Strategic Trade Authorization-1(STA-1)

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Context:

  • After South Korea & Japan, India becomes the third Asian Country being granted the Strategic Trade Authorization-1(STA-1) status. It is Conferred by United states. United States issued a federal notification for this.

Boosting India and US Relation:

  • This decision will boost India-US defense trade & will make it easy for India now to get high-technology product, particularly in civil space and defence sectors. Now India has access to a large scope of exports without separate licenses.
  • India is now 37th in the list of countries getting this STA-1 status, conferred by USA.
  • US close ally Israel is yet to get this status as US gives this status to only members of the all four export control regimes: Missile Technology Control Regime (MTCR), Wassenaar Arrangement (WA), Australia Group (AG) and the Nuclear Suppliers Group (NSG). Israel not being the member of these.
  • India is member of all barring the exception of NSG which China continuously blocks for India. So in a way US sent a strong message to China by placing India in the STA-1 list and United States has acknowledged that for all practical purposes India adheres to the export control regimes of the NSG. It is also a testament to India’s non-proliferation credentials.
  • As said by US secretary of commerce Wilbur Ross, “India’s status as a Major Defense Partner led to its becoming a Strategic Trade Authorization (STA) Tier 1 country, comparable to our NATO allies, under the Department of Commerce’s Export Administration Regulations”.
  • India was granted tailor made status of a major defense partner of United States which is equal to that of a major non-NATO ally, without using that exact designation in 2016 during the Obama Administration.
  • This Strategic Trade Authorization (STA) Tier 1 status will enhance the bilateral defense trade relationship and result in a greater volume of US exports to India.

Source:TH