7 Pakistani companies added to export control list by USA

WASHINGTON: The United States of America (USA) has added seven Pakistani companies to a foreign entities list that will undergo strict export control measures, reported the Hindustan Times on Sunday.

The news source also reported that the move would increase New Delhi’s chances of joining the elite nuclear suppliers’ group (NSG) and dent Pakistan’s ambition of joining the group.

The 23 new entries to the list are in accompanied by 15 entities from the troubled area of South Sudan. The list was published by the US Department of Commerce’s Bureau of Industry and Security on Thursday in the Federal Register.

The list identifies entities “reasonably believed to be involved, or to pose a significant risk of being or becoming involved, in activities contrary to the national security or foreign policy interests of the United States”.

Three of the companies were listed for “their involvement in the proliferation of un-safeguarded nuclear activities that are contrary to the national security and/or foreign policy interests of the United States”; two were suspected to be procuring supplies for nuclear-related entities already on the list and last two were suspected to be fronts for listed entities. An eighth Pakistani entity is based in Singapore.

Although China and Turkey have cited procedural issues in adding new members to the NSG, both of them underline Pakistan’s right to aspire to become a member of the club, which works on the principle of consensus to accept new members.

Both India and Pakistan are not signatories to the Non-Proliferation Treaty (NPT) which New Delhi maintains is discriminatory. All other members of the export control regimes are part of NPT.

Inclusion in the Entity List, as it’s technically called, is considered the “highest level of red-flag” that there is in the US export control regime aimed at preventing misuse or repurposing of American dual-use technology (equipment or technology that can be used for both civilian and non-civilian purposes) for undeclared use, mostly military.

It could not be immediately ascertained if these additions were a part of the general toughening of the US position vis a vis Pakistan under President Donald Trump, who has accused the one-time ally of “deceit and lies” and suspended nearly $2 billion in military assistance for alleged purposes.

Entities on this list — businesses, research institutions, government and private organizations, individuals — are required to seek a license from the US government to purchase items subjected to Export Administration Regulations (EAR), which, it is generally presumed, will be denied to them.