House Science & Technology Committee Hears Testimony on Negative Impacts of U.S. Export Controls

"Fortress America" Approach Cuts U.S. Off from Needed Information and Technology

Testifying at the hearing, Retired Lt. General Scowcroft noted that because science and technology research, development, and production have become a global enterprise, the "Fortress America" approach of current controls cuts the U.S. off from information and technologies that are needed for national security. According to Scowcroft, if the U.S. sustains these export controls and visa barriers, it will increasingly lose touch with the cutting edge of science and technology, and will risk missing emerging national security threats.

Study Recommends EO to Implement Three Export Control Regime Changes

According to Scowcroft, the National Academies' study recommends that President Obama sign an Executive Order in early 2009 that will implement the following recommendations:

1. One-Stop-Shop for license applications - two administrative entities should be established, possibly within the National Security Council. The first is a coordinating center for export controls that would constitute a "one-stop-shop" for all export-license applications to determine whether the Department of Commerce or the Department of State should handle the license application and then dispatch the application to the appropriate place for decision. The second is an appeals panel that would hear and decide disputes about whether export licenses are required, and whether particular decisions to grant or deny licenses were made properly.
2. Enhance Fundamental Research Exemption - the administration of existing export control statutes (the Arms Export Control Act and the Export Administration Act) should assure the scientific and technological competitiveness of the U.S. as a prerequisite for both national security and economic prosperity. The study recommends that the Fundamental Research Exemption (aka National Security Decision Directive (NSDD 189)²), be maintained and properly implemented.
3. New economic competitiveness exemption for dual use technologies - establishment of an economic competitiveness exemption that eliminates export controls on dual-use technologies where they, or their functional equivalents, are available without restriction in open markets outside the U.S. The economic competitiveness exemption would preclude the export of so called "dual-use" items that are, or soon will be, legally available in open markets overseas, from being restricted.
4. Amend visa process to reflect skill-based preference - to ensure that the U.S. has access to the most talented scientists, the visa application process should incorporate skills-based preferential processing and should be streamlined so that legitimate foreign researchers and students have an easier time entering the U.S.

Export Controls Inhibit, Retard, and Eliminate Certain Research Projects

Also testifying on National Academies' study was Massachusetts Institute of Technology professor Claude Canizares who opined that the broad scope of U.S. export control regulations is a major difficulty and noted that (i) many categories of the Commerce Control List, a third to half of the items are controlled only by the U.S., and (ii) none of the other countries has a provision comparable to our deemed export regulation.

Professor Canizares notes that despite a Presidential directive (NSDD 189) protecting fundamental research, export controls continue to inhibit, retard, or eliminate research projects that do not involve militarily relevant technology.

CSIS Group Recommends Annual Review of USML Items, Dollar Threshold Increase, Etc.

A representative from the Center for Strategic and International Studies (CSIS) also testified at the hearing about a study by CSIS' Working Group on the Health of the U.S. Space Industrial Base and the Impact of Export Controls, which concluded that current U.S. export controls have had an adverse impact on U.S. national security, a negative impact on the U.S. industrial base, and have complicated the relationships necessary for mutually-beneficial, international cooperative endeavors.

Among the CSIS Working Group's recommendations are (partial list):

annually review the appropriateness of designating specific satellite and other space systems, components, and capabilities as USML items based on criticality of items and foreign availability;

critical space technologies should be identified and should remain on the Munitions List and under the State Department ITAR process;

commercial communications satellite systems, dedicated subsystems, and components specifically designed for commercial use should be removed from the USML; and

increase the dollar threshold for satellite exports, increase Congressional notification, etc.

¹The National Academy of Sciences, National Academy of Engineering, Institute of Medicine, and the National Research Council - which are private, nonprofit institutions that provide science, technology, and health policy advice under a congressional charter.

²NDSS 189 establishes as national policy "that, to the maximum extent possible, the products of fundamental research remain unrestricted."

Hearing information, including links to witness testimony available at http://science.house.gov/publications/hearings_markups_details.aspx?NewsID=2360.

National Academies press release on its study, including details on how to purchase a copy of the study (dated 01/08/09) available at http://www8.nationalacademies.org/onpinews/newsitem.aspx?RecordID=12567.