Whose jurisdiction over the US commercial satellite industry? Factors affecting international security and competition

Within a global economy, export controls play a large role in hindering the proliferation of high technology. A company operating in a country that operates under more strict export controls than others is at a serious disadvantage in competing. This has been the case for commercial satellite (comsat) manufacturers in the USA since 1999, when Congress redefined comsats and all technologies associated with them from a dual-use export under the jurisdiction of the Department of Commerce to a munitions export that falls under the jurisdiction of the Department of State. Following this, there was a drastic drop in the market share of US comsat manufacturers in comparison to European manufacturers, who continued to define satellites as a dual-use technology. This paper examines the various factors that have affected US industry competitiveness and tackles the question of whether or not it continues to make sense to keep comsats under the more restrictive International Traffic in Arms Regulations (ITAR) controls. To accomplish this, comsats are subjected to a litmus test created by George Zaphiriou in 1992 to determine whether a technology should be placed under ITAR controls.