U.S. Department of State
Office of the Spokesman
Press Statement

Press Statement by Philip T. Reeker, Acting Spokesman
May 24, 2000 

Defense Trade Security Initiative 

In her statement at the Ministerial Meeting of the North Atlantic Council today in Florence, Italy,
Secretary of State Madeleine K. Albright announced the Defense Trade Security Initiative, which
represents the first major post-Cold War adjustment to the U.S. Defense Export Control system.
The U.S. authorizes over $20 billion in responsible commercial defense trade each year and is
taking significant steps to speed up processing of munitions export approvals to benefit all of its
trading partners. The initiative improves the efficiency and competition in defense markets, while
maintaining the necessary export controls to safeguard mutual security. 

To enhance security, the U.S. is prepared to establish new International Traffic and Arms
Regulation licensing exemptions for unclassified defense items, data and services for qualified firms
in allied countries with which we sign a bilateral agreement and that adopt and demonstrate export
controls and technology security system that are comparable in effectiveness to those of the United
States. These new Regulation licensing exemptions cover unclassified exports to foreign
governments and companies who are identified as reliable by the U.S. Government in consultation
with foreign governments. 

We will establish this new approach with Treaty allies that meet U.S. requirements for commonality
and reciprocity in exports and industrial security; long-standing and successful cooperation in
intelligence sharing and law enforcement; and guaranteed reciprocal market access. Among allied
countries, the U.S. will initiate negotiations first with the U.K. and Australia, given our long history of
cooperation in a number of relevant security areas, their compatible control and technology security
systems and their significant industrial linkages with the U.S. 

Also included in the initiative are special reforms, available to NATO Allies, Japan and Australia,
that work to streamline the U.S. Defense Export Control licensing process and forge closer
industrial linkages between the U.S. and allied defense suppliers. 

The U.S. Defense Trade Security Initiative is designed to support NATO's Defense Capabilities
Initiative that was launched at the Washington Summit last year by NATO Heads of State and
Governments to ensure that the Alliance has conventional military forces designed and equipped for
21st Century missions. 

The reform includes a range of flexible, new licensing vehicles, established for NATO countries,
Japan and Australia, that will allow "one stop" streamlined licensing instead of the multiple licenses
now required for government programs and commercial sales to foreign governments, international
cooperative programs, and commercial ventures. 

The U.S. goal is to make significant steps toward maintaining interoperability within the NATO
alliance during a period of rapid defense industrial consolidation. The U.S. is committed to
maintaining a strong and robust trans-Atlantic defense industrial base that can provide innovative
and affordable products needed to meet Treaty allies' defense needs for the 21st Century and

Federal Register 

05/26/00: Interim Final Rule

News Briefs 

05/26/00: Defense Trade Security Initiative Promotes Cooperation and Greater Technology Sharing
with U.S. Coalition Partners
05/26/00: New Export Exemption for Closest Allies To Promote Defense Security 

Fact Sheets 

05/26/00: Seventeen Agreed Proposals of the Defense Trade Security Initiative 
05/24/00: Special Commercial Satellite Licensing Regime 
05/24/00: Expedited License Review Process for Defense Capabilities Initiatives 
05/24/00: Background on Expedited License Review Process for Defense 
Capabilities Initiatives 
05/24/00: Improving U.S. Government Export License Automation Systems 
05/24/00: Multiple Destination Licenses 
05/24/00: Expedited Embassy Licensing Review Process 
05/24/00: Exemption for Export of Technical Data in Response to DoD Requests for Proposals 
05/24/00: Improving DoD's Use of ITAR Exemptions 
05/24/00: ITAR Exemptions for FMS Defense Services 
05/24/00: Extension of ITAR Exemption to Qualified Countries 
05/24/00: Exemption for Export Licensing of Maintenance Services and Training
05/24/00: Global Project Authorization 
05/24/00: Major Program Authorization 
05/24/00: Major Project Authorization 
05/24/00: Technical Data Exports for Acquisitions, Teaming Arrangement, Mergers, Joint Ventures,
and Similar Arrangements 
05/24/00: Advance Retransfer Consent for U.S. Government Sold or Granted Items 
05/24/00: Warehousing and Distribution Agreements 
05/24/00: Periodic Review of the U.S. Munitions List

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