Revise regulations for export of aerospace technology

Obama starts review of ITAR export controls

Updated: Wednesday, August 26th, 2009 | By Louis Jacobson

For years, American technology companies — especially aerospace manufacturers — have chafed under the International Traffic in Arms Regulations, or ITAR. These rules, administered by the State Department, stem from the 1968 Arms Export Control Act and are designed to prevent  critical defense-related technologies from falling into the wrong hands. Under ITAR, technologies with military value may not be exported without a license from the State Department. The Commerce Department oversees, under somewhat looser controls, export of "dual-use" technologies that have both military and civilian applications.

ITAR makes it hard for U.S. aerospace companies to sell technologies such as satellites to foreign customers. This significantly reduces the size of their potential markets.

During the campaign, Barack Obama promised to review the restrictions and revise the process so that U.S. contractors could compete in the international market.

On Aug. 13, 2009, the White House announced that while the president was extending authority for the Commerce Department to regulate the exports, he also was directing the National Security Council and the National Economic Council to "launch a broad-based interagency process for reviewing the overall U.S. export control system, including both the dual-use and defense trade processes. The aim of the review is to consider reforms to the system to enhance the national security, foreign policy, and economic security interests of the United States. The U.S. has one of the most robust export control systems in the world. But, it is rooted in the Cold War era of over 50 years ago and must be updated to address the threats we face today and the changing economic and technological landscape."

The aerospace industry praised the president's move. "This is a very welcome development," said Aerospace Industries Association president and CEO Marion Blakey. "AIA has been a long-standing proponent of a more predictable, efficient and transparent U.S. export control system. ... The economic and security challenges our country faces continue to grow more complex, and we must have a modern export control system that protects U.S. technology while allowing us to cooperate and trade with our close allies and partners."

There's no guarantee what the NSC and the NEC will recommend once they begin wading into the issue. In fact, one part of Obama's promise — directing revisions to the licensing process under export controls — was not directly addressed by the White House statement. For that reason, we are classifying this promise as In the Works.

Sources: Statement of the White House press secretary , Aug. 13, 2009

Spacepolicyonline.com, " Obama Orders Review of Export Controls ," Aug. 17, 2009

Aerospace Industries Association, "AIA Welcomes White House Review of U.S. Export Control System," press release , Aug. 14, 2009

E-mail interview with John Pike, director of globalsecurity.org, Aug. 24, 2009

E-mail interview with James Andrew Lewis, director and senior fellow of the technology and public policy program at the Center for Strategic and International Studies, Aug. 24, 2009

E-mail interview with John Logsdon, former director of the Space Policy Institute at George Washington University, Aug. 24, 2009

E-mail interview with Edward Ellegood, space policy analyst at Embry-Riddle Aeronautical University, Aug. 24, 2009

E-mail interviews with Keith Cowing of NASAwatch.com, Aug. 24-25, 2009

E-mail interview with Marcia Smith of spacepolicyonline.com, Aug. 25, 2009