A team from the US Commerce Department is in Delhi to discuss dual use export control issues, for boosting high tech commerce between the two countries, ahead of the first meeting of the India-US Strategic Trade Dialogue (IUSTD) in Washington DC next month.

“We are here this week meeting with Indian government officials and the Indian industry to discuss dual use export control issues. We’re also engaged in the final planning for the IUSTD, which provides a building block for our initiative on critical and emerging technology,” said Thea Rozman Kendler, US Assistant Secretary for Export Administration, at a briefing on Friday.

Last month, the US Department of Commerce and India’s Ministry of External Affairs agreed to launch an India-US Strategic Trade Dialogue to address export controls, explore ways of enhancing high technology commerce, and facilitate technology transfer between the two countries. The dialogue will be led by the Foreign Secretary on the Indian side and by the Under Secretary for Industry and Security, Department of Commerce, on the US side.

Thea Rozman Kendler

Thea Rozman Kendler

“I think we’re at a new stage in our relationship where we see tremendous opportunity, and a closer relationship and hope that through our new dialogue we can explore ways of enhancing high tech commerce,” she added.

Dual-use items are goods, software and technology that can be used for both civilian and military applications.

The visiting US team also held roundtable discussions with Indian industry including representatives of the Indian Electronics Semiconductor Association, the US India Business Council, Nasscom and the American Chamber of Commerce, Kendler said.

“The purpose of having these industry meetings was to learn about the tech ecosystem that India is fostering and the challenges that Indian companies face with respect to strategic trade. We talked about mechanisms under the US strategic trade control system under our export control system available to Indian industry that are designed to facilitate faster and more efficient trade. In my meetings, we also stressed the importance of protecting India’s trusted strategic trade controls environment,” she said.

On Russia

Pointing out that sanctions against Russia, which continued to be in war with Ukraine, were being breached, Kendler said that Moscow was illegally using third countries to obtain items, that the US and 38 economies had restricted, so that these could be used in their war machine. “We’re actively following the trade diversion and back filling data very closely and taking responsive measures,” she said.

In response to a question on whether there were concerns in the US about the possibility of technology supplied by the US to India inadvertently reaching Russia, Kendler said that the US was working with partners all over the world to make sure that Russia isn’t using them to backfill technology.

The India-US partnership in strategic trade control has been long and progress has been steady, Kendler pointed out. “If you compare 25 years ago, in 1998, one quarter of US exports to India required a export license from the US government. Now, 25 years later, only 0.5 per cent of US exports to India require a license. We’re here today because India has established strategic trade laws and effective implementing regulations. Robust strategic trade controls enable us to share technology that we can’t share with others,” she said.

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