WASHINGTON – India has become the third Asian country after Japan andSouth Korea to get the Strategic Trade Authorization-1 (STA-1) status afterthe US issued a federal notification to this effect, paving the way forhigh-technology product sales to New Delhi, particularly in civil space anddefense sectors.
India is the 37th country to be designated the STA-1 status by the UnitedStates.
The federal notification, issued on Friday, gains significance as the TrumpAdministration made an exception for India, which is yet to become a memberof the Nuclear Suppliers Group (NSG).
Traditionally, the US has placed only those countries in the STA-1 list whoare members of the four export control regimes: Missile Technology ControlRegime (MTCR), Wassenaar Arrangement (WA), Australia Group (AG) and the NSG.
In its federal notification, the Trump Administration notes that India is amember of three of the four multilateral export regimes.
Mainly because of the political opposition from China, India’s membershipapplication has been pending before NSG, which takes decision by consensus.
By placing India in the STA-1 list, the United States has acknowledged thatfor all practical purposes India adheres to the export control regimes ofthe NSG.
This exception for New Delhi is intended to send a strong political messageto China and the world, taking into account that America’s closest allyIsrael is yet to be given this status, primarily because it is not a memberof these multilateral export control regimes.
“This action befits India’s status as a Major Defence Partner andrecognises” the country’s membership in three of the four export controlregimes — the MTCR, WA and AG, the federal notification said.
This rule is another in the series of rules that implement reforms to whichthe US and India mutually agreed to promote global non-proliferation,expand high technology cooperation and trade, and ultimately facilitateIndia’s full membership in the four multilateral export control regimes.
This rule also makes conforming amendments, the federal notification said.
According to the notification, the US and India continue their commitmentto work together to strengthen the global non-proliferation and exportcontrol framework and further transform bilateral export controlcooperation to recognise the full potential of the global strategicpartnership between the two countries.
This commitment has been realised in the two countries’ mutually agreedupon steps to expand cooperation in civil space, defense, and otherhigh-technology sectors and the complementary steps of the US to realignIndia in US export control regulations, and support India’s membership inthe four multilateral export control regimes, it said.
To date, with the effective support of the US, India has been admitted tothree of the four multilateral export control regimes, the MTCR on June 27,2016, the Wassenaar Arrangement on December 7, 2017, and the AustraliaGroup on January 19, 2018.
These memberships, important to the two countries’ global strategicpartnership, are enhanced by the US’ recognition of India as a MajorDefence Partner in the India-US Joint Statement of June 7, 2016 titled,”The United States and India: Enduring Global Partners in the 21st Century.”
“This recognition facilitates and supports India’s military modernisationefforts with the US as a reliable provider of advanced defense articles,”the notification said.
As a result, the Bureau of Industry and Security (BIS), formally recognisesunder the Export Administration Regulations (EAR) India’s membership in theWA multilateral export control regimes and revises the EAR accordingly, thefederal notification said.
“In addition, to export control-related benefits for India as a result ofprior amendments to the EAR in furtherance of the US-India global strategicpartnership, BIS places India in Country Group A:5, which provides thebenefit of greater availability of License Exception Strategic TradeAuthorization (STA) for exports and reexports to, and transfers withinIndia under the EAR,” it said.
The federal notification states that because India has been admitted to theMTCR, Wassenaar and AG multilateral regimes and is a ‘Major DefensePartner’, it is listed in favoured country groups for purposes of licenserequirements, license application review policy and availability of licenseexceptions.
Membership in favoured country groups generally reduces the number oflicenses required and increases the number of license exceptions available.
“Therefore, BIS believes that this rule will reduce the paperwork burden tothe public,” the notification said.
Significantly, the US did away with the public notification period beforeissuing this notification.
“Because this regulation involves a military or foreign affairs function ofthe United States,” it argued.
“This rule implements decisions of multilateral export control regimes, ofwhich the United States is a supporting member, and the rule furthers theobjectives of the strategic commitment established between the UnitedStates and India,? the notification said, while observing that delay inimplementing the rule to obtain public comment would undermine the foreignpolicy objectives that it is intended to implement.
India so far was listed in STA-2 category along with Albania, Hong Kong,Israel, Malta, Singapore, South Africa and Taiwan.