President Orders Review of Export Controls

President Obama is calling for broad review of export controls across the government, saying controls need to be brought up to date.

"The aim of the review is to consider reforms to the system to enhance the national security, foreign policy and economic security interests of the United States," White House spokesman Robert Gibbs said in a statement released Aug. 13.

"The U.S. has one of the most robust export control systems in the world. But it is rooted in the Cold War era of over 50 years ago and must be updated to address the threats we face today and the changing economic and technological landscape."

The order came as the president also extended for one year regulations that govern the export of technologically-sensitive products.

The order is the latest of many that maintain current export controls under the International Emergency Economic Powers Act. The controls would otherwise have lapsed in 1994, when the Export Administration Act of 1979 expired.

Several Congresses have failed to pass a new, modernized export control measure. Most often the stumbling block has been exports of dual-use technology to China, goods that have both civilian and military applications. Congressional conservatives resist relaxing controls that could put high-tech items in the hands of the Chinese military.

However, the business community wants to see a new export control regime that would make U.S. products more competitive in the world marketplace. Trade groups praised the administration’s announcement.

“We need an export control system that can keep genuinely sensitive technologies out of the hands of those who seek to harm the U.S.,” said Frank Vargo, vice president for international economic affairs for the National Association of Manufacturers. “Unfortunately, our obsolete export control system is not providing the degree of security needed for today’s threats, and is harming our ability to compete economically.”

Marianne Rowden, president of the American Association of Importers and Exporters, said it’s encouraging that the president recognizes the export control system is outdated.

“AAEI has been deeply concerned about the corrosive effect of complex and overly-broad export controls that hinder U.S. companies from competing in a dynamic global marketplace,” Rowden said.

Contact R.G. Edmonson at bedmonson@joc.com.