EmailEmail
PrintPrint
Former Ariba president walks export tightrope
Juggles need to export with protecting technology
Thursday, March 16, 2006

When David H. McCormick's stint as the U.S. Department of Commerce's under secretary for export administration ends in three years, he probably could teach a course on walking a virtual tightrope.

Trying to juggle the interests of U.S. firms seeking to sell abroad while ensuring that sensitive U.S.-bred technology doesn't fall into enemy hands isn't easy. The trick for Mr. McCormick, it seems, is to stay on message and home in on attainable, short-term goals.

Mr. McCormick, who heads the Commerce Department's Bureau of Industry and Security, acknowledged the complex and controversial nature of his post at a breakfast meeting yesterday with the Pittsburgh Technology Council and in an interview afterward. His title, he joked, should be the "under secretary of globalization."

But as events of the past week have shown, mention globalization and controversy is not far behind. Last week, for example, the Dubai Ports World deal fell apart only days after Mr. McCormick returned from leading a Commerce delegation to the United Arab Emirates to discuss the country's export of sensitive technologies to Iran.

The UAE-based firm, confronting a media-driven, bipartisan uproar, decided to pull out of the ports deal (it went further yesterday, saying it would find a U.S. buyer for the American ports -- see accompanying story), followed by the United Arab Emirates' decision to indefinitely halt talks for a free trade agreement with the United States.

Mr. McCormick expressed confidence yesterday that the two countries could put aside the dispute and continue to work together. "I don't doubt any absence of commitment on the part of the [United Arab Emirates] or the U.S. government to move forward," he said.

Such cautious optimism has paid off for the former Ariba Inc. president, who spent much of his professional life navigating rough terrains -- from his time as a U.S. Army officer serving in the first Gulf war to the shaping and ultimate sale of Pittsburgh tech upstart FreeMarkets to its California competitor.

Things are sure to get thornier for Mr. McCormick as business and political leaders focus on the always-heated U.S. and China trade policy discussions. Last year, the Bush administration said it would increase scrutiny of technology exports to China but, as breakfast attendees noted yesterday, it has yet to provide details.

At the same time, such tech giants as Google and Cisco Systems have come under fire for doing business in China from members of Congress who contend China restricts trade and has a poor human rights record. Some lawmakers also have introduced legislation that would limit exports of certain hardware and software products to China.

Mr. McCormick declined to offer specifics on any new potential U.S.-China trade measures, but told the tech council crowd that "the potential for U.S. businesses in China is enormous -- but it also carries great concern."

Therein lies the dichotomy Mr. McCormick confronts -- handling hot-button, yet critical issues that can be filled with contradictions and subject to political rancor. Mr. McCormick said his job is to put national security first, without putting any "undue burden" on industry.

That means screening such U.S.-bred technologies as computer chips and software programs that have commercial uses to prevent them from landing in deceitful hands. It also means recognizing that competitors are catching up to the United States on the science and technology front.

The challenge, Mr. McCormick said, is to keep the doors open to foreign-born researchers who can help the United States maintain its edge while also ensuring that sensitive U.S. technology remains secure. "These issues aren't without controversy, but that's what makes them interesting," he said.

First published on March 16, 2006 at 12:00 am
Corilyn Shropshire can be reached at cshropshire@post-gazette.com or 412-263-1413.
EmailEmail
PrintPrint