President’s Export Council Urges Trusted Exporter Program, Single IT System, Etc.

Highlights of PEC’s Recommendations to the President

Highlights of the President’s Export Council (PEC’s) recommendations include:

Complete USML/CCL Review. PEC states that a significant amount of progress has been made in creating the regulatory framework to implement the Export Control Reform (ECR) initiative through the creation of the "600 Series" in the Commerce Control List (CCL) and rewriting categories of the U.S. Munitions List (USML). The PEC says that a critical part of completing this review is the formal 38(f) Notification process to the Congress of the proposed items to be removed from existing USML categories. The PEC believes that the Administration should set a firm goal of notifying most of the USML categories to Congress no later than March 31, 2012.

Develop single IT system. The PEC believes that the Administration should focus its near-term efforts on establishing a single information technology (IT) system, to include a common license application process across the U.S. Government, which will help set the stage for a common portal through which exporters can access the system for licensing and compliance. The PEC further suggests that a specific, measurable timetable for completion of this effort be identified and agreed upon by all the relevant agencies.

(See ITT’s Online Archives 11091510 for summary of BIS update on the Administration’s efforts to develop a single export license application.)

Explore a Trusted Exporter Program. The PEC states that the Administration should explore alternative mechanisms to authorize exports that require a license today, such as a Trusted Exporter Program (TEP). A TEP would provide incentives for exporters to invest in their compliance programs, in exchange for an easier path to exports for their products and technologies.

The PEC states that a good example already exists on the inbound side with programs such as CBP's Customs-Trade Partnership Against Terrorism (C-TPAT), and a TEP also is ideally suited to deal with "deemed export" issues.

(See ITT’s Online Archives 11110716 for summary of the discussion of “C-TPAT for exports” at the October 4, 2011 COAC meeting.)

Expand the Information Technology Agreement. The PEC urges the Administration to engage in an initiative to expand both the product coverage and geographic scope of the Information Technology Agreement. The PEC makes the following specific recommendations:

• Launch negotiations to expand the product coverage of the ITA in a manner that is targeted and focused on information and communications technology (ICT) products.
• Focus ITA expansion negotiations on tariffs.
• Ensure that innovations will be covered by the ITA.
• Work with U.S. trading partners to expand the geographic scope of the ITA.
• Require membership of the ITA as a condition of WTO accession.

(See ITT’s Online Archives 11050539 for summary of the USTR’s request for comments on whether the U.S. should undertake negotiations to expand the ITA.)

Improve regs and definitions. It is PEC’s view that the overly complex nature of the existing regulations across the multiple agencies that have jurisdiction over various types of exports has created an "interpretive burden" which is dramatically higher than the licensing burden itself. This lack of clarity also exacerbates the complexity of the compliance burden both for the enforcing regulatory agencies as well as for exporters.

PEC says the Administration should continue to provide clear guidelines to regulatory drafters and propose a clear vision for how the regulations should be streamlined, including (as appropriate) the harmonization and/or clarification of key definitions in the existing regulations.

Open markets in Middle East & N. Africa. Consider using a comprehensive approach to open markets in the Middle East and North Africa (MENA) region by harmonizing standards, promoting intellectual property rights, ensuring transparency for the private sector and building cooperative customs arrangements to facilitate the flow of trade.

Build on existing efforts in the Gulf. Promote engagement as a partner in furthering regional efforts already existing in the Gulf Cooperation Council, by having the Administration target regulatory coherence, trade facilitation, customs efficiencies, and intellectual property enforcement.

PEC Encourages Administration to Act on Russia and APEC/TPP Negotiations

The PEC also issued a statement on the Administration’s trade agenda in which it urged continued work to ensure Russia abides by the many commitments it has made regarding its World Trade Organization (WTO) accession and to work with Congress to ensure the end of the application of the Jackson-Vanik amendment to Russia, so that U.S. companies can fully benefit from Russia’s WTO membership.

The PEC also encouraged the Administration to push the Asia Pacific Economic Cooperation/Trans Pacific Partnership (APEC/TPP) negotiations forward in 2012 in order to give U.S. companies and workers expanded access to important overseas markets.

USTR Supports Termination of Jackson-Vanik for Russia, Etc.

U.S. Trade Representative Kirk has posted to the White House blog an account of his participation in the PEC meeting. According to the USTR, during the meeting he emphasized the milestone that was reached with the signing of the recent trade agreements with Korea, Colombia, and Panama, as well as the Trans-Pacific Partnership. Additionally, he highlighted the importance of the work with Congress that lies ahead to terminate the application of the Jackson-Vanik Amendment to Russia now that it will be formally invited to join the World Trade Organization in December 2011.

¹The PEC was first established in 1973 to advise the President on matters relating to U.S. export trade and report to the President on its activities and on recommendations for expanding U.S. exports. The PEC was most recently renewed on September 29, 2009 for a two year period, and is comprised of private-sector, Congressional, and Administration members.

PEC recommendations available here.

Webcast of meeting available here.