AIA | Export Control Modernization: AIA Election 2008 Issue Paper

AIA Election 2008 Issue: Export Control Modernization

Modernize the nation's export control system to build interoperability, capability, and defense cooperation with friends and allies.

Issue:
The US export control system has not kept pace with changes in the global security environment and the international marketplace. The United States needs a predictable, efficient and transparent export control system that keeps sensitive technologies out of the wrong hands, facilitates technology trade and defense cooperation with friends and allies, and contributes to our nation’s global competitiveness.

Background:
Exports play a central role in supporting the aerospace and defense industry’s 642,000 U.S. jobs. Aerospace companies posted a $57 billion trade surplus in 2007, the largest of any other manufacturing sector. The aerospace industry exports 40 percent of its total product and, during some economic quarters, nearly 70 percent of civil aircraft and components. Defense trade with foreign partners also enables industry to enhance our military’s technological edge on the battlefield and deliver equipment in an efficient, effective, and economical manner.

On January 22, 2008, the Bush Administration issued a series of directives to improve U.S. export licensing processes. In recent years, outdated export control policy and practice have compromised industry’s ability to support the nation’s security and economic interests, increased costs and risk in military programs, and frustrated military and commercial relationships with allies and partners. The improvements outlined in the January 22 directives, including reasonable timelines to issue licenses and mechanisms to resolve interagency policy disputes quickly and consistently, should be implemented fully and sustained by future Administrations. At the same time, there are additional steps needed to modernize the US export control regime – to increase predictability, transparency and efficiency.

Recommendations:
AIA recommends that candidates commit to working closely with U.S. industry, Congress, and our foreign allies and partners to:

Affirm support for a rigorous, predictable, efficient, and transparent export control system that safeguards critical technologies, promotes collaboration with our allies, and promotes US competitiveness.
Sustain process improvements identified by the Bush Administration in January 2008, and identify and adopt further improvements to make the export control system more predictable, transparent and efficient.
Develop new management models that move away from license approvals on a transaction-by-transaction basis and toward an approach that leverages trusted communities and certified compliance processes, particularly in support of critical U.S. defense and security programs that call for close collaboration with our allies.
Establish mechanisms that provide more consistent and accurate assessments of the risks and benefits of controlling certain technologies and ensure that controls are up-to-date, appropriate and precise.
Undertake regular consultations with key foreign allies and partners to develop greater consistency and compatibility among national export control systems.