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“HTCG Dialogue on Defense Technology, Data Privacy, and Export Licensing”

A Public-Private Forum Under the Auspices of the U.S.-India High Technology Cooperation Group

November 18, 2004
Washington, DC

Summary of Proceedings

Prepared by the U.S.-India Business Council

Overview

On November 18, 2004, the United States and India convened in Washington, D.C the “HTCG Dialogue on Defense Technology, Data Privacy, and Export Licensing,” the fourth public-private forum held under the auspices of the U.S.-India High Technology Cooperation Group (HTCG). The half-day forum featured discussions on expanding business opportunities in the areas of defense technology and information technology, and culminated in a set of joint recommendations by the U.S. and Indian private sector participants to the U.S. and Indian Governments. The event also included a session on various aspects of the U.S. export licensing process.

Opening Remarks

Under Secretary of Commerce for Industry and Security, Kenneth I. Juster opened the event by thanking the various trade associations – the Confederation of Indian Industry (CII), the Federation of Indian Chambers of Commerce and Industry (FICCI), the National Association of Software and Service Companies (NASSCOM), and the U.S.-India Business Council (USIBC) – for organizing the forum; the Indian delegation for making the trip to Washington; and Under Secretary of Commerce for Technology Phillip Bond and Indian Foreign Secretary Shyam Saran for their demonstrated commitment to promoting U.S.-India high technology trade. Juster noted how far the United States and India have come from the formation of the HTCG in November 2002 to the announcement of the conclusion of Phase I of the Next Steps in Strategic Partnership (NSSP) initiative in September 2004. He also highlighted the increase in U.S.-India trade, as well as the increase in approval rates for export licenses to India, over the last several years. Finally, Juster emphasized the importance of this type of forum for shaping policy areas that have an impact on bilateral high-technology trade. He expressed the hope that the forum would help to change old mindsets, institutionalize habits of cooperation, deepen commercial ties, and strengthen the overall relationship between the United States and India.

Foreign Secretary Shyam Saran noted that the HTCG is a unique U.S.-India process in which no other two countries are engaged. He indicated that this forum takes place at a time of growing high technology trade and follows several months of very broad and intense U.S.-India interaction, including the September 2004 meeting between President Bush and Prime Minister Singh, and the conclusion of Phase I of the NSSP. He reiterated the considerable interest in the HTCG process on the part of both governments and both private sectors. Foreign Secretary Saran indicated that biotechnology and nanotechnology remain key areas for the HTCG, and although not specifically addressed during the public-private forum, these topics would be discussed in the November 19, 2004 government-to-government talks. Foreign Secretary Saran suggested that, in order to make a real difference in high technology trade, the Government of India must engage in continuous consultations with Indian industry. In addition, bilateral HTCG meetings must become more regular with greater advance notice. Finally, Foreign Secretary Saran thanked Under Secretary Juster and the industry organizations for hosting the forum.

Under Secretary Bond welcomed the participants, including Foreign Secretary Saran, and reiterated the U.S. Department of Commerce’s commitment to the high technology dialogue led by Under Secretary Juster. Under Secretary Bond opined that technology and innovation are the keys to competitiveness, economic growth, and prosperity, and present opportunities for international cooperation. But he cautioned that these opportunities come with challenges and responsibilities that, in turn, require critical attention. Bond suggested that bilateral trade is a tide that lifts all boats and that the HTCG continues in the spirit of Thomas Jefferson who sought “peace, commerce and honest friendship” with all nations. Finally, Under Secretary Bond characterized the forum as an opportunity to tap private sector expertise and input.

Defense Technology Roundtable

During the event’s defense technology roundtable discussion, participants reviewed U.S. and Indian government policies concerning defense cooperation and procurement, as well as issues confronting U.S. companies interested in the Indian market and Indian companies looking to purchase defense technologies from American companies. The following is a list of the issues raised during the discussion, without any attempt to reconstruct the entire session or to attribute remarks to specific individuals. The recommendations developed by industry participants for the U.S. and Indian governments on how to expand cooperation in defense technology are summarized later in this document.

