{"id":12078,"date":"2018-06-18T17:53:06","date_gmt":"2018-06-18T17:53:06","guid":{"rendered":"https:\/\/one.sightlinemg.com\/c4isrnet\/uncategorized\/2018\/06\/18\/strict-export-regulations-may-be-costing-us-industry-billions-in-foreign-sales\/"},"modified":"2026-08-07T21:44:54","modified_gmt":"2026-08-07T21:44:54","slug":"strict-export-regulations-may-be-costing-us-industry-billions-in-foreign-sales","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/c4isrnet\/unmanned\/2018\/06\/18\/strict-export-regulations-may-be-costing-us-industry-billions-in-foreign-sales\/","title":{"rendered":"Strict export regulations may be costing US industry billions in foreign sales"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">WASHINGTON \u2015 A new RAND report assessing the proliferation of unmanned aerial vehicles suggests existing export controls for drones may hurt the U.S. more than it helps. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Limiting U.S. drone exports has left a hole in the global market for the technology, especially in historically U.S.-dominated Middle East markets, which has been readily filled by U.S. competitors \u2014 specifically China and Russia. The Trump administration recently unveiled a<a href=\"https:\/\/www.defensenews.com\/news\/pentagon-congress\/2018\/04\/19\/trump-admin-rolls-out-new-rules-for-weapon-drone-sales-abroad\/\" title=\"\" class=\"\" target=\"_blank\"> new set of export policies<\/a> regarding military technology in an attempt to facilitate the transfer of military technology, but the changes do not change the status of drones under the Missile Technology Control Regime, or MTCR. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><b>How does the MTCR work?<\/b><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The MTCR is a voluntary export control consortium of 35 nations designed to prevent signatories from proliferating longer-range cruise and ballistic missile technology. The arms control regime was extended to UAVs because early iterations of drones were <a href=\"https:\/\/thebulletin.org\/drones-arent-missiles-so-dont-regulate-them-they-are10859\" title=\"\" target=\"_blank\">considered a subset of cruise missile<\/a> technology due to their active guidance system.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The regime divides missiles into two categories. Category I items are capable of delivering a 500 kg payload more than 300 km. The sale of category I systems is restricted by a \u201cstrong presumption of denial,\u201d meaning they are only exported in rare circumstances. The <a href=\"https:\/\/www.defensenews.com\/air\/2018\/05\/23\/us-drones-are-being-based-in-greece-for-the-first-time-and-that-might-not-sit-well-with-turkey\/\">MQ-9 Reaper<\/a>, <a href=\"https:\/\/www.defensenews.com\/smr\/unmanned-unleashed\/2017\/03\/28\/northrop-starts-flight-testing-advanced-imaging-sensor-on-global-hawk\/\">RQ-4 Global Hawk<\/a> and <a href=\"https:\/\/www.defensenews.com\/digital-show-dailies\/navy-league\/2018\/04\/09\/future-plans-emerge-for-navys-triton-surveillance-drones\/\">MQ-4 Triton<\/a> are well-known unmanned systems that fall under this category.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/defensenews\/unmanned\/2018\/06\/14\/german-lawmakers-approve-drone-deal-with-israel\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"188\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/israeli-heron-tp.jpg_dbf0b8.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">German lawmakers approve drone deal with Israel<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">Opposition parties in the German parliament were less excited about the decision.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">Over the past several years, U.S. partners such as Jordan, Saudi Arabia and UAE were denied requests to purchase American drones, and have since turned to China to purchase comparable systems. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Trump administration officials have been attempting to alter the regime by <a href=\"https:\/\/www.defensenews.com\/air\/2017\/12\/19\/heres-how-the-trump-administration-could-make-it-easier-to-sell-military-drones\/\" title=\"\" class=\"\" target=\"_blank\">adding new language<\/a> that would drop any vehicle that flies under 650 kilometers per hour to category II systems. This would make all but the most advanced U.S. systems available for international sale. For example, the MQ-9 Reaper clocks in with a cruise speed of 230 mph or 370 kph, according to an Air Force facts sheet.