[overview and site map]
[intro] [export control policy] [current situation] [looking ahead] [conclusion]

LOOKING AHEAD


Companies

Companies' main goal is to sell their products. Not surprisingly, companies dislike the export controls over high technology since it limits their ability to sell and compete in foreign markets. Some companies rely on foreign consumers more than U.S consumers. In March of 1994, ended limits on exports to some Cold War Foes. Arms control experts were worried that supercomputers would fall into the hands of terrorists.

On the other side of the spectrum, though, the companies, though thankful that certain limitations had been released, were not all completely satisfied. Companies, such as Cray Research, that manufacture supercomputers were unaffected by the change in policy. Cray spokesman Franklin J. Parisi said, "This would cover only the very smallest systems we make" (Friedman). Policies that affect hardware still limit what companies can export. To some, such as Cray, that may mean not being much a competator in foreign markets. For example, Sun Microsystems has the following concern:

"The current controls on these computers will not restrict their availability abroad and therefore will have no potential to enhance our national security. Such controls will merely ensure that U.S. companies will lose sales and American workers will lose jobs; and it will permit European and Japanese companies to fill the void in the market. By issuing such a rollback of the decontrols, we will certainly be going it alone. No other country will reinstate controls that were eliminated two years ago" (Sun Microsystems).

In terms on encryption, American companies also have felt the restrictions. They have felt their hand forced in several respects, including not only export controls, but the governmental interest in key-recovery systems. In 1996, James Barksdale, CEO of Netscape Communications, responded to a movement in congress toward key-escrow standards saying, "We are furious. This is a proposal that doesn't do anything to solve the immediate needs of industry jobs" (NY Times, 13 July, 1996). Since then the government has eased up both on export controls and pushing for key-recovery, but it has not been a total victory for corporations, who see the economic potential in a completely open international market for software encryption.

There is, however, a tradeoff between competition and national security. Companies do not have to worry about threats from other countries, but the government does. The goals of commerce and the goals of security do not always agree. So, export rules fall in the middle, not satisfying either party.

<< USACM
Conclusion >>

[overview and site map]
[intro] [export control policy] [current situation] [looking ahead] [conclusion]