Besides the export problems, the algorithms are problematic. The RSA labs were able to get a patent for the RSA algorithm, regardless of the fact that it was already published in 1977 by Rivest, Shamir and Adleman. The symmetric algorithm used, IDEA, is also covered by a patent, also in Europe, and only strictly private use is possible without having to pay a fee to Ascom Ltd. Newer versions of PGP (5.x, 6.x) used other algorithms, but the program was no longer available for free for everybody. In commercial environments, fees had to be paid. So, a lot of people did never accept PGP5 or later.
Therefore a new project came up: Gnu Privacy Guard, called GnuPG or gpg. It was created within Europe to prevent the US regulations and patented algorithms were avoided. It is designed to comply to the OpenPGP (RFC2440) specification and released under the GNU GPL Copyleft. The version 1.0.0 was released in September 1999.