The policy permits US companies to export encryption products to end users in Australia, New Zealand, Japan, the 15 member states of the EU and some other European nations.
This follows a move in January that allowed retail encryption products to be exported subject to a single US government review, provided the products were not sold directly to other states’ government bodies.
Chief of staff at the White House, John Podesta commented:
“We have moved forward, I think, with an approach that we believe, and the national security organisations believe, balances the needs of law enforcement, national security and the private sector interest in security and privacy through the more robust use of encryption products”.
Observers hope that this will boost e-commerce as it will improve access to encryption mechanisms that can be used to ensure protection of secure information in on-line transactions.