CCRE Welcomes Update of Computer Export Thresholds

Washington, D.C. – The Computer Coalition for Responsible Exports (CCRE) applauded today’s White House announcement to raise computer export control thresholds, calling the decision “a much needed step” that will keep the U.S. industry competitive in international markets. However, CCRE stressed that today’s announcement represents only a short-term fix, as advances in technology will soon make the newly announced control thresholds obsolete.

“We appreciate the Administration’s understanding that U.S. companies must be permitted to export common business computers if we are to compete," said Lou Gerstner, Chairman and CEO of IBM Corporation and Co-Chairman of CCRE. "We fully support the goal of maintaining U.S. national security, but restricting the export of business-level computers does not advance this goal.”

In today’s announcement, the White House said computer exports to Tier III countries will not require an export license if they perform below 28,000 million theoretical operations per second (MTOPS). This new level will permit the export of widely available computer systems that contain four next-generation microprocessors to some of the most rapidly growing markets in the world. For Tier II countries, export licenses will not be required for computers operating below 45,000 MTOPS.

The industry also applauded the Administration’s decision to move Argentina – an important trading partner – from Tier II to Tier I. While CCRE welcomed these decisions, it reminded the Administration that another update to export control thresholds will soon be needed in order to keep up with technology.

“The President’s decision makes U.S. computer manufacturers more competitive in the worldwide marketplace,” said Lawrence A. Weinbach, Unisys Corporation CEO and Co-Chairman of CCRE. “We urge policymakers to continue making appropriate adjustments to computer technology export controls to ensure that the U.S. computer industry retains its preeminence.”

CCRE members include Apple Computer, Inc., Compaq Computer Corporation, Dell Computer Corporation, Hewlett-Packard Company, IBM Corporation, Intel Corporation, NCR Corporation, SGI, Sun Microsystems, Inc., Unisys Corporation, the American Electronics Association (AEA), the Computer and Communications Industry Association (CCIA), the Computer Systems Policy Project (CSPP), the Electronics Industry Alliance (EIA), and the Information Technology Industry Council (ITI). For more information about CCRE and export controls, visit the CCRE website at: www.ccre.net.