jha
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15 Mar 2010 8ak: 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." Full speech
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.
8ak - Indian Defence News
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." Full speech
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.
8ak - Indian Defence News
