DUAL USE GOODS EXPORTS - ECONOMY

DUAL USE GOODS EXPORTS - ECONOMY

News: Recent initiatives by the United States involve advising Indian companies and exporters against supplying dual-use technologies to Russia. Such exports, which include chemicals and aeronautic components potentially applicable in defense equipment, could lead to Western sanctions.

What’s in the news?

Dual Use Goods and Technologies

  • Definition and Examples:

·         Dual-use goods are items applicable in both civilian and military settings.

Examples include global positioning satellites, missiles, nuclear technologies, and night vision devices.

  • Specific Technologies:

·         Hypersonics: Systems capable of flight at speeds five times greater than the speed of sound, useful for satellite launches and defense applications.

·         Integrated Network Systems-of-Systems: Enhances the integration of various mission systems, bolstering networked command and control.

·         Microelectronics: Fundamental in both civilian tech like smartphones and military equipment.

  • Regulatory Frameworks:

·         Governed by international dual-use export control regimes aiming to prevent misuse while allowing legitimate trade.

Global Export Control Regimes:

  • Wassenaar Arrangement (WA): Promotes transparency and responsibility in arms and dual-use goods transfers; India joined as the 42nd member in 2017.
  • Nuclear Suppliers Group (NSG): Focuses on curtailing nuclear arms proliferation; India is not a member but follows voluntary non-proliferation practices.
  • Australia Group: Ensures that exports do not contribute to chemical or biological weapons development; India became a member in 2018.
  • Missile Technology Control Regime (MTCR): Aims to prevent missile proliferation capable of delivering large payloads; India joined in 2016.
  • Chemical Weapons Convention (CWC) and Biological and Toxin Weapons Convention (BWC): India is a signatory, committing to non-proliferation of chemical and biological weapons.

 UN and Dual-Use Goods:

  • UN Security Council Resolution 1540: Mandates member nations to regulate exports that could harm global peace or security.

Dual-Use Technology Developments Concerning Russia:

  • Sanctions Risk: Indian companies face potential U.S. sanctions under CAATSA for dealings with Russia’s military-industrial sectors.
  • Trade Insights: Indian exports to Russia surged by 40% in 2023, emphasizing the significant role of engineering goods.
  • Global Supply Chains: The U.S. has flagged China as a major supplier of critical items like machine tools and microelectronics to Russia, impacting global defense manufacturing networks.

India faces the intricate task of regulating the export of dual-use items, balancing between adhering to international norms and protecting its economic sovereignty. In the delicate geopolitical landscape, particularly concerning Russia, it is vital for India to conform to global regulations to evade sanctions while preserving its strategic autonomy. By enhancing regulatory oversight and raising industry awareness, India can ensure its export practices meet global standards, thus supporting both innovation and national security.

Source: https://indianexpress.com/article/business/economy/dual-use-goods-us-alerts-indian-companies-on-export-of-defence-tech-to-russia-9522738/