ITAR - a successful munition against US aerospace

...The rockets that carry space-bound payloads are close relatives of the intercontinental missiles that carry enemy-bound warheads. And satellites furnish information and communications to soldier and civilian alike. So it is only natural for America, now the leader in space, to try to protect its dominance and prevent weapons proliferating by controlling the export of its space technology.

Yet rarely has such a reasonable aim been so self-defeating. The system of export controls, known as the International Traffic in Arms Regulations (ITAR), is managed with almost comic zeal by the State Department. Anything that is part of a satellite assembly needs vetting—even if it is as common as a lithium-ion battery, as insignificant as a screw or as innocuous as a stand for a satellite (see article). The cost, delays and inconvenience of dealing with the American space industry are exasperating enough to send its foreign partners into orbit.

The result is a system that is too successful in keeping American technology out of foreign hands. Before 1999, when the State Department took over the export regulation of satellites, America dominated commercial satellite-making with an average market share of 83%. Since then, this share has declined to 50%, according to Space Review. ITAR’s critics blame the change in export controls. As bidding opened in July this year for the €3.4 billion ($5 billion) of contracts for Galileo, a constellation of 30 positioning satellites being built by the European Union and the European Space Agency, European officials cited export controls as a reason for avoiding anything to do with America wherever possible.