Reevaluating ITAR: A Holistic Approach to Regaining Critical Market Share While Simultaneously Attaining Robust National Security

This note considers the application of the International Traffic and Arms Regulations (“ITAR”) framework and proposes statutory and policy modifications to promote both national security and industry growth. ITAR is the regulatory framework that controls the export of munitions and defense technologies from the United States. However, as applied, free trade is now grossly over-regulated to such an extent that both significant market share and industry opportunity have been lost and national security itself has simultaneously been threatened. Due to heavy restrictions, many previous industry partners are now looking elsewhere for trade and systematically avoiding the United States for inclusion in research and commerce transactions. The ultimate effect of this relieves America of any oversight or involvement in the newest of defense technologies while concurrently providing these opportunities to foreign entities such as Russia, China, and India. This note proffers a spectrum of recommendations that aim to retain robust national security while regaining lost market share and critical trade opportunities