Industry Commends US Decision to Ease Export Restrictions on Unmanned Aircrafts

The aerospace industry applauded the U.S. decision to loosen export restrictions on unmanned aircrafts, saying the change may allow U.S. companies to better innovate and compete in emerging markets for new aircraft technologies. The decision, announced by the State Department July 24, will no longer subject exports of certain unmanned aerial systems to a “strong presumption of denial,” but will instead impose a case-by-case review policy on a “subset” of unmanned aircrafts that fly at speeds below 800 kph.

The change “acknowledges the evolution” in unmanned aircraft technology, the Aerospace Industry Association said in a July 27 statement. The group, which represents Boeing, Lockheed Martin and other top aerospace companies, said the export policy will be “critical” to U.S. national security as new technologies are developed, such as commercial passenger space flights and unmanned cargo planes. “Our industry welcomes this change and remains committed to supporting a robust U.S. technology transfer system,” the AIA said. “We look forward to working with the administration as this policy is implemented.”

Northrop Grumman said the new export policy could benefit its “Fire Scout” helicopters, which are unmanned and autonomous. “It is critical for our national security that our export policies continue to keep pace with the rapid evolution of technology and support collaboration with our allies,” spokesperson Tim Paynter said July 27.

Although the change is largely viewed as progress, one defense industry executive said they are unsure if it will have an immediate impact. In addition, the policy change could be reversed if a new administration takes over next year. “From a practical standpoint, what does this mean?” the executive said. “It's July, so what [sales] could move forward in the short term?” But the executive stressed that the policy change is a “welcomed” announcement. “It's a positive thing,” the executive said, “and it will hopefully open up more opportunities for us and for the U.S. industry as a whole.”

Clarke Cooper, the State Department’s assistant secretary for the Bureau of Political-Military Affairs, said the move could generate more sales for U.S. industries that export unmanned aircrafts and their parts. He told reporters last week that “there are a number of [trading] partners that are looking at” buying the aircrafts.

Although the move could lead to more approved exports, the State Department stressed that it will continue to apply “the same rigorous review criteria” outlined in the U.S’s Conventional Arms Transfer Policy and Arms Export Control Act. “It’s incumbent upon the United States that we ensure that the systems we sell are used responsibly and will not threaten our interests or those of our allies,” Cooper said.

He added that the U.S. is not revising its strong presumption of denial for other items controlled under the multilateral Missile Technology Control Regime, such as hypersonic aerial vehicles, ballistic missiles, rockets and cruise missiles. “These types of systems that pose the greatest risk from a [weapons of mass destruction] delivery perspective certainly are still going to fall within that space and that control,” Cooper said.

The U.S. export policy for unmanned aircrafts, however, was in “dire need of modernization,” the White House said July 24. The White House criticized the MTCR’s “outdated” control policies, saying President Donald Trump decided to make the export policy change after more than two years of failed discussions with MTCR partners about “overdue” reform. “In a sector of rapidly evolving technology, the MTCR’s standards are more than three decades old,” the White House said.

Senate Foreign Relations Committee Chairman Sen. Jim Risch, R-Idaho, commended the move and urged the administration to continue loosening export restrictions. Risch said the “restraint of the international community with regard to exports of large unmanned aircraft” has allowed China to “build new defense relationships” with U.S. partners. “This policy change only represents a partial and temporary solution, however,” Risch said July 24. “The permanent fix for this issue must be to treat unmanned aircraft the same as other aircraft for the purposes of export.”

But Committee ranking member Sen. Bob Menendez, D-N.J., called the move “reckless,” saying it may lead to the U.S. exporting unmanned aircrafts to human rights abusers. He also said the decision will undermine the credibility of the MTCR due to the U.S. breaking ranks. “This is yet another reckless move by an administration fixated with eliminating the international cooperation that has made the United States and other countries safer for decades,” Menendez said July 24.