The American Institute of Aeronautics and Astronautics (AIAA) today alleged that U.S. rules restricting exports of American military technology are harming the U.S. aerospace industrial base, especially in satellite component sales.

Further, the AIAA said the industry is facing a crisis, as it must replace an aging workforce of experienced, highly trained employees with security clearances who now are approaching retirement age, even as many young people aren’t pursuing degrees in science, technology, math and engineering (STEM). (Please see Space & Missile Defense Report, Monday, Feb. 18, 2008.)

Those restrictions on sensitive U.S. military technology are imposed under the International Trade in Arms Regulations (ITAR), and also in Export Administration Regulations.

AIAA can be bolstered in urging changes in ITAR by a new report being compiled on the health of the U.S. industrial base, including a focus on current U.S. satellite export policies, according to retired Air Force Maj. Gen. Craig P. Weston, who briefed the media at an AIAA news conference in the National Press Club. He is the SRA International Inc. vice president and also deputy director of the SRA C4ISR Center.

He wishes to see Congress "revisit the stringent ITAR provisions" that harm U.S. industry, because "ITAR actively discourages the exchange of ideas" between U.S. and overseas innovators. "ITAR is adversely affecting national security" of the United States.

He specifically zeroed in on how ITAR affects satellite components.

If U.S. components have technology the same as or less capable than overseas technology, then one should ask why U.S. components must continue to be subject to ITAR restrictions, he said.

However, with the crush of legislative business this year, changes may not be enacted until next year, according to George K. Muellner, AIAA president, and retired Air Force Maj. Gen. Bob Dickman, AIAA executive director.

They said, however, that congressional leaders of both parties expert in ITAR and related issues will meet with AIAA leaders in the next couple of weeks for a conference on the matter.

AIAA briefers had no estimate of how much U.S. industry would gain in foreign sales if ITAR restrictions were eased. But they said it often could be smaller firms, at the second or third tier levels, that would benefit.

According to AIAA briefers, examples of the types of components at issue here would include solar cells, batteries, traveling wave tubes, digital imagers, optical coatings, some integrated circuits, focal plane arrays and more.

In some cases, they said, when U.S. sales of a certain type of item are barred by the U.S. government, foreign companies may develop that technology themselves and become competitors.

Because of ITAR restrictions, some overseas firms may not wish to have U.S. companies participate in joint projects, because an American firm would bring with it ITAR restrictions, breifers said.

While other nations have restrictions that their corporations face on exports of militarily sensitive technology, the limitations there are nowhere near as restrictive as ITAR regulations, according to briefers.