DUAL USE GOODS & TECHNOLOGIES

27-02-2024

The Central Government is currently reviewing an Indian technology company that has been sanctioned by the EU and the U.S. due to its "close connections" with Russian firms. Also, there have been allegations that they were exporting the Dual Use Goods & Technologies to Russia.

What are Dual Use Goods & Technologies?

Dual-use goods and technologies are things that can be used for both regular civilian purposes and for military or harmful purposes.

Dual-Use Goods/Technologies	Civilian Applications	Military/Security Applications
Uranium	Generating electricity in nuclear power plants	Production of nuclear weapons
Chlorine	Water purification	Chemical weapon (chlorine gas)
Artificial Intelligence Facial recognition software	Unlocking smartphones	Surveillance of people and hijacking privacy
Vaccines	Preventing infectious diseases	Potential for biowarfare (biological agents as weapons to harm)
Drones	Photography	Military surveillance and security
Satellites	Communication	Surveillance and intelligence gathering

If such goods or technologies get into the hands of the wrong people like terrorists, they will be misused. Hence, it becomes important to regulate them strictly.

What are the Challenges faced by countries in regulating them?

Determining End-Use: It can be challenging for authorities to accurately determine the intended use of certain items, especially when they have legitimate civilian applications but can also be diverted for military or illicit purposes. For example - silicon, nuclear technology, etc
Complex Laws and Suspicion: Companies face complex regulations and export controls, often leading to delays, compliance burdens, and a very high level of scrutiny due to the potential for misuse.
Rapid Technological Advances: Technology keeps on advancing with time. Keeping up with new technology is tough because it's always changing, making it harder to control the spread of dual-use tech.
Complex Global Supply Chains: A global supply chain covers all the steps involved in manufacturing and delivering a product or service when those steps take place in more than one country. For example, a semiconductor chip originates from Vietnam. It moves into India and finally, from India, it is being used in Sweden and it is nearly impossible to identify its end use.

International Agreements to control such goods & technologies:

Year	Agreement	Description
1970	Nuclear Non-Proliferation Treaty (NPT)	The treaty aims to prevent the spread of nuclear weapons to countries that don't already have them (Non-Proliferation). It encourages countries that do have nuclear weapons to reduce and eventually eliminate their nuclear arsenals (Disarmament). The treaty also promotes the peaceful use of nuclear energy for things like generating electricity or medical purposes.
1975	Nuclear Suppliers Group (NSG)	The NSG sets guidelines and rules for its member countries regarding the export of nuclear-related items. This includes things like nuclear reactors, fuel, and technology.
1985	Australia Group	Similar to the NSG for nuclear materials, the Australia Group sets guidelines and regulations for its member countries regarding the export of materials and technologies that could be used to develop chemical or biological weapons.
1987	Missile Technology Control Regime (MTCR)	The MTCR aims to prevent the spread of missiles capable of delivering weapons of mass destruction, like nuclear, chemical, and biological weapons. It does this by regulating the transfer of missile-related technology, drone technology, etc.
1996	Wassenaar Arrangement	The Wassenaar Arrangement sets guidelines for member countries on exporting conventional weapons, like firearms and military equipment. It also regulates Dual-Use Goods and Technologies.

Note:

India is part of Australia Group, MTCR and Wassenaar Arrangement but not of NPT & NSG.
India regulates some items under the SCOMET List. SCOMET stands for Special Chemicals, Organisms, Materials, Equipment, and Technologies which have potential dual-use applications.

Conclusion: Dual-use goods and technologies offer both opportunities and risks. Responsible management and international cooperation are key to ensuring their positive impact.