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><b>Drone proliferation<\/b><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">RAND found that 10 nations operate category I drones, and more than 15 operate near-category I systems that register just below the MTCR\u2019s payload and distance restrictions. The report says increased proliferation rates are due to a handful of countries, specifically China, Israel and the United Arab Emirates, who are not party to the MCTR. <\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/defensenews\/breaking-news\/2017\/12\/19\/heres-how-the-trump-administration-could-make-it-easier-to-sell-military-drones\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"136\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/635938422855803788-13991119140-5900ff3b8d-ojpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Here\u2019s how the Trump administration could make it easier to sell military drones<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">A proposed focus on speed over payload would make drone exports easier for the U.S. and others. But 35 countries need to sign off on the change.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">More countries are expected to procure drones, which pose a \u201cgrowing threat to U.S. and allied military operations,\u201d the report says. While category I systems can deploy missiles and other guided munitions, their main threat lies in \u201ctheir ability to conduct intelligence, surveillance, and reconnaissance (ISR) operations against U.S. forces prior to hostilities,\u201d according to RAND. \u201cAdversaries that would otherwise have difficulty detecting U.S. force deployments, monitoring U.S. operations, and maintaining targeting data on U.S. units can employ UAVs to maintain situational awareness of U.S. capabilities\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The report identifies Russia, China and Iran as unfriendly nations that will seek to utilize drones to complicate U.S. military operations. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, <a href=\"https:\/\/www.defensenews.com\/air\/2017\/03\/28\/china-to-open-a-drone-factory-in-saudi-arabia\/\" title=\"\" target=\"_blank\">China and Saudi Arabia recently agreed<\/a> <b><\/b>to set up a UAV manufacturing plant in Saudi Arabia for up to 300 new UAVs, and I<a href=\"https:\/\/www.defensenews.com\/unmanned\/2018\/03\/27\/italy-plans-to-spend-951m-on-20-surveillance-drones\/\" title=\"\" target=\"_blank\">taly will receive 20 Hammerhead UAVs from the UAE. <\/a>The coproduction of regional drone factories \u201ccould further exacerbate the proliferation of large UAVs to the degree that these systems are exported to other nations,\u201d according to RAND, and that hurts U.S. industry. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><b>A U.S.-sized hole<\/b><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Voluntarily restricting U.S. drone exports have allowed competitors to establish themselves in a market Rand expects to \u201cgrow from about $6 billion in 2015 to about $12 billion in 2025.\u201d <b><\/b><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">RAND expect export controls to have a negative impact on the U.S. industrial base, something those in industry already know. <\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/defensenews\/digital-show-dailies\/sofex\/2018\/05\/11\/us-drone-sales-could-heat-up-in-the-middle-east\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"200\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/ChineseDroneSOFEX.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Flood gates could open on US drone sales to the Middle East<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">Now that the Trump Administration is taking steps to relax U.S. drone sales worldwide, will the Middle East start placing orders for once hard-to-get drones?<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">\u201cWhat you are enabling the competition to do is not just to sell some hardware,\u201d Linden Blue, General Atomic\u2019s chief executive, <a href=\"https:\/\/www.defensenews.com\/air\/2017\/08\/18\/general-atomics-export-restrictions-help-china-grow-its-drone-tech\/\" title=\"\" class=\"\" target=\"_blank\">told reporters<\/a> during an Aug. 16, 2017 roundtable at the company\u2019s headquarters in Poway, California. \u201cYou\u2019re enabling it to build a customer base for at least 20 years, I would say. You\u2019re enabling them to build a logistics system. It will take them many years to get to where we are right now, but you\u2019re helping them start out. They should be very thankful.\u201d<br><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><i>Valerie Insinna and Aaron Mehta contributed to this report<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Drone proliferation is accelerating. Is it time for new U.S. export rules?<\/p>\n","protected":false},"author":7,"featured_media":35660,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":21,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[21],"tags":[],"coauthors":[1159],"class_list":["post-12078","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-unmanned"],"acf":{"subheadline":"","legacy_arc_id":"OH2P4OAF6VCY3ACJYUY5ZFYNZQ","arc_canonical_url":"\/newsletters\/unmanned-systems\/2018\/06\/18\/strict-export-regulations-may-be-costing-us-industry-billions-in-foreign-sales\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Strict export regulations may be costing US industry billions in foreign sales - C4ISRNet<\/title>\n<meta name=\"description\" content=\"Drone proliferation is accelerating. 