Context:
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United States has designated India as Strategic Trade Authorization-1 (STA-1) country that will allow country to buy highly advanced and cutting-edge sensitive technologies from America.
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This coveted status brings India in par with US’s closest allies and partners such as NATO.
What is STA-1?
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STA-1 designation authorizes export, re-export and transfer (in-country) of specified items on Commerce Control List to destinations posing a low risk of unauthorised or impermissible uses.
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Currently there are 36 countries on STA-1 list.
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India is only South Asian country to be on the list. Other Asian countries designated as STA-1 are Japan and South Korea.
What are the benefits of having STA-1 designation to India?
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Under STA-1, India and US have reached understanding under which India will receive license-free access to wide range of dual-use technologies in conjunction with steps that India has committed to take to advance its export control objectives.
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STA-1 treatment will expand scope of technology exports subject to Export Administration Regulations (EAR) that can be made to India without individual licenses.
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It will further enhance bilateral defence trade relationship and result in a greater volume of US exports to India.
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It will allow US companies to more efficiently export much wider range of products to Indian high technology and military customers.
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It will benefit US manufacturers while continuing to protect its national security.
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It will provide India greater supply chain efficiency, both for defence and for other high-tech products that will increase activity with US systems, interoperability of systems and will reduce time and resources needed to get licensing approved.
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It will be also competitive advantage for US, in terms of supplying those kinds of products to India.
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This new designation reflects India’s membership in three of four multilateral export control regimes.
