India Likely to Pursue Diplomatic Talks with US Over Sanctions on 24 Companies
Updated: Nov 09, 2024 03:37:06pm
India Likely to Pursue Diplomatic Talks with US Over Sanctions on 24 Companies
New Delhi, Nov 9 (KNN) India may choose to address recent US sanctions on 24 Indian companies through direct diplomatic talks rather than escalating the matter to the World Trade Organization (WTO) or International Court of Justice (ICJ), according to a report from the Global Trade Research Initiative (GTRI).
The sanctions, imposed by the US State Department, Treasury, and Commerce Department, target entities allegedly aiding Russia’s defence sector in Ukraine, and include major firms like Shreya Life Sciences, Soni Electronics, and Solex Electronics.
The GTRI report highlights that while unilateral sanctions by the US are contentious under international law, they present practical challenges for nations like India, which must tread carefully to safeguard its trade interests.
India may seek sector-specific exemptions or advocate for relief for individual companies during bilateral discussions with the US, an approach that could yield more immediate results than a prolonged legal confrontation at the WTO or ICJ.
The broader issue of extraterritorial sanctions complicates international trade law and raises concerns about state sovereignty, GTRI noted.
As the sanctions impact India's trade landscape, Commerce and Industry Minister Piyush Goyal underscored the need for domestic businesses to comply with both Indian and international export control guidelines.
Indian authorities have reiterated that the sanctioned entities did not violate local laws but emphasised that businesses must adhere strictly to export regulations and non-proliferation commitments to avoid future sanctions.
To mitigate risks, the GTRI advises Indian companies to strengthen compliance programs and keep updated with lists like India’s SCOMET and US export control lists.
Companies dealing in dual-use goods—materials with both civilian and military applications—must be vigilant to avoid unintentional involvement with sanctioned entities, as the repercussions include trade restrictions and asset freezes, which could damage global partnerships and market access.
As India seeks to grow as a defense exporter, building robust compliance systems is essential to minimize exposure to international sanctions, GTRI added.
(KNN Bureau)