth. This framework will see enhanced bilat- engrained biases in organizational hierarchies and eral exchange in liquid natural gas (LNG), Strategic broader societies that isolated women in computer Reserves, shale gas, nuclear energy, carbon, and science and the corporate information sector—see- clean energy between the United States and India. ing a dropout rate from mid-level women in the cor- Since 2005, the two nations have engaged in a porate world that was twice the rate of men dropping high-level dialogue to promote increased trade and out. These cultural factors that created ecosystems investment in the energy sector. The dialogue com- that were inconducive to the comfort and success prises of six working groups: sustainability, oil and of women is a reality that exists in India as well—al- gas, coal, power and energy efficiency, new tech- though there has been a significant increase in the nologies and renewable energy and civil nuclear co- number of women working in technology companies operation. India is already the 4th largest importer in India, and a doubling of women studying at Indian of LNG in the world and this trend seems set to be engineering colleges, deep rooted patriarchal biases consolidated given the extent to which its vast pop- exist toward women in leadership positions on the ulation is energy hungry. The United States has a ground as well as toward women in mid-level man- marginal cost of production of loading LNG on the agement. This is an issue that affects the labor force tanker of about $3 and a transportation cost of $50 participation rate in India, as the inadequate incor- demonstrating an absolute advantage that cannot

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be found anywhere else on the planet including in (SMEs) to operate in the Indian and US e-com- Qatar and Australia. merce sectors to circumvent the lack of transparency that has befallen the Indian banking sector, In the context of the urgent threat of climate change, which can be disquieting for investors in context of expansion of this bilateral relationship would yield the proliferation of bad loans in the sector. The two benefits to both countries, if the right technologies nations should cooperate to enhance “regulation, are picked and the correct level of governmental sup- surveillance and enforcement,” which are the criti- port is provided alongside with the right incentives cal components of financial sector oversight mech- for the Indian and American corporate sectors to anism in India. Principally, this involves the creation further augment the involvement of the public sec- and maintenance of a framework to defend and tor. As far as the India–US trade mix goes, “it is heav- respond against cybersecurity attacks—a sector ily skewed to coal which is 57 percent of the energy which is truly nascent in India, yet very developed in mix” and the Indian government is presently trying the United States demonstrating scope for conver- to bring gas to a greater share of the total energy gence. In 2013, the Indian Department of Electronics cooperation.3 It is important for India to develop a and IT outlined the country’s first cybersecurity pol- commercially viable power system, the lack of it at a icy—however, the progress in implementation has state and federal level, allows for missed investment been patchy and slow. Greater cooperation with the opportunities. The lack of integration of new renew- United States to assist in the enactment and imple- ables into the existing power grid allow for a lack of mentation of sound cybersecurity policies in India efficient functioning in the rural parts of India as well must be the basis for greater bilateral regulatory as patchy performance in urban India. Key to this, is oversight mechanisms to maximize bilateral trade the poor infrastructure in India which create many potential. bottlenecks to this whole process—,from inadequate terminals, inefficient pipelines and poor implemen- Enhancing the business ecosystem: For India to tation of new technologies into existing frameworks achieve a top 50 ranking by 2022, it must introduce by virtue of aforementioned issues of bureaucracy, major, comprehensive reforms to “land ownership, poor logistic connectivity, and corruption. labor law, and the judicial process.”4 Some principal reforms India can make are to continue making it POLICY RECOMMENDATIONS easier for foreign investors to get construction permits by streamlining the process to acquire land and Tariff cuts will remove major trade barriers be- necessary permits to build on the obtained land as tween the two nations: 100 percent ad valorem quickly and efficiently as possible. There also must equivalent (AVE) tariff cut for goods that would in- be serious center-state cooperation through e-gov- crease US exports to India by 63 percent and Indian ernance initiatives and enhanced correspondence exports to the US by 15 percent. A 50 percent cut on cutting bureaucratic delays and red tape that in barriers to trade and services would lead to a 28 make every aspect of the order of business opera- percent increase in US exports to India and a 5 per- tions difficult unless bribes are paid to corrupt local cent increase in Indian exports to the United States. authorities and middlemen. Some examples of criti- Considering both actions, research suggests that cal initiatives being implemented in India to stream- exports would grow substantially in both countries— line the trade process include the developments exports from the United States to India will expand of risk management systems, electronic transfers, by 90 percent while exports from India to the U.S. upgrades of the digital connectivity framework will expand by 20 percent. specifically key pieces of digital infrastructure, and the development of the Electronic Commerce Greater bilateral regulatory oversight mechanisms Interchange Portal. The persistent irresolution of need to be carefully shaped to allow for US multi- corporate disputations threatens investors, and is nationals as well as small and medium enterprises a major political risk, requiring committed divisions

