Heinrich Introduces Legislation to Ease Export Restrictions on NM High-Tech Companies; Create Quality Jobs

Press Release

U.S. Representative Martin Heinrich (NM-1), along with a bipartisan coalition of cosponsors, introduced legislation to eliminate unnecessary controls on U.S. satellite and satellite-component manufacturers. H.R. 3288, the Safeguarding United States Satellite Leadership and Security Act of 2011, would increase American competitiveness, create quality jobs, and boost exports.

"For over a decade, burdensome export controls have prevented New Mexico's aerospace industry from reaching its full potential," said Rep. Heinrich. "By removing those barriers we will create quality jobs without costing taxpayers a single dime. This common-sense change in policy will enable New Mexico's aerospace companies to compete on a level playing field, broaden their customer base, and help regain America's high-tech leadership in the world."

The Safeguarding United States Satellite Leadership and Security Act of 2011, would restore the President's ability to determine what export restrictions should apply to commercial satellites and related components. It would also prohibit outright any such exports to China, Iran, North Korea, Syria, Sudan, or Cuba.

In 1999, in the wake of revelations about unlicensed technical assistance to China's space launch program by two U.S. companies, Congress mandated that all U.S. satellites and components were to be subject to licensing as weapons under the United States Munitions List by the Department of State. This structure applied regardless of whether the proposed export was to China or a NATO ally.

This action was intended to safeguard U.S. satellite technology from reaching China and to deny them the ability to launch foreign commercial satellites; in 1999, all foreign commercial satellites had U.S. components, which allowed the U.S. to forbid their launch by Chinese rockets. Now, however, this Congressional action is causing unintended consequences that completely undermine this goal.

U.S. satellite and satellite-component manufacturers are currently in danger of having their products "designed-out" of foreign satellite systems.

According to an independent study conducted by the Aerospace Industries Association, the United States' share of worldwide satellite manufacturing has dropped from approximately 70 percent in 1995 to approximately 30 percent in 2008. Further, more than 60 nations and government consortia currently operate satellites.

The Safeguarding United States Satellite Leadership and Security Act of 2011 was introduced yesterday by Congressman Howard L. Berman (D-CA). In addition to Rep. Heinrich, original cosponsors include Congressman Don Manzullo (R-IL), Congressman Adam Smith (D-WA), Congressman Mike Coffman (R-CO), Congressman Dutch Ruppersberger (D-MD), Congressman Rob Bishop (R-UT), Congressman Gerry Connolly (D-VA), and Congressman Jason Chaffetz (R-UT).

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