'Export controls not barrier to Indo-US trade'

Export controls are not a barrier to strengthening partnership between India and the US, according to Steven C Goldman, director, Office of Non-proliferation and Treaty Compliance, US department of commerce. Goldman was speaking at a seminar on 'Current and prospective opportunities for US-India high-technology trade', hosted by the US department of commerce and the Indian ministry of external affairs in collaboration with the Confederation of Indian Industry (CII) and the Federation of Indian Chambers of Commerce and Industry (FICCI) in Hyderabad.

"The advanced technology exports from the US to China are substantially more than those to India. This is in spite of the more stringent rules that we have with regard to export controls to China. Therefore, it is a misperception that export controls pose a major barrier to trade," Goldman said.

The advanced technology exports from the US to China amounted to $12.32 billion as compared to $2.05 billion to India in 2005.

"In 2005, only one per cent of the $8 billion exports to India required a licence. The average licence application processing time for controlled exports to India has also dropped to 34 days from 40-44 days earlier. Therefore, the opportunities for trade are expanding and the barriers are reducing," he added.

Meanwhile, Goldman reiterated that the US was seeking to change the laws that prohibit trade with India for nuclear cooperation.

"At present, the US law allows trade of dual-use items for safeguarded nuclear power plants. However, these items comprise just five per cent of what is required by the plants. An attempt is being made to allow transfer of technology and equipment even for components like reactor fuel that are required to build and operate a nuclear reactor for civil purposes," he said with reference to the Indo-US nuclear deal, that needs the ratification of the US Congress.

While the dual-use items come under the purview of the US department of commerce, the remaining components and technology come under the jurisdiction of the US department of energy and the Nuclear Regulatory Commission.

The amendments to the law require the approval of the Congress. Goldman declined to comment on the time-frame or potentiality of the changes being made to the law, stating that each member of the Congress has a vote and it would, therefore, be difficult to gauge.