Bilateral Relations

KEY POINTS

·         India has now been elevated to the STA-1 list of countries from STA-2 list.

What is Strategic Trade Authorisation (STA)?

·         STA is a move towards a licence-free or license exemption regime. Accordingly, two lists were created namely STA-1 and STA-2.

·         STA-1 – STA-1 countries are America’s most trusted allies. The US considers the non-proliferation controls of these countries the best in the world.

·         These are also among those that are part of the four multilateral export control regimes.

·          STA-1 countries have licence-free access to almost 90% of dual-use technology.

·         They are also eligible to import items for reasons of national security, chemical or biological weapons, etc.

·         This is irrespective of whether the technology or item impacts regional stability or American national security.

·         STA-2 – Countries in the STA-2 list enjoy some form of licensing exemption.

·         But they cannot access dual-use items/technology that may impact regional stability, or contribute to nuclear non-proliferation, etc.

Significance

·         China, Pakistan, and Russia are on neither list. Albania is a NATO member, but is still in STA-2, and Israel, a major US ally, is not in STA-1.

·         Given these, India joining an elite group of allies of the US is a significant move.

·         India is now part of STA-1, despite not being member of all four multilateral export control regimes.

·         This is thus another testament to India's non-proliferation credentials.

·         India can now access 90% of defence technology and equipment for dual-use supplied by US government and its defence industry.

·         It is expected to lead to greater high-technology trade and commerce.

·         For Indian high-tech industry, this could open up doors for both sales and manufacturing in India.

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