Although political reform has swept across Eastern Europe at an incredible rate, U.S. export policy will not quickly adjust to the changes, a representative of the National Commerce Department said last night.
Speaking before the local World Trade Group, Stanley Sienkiewicz, associate deputy undersecretary of Commerce for Export Administration, predicted that relaxation of export controls will be "very sizable, but not immediate."
This is due to the conservative and bureaucratic nature of the U.S. government, as well as the contingencies of negotiation within an 18- nation coordinating committee, he said.
The group, known as CoCom, was established by gentleman's agreement around the same time as North Atlantic Treaty Organization, Sienkiewicz explained. It operates by consensus to limit exports and information from the Soviet Union and other Warsaw Pact countries by listing munitions that cannot be sold, as well as other commodities under discussion, he said.
"It works if everyone makes it work," he explained.
Sienkiewicz also expressed concern that foreign exchange, even with fewer restrictions, may prove lacking since many of the reformed countries cannot finance their imports, and U.S. firms will rank among many foreign competitors.
"(Your) profits must satisfy you . . . not the government," he told the businessmen.
Another change that will affect U.S. foreign markets, Sienkiewicz said, is the economic unification of Western Europe scheduled for 1992. Newly integrated markets will then be easier to deal with as trade barriers across the continent are lifted, he explained.
Yet, working together, the European community could also establish different product or procedural standards that could block out American exports, he said, adding that this is not bound to happen since U.S. trade is a significant factor in many nations' financial health.
"On balance, our export opportunities will grow," he stated.
Throughout his presentation, the German-born political appointee criticized the bureaucratic nature of the government, saying it leads to inefficiency, over-regulation and pessimism. He explained that those who fight a department often win simply because higher executives do not have time to argue.
Sienkiewicz spent the majority of his time describing the licensing procedure and the structure of export regulation. Several laws give authority to the state and commerce departments to control exports endangering national security, foreign policy or limited supplies of commodities, he explained.
However, he said, "Government regulators are a necessary evil."
Dean Bunnell, president of the local World Trade Group, said the speaker provided important information to the recently-formed organization. The WTG attempts to provide a "networking" opportunity for Centre County firms involved in foreign trade, he said.
"This has been a good learning experience," he said. "We have some people here who are new to importing and exporting."
However, businessman Ian Henderson, representing American Piezo Ceramics, said Sienkiewicz's licensing discussion was not so appealing since most of the WTG members deal more with distributors and letters of credit. Future speakers should give more advice about day-to-day business, he said.



