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Giving boost to bilateral relations, US Secretary of Commerce Wilbur Ross United States, on July 30, announced inclusion of India to the Strategic Trade Authorization (STA) Tier 1, one of the most coveted lists of trading partners. With this India’s status is “comparable to NATO allies,” and it “will expand the scope of exports subject to the Export Administration Regulations (EAR) that can be made to India without individual licenses. This regulatory change will enhance the bilateral defense trade relationship and result in a greater volume of U.S. exports to India.”
In 2016, US declared India a ‘Major Defence Partner’ and this created the ground work for its inclusion in the STA-1 which comes under the Department of Commerce’s Export Administration Regulations. “Over the last seven years, approximately $9.7 billion worth of licensed exports to India may now eligible for export under this license exception,” said a US release.