The U.S. defense export system is in need of significant reform to
reduce the impact of its core inefficiencies and weaknesses. The
International Traffic in Arms Regulations (ITAR) create serious problems
for the U.S. defense industry and thereby weaken U.S. national security
in several important ways. While the ITAR is mostly successful in
preventing U.S. arms from being used against the United States and its
allies, the manner in which the ITAR regulations are enforced presents
excessive barriers to U.S. firms that impede their ability to compete in
the global defense market. These firms are important contractors to the
U.S. military, and their success enables the United States to maintain a
technological and industrial advantage. Additionally, when U.S. allies
choose to purchase defense products from ITAR-free firms based outside
of the United States, U.S. Army interoperability with foreign forces
decreases.