Opening the Skies: U.S. Eases Export Controls to Propel Innovation and Global Collaboration

By Brett W. Johnson, T. Troy Galan, Cole Craghan, and Kristen N. Iteen

In a significant move to bolster the space industry and strengthen international partnerships, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) announced a series of modifications to export controls on certain spacecraft technologies. The most significant changes include downgrading certain items previously considered “military technology,” which then removes corresponding export license requirements. Although it is unclear how the new Trump Administration will further modify export control regulations, companies involved in the space industry should take the opportunity to update technology classifications and ensure export regulatory compliance.

BIS’ policy shift aims to modernize regulations and facilitate more extensive collaborations with allied nations through the release of three rule changes, all at different stages of implementation:

BIS’ new regulations reduce the restrictions on exporting critical space-related components and technologies, making it easier for U.S. companies to share innovations with international partners. For instance, the proposed rule would not only remove certain articles from State’s jurisdiction, but would thereby grant exporters the ability to rely on BIS license exceptions allowing for the export of otherwise controlled items.

The updates are designed to streamline the approval process for exports, enabling companies to respond more swiftly to market demands. By relaxing these controls, the government administration hopes to encourage the growth of commercial satellite businesses and promote technological advancements in space. Indeed, this initiative is part of a broader strategy to enhance the competitiveness of the U.S. space industry, particularly against the backdrop of rising global competition. Increased collaboration in satellite technology and remote sensing capabilities is expected to improve shared security interests and facilitate joint space exploration efforts. For example, these rules will likely bolster collaborative efforts between Australia, the United Kingdom, and the U.S. to advance the trilateral AUKUS security pact, aimed at countering China’s expanding influence in the Indo-Pacific region. A key component of the pact emphasizes technology sharing.

These changes may lead to a significant uptick in exports of U.S. space technologies, positioning American companies as leaders in the global market. This is especially pertinent given the increasing demand for advanced satellite systems serving applications in climate monitoring, disaster response, and military reconnaissance.

Internally, companies will need to reevaluate current export licensing procedures and policies, while maintaining compliance with regulations that shift jurisdiction from State to BIS. While the rules generally enable the export of space-tech, companies must be cognizant of the regulations imposed by BIS and ensure that proper steps are taken to reap the benefits of the change. Keeping up with shifting regulations may be a daunting task for companies that are already experiencing exponential growth in this industry, and ensuring a strong export compliance program is in place will help alleviate these concerns. This will be even more important as the Trump Administration transitions and articulates a new international trade policy that is expected to continue relationships with key allies, while isolating adversaries including China, Russia, Iran, and North Korea.

By fostering international partnerships with key allies and streamlining regulatory processes, the government is setting the stage for enhanced United States competitiveness and innovation in the rapidly evolving space sector.