•  USA has granted Strategic Trade Authorisation (STA-1) status to India reflects its efforts to improve its own export-control regime, its adherence to multilateral export rules and its growing status as a US defence partner.

About STA:

• STA is the licence exemption that allows a set of items on the Commerce Control List to be exported from the US under defined conditions without a transaction-specific licence, as per Descartes Customs Info.
• The STA exception is relevant to exports, re-exports and transfers for which a licence is required under the Export Administration Regulations – one of the two important US export control laws that affect the manufacturing, sales and distribution of technology.

Analysis:

• STA Tier 1 treatment, comparable with NATO allies, will expand the scope of exports subject to the EAR that can be made to India without individual licences. This regulatory change will enhance the bilateral defence trade relationship and result in a greater volume of US exports to India.
• This will help India getting critical and latest technology from the US in the defence as well as certain other key areas.
• It is also a boost for the foundational Communications, Compatibility and Security Agreement (COMCASA), as per Hindustan Times.
• India and the United States share an interest in countering China’s expanding economic and military weight and the United States has emerged as a top arms supplier to India, selling more than $15 billion of weapons over the past decade as New Delhi modernizes its Soviet-era military.
• Looking at current exports from the US to India, 50% of those are eligible now under STA-1. This can free up $2.1 billion in trade, make US exporters more competitive in the global marketplace, help provide India more advanced US technology.
• India is the only South Asian nation on the STA-1 list that has 36 countries. Other Asian countries designated as STA-1 are Japan and South Korea. Till recently, India was classified as an STA-2 country along with seven others.