Discussion in 'Strategic Forces' started by ajtr, Mar 10, 2010.
India's quest for double use technology
Obama's proposal for key changes to high-tech export regulation
In 2001, the then leaders of the U.S. and India, George W. Bush and Atal Bihari Vajpayee had the foresight to set up a council to promote high-tech trade between the two countries, India-US High Technology Cooperation Group (HTCG). As the American.com reports, since then "U.S.-India trade has nearly tripled from $13.5 billion in 2001 to $37.6 billion in 2009. Last year, high-tech products accounted for more than 13 percent of total bilateral trade and nearly 25 percent of all U.S. exports to India."
The potential is much higher especially in the context of defence manufacturing but both sides have legal and political issues to overcome. India says that U.S. laws are too restrictive and is scared of sanctions as in post-nuclear tests in Indian in 1999. America, on the other hand, wants India to acknowledge its efforts to ensure that weapons don't fall in to the hands of the wrong groups/country's (U.S.'s non-insurgency-specific weapons sales to Pakistan continues to baffle us). In this light, the ongoing 2 day meeting of the group is significant with focus on how the barriers can be broken to enhance better trade. In terms of export controls, American.com puts this in context, "In 1999, 24 percent of total U.S. exports to India required a “dual-use” license from BIS, today that number is less than 0.2 percent."
Excerpts from Obama's speech on the issue - "We've conducted a broad review of the Export Control System, and Secretary Gates will outline our reform proposal within the next couple of weeks. But today, I'd like to announce two steps that we're prepared to take.
First, we're going to streamline the process certain companies need to go through to get their products to market -- products with encryption capabilities like cell phone and network storage devices. Right now, they endure a technical review that can take between 30 and 60 days, and that puts that company at a distinct disadvantage to foreign competitors who don't face those same delays. So a new one-time online process will shorten that review time from 30 days to 30 minutes, and that makes it quicker and easier for our businesses to compete while meeting our national security requirements.
And second, we're going to eliminate unnecessary obstacles for exporting products to companies with dual-national and third-country-national employees. Currently, our exporters and foreign consumers of these goods have to comply with two different, conflicting set of standards. They're running on two tracks, when they could be running just on one. So we're moving towards harmonizing those standards and making it easier for American and foreign companies to comply with our requirements without diminishing our security. And I look forward to consulting with Congress on these reforms, as well as broader export control reform efforts."
In parting the American.com notes that "the Indian government has not yet signed the Communications Interoperability and Security Memorandum of Agreement (CISMOA), the Logistics Support Agreement (LSA), and the Basic Exchange and Cooperation Agreement for Geospatial Cooperation (AGC), which are crucial to providing mutual logistical support and enabling the exchange of sensitive communications and equipment.
Is it only us or after Putin's visit, it seems that India-U.S. are doing the talking and Russia is doing the deals?
India asks US to ease high-tech export controls
WASHINGTON: India has asked the United States to review and update its export controls to reflect the changed political realities of their
emerging strategic partnership.
Indian Foreign Secretary Nirupama Rao raised the issue with the US Department of Commerce during a two day meeting here of the India-US High Technology Cooperation Group (HTCG), a key component of India US Strategic Dialogue.
At this first meeting of the HTCG since President Barack Obama took over last, "the two sides were able to consolidate the progress made in the last five years and identified the next steps for further expanding high technology trade between India and the US," according to an Indian embassy release.
The identified steps were "especially in the areas of Defense and Strategic Trade, Biotechnology and Nano-technology," it said without spelling them out. "They also agreed to create new groups for focused attention on cooperation in Health IT and Civil Aviation."
The bilateral official talks of the HTCG, co-chaired by Rao and US Deputy Secretary of Commerce, Dennis F Hightower Tuesday were informed by the recommendations made by industry representatives of both countries on promotion of high technology trade between India and the USA.
Officials did not say how the US responded to the Indian demand voiced publicly by Rao to ease US high technology restrictions applicable to India and remove Indian firms from the barred Entity list.
"We see this as yet another area where Indian and US interest converge and, as a reliable and strategic partner, we look forward to seeing enhancement of trade in such goods and technologies between our two countries and removal of remaining Indian organizations from the Entity List," she had said at the business-to-business session of the HTCG.
"It is anomalous that a body like ISRO (Indian Space Research Organisation), which is developing several collaborations with (US space agency) NASA, should continue to be on this list," Rao pointed out.
"The total exports of Advanced Technology Products from the US to India has increased from $1.3 billion in 2003 to over $4 billion in 2009, a somewhat impressive increase, particularly against the backdrop of the global economic slowdown," she noted.
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