by Elton Gomes
On Monday, the United States designated India as a Strategic Trade Authorization-1 (STA-1) country and eased export controls for sales of high-technology products. After being granted STA-1 status, India is the only South Asian nation to be on the list that currently features 36 other countries. The move to grant the STA-1 status shows that the US trusts in India’s capabilities as an economic and security partner, and it boosts bilateral partnerships significantly.
India now has the same access as NATO allies such as Australia, Japan, and South Korea. US Commerce Secretary Wilbur Ross said that the move reflects India’s efforts to improve its export-control regime, its adherence to multilateral export rules, and its growing status as a defence partner of the US.
The move was welcomed by India’s ambassador to the US and the Centre alike. Navtej Singh Sarna, India’s ambassador to the US, said, â€It is a sign of trust not only in the relationship but also on India’s capabilities as an economic and a 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,†as per a PTI report.
External affairs spokesperson Raveesh Kumar said that the Trump administration’s decision was a “reaffirmation” of India’s “impeccable record” as a responsible member of multilateral export control regimes.
“We welcome the announcement made by US Secretary of Commerce Wilbur Ross in the Indo-Pacific Business Forum on July 30 about the US government’s decision to move India into Tier-1 of the Department of Commerce’s Strategic Trade Authorisation license exception,” Kumar said, as per another PTI report.
What is the STA status?
According to information on Descartes Customs Info, a logistics solutions website, the STA refers to a type of US government authorization that allows a controlled item to be exported under certain defined conditions without the need of a transaction-specific license.
Being granted STA status is important in exports, re-exports, and transfers for which a license is required under the Export Administration Regulations (EAR). The EAR is an important US export law that affects manufacturing, sales, and distribution of technology.
How will India benefit, and what this means for global politics
India will now be able expand the scope of exports without the need for individual licences. This could enhance bilateral defence trade and result in a larger volume of US exports to India. In other words, India will be able to acquire the latest technology in defence from the US.
According to the Hindustan Times, this move could take the Communications, Compatibility and Security (COMCASA) agreement further, wherein the US is keen to get India to sign the agreement. The signing of the COMCASA could allow the installation of high-security US communication equipment on defence products being sold to India.
Wilbur Ross, the US’ Commerce Secretary, was of the opinion that India will now have “greater supply chain efficiency, both for defence, and for other high-tech products”, the lack of which affected nearly $9.7 billion worth of goods India could have exported.
An article in the Economic Times stated that the development is a “big rebuff to China for blocking India’s entry into the Nuclear Suppliers Group.†With a looming trade war between Washington and Beijing, it can be said that China could be miffed with India’s increasing relations with the US.
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