This file is to describe the negative and positive impacts of, and propose possible solution ideas for, the effect of ITAR (International Traffic in Arms Regulations) restrictions on Space Commerce.
Each impact can be listed below with subsequent paragraphs giving ideas and opinions related to it..
Impact #1. Lack of Qualified, Highly-Trained Workforce
Individuals who are non-U.S. citizens in many different areas of discipline are unable to get a job in the aerospace industry (both civil and military, both emerging as well as traditional). This is resulting is a reduction in the pool of qualified employees a company can hire. Although the United States trains many non-U.S. citizens in disciplines of interest to the aerospace industry, the students are forced to leave the U.S. to find jobs, despite their primary desire to stay and work in this country.
From Space policy questions and decisions facing a new administration (a report from The Space Forum 2008) there is this:
Do export control laws harm national security and economic interests?
Issue
The United States government’s approach to export control of commercial space technologies places political, legal, and bureaucratic restrictions on the aerospace industry in the United States. These restrictions posit a cost to the United States satellite industry and the space industrial base.
Discussion
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Export controls of commercial space technologies are governed through the International Traffic in Arms Regulations (ITAR), which is administered by the Department of State. These Regulations prevent international partnerships in commercial space by making it more difficult and bureaucratic to implement.
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As a result of ITAR, domestic manufacturing capabilities for vital space-related hardware and components are reduced. The regulations, in contrast to the intended goal of retaining preeminence for the United States in the aerospace and defense fields, brings about the opposite effect.
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The United States has fallen behind and has lost leadership status in global space commerce competition due to its export control regime.
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Export controls are an impediment to United States competition in the international marketplace. International competition in space commerce is stiff and growing, and ITAR harms United States industry and limit the ability to access and make use of the best capabilities. Globalization of space is desirable and ITAR is a barrier.
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ITAR damages national security by placing legal and bureaucratic restrictions on the United States military use of commercial space assets that rely on a robust satellite industry and space industrial base. The fact is that the United States military is dependent on commercial space services.
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ITAR directly impacts approaches to national security space whereby the United States is denying allies access to warfighting and space protection capabilities.
Policy Choice
Support reform efforts for export control policies or mandate, in addition to political reform, that export control laws be updated by the United States Congress.
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Act on behalf of space companies to create and ensure an open, free-market environment in global space commerce. The current approach to export control of commercial space technologies prevents this from taking place. The export control issue must be addressed at the level of policy by reforming the “rule set” for how ITAR is applied. The current January 2008 Presidential Directive on export control reform is a start, yet more is needed. This encompasses a reassessment of what technologies need to be controlled for export, and dealing with issues of timing, review, transparency, and cost in the export licensing process.
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The United States Congress with the support of the President can address the issue of export controls by updating export control laws to better match the dynamics of global space commerce. This starts with reforming the current approach to ITAR by moving jurisdiction on all dual-use commercial space technologies from the Department of State to the Department of Commerce, to legislating new export control laws that update and replace the antiquated Cold War legislation that is still in place– Arms Export Control Act and Export Administration Act.
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In October 2006, the National Security Space Office (NSSO) initiated this space industrial base assessment. The purpose was to assess the health, competitiveness, and ability of the space industrial base to continue support of national security space requirements. Specifically, the goals were to:
– Evaluate the industrial, economic, and financial factors affecting the U.S. Space Industrial Base.
– Determine if U.S. export controls and practices are impacting space prime contractors and 2nd/3rd tier subcontractors.
– Develop findings and conclusions for the Space Industrial Base Council (SIBC).
Including, among his many articles, the following:
2009.01.xx Report by the National Research Council of the National Academies
2008.10.05 Space Foundation Report on ITAR
Comments (1)
Ken Davidian said
at 2:36 pm on Aug 27, 2008
I took some quick notes during Mike Gold's presentation at the SFF NewSpace 2008 Conference regarding this topic... three negative effects of ITAR he mentioned include:
1. Presumption Of Guilt... companies are assumed to be in violation of ITAR and must prove they are not... not a great situation to be it!
2. Inability to Hire Non-US Nationals (already mentioned in the body of this page)
3. It is a Significant Management Issue (but not a barrier to entry... just a cost of doing business) - This was a comment made by Roseanne Sattler.
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