Europeans are urging the United States to conduct a cost-benefit analysis of the current set of technology transfer rules they argue hamper business.

With the U.K. unhappy about technology access on such major programs as the F-35 Joint Strike Fighter, Derek Marshall, director of the Society of British Aerospace Companies, argues that the time has come to press the U.S. to critically look at the affect its regulations have. One of the issues that should be put on the table is identifying how precise the rules are in meeting their goals of protecting sensitive technology, and also what burden they place on close allies, he told a forum of the New Defense Agenda in Brussels.

A senior European industry official notes there is evidence that regulations, such as the International Transfer in Arms Regulations (ITAR), that have long raised the ire of industry in Europe, are being applied with little thought. A working group in which the U.S. and Europe are trying to harmonize standards for network-centric warfare, for instance, saw large amounts of documentations restricted from Europeans. On closer review, 90 percent of the initially restricted information was found to be of no concern.

An EADS official added that around 50-60 cooperative projects are basically stalled because of ITAR restrictions.

Further complicating the issue is that in addition to U.S. rules, there are overlapping EU export control regulations that need to be adhered to, leading one industrialist to argue for reform on both sides of the Atlantic. Several European countries have agreed to harmonize export controls under a letter of intent, but Marshall notes that moving the process further along has been "grudgingly slow."

One of the problems with ITAR is that it is largely out of date, protecting technologies in mature industries rather than worrying about cutting edge technologies, argues Pierre Chao, director of defense industrial initiatives at the Center for Security and International Studies, which co-sponsored the event on transatlantic partnerships.

But not everyone shares Chao's view. Scott Harris, Lockheed Martin president for continental Europe, said that in the case of the Joint Strike Fighter, technology issues indeed are focused on low observables and software that are not commonly available and constitute cutting edge technology. He also noted that progress is being made on sharing information, citing the Medium Extended Air Defense System as an example where, he argues, more information is now shared between German, Italian and U.S. partners than thought possible two years ago.