has become first NON NATO nation that the current United States Administration
has granted the strategic trade authorization status STA-1 which changes the
country’s placement in US Export Control Regime.
Commerce Secretary Wilbur L Ross made the announcement in Washington on July
30th during the start of the first-ever Indo-Pacific Business Forum when he
said that the Trump administration has granted to India strategic trade authorization
Currently 36 countries, mostly all NATO nations have this status which is an
elevated status from an export control point of view he said.
is seen as a timely announcement since it comes ahead of the 2 Plus 2 dialogue
between the two countries scheduled during the first week of September when US
Secretary of State Mike Pompeo and Defense Secretary James Mattis are due to
visit New Delhi to meet their counterparts Ms Sushma Swaraj and Ms Nirmala
that's a very important change in India’s status under our export control
regime. It acknowledges the US-India security and economic relationship. What
it does is it comes under the Export Administration Rules, and it authorizes
the export, re export and in-country transfer of specific items to destinations
that the US regards as low risk," Mr Ross said.
Describing the rationale of the US decision Mr Ross said this is because India
has partnered with US to improve its own export control regimes, and has met
most of the multilateral export rules that we think are useful. It finally
reflects India's status as a major defense partner of the US," said the
Ross said STA-1 provides India greater supply chain efficiency, both for defense
and for other high-tech products, that will increase activity with US systems,
the interoperability of the systems, and it will reduce time and resources
needed to get licensing approved.
"We calculate that it will be a competitive advantage for the US, in terms
of supplying those kinds of products to India. It looks as though over the last
seven years, some $9.7 billion of products would have been affected, so it's a
meaningful-sized number. And probably, it'll be much more than that because a
lot of things they knew wouldn't be exportable, they didn't order from us,"
Later in a statement issued by the US Department of Commerce, Ross said this
new designation reflects India's membership in three of the four multilateral
export control regimes, as well the development of its national export control
US companies will be able to more efficiently export a much wider range of
products to Indian high technology and military customers. India's new status
will benefit US manufacturers while continuing to protect its national
security, he asserted.
STA Tier 1 treatment, comparable to NATO allies, will expand the scope of
exports subject to the Export Administration Regulations (EAR) that can be made
to India without individual licenses. This regulatory change will enhance the
bilateral defence trade relationship and result in a greater volume of US
exports to India.
in the day, the White House said that the Department of Commerce granting
Strategic Trade Authorisation Tier 1 status to India would enable American
companies to export more high-technology items under a streamlined license
The Trump administration's decision to place
India in the Strategic Trade Authorisation-1 list of countries, that eases
export of high-tech items, acknowledges the security as well as economic
relationship between the two largest democracies of the world, and boosts the
defense partnership in a big way, India's top diplomat said here on July 30th.
"It is a sign of trust not only in the relationship but also on India's
capabilities an economy and as security partner, because it also presupposes
that India has the multilateral
export control regime in place, which would allow the transfer of more
sensitive defence technologies and dual use technologies to India and without
the risk of any proliferation," Indian Ambassador to the US, Navtej Singh
Sarna, told a Washington audience soon after US Commerce Secretary Wilbur Ross
designated India as an STA-1 country.
"This is an acknowledgement of the security as well as the economic
relationship between India and the United States. This is a logical step of
India being designated as a major defence partner,.
The top Indian diplomat was responding to a question from Nisha Desai Biswal,
president of US India Business Council, during a panel discussion at the first Indo-Pacific
Business Forum organised by the US Chambers of Commerce.