President Bush orders reform of U.S. export controls

President Bush orders reform of U.S. export controls President Bush signed a directive Tuesday designed to improve the country’s export controls for U.S. manufactured military technologies.
   The Export Control Directive also supports the 2006 National Security Strategy, the administration said.
   “These new directives will advance a more efficient and transparent export licensing process and enhance dispute resolution mechanisms,” said a White House statement to the press. “They will also help ensure proper levels of control for continued U.S. economic competitiveness and innovation while protecting national security.”
   The State Department, which oversees the country’s export controls of defense-related items under the U.S. Munitions List, said the directive “reflects consensus recommendations” between itself and the National Security Council and Defense Department.
   The directive requires more effective U.S. export licensing processes through:
   ' Additional financial resources and intelligence to support the timely adjudication of defense trade licenses.
   ' Guidelines that require a decision by the federal government on defense trade export license applications within 60 days, absent a strong reason for additional time such as the requirement for congressional notification. (Initial efforts in this regard have resulted in a nearly 50 percent reduction since April 2007 in the number of export license applications pending with the State Department.)
   ' An upgraded automated licensing system that permits the submission of all types of defense trade licenses and enables all agencies to access the same electronic information.
   ' State Department’s update of U.S. controls on exports involving dual and third country nationals from NATO and other allied countries.
   ' The directive calls for the establishment of an interagency dispute mechanism to allow for timely resolution of licensing jurisdiction issues involving the State and Commerce departments under the Commodity Jurisdiction process. The National Security Council will undertake a similar review to make sure the Commodity Jurisdiction process is more efficient and timely.
   In addition, a multiagency working group will be created to improve procedures for conducting export enforcement investigations, the State Department said.
   Industry groups largely represented through the Coalition for Security and Competitiveness have pressed the White House since early 2007 to make these changes to the controls for defense-related exports. The coalition praised the Bush administration for issuing the directive.
   “It’s time that we move away from an outdated export control system and align the process with our current security and economic challenges,” said Dan Christman, senior vice president for international affairs at the U.S. Chamber of Commerce, and a member of the coalition. “These measures move us towards a system that will protect our sensitive military technologies while at the same time maximizing the benefits of technological cooperation and trade with our allies.”
   Marion Blakey, president and chief executive officer of the Aerospace Industries Association, and another coalition member, said the directive “helps ensure the U.S. armed forces have the best weapons and equipment available to do their job at the best price to the taxpayer.”
   The coalition’s members are concerned that inefficient export controls will erode the country’s strong defense and high-tech manufacturing sectors. According to the Commerce Department and noted by the chamber in a statement, U.S. high tech industries employ more than 4 million workers and one in six manufacturing jobs depends on exports of manufactured goods. High tech accounted for $345 million, or 37 percent, of all U.S. exports of manufactured goods in 2006.