Trade protectionism inevitably leads to higher costs and inefficiencies –
“In 2005, [the US]
imposed an export moratorium on satellites for Indian launch.
The timing was no
accident. In 2005, SpaceX was building its Falcon 1 rocket, which was designed
to carry small satellites. The ban even came to be known as the "SpaceX
Agreement." Problematically, though, the Falcon 1 had only one commercial
launch before it was retired in 2009. At the time, the small satellite boom
hadn't yet taken off, and SpaceX didn't believe there was a commercial
justification for the rocket. (It's now scrambling to correct that mistake.)
Since then, no
other U.S. company has offered a rocket for small satellite launches (though
some are reportedly in the works), even as demand has surged. That leaves
American satellite companies with few options. The U.S. Trade Representative
has handed out occasional waivers from the moratorium. And a European
government consortium now offers its own small satellite launch vehicle, for a
hefty fee. But a far cheaper and more reliable option -- going to India --
remains off the table.”