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

General Accounting Office Reports & Testimony, April, 2002

GAO-02-63 March 29, 2002

To control the export of defense items, the U.S. government requires exporters to obtain a license from the State Department. A license is not required to export many defense items to Canada, currently the only country-specific exemption to the licensing requirement. 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. Exporters have been implementing the Canadian exemption inconsistently. Moreover, some exporters are interpreting reporting requirements about the use of the...