The Hindu : National : U.S. export controls could pose a hurdle

Online edition of India's National Newspaper
Tuesday, Jun 22, 2004

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National

U.S. export controls could pose a hurdle

By N. Gopal Raj

BANGALORE, JUNE 21. As India and the United States set out to strengthen and expand cooperation in space, the export controls enforced by the latter on satellite systems and components could become an irritant.

After the U.S. lifted the trade sanctions imposed on India between 1998 and 2001, it considerably eased controls on exports of high-technology items, according to the U.S. Under-Secretary of Commerce, Kenneth I. Juster. Even for items requiring export licences, over 90 per cent of the applications for India were being approved, he said at a press conference after the inauguration of the India-United States conference on cooperation in space activities here today. Trade requiring such export licences formed just one per cent of the total exports from U.S. to India.

The rate of export licence approval was "above the norm" for India, he said. By comparison, there were more restrictive export controls towards China and yet there was higher level of trade in high technology with that country.

The U.S. controls on satellites systems and components are handled by the Department of State, and not the Department of Commerce, and are governed by the Munitions List. These export rules led to India losing two possible launch contracts for foreign satellites, an official of the Indian Space Research Organisation (ISRO) said on condition of anonymity. "There is hardly a satellite in the world that does not have U.S. components in it," he pointed out.

ISRO is keen on exploring joint efforts with U.S. and European companies to build satellites for foreign customers. It would then be able to leverage its much lower costs for design, manufacture and testing. Although no technology transfers were required, the U.S. export control policy on satellites increased the uncertainties involved in such a business venture, the ISRO official said.

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