3 Transcript: “Unlocking US-India Trade Potential,” Atlantic Council, Bengaluru, India, November 6-8, 2017. 4 Nitin Khanna, “Pro-growth environment pays off for Indian chemical companies,”KPMG Reaction Magazine, March 2018, https://home.kpmg. com/xx/en/home/insights/2015/02/reaction-magazine.html.

ATLANTIC COUNCIL 5 ISSUE BRIEF Unlocking US-India Trade Potential

to resolve commercial cases that threaten foreign to Indians, the majority of whom work in the IT sec- parties. If this reform were to be successfully imple- tor. Leading Indian IT companies are already chang- mented, it would allow for foreign parties to no lon- ing their staffing and finding alternative locations ger consider India’s legal hurdles and bureaucracy for their overseas activities which had hitherto been as a deal breaker to their entrance and sustained in the United States predominantly. Furthermore, presence in the country. many Indian IT professionals on H-1B visas are seek- ing or considering employment in other countries Lifting tariffs, reducing technical barriers to trade which constitutes a loss of talent in important sec- and aligning standards provide both nations with tors to the United States economy. improvements in trade and welfare. Greater bilateral regulatory oversight mechanisms should be crafted Create a US-India bilateral framework for cooper- carefully to allow for US multinationals and SMEs to ation in technology trade, e-commerce & cyberse- operate in the Indian markets. This would have to curity. If India should take the first step to propose a see continued foreign direct investment liberaliza- special sectoral focus as an important way to acceler- tion, as has been done under the Modi government, ate and strengthen bilateral US-India trade presence a more digitized facility to facilitate clearances as in the Indo Pacific, India will be doing much more to well as the simplification of tax in India, which is ex- effectively serve its grander security and strategic tremely complex for external investors to grasp. objectives. Given the rapidly accelerating centrality and significance of IT and e-commerce world- Modernization of infrastructure is critical in India. wide and particularly in the Indian and American The investment and maintenance of infrastructure marketplaces, greater cooperation between these related to trade and investment must be made top two nations in this sphere could facilitate a major priority by the Indian government. As it stands, is- convergence, which in turn would re-enforce the sues such as digital connectivity at major Indian capacity for security, defense interoperability, and ports, poor bandwidth quality, and bad roads re- regional peace and stability. This agreement would ally hinder the entire trade process. The continued benefit other sectors: defense, flow of people, bank- investment in hard infrastructure as well as digital ing, aerospace, science and technology, and in- connectivity must continue, but under frameworks frastructure. There is also enormous room for this which allow for maximal transparency potentially sector to grow given that only 26 percent of Indians with the aid of e-governance initiatives. The Modi have internet access, and this number is set to grow government has shown interest in investing in logis- in the coming years. Furthermore, only 14.4 percent tical and IT infrastructure, but the Indian private sec- of Indian internet users shop online demonstrating tor should be brought into these schemes to create potential for growth in this sector, as well as growth and sustain successful Public Private Partnerships, in credit card usage given that most Indians do not which have been shown to work in the context of use credit card for transactions. India’s developmental history given the world class Indian private sector. Additionally, India should CONCLUSION aim to invest in vocational training facilities for its youth—with regards to shifting from a revenue col- The “Unlocking US-India Trade Potential” conference in lection mindset, which is an unfortunate legacy of Bengaluru outlined key areas within which policy recom- the Socialist Raj, and developing critical soft skills mendations should be developed to enhance US-India and achieving the sensitization of customs officials trade cooperation, in the context of the paradigm shift the who are often brusque with foreigners. relationship is presently undergoing. Stakeholders spoke at length about the challenges of the Indian bureaucracy, Conclude the US-India Bilateral Investment Treaty US sanctions policy, India’s poor connectivity and infra- and push ahead in areas such as Indian govern- structural development, and weak intellectual property ment procurement processes and US H-1B/ L Visas. legislation as they all hinder bilateral trade cooperation. Approximately 70 percent of H-1B visas are awarded As the United States and India seek to form a genuine