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Is it time for new U.S. export rules?\" \/>\n<meta property=\"og:url\" content=\"https:\/\/one.sightlinemg.com\/c4isrnet\/unmanned\/2018\/06\/18\/strict-export-regulations-may-be-costing-us-industry-billions-in-foreign-sales\/\" \/>\n<meta property=\"og:site_name\" content=\"C4ISRNet\" \/>\n<meta property=\"article:published_time\" content=\"2018-06-18T17:53:06+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-08-07T21:44:54+00:00\" \/>\n<meta name=\"author\" content=\"Daniel Cebul\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Daniel Cebul\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\n\t    \"@context\": \"https:\\\/\\\/schema.org\",\n\t    \"@graph\": [\n\t        {\n\t            \"@type\": \"Article\",\n\t            \"@id\": \"https:\\\/\\\/one.sightlinemg.com\\\/c4isrnet\\\/unmanned\\\/2018\\\/06\\\/18\\\/strict-export-regulations-may-be-costing-us-industry-billions-in-foreign-sales\\\/#article\",\n\t            \"isPartOf\": {\n\t                \"@id\": \"https:\\\/\\\/one.sightlinemg.com\\\/c4isrnet\\\/unmanned\\\/2018\\\/06\\\/18\\\/strict-export-regulations-may-be-costing-us-industry-billions-in-foreign-sales\\\/\"\n\t            },\n\t            \"author\": {\n\t                \"name\": \"migration\",\n\t                \"@id\": \"https:\\\/\\\/one.sightlinemg.com\\\/c4isrnet\\\/#\\\/schema\\\/person\\\/cc76c831bb37a926738c8391fca7a3b1\"\n\t            },\n\t            \"headline\": \"Strict export regulations may be costing US industry billions in foreign sales\",\n\t            \"datePublished\": \"2018-06-18T17:53:06+00:00\",\n\t            \"dateModified\": \"2026-08-07T21:44:54+00:00\",\n\t            \"mainEntityOfPage\": {\n\t                \"@id\": \"https:\\\/\\\/one.sightlinemg.com\\\/c4isrnet\\\/unmanned\\\/2018\\\/06\\\/18\\\/strict-export-regulations-may-be-costing-us-industry-billions-in-foreign-sales\\\/\"\n\t            },\n\t            \"wordCount\": 716,\n\t            \"commentCount\": 0,\n\t            \"publisher\": {\n\t                \"@id\": \"https:\\\/\\\/one.sightlinemg.com\\\/c4isrnet\\\/#organization\"\n\t            },\n\t            \"image\": {\n\t                \"@id\": \"https:\\\/\\\/one.sightlinemg.com\\\/c4isrnet\\\/unmanned\\\/2018\\\/06\\\/18\\\/strict-export-regulations-may-be-costing-us-industry-billions-in-foreign-sales\\\/#primaryimage\"\n\t            },\n\t            \"thumbnailUrl\": \"https:\\\/\\\/one.sightlinemg.com\\\/wp-content\\\/uploads\\\/2026\\\/08\\\/UAVLASER.jpg.jpg\",\n\t            \"articleSection\": [\n\t                \"Unmanned\"\n\t            ],\n\t            \"inLanguage\": \"en-US\",\n\t            \"potentialAction\": [\n\t                {\n\t                    \"@type\": \"CommentAction\",\n\t                    \"name\": \"Comment\",\n\t                    \"target\": [\n\t                        \"https:\\\/\\\/one.sightlinemg.com\\\/c4isrnet\\\/unmanned\\\/2018\\\/06\\\/18\\\/strict-export-regulations-may-be-costing-us-industry-billions-in-foreign-sales\\\/#respond\"\n\t                    ]\n\t                }\n\t            ]\n\t        },\n\t        {\n\t            \"@type\": \"WebPage\",\n\t            \"@id\": \"https:\\\/\\\/one.sightlinemg.com\\\/c4isrnet\\\/unmanned\\\/2018\\\/06\\\/18\\\/strict-export-regulations-may-be-costing-us-industry-billions-in-foreign-sales\\\/\",\n\t            \"url\": \"https:\\\/\\\/one.sightlinemg.com\\\/c4isrnet\\\/unmanned\\\/2018\\\/06\\\/18\\\/strict-export-regulations-may-be-costing-us-industry-billions-in-foreign-sales\\\/\",\n\t            \"name\": \"Strict export regulations may be costing US industry billions in foreign sales - C4ISRNet\",\n\t            \"isPartOf\": {\n\t                \"@id\": \"https:\\\/\\\/one.sightlinemg.com\\\/c4isrnet\\\/#website\"\n\t            },\n\t            \"primaryImageOfPage\": {\n\t                \"@id\": \"https:\\\/\\\/one.sightlinemg.com\\\/c4isrnet\\\/unmanned\\\/2018\\\/06\\\/18\\\/strict-export-regulations-may-be-costing-us-industry-billions-in-foreign-sales\\\/#primaryimage\"\n\t            },\n\t            \"image\": {\n\t                \"@id\": \"https:\\\/\\\/one.sightlinemg.com\\\/c4isrnet\\\/unmanned\\\/2018\\\/06\\\/18\\\/strict-export-regulations-may-be-costing-us-industry-billions-in-foreign-sales\\\/#primaryimage\"\n\t            },\n\t            \"thumbnailUrl\": \"https:\\\/\\\/one.sightlinemg.com\\\/wp-content\\\/uploads\\\/2026\\\/08\\\/UAVLASER.jpg.jpg\",\n\t            \"datePublished\": \"2018-06-18T17:53:06+00:00\",\n\t            \"dateModified\": \"2026-08-07T21:44:54+00:00\",\n\t            \"description\": \"Drone proliferation is accelerating. 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