Statement of
Christopher A. Padilla
Assistant Secretary of Commerce
for Export Administration-Designate
before the
Committee on Banking, Housing and Urban Affairs
United States Senate
September 27, 2006
Chairman Shelby, Senator Sarbanes, and Members of the Committee:
I am deeply honored to appear before you as the President’s nominee to be Assistant Secretary of Commerce for Export Administration, and would like to thank President Bush and Secretary Gutierrez for the confidence and trust they have placed in me. I appreciate the time that Senators and your staff members have taken to meet with me prior to today’s hearing and, if confirmed, will work to build on that good cooperation. Most importantly, I would like to thank my family for their steadfast support and encouragement.
My former boss, Ambassador Bob Zoellick, often said that America’s future security and prosperity will depend on how we cope with four central questions: the threat of Islamic radical terrorism; the proliferation of weapons of mass destruction; the growing power and influence of China; and the economic and social challenges of globalization.
The Bureau of Industry and Security (BIS) plays a vital role in each of these four areas. But the primary mission of BIS is to protect U.S. national security by denying sensitive technologies to those who shouldn’t have them, and this would be my primary mission if confirmed.
The focus of export controls continues to evolve. It was sufficient twenty years ago for controls to focus on countries; the 21st Century demands that we also be able to focus on customers. During the Cold War, sales were broadly restricted to the Soviet Union and the Warsaw Pact, regardless of the customer. Today, as President Bush has said, “the gravest danger our Nation faces lies at the crossroads of radicalism and technology.” In response, we must target export controls increasingly against individuals and entities– such as terrorists and proliferators operating across borders or within countries.
We also need to differentiate among customers and end-uses in large and diverse economies like China, where we actively seek to encourage peaceful development and legitimate civilian trade, even as we hedge against the uncertainties created by a rapid military modernization.
To help focus our controls on today’s needs, if confirmed I would work to provide information to exporters regarding both trusted and suspect customers, to identify areas of trans-shipment concern, and to increase cooperation between BIS and the intelligence community.
To be most effective, export controls should be as multilateral as we can make them. If confirmed, I would work to support and strengthen the four major multilateral export control regimes. I would also seek to cooperate with other nations – such as China and Russia – to strengthen their national export control systems. Effective multilateral controls protect national security while leveling the competitive playing field. But just because someone else is selling something doesn’t automatically mean that we should, too. In some cases the United States may impose controls on its own, either for reasons of foreign policy or as a first step in building international consensus.
Technology is key to America’s economic competitiveness. If confirmed, I would work to ensure that BIS stays up-to-date with new technology trends, monitors our defense industrial base, and is alert to emerging threats. I would also seek to ensure that our licensing system and treaty compliance programs continue to be transparent and efficient.
To these important responsibilities I would bring nearly twenty years of experience in international trade. At the State Department, I worked on export control issues related to China, Sudan, and North Korea. From my days in the private sector, I know what it’s like to apply for an export license. During my years at USTR, I worked closely with Congress and appreciate its central role in regulating foreign trade.
In recent weeks I have had the opportunity to meet many of the people of BIS. I appreciate their patriotism, dedication, and professionalism, and hope to have the opportunity to work with them in the near future. Thank you for the opportunity to appear before you today, and for your prompt consideration of my nomination. I would be pleased to answer your questions.