At the Indo-Pacific Business Forum that convened on Monday, July 30 at Washington D.C., Wilbur Ross, the U.S. Secretary of Commerce, announced programs to increase U.S. commercial engagement in the Indo-Pacific region.
Secretary Ross said, “India will be moved into Tier 1 of the Department of Commerce’s Strategic Trade Authorization (STA) license exception. STA Tier 1 treatment, comparable to NATO allies, will expand the scope of exports subject to the Export Administration Regulations that can be made to India without individual licenses. This regulatory change will enhance the bilateral defense trade relationship and result in a greater volume of U.S. exports to India.” The status can free $2.1 billion in trade, make U.S. exporters more competitive in the global marketplace, and help provide India more advanced U.S. technology.
Ross said that India has partnered with the U.S. to improve its own export control regimes and has met most of the export control rules which the U.S. thinks are useful. STA-1 status, Ross added, provides India with greater supply chain conditions for defense and other high-tech products. It increases the integrity with the U.S. systems and reduces time and resources needed to get licenses approved, the Commerce Secretary said.
According to the Department of Commerce, items that are eligible for export to STA1 destinations include those that are subject to control for: national security (NS), chemical or biological weapons (CB), nuclear nonproliferation (NP), regional stability (RS), crime control (CC) and significant items (SI).
