Manufacturers Encouraged by Administration’s Export Control Changes

Immediate Action and Fundamental Reforms Needed to Keep America Secure and Competitive

National Association of Manufacturers (NAM) Vice President for International Economic Affairs Frank Vargo issued the following statement today in response to Defense Secretary Robert Gates’ speech on the Administration’s export control reform proposals:

“Manufacturers are pleased the Administration is moving forward with changes to modernize the current Cold-war era system. These changes are critical to keeping America secure and competitive globally.  We are particularly encouraged by the announcement of a single control list and a unified information technology platform, but we believe the Administration must also move forward on near- and medium-term reforms along the way to creating a single agency. 

As stated in the NAM’s ‘Blueprint for a 21st Century Export Control Regime’, the creation of a new agency to administer a modern export control regime will only be a success if it includes the implementation of a workable transition plan and near- and medium-term reforms.  Simply forming a new agency without these other essential reforms will not result in a 21st century export control regime.

Earlier this year, the NAM proposed near- and medium-term recommendations as well as our blueprint for fundamental reform.  These near-term reforms are critical to addressing immediate national security, industrial base, and manufacturing imperatives, while fundamental reform is necessary to create a system that will serve the needs of the United States well into the future. Action on both sets of recommendations is vitally important to manufacturing.   

Manufacturers had hoped the three phases of the Administration’s proposals would include details on important near-term priorities such as implementation of the intra-company transfer, a renewed focus on small and medium-sized manufacturers, and a streamlined approach for licensing to support U.S. government programs involving allies.    

We will continue to urge implementation of near- and medium-term reforms while also working toward a fundamental makeover of the system.  Both are needed to enhance U.S. national security, support the industrial base and reach the President’s goal of doubling exports within five years.”