AIA welcomes the change, effective today, of the export control treatment of commercial satellites and related components. This important legislative and regulatory reform will ensure the U.S. space industrial base is able to compete in global markets for years to come and continue to grow the U.S. economy. Satellite exports are more essential than ever to ensure a robust industry that is able to support U.S. defense needs and offset the harmful impacts of cuts to DOD spending under the 2011 Budget Control Act by increasing our commercial market share.
For more than 15 years, commercial communications satellites have been classified as military technology even though the rest of the world has deemed them commercial or dual-use items. This military classification heavily restricted the export of commercial communications satellites and related components, causing U.S. industry to lose critical market share to foreign competitors and forcing some small companies out of the market to the detriment of this important industry base sector.
In 2012, Congress made important legislative changes that restored discretion to the Administration on export control treatment of commercial satellites and related components. Effective today, commercial satellites and related components will be more appropriately and safely controlled for export on the Commerce Control List under the jurisdiction of the Bureau of Industry and Security, which continues to provide U.S. government oversight in conjunction with the Department of Defense.
We applaud this change in support of the U.S. commercial satellite industry. We look forward to future initiatives from Congress and the administration to enhance the global competitiveness of the U.S. aerospace and defense industry.