Data Privacy Roundtable

During the Data Privacy Roundtable, participants discussed various approaches to protecting data as well as India’s existing regulatory and legal framework for data privacy. The following is a list of the issues raised during the discussion, without any attempt to reconstruct the entire session or to attribute remarks to specific individuals. The recommendations developed by industry participants for the U.S. and Indian governments concerning data privacy are summarized later in this document.

Export Licensing Session

During the Export Licensing Session, participants discussed the U.S. licensing process and requirements for exports of both dual-use and munitions items. The following is a list of the issues raised during the discussion, without any attempt to reconstruct the entire session or to attribute remarks to specific individuals. The bulk of the session consisted of presentations by Ann Ganzer, Director, Office of Defense Trade Controls Policy, Bureau of Political-Military Affairs, U.S. Department of State, and Steven Goldman, Director, Office of Nonproliferation and Treaty Compliance, Bureau of Industry and Security, U.S. Department of Commerce. Given the information sharing nature of the session (with government disseminating information to and taking questions from industry), there was no development of private sector recommendations.

U.S. Department of State U.S. Department of Commerce

Private Sector Recommendations

Defense Technology

  1. We urge the U.S. and Indian governments to continue with the pace and intensity of their bilateral engagement, both at the broadest strategic levels and in the specific area of high technology trade and cooperation.
  2. We will constitute a bilateral Defense Industry Working Group to address the following five key areas:

    1. Identify two to four defense programs of mutual benefit to the Government of India, the U.S. Government, and the Indian and American private sectors. For these specific programs, we will identify the key hurdles to Indo-U.S. cooperation, as well as specific ways to accelerate the required government processes on both sides.
    2. Provide greater clarity to U.S. industry regarding the Government of India Ministry of Defence procurement processes. Exact formats to achieve this outcome will be formulated by the Working Group.
    3. Provide greater clarity to Indian industry regarding the U.S. Government’s export licensing regime. Exact formats to achieve this outcome will be formulated by the Working Group.
    4. Create a mechanism to enable Indian industry to better understand U.S. Government defense requirements, to participate in joint research and development, and to access opportunities to supply components, sub-systems and systems to the U.S. military.
    5. Provide opportunities for industry-to-industry contact, relationship building, and commercial partnering between U.S. and Indian companies.
  3. We request that the U.S. and Indian governments each identify a specific point of contact to interface with this bilateral Defense Industry Working Group, and to act as a conduit to other government officials and resources.
  4. We believe that high technology cooperation must be treated not only one or two times per year under the auspices of an official dialogue, but on a more continuous basis. To this end, we would like to consider scheduling defense-related high technology cooperation meetings in conjunction with other industry events, and request that the governments make the appropriate officials—including the points of contact for the bilateral Defense Industry Working Group—available to participate in these periodic meetings.
Data Privacy
  1. We will organize a full set of briefing materials on India’s data privacy and cyber security rules, industry best practices, and case notes on successfully prosecuted cyber crimes.
  2. We will use this core document to educate relevant state and national governments and consumers in both the U.S. and India about India’s existing data privacy protections.
  3. We would like India’s foreign partners to have a more formal role in reviewing potential amendments to India’s privacy laws prior to their introduction to Parliament. U.S. companies have as much stake in such laws as their Indian partners, and U.S. companies rarely have privacy professionals situated in their India operations.
  4. We urge both government and private sector privacy experts in the U.S. to keep their Indian counterparts better informed and more engaged in privacy discussions in multilateral forums such as APEC, the OECD, and the EU.
  5. We will organize a data privacy forum in India in 2005, focusing on international privacy standards, industry best practices, and compliance with U.S. privacy law (HIPAA, Gramm-Leach-Bliley, etc.).
  6. We will begin to develop a media plan to inform U.S. industry, likely through trade publications, about India’s current data privacy regime.
  7. We will share and develop best practices for internal privacy regulation.

Links to Presentations

The following presentations made at the November 18, 2004 HTCG Dialogue on Defense Technology, Data Privacy, and Export Licensing are available to the public:

Defense Technology

Data Privacy

Export Licensing

 

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