6 ATLANTIC COUNCIL ISSUE BRIEF Unlocking US-India Trade Potential

strategic partnership together, further trade cooperation panded the business on a global level. During his time and more profound economic engagement are needed.5 at Steria, Inc. (India), Dr. Aghi served as Chairman and CEO of the Asia-Pacific region. Additionally, Dr. Aghi Further programs and conferences are needed to fa- was the founding CEO of Universitas 21 Global, the cilitate the discussion on unlocking bilateral trade co- world’s largest consortium of research-led universities operation and the underlying issues that stymie this and global leader in providing post-graduate online cooperation. Additionally, an outward looking per- education. He was also the President of IBM India for spective on international economic integration and IBM Corporation, and spent time working with Ariba, engagement in both nations is needed, to share best Inc. and JD Edwards & Co. practices among partners, and to foster consensus on issues linked to trade and economic issues. Sustained Dr. Aghi holds several degrees, including an advanced discussion and the ongoing maintenance of relation- management diploma from Harvard Business School, ships across sectors between the two nations are nec- a Ph.D. in international relations from Claremont essary to ensure that the objectives outlined during Graduate University, an MBA in international marketing this conference are met, and the areas of concern illus- from Andrews University, and a BA in business admin- trated are significantly addressed. istration from the Middle East College, Beirut, Lebanon.

The Atlantic Council believes it can and should help As a fluent speaker in many international languages, Dr. advance these goals. The authors would like to thank Aghi was recognized by Esquire Magazine as a Global all participants panelists, experts, and attendees for Leader and has won many awards over the course of his their active engagement on the issues examined at professional career, including the J. R. D. Tata Leadership the “Unlocking US-India Trade Potential” conference Award. In his free time, Dr. Aghi is a major marathon and in Bengaluru and look forward to future endeavors to mountaineering enthusiast. He has competed in over 27 address US-India trade and economic cooperation. international marathons and climbed some of the high- est peaks in North America and Europe.

This report was funded [in part] by a grant from the United States Department of State. Dr. Bharath Gopalaswamy The opinions, findings, and conclusions Director, South Asia Center, Atlantic Council stated herein are those of the author[s] and do not necessarily reflect those of the United Bharath Gopalaswamy is the director of the South Asia States Department of State. Center. Prior to joining the Atlantic Council, Gopalaswamy managed the Program in Arms Control, Disarmament, and International Security at the University of Illinois at Urbana-Champaign, where he oversaw developing Dr. Mukesh Aghi projects on South Asian security issues. He has held re- President, US-India Strategic Partnership Forum search appointments with the Stockholm International Peace Research Institute and with Cornell University’s Mukesh Aghi is the President of USISPF. Dr. Aghi has Judith Reppy Institute of Peace and Conflict studies. Dr. extensive experience working with business and gov- Gopalaswamy holds a PhD in mechanical engineering ernment leaders in the U.S. and India to promote trade with a specialization in numerical acoustics from Trinity and strengthen ties between the two countries. He also College, Dublin. In addition to his studies abroad, he currently serves as a trustee at Claremont Graduate has previously worked at the Indian Space Research University. Organization’s High-Altitude Test Facilities and the EADS Astrium GmbH division in Germany. Previously, Dr. Aghi served as Chief Executive and Member of the Board at L&T Infotech where he ex-

5 Bharath Gopalaswamy, Ben Polsky, Nazia Khan, and Michelle Foley, Resilient Megacities: Strategy, Security, and Sustainability, Atlantic Council, November, 2015, https://euagenda.eu/upload/publications/untitled-6661-ea.pdf.

