Word: exportability
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...episodes represent a flare-up in a long-running feud over how strictly the U.S. must limit its exports to preserve its technological edge. The dispute pits America's top two export watchdogs against each other. On one side is Stephen Bryen, a Deputy Under Secretary of Defense, who contends that Commerce is proving inept and overly permissive in its approval of export permits, allowing millions of dollars in strategic U.S. products to reach such final destinations as the Soviet Union, China and Iran. On the other side is Paul Freedenberg, an acting Commerce Under Secretary, who maintains that...
...position, which took hold during the Reagan Administration's early years and succeeded in boosting Western vigilance against the world's technobandits, now faces growing criticism in the face of America's staggering trade deficits (last year's gap: $170 billion). One group, the Electronics Industries Association, estimates that export controls are costing the U.S. some $9 billion in lost business and 225,000 jobs every year as foreign suppliers rush to fill the orders refused by American companies...
...stopping technology leaks has been poor cooperation from its allies, whose ports and corporations have served as smuggler's havens for trading in U.S.-made goods. But during the past few years the U.S. has won greater help from other members of the Paris-based Coordinating Committee for Multilateral Export Controls (COCOM), a group composed of 15 NATO countries plus Japan. The COCOM group, formed just after World War II, jointly agrees on a list of banned technology, but until recently the U.S. has enforced the guidelines much more seriously than most of its fellows. Japan, for example, has only...
...large chunks of South Africa's vital export economy have proved to be relatively invulnerable to punitive measures. That has much to do with the glitter of gold, which accounts for more than half of the country's $22 billion in foreign earnings expected this year, up 3% from 1986. Paradoxically, even though gold shipments are not banned by most sanction imposers, including the U.S., world jitters about South African political turmoil have helped boost the price of gold over the past two years, from $280 per oz. to a current level of $463. Even producers of some banned commodities...
Despite all the tawdry details, the report may help Toshiba quell anger in Washington, since the probe concludes that the subterfuge was confined to the company's machine-tool subsidiary. Congress is considering several proposals that would impose sanctions, the most severe of which would ban Toshiba's exports to the U.S. for as long as five years (potential annual loss: $2.8 billion). Other companies may soon join Toshiba in the spotlight, for the increasingly vigilant Japanese government is said to be investigating some 20 firms it suspects of violating the country's technology-export laws...