Statement of Principles for
U.S.-India High Technology Commerce
During their November 2001 meeting in Washington D.C., Prime Minister
Vajpayee and President Bush affirmed their commitment to qualitatively
transform India-U.S. relations. They further agreed that the two sides
should discuss ways to stimulate bilateral high technology commerce as
a step toward enhancing the new relationship between the United States
In pursuit of this goal, the Governments of the United States and India
decided in November 2002 to work expeditiously toward developing a new
statement of principles regarding bilateral cooperation in high technology
trade, including trade in “dual-use” goods and technologies,
in a way that broadly advances the relationship between the two countries
in this area and reinforces their mutual interest in stemming the proliferation
of sensitive goods and technologies.
The two Governments have set forth the principles to further promote
and facilitate bilateral high technology commerce in its broadest sense:
1. The two Governments note that there is immense untapped potential
for India-U.S. high technology commerce and recognise the importance of
taking steps to remove systemic tariff and non-tariff barriers, identify
and generate awareness of market opportunities, and build additional confidence
in the two countries for such trade, in a way that reflects their new
relationship and common strategic interests.
2. The two Governments recognize that the private sectors in India and
the United States are important partners in this endeavour.
3. The two Governments should focus on steps to create the appropriate
environment for successful high technology commerce. The Government of
India appreciates the importance that the Government of the United States
attaches to a supportive regulatory and institutional environment in India
for robust bilateral high technology commerce, including easing barriers
to such commerce. The Government of India intends to do its utmost in
4. The two Governments should seek to identify market opportunities in
high technology commerce and related regulations that affect such commerce.
5. The two Governments, in partnership with the private sector, should
consider steps for trade promotion efforts to generate awareness about
market potential, relevant regulatory issues, collaboration opportunities,
and financing possibilities.
6. The two Governments understand the importance of enhancing trade between
India and the United States in “dual-use” items, including
controlled “dual use” goods and technologies, while protecting
the national security and foreign policy interests of both countries,
and intend to take steps to facilitate such trade, which is a component
of high technology commerce.
7. The two Governments should encourage outreach and educational activities
to ensure that the private sectors in India and the United States have
full and accurate information regarding the export control laws, regulations,
and policies of the two countries.
8. The two Governments attach the highest importance to preventing the
proliferation of sensitive goods and technologies. They further recognise
the importance of continuing their export control cooperation programme
and activities to achieve the shared goal of strengthening export control
systems through laws, regulations, and enforcement, in accordance with
modern export control standards.
9. The Government of the United States appreciates the importance that
the Government of India attaches to the widest possible access to U.S.
“dual-use” goods and technologies and to efficiency, continuity,
stability, and transparency in the export license application process.
The Government of the United States intends to do its utmost in this regard,
consistent with its laws and national security and foreign policy objectives,
including compliance with international commitments.
10. The two Governments recognize that U.S. “dual-use” export
controls currently apply to only a very small fraction of total U.S.-India
high technology commerce, and that a broad range of “dual-use”
goods and technologies is currently available to India.
11. The Government of the United States should seek to identify and review
licensing processes and policies for exports to India of goods and technologies
controlled for reasons of anti-terrorism (AT), crime control (CC), encryption
(EI), national security (NS), regional stability (RS), and short supply
(SS), in a manner that seeks to facilitate further trade in these “dual-use”
goods and technologies.
12. For authorized transfers of “dual-use” goods and technologies
controlled for missile technology or nuclear proliferation reasons, including
exports to entities in civilian space and civilian nuclear energy fields,
the Government of India will consider a mutually satisfactory system of
assurances regarding end use, diversion, transfers and retransfers within
and outside India, re-export, and, where necessary, physical protection
and access to the controlled items by third parties.
13. The two Governments should examine cooperative steps to ensure that
all parties adhere to license conditions for “dual-use” goods
and technologies and should outline the manner in which suspected violations
and infractions are to be addressed. The Government of India will cooperate
with the Government of the United States in verifying Indian end users
and end uses.
14. The two Governments should seek to keep each other informed about
changes in their export control laws, regulations, and policies; exchange
information on export licences that are approved, denied, or returned
without action; and establish a mechanism for prompt discussion of any
bilateral “dual-use” export control issues.
15. This Statement of Principles constitutes the basis for further steps
to enhance high technology commerce between the two countries.
16. The two Governments plan to convene as soon as possible the India-U.S.
High Technology Cooperation Group (HTCG), decided upon in November 2002,
to further this Statement of Principles and develop a schedule of meetings
and activities for this purpose.
|Kenneth I. Juster
U.S. Department of Commerce
Indian Ministry of External Affairs