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1 1 (August 29, 2001)

handle is hein.crs/crsahmk0001 and id is 1 raw text is: Order Code RS20757 Updated August 29, 2001 Defense Trade Security Initiative: Background and Status Daniel H. Else Analyst in National Defense Foreign Affairs, Defense, and Trade Division Leland Cogliani Research Associate Foreign Affairs, Defense, and Trade Division Summary In response to complaints voiced by the U.S. defense industry and foreign customers about the unwieldiness of the defense export licensing review process, the Department of State, with the Department of Defense, developed a set of seventeen reform proposals. Referred to as the Defense Trade Security Initiative (DTSI), it was announced by the Secretary of State during May of 2000. This report gives the background on the DTSI and discusses associated congressional actions that are reflected in the Security Assistance Act of 2000. It also gives the current status of each of the proposals. It will be updated as necessary. Background The licensed commercial sale of defense articles and services to foreign governments and international organizations is supervised by the Department of State in accordance with the International Traffic in Arms Regulations (ITAR, 22 C.F.R. Parts 120-130). The process by which required export licenses are granted originated in the mid-1950s and developed over the ensuing several decades. Complaints about the license review process rose in frequency and severity during the late 1990s. U.S. companies, particularly those in the aerospace sector, asserted that delays in the licensing process had handicapped their efforts to compete effectively with foreign firms.' 1 According to data collected by the Satellite Industry Association, representing U.S. space and communications companies, the U.S. share of the world satellite market dropped from a 10-year average of 75% to 45% during 2000, the first complete year after licensing responsibility was (continued...) Congressional Research Service +. The Library of Congress CRS Report for Congress Received through the CRS Web

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