Defense Trade Lessons To Be Learned From The Country Export Exemption

To control the export of defense items, the U.S. government generally requires exporters to obtain a license from the State Department. However, a license is not required for the export of many defense items to Canada. Currently, the Canadian exemption is the only country-specific exemption to the licensing requirement. The exemption was temporarily scaled back when unauthorized re-exports and diversions to nations of concern occurred. It was renegotiated and changes were made in an attempt to address security concerns. In May 2000, the U.S. government announced the Defense Trade Security Initiative, which included a proposal to grant Canadian-like export licensing exemptions to other qualified countries. Since the initiative was announced, the State Department has been negotiating such exemptions with the United Kingdom and Australia. Because the exemption for Canada may serve as the model for these and other countries, you asked that we review how the exemption has been implemented and enforced and whether the experience offers any lessons learned.

Defense Trade: Lessons to Be Learned from the Country Export Exemption

The U.S. gov't. controls arms exports by U.S. companies to ensure that such exports are consistent with national security & foreign policy interests. There have been various efforts to change the arms export control system. Given the 9/11 terror attacks, the U.S. gov't. has had to reevaluate whether existing policies support national security & foreign policy goals. This report provides information on: (1) changes in the arms export control system since 9/11 & overall trends in arms export licensing, (2) extent of implementation of or revision to initiatives designed to streamline arms export licensing, & (3) extent of coordination on these initiatives between arms export enforcement agencies, as well as enforcement efforts. Illus.