Loral, Boeing, and the USML — Jan 2003 — Satellize
Jan 2003 · USA

Loral, Boeing, and the USML

Loral pays $32M, Boeing $32M soon after, for ITAR violations involving Chinese launches. Commercial communications satellites move onto the United States Munitions List — and a decade of US export decline begins.

Rep. Christopher Cox, author of the Cox Report on satellite-tech transferWikimedia Commons / Cox Report
What happened

A working catalogue entry, kept current. Each paragraph is drawn from the publicly documented record.

In January 2002 Loral pays a $14 million ITAR settlement (later supplemented), and Hughes Electronics — by then Boeing's satellite arm — pays $32 million in 2003, for assistance provided to Chinese launch teams a decade earlier. Already, by act of Congress in 1999, all commercial communications satellites have been moved from the Department of Commerce's dual-use list to the State Department's United States Munitions List.

American commercial-satellite exports collapse and US share of the global communications-satellite market falls from over 70% to under 30% within a decade. European and Israeli satellite primes capture much of the lost business with explicit "ITAR-free" product lines.

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