Impacts of U.S. Export Control Policies on Science and Technology Activities and Competitiveness

Opening Statement By Chairman Bart Gordon

I would like to begin by welcoming our panel of witnesses to this morning’s hearing. We look forward to your testimony.

The nation’s export controls system and the related International Traffic in Arms Regulations—also known as ITAR—were put into place to help protect America’s sensitive technologies from falling into the hands of those who might do harm to this nation.

In short, export controls were supposed to help strengthen our national security.

However, in recent years there has been a growing chorus of concern about some of the unintended consequences of the current system of export controls for both the nation’s competitiveness in the global economy and for the nation’s science and technology enterprise.

Equally troubling, there are also increasing expressions of concern from experts in the national security, industrial, and academic communities to the effect that the current system of export controls is actually weakening our national security—not strengthening it—while undermining the health of our science and technology enterprise.

In that regard, let me quote from the recent National Academies report authored by a distinguished panel under the co-chairmanship of Gen. Scowcroft, one of witnesses at today’s hearing:

“The national security controls that regulate access to and export of science and technology are broken. As currently structured, many of these controls undermine our national and homeland security and stifle American engagement in the global economy, and in science and technology.
Fixing these controls does not mean putting an end to them, but implementing reforms based on the realities of the risks and opportunities of today’s threats to the nation.”

The panel then goes on to make an equally sobering statement:

“The export controls and visa regulations that were crafted to meet conditions the United States faced over five decades ago now quietly undermine our national security and our national economic wellbeing.”

Those are serious statements from a group of very knowledgeable individuals, and I thus think that they warrant our close attention.

In addition, there have been a growing number of reports that have focused on the impact of the current export controls regime on America’s civil and commercial space programs and space research activities.

Those reports have also reached some troubling conclusions.

For example, the Center for Strategic and International Studies Working Group on the Health of the U.S. Space Industrial Base and the Impact of Export Controls, which was co-chaired by another of today’s witnesses, Thomas Young, found that:

“The current export control policy is constricting U.S. engagement and partnership with the rest of the global space community, and is feeding a growing separation between the U.S. space community and an emerging non-U.S. space community.”

And

“Export controls are adversely affecting U.S. companies’ ability to compete for foreign space business, particularly the 2nd and 3rd tier. And it is the 2nd/3rd tier of the industry that is the source of much innovation, and is normally the most engaged in the global market place in the aerospace/defense sector.”

Findings such as those led this Committee last year to include a provision in the House-passed NASA Authorization Act of 2008 directing the Director of the Office of Science and Technology Policy to carry out a comprehensive study of the impact of current export control policies on our civil and commercial aerospace activities.

While that provision did not make it into the final public law, I am encouraged that President Obama called for a similar review during his Presidential campaign and I am thus optimistic that such a study will be initiated.

In closing, I think that it is time for Congress to take another look at the nation’s export controls regime to ensure that it is working effectively and without unintended adverse impacts.

As part of that look, we want to understand any negative effects that the current export controls regime may be having on our efforts to stimulate the economy and promote long-term growth through investments in science and technology.

This Committee is starting the process with today’s hearing on the current export controls’ impacts on science and technology, and I hope and anticipate that other Committees will be following up in the coming weeks and months with further oversight of other aspects of the export controls issue.

With that, I again want to welcome our witnesses, and I will now turn to Mr. Hall for any opening remarks he would care to make.

Opening Statement By Subcommittee on Space and Aeronautics Chairwoman Gabrielle Giffords

I want to thank our distinguished witnesses for appearing here today to share their insights on a very important topic—the impacts of our export control system on U.S. science and technology activities and competitiveness.  Export control is not a subject that Americans discuss at the dinner table, but it is something that affects every American, because the intent of the policies is to help protect the nation from harm. 

Today, our witnesses will shed light on the importance of science and technology to our economic and national security and on the need to ensure that the nation’s export control policies and procedures do not inadvertently undermine that security as well as weaken our competitiveness in science and technology in a very challenging global economy. In that regard, I am especially interested our witnesses’ perspectives on the implications of current U.S. export control policies for our nation’s civil and commercial space activities, because many of the technologies and information involved in space activities are regulated by export control policies.

Space is increasingly a global undertaking, with new space-faring nations emerging that will provide both competition and opportunities for cooperation in the coming years. As a study of the Center for Strategic and International Studies noted, “Other space faring nations continue to make strides whether they have access to U.S. technology or not” and “United States preeminence in space is under challenge in many areas”. We need to make sure that our export control policies are structured to enable us to meet that challenge while still protecting our legitimate security needs.

I am particularly concerned about the challenges that current export control policies present to the effective conduct of fundamental space research. According to a National Academies workshop summary on space science and the International Traffic in Arms Regulations (ITAR), some researchers report that ITAR makes it difficult to develop space research projects, which are typically conducted in partnership with industry, government labs, and international institutions. Some researchers are also uncertain about whether they can discuss their research in a university classroom that includes non-U.S. students. Our universities are a significant source of innovation for our science and technology enterprise, for our space program, and for our economic strength.  I think it is important that we look carefully at the impacts of current U.S. export controls policies on our universities and take whatever steps are appropriate to mitigate the unintended consequences.

In closing, I am pleased that the Science and Technology Committee is taking the lead in addressing these important issues. I hope that this hearing will be the first step in a thorough review of our current export control system by Congress, including the House Armed Services and House Foreign Affairs Committees on which I also serve and which have important oversight and legislative roles to play with regard to these issues.

Witnesses

Panel

0 - Lt. General Brent Scowcroft (USAF, Ret.)
President The Scowcroft Group The Scowcroft Group
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0 - Mr. A. Thomas Young
Lockheed Martin Corporation (Ret.) Lockheed Martin Corporation (Ret.)
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0 - Professor Claude Canizares
Vice President for Research and Associate Provost Massachusetts Institute of Technology Massachusetts Institute of Technology
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0 - Maj. Gen. Robert Dickman, USAF (Ret).
Executive Director American Institute of Aeronautics and Astronautics American Institute of Aeronautics and Astronautics
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