Seminar on Strategic Trade Controls in Southeast Asia: Session 6: Industry Outreach
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1 Seminar on Strategic Trade Controls in Southeast Asia: Session 6: Industry Outreach Robert Shaw James Martin Center for Nonproliferation Studies Middlebury Institute of International Studies at Monterey August 9, 2016
2 Overview: Key Questions to Be Addressed Why industry outreach is important in strategic trade control? Which national authorities should take a leading role in industry outreach? When conducting outreach, what should national authorities provide for industry? What is the future of good practices for government outreach to industry?
3 Why is Industry Outreach Important in Strategic Trade Control? Vast majority of sensitive goods and technologies are dual- use in nature and have primarily a commercial or civilian application In recent decades, the commercial sector has increasingly driven development of new military technologies o 1950s- 1960s paradigm: spin- off of technologies from military to commercial o 21 st century paradigm: spin- on of technologies from commercial to military
4 Why is Industry Outreach Important in Strategic Trade Control? Government resources insufficient to monitor all trade in dual- use goods and technologies the private sector s cooperation is needed to reduce risk of diversion o Industry as a front line a source of valuable intel in countering proliferation
5 Which national authorities should take a leading role in industry outreach? Outreach will typically parallel licensing structure If export licensing is centralized in one agency, then that agency may be the most well- positioned to conduct outreach If export license is distributed across multiple agencies according to type of goods, industry, then individual agencies may be better suited to conduct outreach: o Military goods à Ministry of Defense o Nuclear- related items à Nuclear/Radiological Authority o Dual- use goods (primarily commercial) à Ministry of Trade
6 Which national authorities should take a leading role in industry outreach? Other considerations Use of regional offices to conduct outreach to exporters in local area An institute or research center facilitating communications between government and industry; organizing seminars o Center for Information on Security Trade Control (CISTEC) o Korea Institute for Strategic Trade (KOSTI)
7 When conducting outreach, what should national authorities provide for industry? Basic Educating industry on its responsibilities under strategic trade control laws and regulations o Informing industry about new or updated laws and regulations o Informing industry about establishment or updating of any control lists and restricted entities lists Typical channel is through official seminars
8 When conducting outreach, what should national authorities provide for industry? Basic Plus Encouraging companies to develop ICPs o ICPs can be incentivized or mandated o Publication of model or template ICP Publication of best practices for specific compliance requirements o For example: Checklists of questions to ask or consider when evaluating a new customer or end- user
9 When conducting outreach, what should national authorities provide for industry?
10 When conducting outreach, what should national authorities provide for industry? Basic Plus Publication or in- person communication of detailed guidance to support compliance with catch- all provisions o Restricted end- users lists o Commodity watch lists o Alerts to specific industries being targeted by proliferators
11 When conducting outreach, what should national authorities provide for industry? From Japan s Ministry of Economy, Trade and Industry (METI)
12 When conducting outreach, what should national authorities provide for industry? Basic Plus Establishing channels for regular communication and input from industry o Exporter services hotline o Opportunities to comment on draft laws/regulations o Technical advisory committees
13 Going beyond outreach: What is the future of good practices for government outreach to industry? Focus on community- building within industry o Identifying strategic trade control champions within industry sectors o Encouraging industry associations to feature trade control prominently in their programs/events/policies o Encouraging benchmarking within industry on trade compliance best practices
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16 Going beyond outreach: What is the future of good practices for government outreach to industry? Focus on building the trade compliance profession and its importance for C- level executives (e.g. - CEO, COO, CFO, etc.) o Promoting development of trade compliance as a distinct profession with its own career track and establishment of professional associations o Incorporating trade compliance into general business schools/training programs (including MBA and, especially, executive tracks)
17 Thank You! Robert Shaw Program Director, Export Control and Nonproliferation James Martin Center for Nonproliferation Studies Middlebury Institute of International Studies at Monterey 460 Pierce Street Monterey, CA Tel: E- mail:
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