US, EU Should Work Closer on Licensing, Limit Unilateral Controls, Industry Says
The U.S. and the European Union should pursue multilateral export controls, reexamine restrictions on certain munitions-related items and work together to better harmonize decisions on license denials, industry and academia said. The U.S. and EU released a joint summary Dec. 1 of those recommendations, which were made during an Oct. 27 virtual meeting on dual-use export controls (see 2110190020) to discuss areas of priority for the U.S.-EU Trade and Technology Council.
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Meeting participants -- including the European Semiconductor Industry Association, the U.S. Chamber of Commerce, Intel and the Imperial College of London -- suggested that better collaboration between the U.S. and the EU can help resolve a range of export control issues. Some said “extraterritorial” U.S. controls have led to “regulatory burdens on European stakeholders” and discourage EU firms from working with U.S. companies, using U.S. technology or even hiring U.S. people due to restrictions and sanctions on “certain activities of U.S. persons.”
Others said the U.S. and the EU should share more information on license denials for foreign companies or governments to better align those decisions. This would “ensure transactions rejected by export control authorities in one jurisdiction are not backfilled under export authorizations issued in another jurisdiction.”
They also said both sides need to better adapt how they approach controls due to the fast pace of innovation and emerging technologies, develop a “common approach and understanding” to the Wassenaar Arrangement Decontrol Notes, avoid unilateral restrictions, and clarify exemptions on public domain information and fundamental research. Universities have warned the U.S. against applying overly broad export controls on foundational technologies to avoid severely hindering U.S. fundamental research (see 2012020044).
Some participants specifically told the EU that it should “consider lessons learned” from the U.S.’s Export Control Reform Initiative, including the U.S.’s transfer of 600 series items from the State Department to the Commerce Department. This decision was meant to lift restrictions on 600 series items, which includes some defense items and dual-use goods. Some meeting participants said the EU should “determine whether the continued regulation of ‘600 series’ items under the EU’s military, vice dual-use, export control framework places EU companies at a competitive disadvantage.”
The EU also said it gave an update on its new controls over dual-use and cyber-surveillance items used for human rights abuses (see 2109090007), and stressed that controls are only one of a variety of trade tools it will use to protect its security. Those tools “must also include investment screening mechanisms and frameworks to prevent cyber exfiltration of controlled data,” the summary said.
Commerce officials urged participants to comment on some recently issued notices, including potential controls on brain-computer interface (BCI) technologies (see 2110250011), proposed changes to License Exception Strategic Trade Authorization (STA) (see 2110210019) and upcoming restrictions on certain cybersecurity items (see 2110200036).
“BIS expressed a desire for increased engagement and information sharing with stakeholders, not only in terms of public comments on proposed regulations, but also on suspicious purchase inquiries and transactions of concern,” the summary said. Comments are due Dec. 6 on the notice for License Exception STA and the cybersecurity controls, and Dec. 10 on the potential BCI export restrictions.
Both the U.S. and the EU, calling the meeting “productive and informative,” said that comments and “inputs showcased great interest and support for the Working Group, especially from industry associations and academic experts.” Both sides said they will continue to conduct outreach to address emerging technologies and to determine how to balance between multilateral export control regimes and bilateral work.