Statement on Signing Executive Order 12264 - Export of Banned or Significantly Restricted Substances

I have signed today an Executive order which establishes a comprehensive Federal policy on the export of hazardous products and substances that have been banned or significantly restricted for use in the United States.

The order builds upon laws that already exist and regulatory action already taken by Federal agencies. It makes our present controls over the export of banned substances more consistent and more effective. It emphasizes to other countries that the United States is a responsible trading partner and that they can trust goods bearing the label "Made in U.S.A." It establishes U.S. leadership in addressing the problems associated with the export of dangerous substances. At the same time, it protects our legitimate and important interests in international trade.

The central idea of the policy I am announcing today is full disclosure of information to our trading partners. A number of laws already require that we notify foreign countries when substances banned or significantly restricted for use at home are exported. My order improves these notifications. It will clarify for other countries the reasons why the substances in question are banned or strictly controlled in the United States and will help them judge for themselves whether they wish to allow the substances to enter and be used in their countries. We will also be publishing an annual summary of U.S. regulatory activities of international interest, which can serve as an international "hazard alert."

I am also directing the State Department and other Federal agencies to encourage greater international cooperation in controlling trade in banned substances. We will take an active part in efforts to develop common standards and practices and to improve world hazard alert systems, export notification programs, and uniform hazard labeling.

Finally, the order establishes a mechanism for imposing export controls, in a few limited circumstances, on exceptionally hazardous banned or significantly restricted substances. The order relies on existing authority under the Export Administration Act and the regulatory record that led to the banning or significant restriction of these substances. It will require export licenses for those few extremely hazardous substances that: (1) represent a substantial threat to human health or safety or to the environment; (2) the export of which would cause clear and significant harm to the foreign policy interests of the United States; and (3) for which export licenses would be granted only in exceptional cases. I intend that the strictest interpretation be applied to these standards.

The Executive order is based upon a 2 1/2-year study by a working group composed of 22 Federal agencies. The group was chaired by Esther Peterson, my Special Assistant for Consumer Affairs, and cochaired by Robert Harris, member of the Council on Environmental Quality. In developing the policy, the working group consulted extensively with representatives of industry, labor, and citizen organizations.

The policy gives special attention to the need to foster the sale of American-made products abroad. Available evidence suggests that the volume of U.S. trade in banned substances is not large. Yet, even a very few incidents of harm to foreign citizens or the environment can seriously damage our foreign policy interests and our long-term trading interests.

As international merchants, we have an obligation not to export to unsuspecting nations products which we ourselves would not allow in our own country. This Executive order will help us meet this obligation.