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Thursday, June 15, 2017

Foreign trade security

Is American National Security at Risk From Imported Military Gear?

National security has been used to justify some pretty silly protectionism in the United States. The Berry Amendment, to pick an egregious example, prohibits the Defense Department from importing any kind of clothing,  including "outerwear, headwear, underwear, nightwear, footwear, hosiery, handwear, belts, badges, and insignia." The International Trade Administration, an arm of the Commerce Dept., implausibly insiststhat the Berry Amendment "has been critical to maintaining the safety and security of our armed forces."
Sometimes, though, imports really can imperil national security. For Pentagon planners, the nightmare scenario is a war with China in which the foe stops supplying critical components to the U.S. military—or triggers malware embedded in Chinese-made computer chips that cripples missiles and fighter jets. To guard against that, the Defense Department does its best to prevent the use of Chinese microelectronics in military gear.
The key is to protect legitimate security interests without forcing taxpayers to pick up the tab for wasteful protectionism.

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