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Wassenaar agreement not to apply to free software?

The Free Software Foundation states that the Wassenaar agreement does not apply to free-software. It'd be nice to know why. Is this a provision for research, or some sort of loophole? Link countesy of Linux Today.
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Wassenaar agreement not to apply to free software?

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"Regardless of the legal speed limit, your Buick must be operated at speeds faster than 85 MPH (140kph)." -- 1987 Buick Grand National owners manual.

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