02.06.01

Senator Cantwell Applauds Passage of the Export Administration Act

WASHINGTON, DC - U.S. Senator Maria Cantwell (D-WA) today applauded Senate passage of the Export Administration Act (EAA). Cantwell, an original cosponsor of the bill, called the bill essential for the competitiveness of U.S. companies.

"We must establish an export control system that maintains our national security, while preserving the county's status as a global economic and technology leader," Cantwell said. "Economic success and national security are not competing goals, but mutual objectives. This bill meets both of these objectives and provides U.S. companies with the tools they need to be successful and competitive in the international marketplace."

The EAA streamlines the process by which companies gain approval to export their products to foreign markets. This is important because it is increasingly clear that in today's economy, a company that cannot compete globally will not succeed.

"Technology-based industries are the engine driving the Washington state economy," Cantwell said. "Continued competitiveness in the global economy will depend heavily on our ability to foster continued innovation in our technology sector and help domestic companies gain markets overseas.

Technology-based industries now account for the largest share of employment, business activity, and labor income of any sector in the state's economic base. Roughly 38 percent of all Washington state jobs are dependent on the technology sector, and the state's 286,000 tech workers earn wages that are 81 percent above the state average."

Cantwell said that although the United States currently leads the world in technology, we are not the only technology suppliers and this lead is not guaranteed to last. We sacrifice our position as a global technology and economic leader when we limit U.S. companies' ability to sell their products abroad through a burdensome, unreasonable, and flawed export control system.

Under the current system, companies lose out in the short term through restrictions on direct sales but also in the long term through loss of market share.

"The existing process for U.S. companies to acquire export licenses involves a complex application procedure and a Byzantine system of bureaucratic authority spread over four federal agencies," Cantwell said. Getting the license can take a very long time, which compromises the reliability of U.S. suppliers and makes it hard for manufacturers and customers to plan ahead.

A December GAO report stated: "The current system of controlling the export of individual machines is ineffective in limiting countries of concern from obtaining high performance computing capabilities for military applications."

Members of the intelligence community, the Secretary of State, the Secretary of Defense, the National Security Advisor, and President Bush all agree that the EAA will actually strengthen the President's national security authority. Instead of his having to rely on an antiquated control system, this legislation would allow the President to directly intervene in the process when he determines national security is at stake.

"The Export Administration Act focuses on those export technologies that constitute true national security threats," Cantwell said. "Make no mistake, this bill is not soft on those who break the law. For those firms and individuals who violate the established control laws, this bill authorizes substantially higher criminal and civil penalties than those included in the current system."