Aerospace Industries Association
Commerce Department Launches Dual-Use Reform Initiative
Commerce Secretary Gary Locke announced Oct. 1 that the Commerce Department would take steps to streamline the export of dual-use technology. This follows on the heels of a White House directive for an interagency review of the export control system.
“Our current system was designed in the 1950s, and its Cold War-era framework is ill-suited to manage the highly complex 21st century threats currently faced by the United States and our allies,” Locke said in remarks at the Bureau of Industry and Security’s Update Conference.
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Locke noted that aerospace companies have been particularly disadvantaged by our outdated control system. He highlighted a troubling quote from Charles Edelstenne of the Aerospace and Defense Industries Association of Europe that “the only way to resolve technology access and U.S. government export restrictions is by not including any U.S.-sourced technology in our products.”
Locke announced two initiatives in his speech to help combat some of the unintended consequences of our outdated export control system. First, BIS will consider eliminating certain dual-use export licenses requirements for allies and partner nations. Second, BIS will explore implementing a fast-track process for other key countries that do not pose a significant threat and have a strong history of export control compliance. According to Locke, these initiatives will bring the U.S. system more in line with our international partners and competitors while continuing a commitment to national security.
The U.S. must be seen as a reliable supplier to its customers and partners around the world. Locke was optimistic that the proposed changes will provide for a more predictable, efficient and transparent process that will encourage, rather than discourage, our allies to trade with American companies.
Locke made it clear that the initiative would not be a “race to the bottom and a slackening of controls.” Rather, changes would be designed to focus on the technologies posing the greatest risk to national security while working with allies to ensure they enforce proper oversight of U.S. technology.
AIA has long been a champion of export control modernization and looks forward to working with the departments of Commerce, Defense and State as they execute the White House export control review. A modern export system will serve to protect U.S. national security and economic interests for decades to come.
AIA source: pj.hart[at]aia-aerospace.org
