BENGALURU, India -- The U.S. Commerce Department has announced the Validated End-User (VEU) program for India, which will facilitate and expand high-technology trade with India even as a secure American export-control system is maintained.
The VEU comes at a time when a high-technology trade relationship between the two countries may touch an all-time high, especially if the current negotiations for sharing nuclear power technology with India become successful. India and the U.S. have historically had a rough trade relationship in high-technology segments, with the U.S. imposing sanctions on selling supercomputers, semiconductors, EDA tools and other equipment in the wake of nuclear tests carried out by India in the past.
According to a report from Washington on Thursday (October 4) by the Press Trust of India, U.S. Commerce Secretary Carlos Gutierrez said in a statement that establishing the VEU will make transactions "easier, faster and more reliable with customers that meet the security requirements of an inter-agency review process."
According to the statement, the VEU will help U.S. exports "remain competitive in one of the fastest-growing markets for American companies. As the world's largest democracy and a strategic partner, India's growth has created new opportunities for U.S. businesses and workers. VEU will enable U.S. companies to capitalize on those opportunities by eliminating individual license requirements on exports of U.S.-controlled items to certain customers in India with a tack record of responsible use of such items."
"American exporters benefit from access to India's market, and the VEU builds upon the enormous progress made over the last six years in facilitating high-technology trade and investment while strengthening our cooperation on export controls," Gutierrez said.