News Column

Discontent in Defense Sector Over Export Controls

July 1, 2014


Aerospace and defense firms have cheered the Obama administration's five-year effort to overhaul the U.S. export licensing system at a time when American manufacturers seek international growth.

But industry groups of late are voicing displeasure with the pace and substance of the reforms. They also fear that the administration is weighing new export controls over increasingly sought-after technologies such as cloud computing, cyber security and encryption.

Over the past 18 months, the administration has acted to remove civilian, or "dual use" technologies like aircraft components and communications satellites from the U.S. munitions list - managed by the State Department - to the less restrictive controls of the Commerce Department.

While these changes have been welcome by the private sector, they do not go far enough, a coalition of 18 industry groups argued. Exporters are frustrated by the heavy administrative burden and by a lack of transparency in the export licensing process, said The Coalition for Security and Competitiveness.

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Source: National Defense

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