Speeches

Bureau of Industry Security (BIS) Export Control Seminar: Remarks by Ambassador Frank Lavin

June 29, 2005

I'm pleased to welcome you to this seminar on the U.S. export control regime, which the Embassy is co-hosting with I.E. Singapore. We appreciate their joining in partnership with us. During the next two days, you will hear from Singapore Customs, the U.S. Department of Commerce's Bureau of Industry & Security and the U.S. Department of State. Thank you to all our speakers for taking the time to speak at this event.

There are three points I would like to leave with you as we kick off this seminar. First, the U.S. and Asia are all highly dependent on international trade. For all of the nations represented in this room today, trade forms a large and growing part of our economies. Second, the stakes are high post 9/11 and tolerance for non-compliance has vanished. All of us need to play by the rules. Third, and this is the good news: companies and governments overwhelmingly understand this. Indeed, we wouldn’t be here today, and you wouldn’t be here today, if we didn’t all believe how important it was to get this right. We want to keep the U.S. markets open. We don’t want to punish or inconvenience merchants or transport companies. We have a range of experts here from the U.S., and they are here to listen as much as to talk. We are your partners for a safe and prosperous trading environment. Let me elaborate on the three points.

First, International trade counts

The United States and Asian economies depend more on international trade than at any time in our histories. In 2004, U.S. exports to ASEAN hit a record high of nearly $48 billion compared to $34.7 billion to China. It is no surprise to us that the fastest growing economies have the fastest growing trade patterns. A leap in trade both contributes to overall economic growth, and reflects such growth. David Lim, the CEO of NOL told me that shipping volumes typically grow at three times the pace of GDP growth.

Singapore is a prime example of a country that is highly dependent on international trade and hosts a secure, efficient trading system. It is also the world's largest international transshipment hub. It is an advanced economy whose businesses want and need efficient access to high-tech products from the U.S. And we want U.S. businesses to sell to Singapore. So it is critical, with both sides wanting and expecting trade to continue to grow, that well-coordinated measures are in place to prevent dual-use technologies from falling into the wrong hands.

Second, The stakes are high

We have all seen the huge negative impact that 9/11 had on world trade. We are waging a long-term fight against terrorism. Because none of us wants to face a world where terrorists have access to weapons of mass destruction, the export control regulations that will be discussed today will play an important role in that war.

Firms such as those many of you represent are actively involved in the movement of sensitive technologies and commodities around the globe. You need to be fully aware of the consequences if such equipment and technologies fall into the wrong hands. And you need to understand the key role that you play in ensuring that rogue elements are denied the opportunity to lay their hands on such sensitive goods.

Post 9/11, the stakes have gotten higher and the rules have changed. Many countries have boosted their controls on movements of munitions, chemical and biological items as well as on nuclear-related materials.

Across Asia, we have seen countries sign up for the Container Security Initiative and the “Megaports” initiative to detect radioactive cargo. Another success in the region is the Proliferation Security Initiative, the global initiative to stop shipments of weapons of mass destruction. U.S. Customs has stationed agents in the region to work with local law enforcement. Through that collaborative effort in sharing insight, training, and operational cooperation, we are able to enhance the security of the supply chain for goods transshipping through Asia to American ports. We want to continue to work with the countries of the region to improve the operations of security systems like these, to help reinforce the security and competitiveness of the port.

The consequences of not acting would be severe, in economic terms alone. Last year’s longshoreman’s strike on the U.S. West Coast lasted only 11 days, but it took weeks to work through the delayed shipments, and financial losses were substantial. In the event that a weapon of mass destruction does get through and is used, we could be looking at a situation where U.S. Customs shuts down all port operations for an indefinite period as they search every container entering the United States. It behooves us all to take preventative measures now to ensure that does not happen.

Finally, The good news

This gathering today is evidence of the willingness of governments and companies to work together for an efficient and secure trade system. The good news is that we can talk about trade expansion and trade controls in the same breath. Not only is there not a trade-off between free trade and secure trade, I believe that if we approach these challenges creatively, the two goals of secure trade and efficient trade are mutually reinforcing. The intersection of both goals is information. The merchant, the shipping company, and the government agencies all want to know the same information: where is the cargo, what’s in the container, when does it arrive, and so forth. So securing trade actually facilitates trade and allows it to grow, even in an uncertain world. Any trade control that imposes a burden on business is self-defeating because it risks pushing trade away to other ports. We want every trade channel to be compliant and we want every trade channel to be efficient.

I want to thank you again for taking advantage of this opportunity to learn about the policy behind America's export administration regulations, the measures taken to implement these regulations as well as your own role in these procedures. We are honored to work with you to ensure that, together, we prosper commercially and enhance world security.

I wish you all an excellent seminar. Thank you.