Where Industry and Security Intersect
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For
Immediate Release: February 28, 2008 |
Good morning. It is a pleasure to be here with so many friends and distinguished guests to convene the Sixth Annual High-Technology Cooperation Group meetings between India and the United States. Before I go further, I would like to extend my special thanks to the Government of India for its gracious hospitality to me and the U.S. delegation, and to Foreign Secretary Menon for his remarkable work on behalf of U.S.—India relations. Our expanding high-technology trade relationship has had profound and tangible benefits, not just for the people and industries represented in this room, but for the people of our two great nations.
I would also like to recognize and thank Ambassador Sen and Ambassador Mulford for their capable and devoted efforts on behalf of our bilateral relationship everyday.
Finally, I want to thank the industry groups represented here today, particularly those helping to organize and make this industry day possible. While there is certainly an important role for our governments to play, we know that it is you in the private sector who are forging the next frontiers in our trade relationship, and who constitute the essential soft tissue in our bilateral relationship.
In particular, thank you General Mehta of the Coalition of Indian Industries, Dr. Mithra of Federation of Indian Chambers of Commerce and Industry, and Ron Somers of the U.S.—India Business Council. We cannot applaud enough the work you have done not for this event, or for your foresight and your commitment to this relationship.
Today, the HTCG is stronger than ever, and our task is to make it stronger still. Since the founding of the HTCG in 2002, U.S. exports to India in advanced technology products have risen steadily and dramatically. In 2007, U.S. exports to India totaled $17.6 billion. Notably, $8.1 billion worth – or 45.8% of total exports -- was exports of high-tech goods.
At the same time, we are working to refine our regulatory processes to facilitate expanded secure high-tech trade. In 1999, 24% of total U.S. exports to India required the issuing of license by the Department of Commerce; today, that number is approximately 0.2%. 99.8% of exports by value are license free. Licensing times are decreasing as well. These improvements are the result of the focused and creative work by many in this room, and reflect our nations’ growing stronger economic, social and political ties.
During this time, the nature of high-tech trade in particular sectors has changed as well. For the HTCG to remain faithful to its original mandate, it is vital that our work constantly evolves to reflect the realities of our ever-stronger, ever-changing bilateral economic relationship. We are, therefore, excited to discuss new sectors and new programs in this HTCG.
Civil Aviation
Consider the opportunity of India’s civil aviation industry, a sector that has sustained double-digit growth in domestic and international air travel that is predicted to continue into the next decade. Significant increases in imports are driving this growth, with India importing most of its aerospace products.
The United States wants to be a key partner with India in this sector, and we think a working group devoted specifically to civil aviation would be mutually beneficial. As India moves up the technology ladder, the United States can play an important role. Our discussions with industry to date have shown an enthusiastic response. Therefore, we are proposing the establishment of a new working group on civil aviation and hope to work with the Indian Government over the course of the next year to make that possible.
In a rapidly changing economic environment, it is critical that our working groups continue to focus on the most important sectors driving the maturation of our economic relationship. Many of the working groups in the HTCG have played a key part and will no doubt continue to do so. I would like to take a moment to preview some highlights of these.
Biotechnology and Life Sciences
Tremendous progress has been made in this working group and we look forward over the next two days to building upon last year’s meetings to discuss a range of issues. Our vision for this group, moving forward, is to collaborate with the Government of India as it establishes new legislation and regulatory bodies related to the health sector, sharing best practices on technology transfer legislation, and addressing ways to counter the proliferation of counterfeits.
Defense Trade
President Bush and Prime Minister Singh have both committed our two countries to a deeper defense relationship. In fact, over the last seven years, bilateral defense cooperation has been integral to strengthening U.S.-India ties. Secretary Bob Gates noted this just this week during his visit here. We feel the next two days provide us with an important opportunity to share views and address issues such as transparency, offsets, and procurement procedures in the U.S.—India defense trade.
IT and Nanotechnology
We also look forward to discussing issues about information technology and nanotechnology. Trade in both sectors has undergone important changes, even in just the past six years of the HTCG’s existence. We look forward to discussing these changes and how we can expand trade and improve the modalities of both working groups over the course of the next two days.
Strategic Trade
Certain areas of the U.S.-India strategic trade relationship are also more important than ever. Vital strides have been made in this area – as I mentioned already, far less than one half of one percent of U.S. exports to India require a license, down from over 24% in 1999. However, we think we can do better.
One initiative that we think will have a positive impact is the Validated End-User (VEU) program. This U.S. program – which is entirely voluntary – will enable interested and qualified companies in India to import U.S. technology under a general authorization instead of having to apply for individual licenses.
In certain sectors such as advanced electronics, aerospace and life sciences, we believe VEU can be significantly impactful. We know there is interest in this program, and we look forward to answering your questions about it.
In closing, I would like to again thank Secretary Menon for his tireless efforts to make the HTCG a success and for being such a gracious host. I look forward to the opportunity over the next two days to discuss important issues with him, and of course, with you.
Thank you.