ATLANTIC COUNCIL 7

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INTERIM CHAIRMAN Ahmed Charai Robert M. Kimmitt Stephen Shapiro *James L. Jones Melanie Chen Henry A. Kissinger Wendy Sherman Michael Chertoff C. Jeffrey Knittel Kris Singh CHAIRMAN EMERITUS George Chopivsky Franklin D. Kramer James G. Stavridis Brent Scowcroft Wesley K. Clark Laura Lane Richard J.A. Steele PRESIDENT AND CEO David W. Craig Richard L. Lawson Paula Stern *Frederick Kempe Helima Croft *Jan M. Lodal Robert J. Stevens EXECUTIVE VICE CHAIRS *Ralph D. Crosby, Jr. Douglas Lute Robert L. Stout, Jr. *Adrienne Arsht Nelson W. Cunningham *Jane Holl Lute *Ellen O. Tauscher *Stephen J. Hadley Ivo H. Daalder William J. Lynn Nathan D. Tibbits *Ankit N. Desai Wendy W. Makins Frances M. Townsend VICE CHAIRS *Paula J. Dobriansky Zaza Mamulaishvili Clyde C. Tuggle *Robert J. Abernethy Christopher J. Dodd Mian M. Mansha Melanne Verveer *Richard W. Edelman Thomas J. Egan, Jr. Gerardo Mato Charles F. Wald *C. Boyden Gray *Stuart E. Eizenstat William E. Mayer Michael F. Walsh *George Lund Thomas R. Eldridge Timothy McBride Maciej Witucki *Virginia A. Mulberger Julie Finley John M. McHugh Neal S. Wolin *W. DeVier Pierson *Alan H. Fleischmann Eric D.K. Melby Guang Yang *John J. Studzinski Jendayi E. Frazer Franklin C. Miller Mary C. Yates TREASURER Ronald M. Freeman Judith A. Miller Dov S. Zakheim Courtney Geduldig *Alexander V. Mirtchev *Brian C. McK. Henderson HONORARY DIRECTORS *Robert S. Gelbard Susan Molinari SECRETARY David C. Acheson Gianni Di Giovanni Michael J. Morell *Walter B. Slocombe James A. Baker, III Thomas H. Glocer Richard Morningstar Harold Brown DIRECTORS Murathan Günal Edward J. Newberry Frank C. Carlucci, III Stéphane Abrial John B. Goodman Thomas R. Nides Ashton B. Carter Odeh Aburdene *Sherri W. Goodman Franco Nuschese Robert M. Gates *Peter Ackerman Amir A. Handjani Joseph S. Nye Michael G. Mullen Timothy D. Adams John D. Harris, II Hilda Ochoa-Brillembourg Leon E. Panetta Bertrand-Marc Allen Frank Haun Ahmet M. Oren William J. Perry *Michael Andersson Michael V. Hayden Sally A. Painter Colin L. Powell David D. Aufhauser Annette Heuser *Ana I. Palacio Condoleezza Rice Matthew C. Bernstein Amos Hochstein Carlos Pascual George P. Shultz *Rafic A. Bizri Ed Holland Alan Pellegrini Horst Teltschik Dennis C. Blair *Karl V. Hopkins David H. Petraeus John W. Warner Thomas L. Blair Robert D. Hormats Thomas R. Pickering William H. Webster Philip M. Breedlove Mary L. Howell Daniel B. Poneman Reuben E. Brigety II Wolfgang F. Ischinger Dina H. Powell *Executive Committee Myron Brilliant Deborah Lee James Arnold L. Punaro Members *Esther Brimmer Reuben Jeffery, III Robert Rangel Reza Bundy Joia M. Johnson Thomas J. Ridge R. Nicholas Burns Stephen R. Kappes Michael J. Rogers List as of June 28, 2018 Richard R. Burt *Maria Pica Karp Charles O. Rossotti Michael Calvey Andre Kelleners Robert O. Rowland James E. Cartwright Sean Kevelighan Harry Sachinis John E. Chapoton *Zalmay M. Khalilzad Rajiv Shah The Atlantic Council is a nonpartisan organization that promotes constructive US leadership and engagement in international affairs based on the central role of the Atlantic community in meeting today’s global challenges.

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