members. U.S. officials have considered the 5(k) benefits as negotiating tools with third countries and have promised to grant the benefits incrementally in accordance with progress in implementing the five essential CoCom elements.

Nine distinct licensing benefits are available to third countries, although two of the provisions (G-Com and G-CEU) are outdated and are being eliminated. (Table 6-1 identifies the types of licenses available to specific cooperating third countries.) Given the current licensing guidelines and processing times for most third countries, however, the only benefits of any significant value are the enhanced distribution license, permissive reexport exceptions, the broad general license for CoCom (G-CoCom), and the new general license for intra-CoCom trade (GCT).* No country outside CoCom currently is eligible for GCT, although Switzerland and Finland receive all the other benefits, and Austria was expected to receive the same package by the end of 1990.

There are no CoCom-wide economic benefits to third countries for cooperation and no real penalty for noncooperation. In reality, most CoCom partners rarely restrict trade in CoCom-controlled goods with noncontrolled countries, except for trade in munitions and proliferation-related items. Further, most CoCom partners do not have the licensing resources to distinguish among nonproscribed destinations and may not even offer any special licensing privileges for exports to other CoCom countries.

A COMMON STANDARD OF LICENSING AND ENFORCEMENT; INTRA-COCOM TRADE

In January 1988, an ad hoc working group on the "common standard level of effective protection" was established to improve harmonization of export controls. The establishment of this working group followed several special and high-level meetings to "reenergize" CoCom.

The "common standard" working group identified the elements of effective licensing and enforcement systems, which were then approved by the CoCom Executive Committee. All members were requested to submit analyses of their systems based on the agreed elements. The working group reviewed the submissions and summarized the basic areas for improvement. Members agreed at the June 1990 High-Level Meeting to comply fully with all elements by April 1991.

Members have repeatedly stated that while equally effective measures are essential, identical measures are not necessary. Thus, it is difficult to identify

*  

For a complete description of these provisions, see Sections 770, 773. and 774 of the Export Administration Regulations.



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