How U.S. Cold War-Era Export Regulations are Stifling Collaboration with Allies

Key Highlights :

1. The U.S. has an arms control regime that is based on Cold War-era regulations.

2. These rules, called the International Traffic in Arms Regulations, or ITAR, call for the State Department to approve the export of the most sensitive defense-related equipment, services and technical data from U.S. companies to foreign entities, including corporations, governments and individuals.

3. Some exemptions apply to universities, but they also have to comply.

4.Supporters of revising the rules argue that cooperation among allies is stifled by an approval process that in some cases can be lengthy, and by a record-keeping and training burden that small firms and institutions often can’t handle.

5. Some worry the current rules could limit the effectiveness of Washington’s new Aukus alliance with Australia and the U.K.

6. Australia plans to acquire American nuclear-powered submarines under the arrangement, but Aukus also envisions speedy cooperation in areas such as quantum computing and artificial intelligence—technology that is expected to be developed in large part by researchers and the private sector, and which could play a crucial role in future warfare.

7. “Reform of export controls, particularly ITAR, must happen to meet that mandate of urgency," said Rep. Joe Courtney (D., Conn.), co-chairman of a lawmaker group that supports U.S.-Australia relations.

8. The ITAR discussion is part of a broader debate over American export controls, a previously obscure set of regulations that is now taking on new prominence as the U.S. seeks to work closer with allies and maintain a technological edge over rivals such as China.

     The end of the Cold War brought with it a new era of global cooperation and collaboration. However, some of the regulations that were established during the Cold War era are still in place, and they are stifling collaboration between the U.S. and its allies. The International Traffic in Arms Regulations (ITAR) are a set of regulations that require U.S. companies to obtain approval from the State Department before exporting certain defense-related equipment, services, and technical data to foreign entities. This approval process can be lengthy and burdensome, especially for small companies and institutions, and it has led to some U.S. companies refusing to sell equipment to foreign entities.

     The U.S. is now looking to revise these regulations in order to facilitate collaboration with its allies. In particular, the U.S. is looking to revise ITAR in order to facilitate collaboration between the U.S. and its allies in the Aukus alliance, which includes the U.S., Australia, and the U.K. This alliance is intended to counter adversaries such as China, and it will require cooperation in areas such as quantum computing and artificial intelligence. In order to facilitate this collaboration, the U.S. is looking to create an interim mechanism that would allow for exports between Aukus countries to be pre-approved, as well as legislative changes that would create new exemptions to licensing requirements for member nations.

     However, finding a balance between protecting sensitive technologies and making it easier for the Aukus countries to collaborate is a challenge. Big defense contractors have the resources and expertise to navigate the export rules, but this can be daunting for smaller companies. Additionally, some companies are wary of phoning people in the U.S. for fear of inadvertently breaching the rules.

     In order to facilitate collaboration between the U.S. and its allies, the current regulations need to be revised. This will require finding a balance between protecting sensitive technologies and making it easier for the Aukus countries to collaborate. The U.S. is already taking steps to revise the regulations, but it remains to be seen if these changes will be enough to facilitate the necessary collaboration.

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