A bill to prohibit the export of defense or defense-related goods by persons using the services of trading companies that have violated export controls promulgated by the Coordinating Committee.

Requires the Secretary of Commerce to disapprove the application of a person for a license to export military goods or technology to a controlled country under the Export Administration Act of 1979 if: (1) the export of such items involves a trading company that the Secretary has found to have violated the laws of a country to control exports for national security reasons pursuant to the agreement of the Coordinating Committee on Export Controls; and (2) such violation by the trading company has resulted in enhancement of Soviet and East bloc military capabilities.

Requires the President to disapprove any proposed sale of military goods or technology under the Arms Export Control Act if similar conditions exist.