Export Control Reform – Myth or Reality?

In communication to Business Executives for National Security in April, Defense Secretary Robert Gates introduced the Obama Administration’s proposed reforms to the U.S. export control system. This is the most recent development in the Government’s discussions regarding export control reform. For example:
• In President Obama’s January 27, 2010, State of the Union he declared the Administration would unveil the “National Export Initiative” with the primary goal to reform the current export control system consistent with national security to enable the U.S. to double its exports over the next five years (on March 11, 2010, the President signed an executive order creating the National Export Initiative).

Historically, reform efforts have stalled primarily due to national security concerns throughout the Government. However, in his speech in April Secretary Gates stressed that these concerns were no longer applicable and that the Department of Defense would support substantial reforms. Secretary Gates emphasized the importance for a transparent and efficient export control system that places “higher walls” around fewer, more critical items. To meet these requirements, Secretary Gates stated that the Obama Administration’s proposal would overhaul the current export control regulations by implementing the following four principles:
• The establishment of a single export controlled items list which would allow the Government to concentrate on controlling critical items and technologies;
• The establishment of a single licensing agency with jurisdiction over both munitions and dual-use items and technologies, intended to streamline the review process and ensure that export decisions are consistent;
• The establishment of a single enforcement agency responsible for managing the numerous export control regulations; and
• The establishment of a unified information technology (“IT”) infrastructure designed to reduce the redundancies, incompatibilities and waste created by the current system.
On the same day as Secretary Gates’ speech, the White House issued a press release outlining a comprehensive, three-stage process for implementing these reforms.