Obama Administration to Streamline Export Laws

Posted in September 4th, 2010
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In his State of the Union address in January 2010, President Barack Obama set a goal of doubling America’s exports within five years. This proposal surprised economists and political analysts; its feasibility became the topic of many debates, with some saying that it was impossible, and others claiming that it depended on Chinese financial policy and global economic growth. Some wondered whether anything would come of it, or whether this promise would be quickly forgotten.

Lately, the Obama administration has been taking steps to make this goal a reality – last week, for example, the Commerce Department announced a new initiative to combat low-cost dumping of goods by import companies that hurts American manufacturers. The agency is set to tighten information reporting requirements for importers, as well as strengthen accountability for individuals practicing in Commerce.

Now, the Obama administration is taking another major step, by reviewing export licensing requirements for sensitive equipment, including military equipment. Today, sensitive exports are governed by three different licensing agencies and enforced by a number of different government bodies; there are multiple computer systems that track the policies and don’t share information, not to mention two different export-control lists that are overseen by different departments, according to diverging guidelines.

A glaring example cited by the administration was the fact that brake pads for M1 Abrams tanks are subject to export licenses, while virtually identical pads for fire engines can be exported freely.

The Obama administration is proposing to simplify the export rules so that there is only one government list for all controlled goods. A single computer system would be used for control, and enforcement would be centralized. Many items – as much as a third – will end up decontrolled entirely. According to the administration, this will make American goods, and particularly military products, more competitive globally.

If this initiative works as planned, it will help not only manufacturers, but also improve conditions for other related businesses such as mining, maritime, auto shipping and transportation.