"Today's action marks a significant milestone
in reinforcing the U.S.-India strategic partnership and moving forward
with export control reforms that will facilitate high-technology trade
and cooperation," Commerce Secretary Gary Locke said in a statement.
It
follows President Barack Obama's meeting with Prime Minister Manmohan
Singh in November in New Delhi, where they announced plans to expand
cooperation in civil space, defense and other high technology sectors.
It
also contrasts with remarks made by U.S. Treasury Secretary Timothy
Geithner before Chinese President Hu Jintao's visit last week to the
United States.
Geithner tied the
possibility of increased U.S. high-technology exports to China to
movement by Beijing on currency and a number of trade reforms.
As
a first step in implementing Obama and Singh's commitment, the Commerce
Department's Bureau of Industry and Security said it would publish a
new rule changing how India was treated under Export Administration
Regulations (EAR).
A key measure
removes several Indian space and defense-related organizations from the
U.S. Entity List, which imposes extra export licensing requirements on
foreign groups or individuals whose activities have aroused concern
about the possible diversion of U.S. high-technology products that could
be used to build weapons of mass destruction.
Those
removed from the Entity List include Bharat Dynamics Limited, four
subordinates of India's Defense Research and Development Organization
and four subordinates of the All Indian Space Research Organization.
The
reforms also "realign" India's standing in the U.S. export control
regime by removing it from several country groups associated with
proliferation concerns. It adds India to a more favorable category
consisting of members of the Missile Technology Control Regime.
"These
changes reaffirm the U.S. commitment to work with India on our mutual
goal of strengthening the global nonproliferation framework," Under
Secretary of Commerce Eric Hirschhorn said in a statement.
Locke will lead 24 U.S. businesses on a high-tech trade mission to India in February.
The group includes Boeing, Exelon Nuclear Partners, Lockheed Martin and GE Hitachi Nuclear Energy.
The
delegation, which also includes senior officials from the U.S.
Export-Import Bank and the Trade Development Agency, will make stops in
New Delhi, Mumbai and Bangalore.
An
administration official, who briefed reporters on condition he not be
identified, said less than 1 percent of current U.S.-India trade was
affected by export controls.
However,
"the perception of onerous export controls certainly has been a
hindrance to high-technology trade over the years," the official said.
"The goal here is to make sure we are in the
best possible place to ensure trade in defense, civil space and
high-tech can proceed in an expeditious and ultimately prosperous
fashion," the official said.
Even
with the reforms announced on Monday, there will still to be licensing
requirements on many sensitive U.S. technologies that go to India, as
there on some technologies to all countries, the administration official
said.
src: reuters