Export control of military equipment

Swedish export of military equipment

For a country like Sweden that is not part of a military alliance, maintaining both the expertise and the development and production capacity of the defence industry sector is of major interest to security and defence policy. Cooperating with other countries regarding supply of military equipment also corresponds to our security policy interests. A certain amount of exports is necessary to satisfy Sweden's needs in the long term. The control of these exports is necessary to ensure that the products exported from Sweden go to a recipient country that we consider acceptable. Legislation in Sweden is prohibitive, which means that all exports of military equipment are prohibited unless a special licence is granted. More information on Swedish export of military equipment and policy can be found in the yearly report presented by the Government to the Riksdag (2011/12:114).

Swedish regulation of military equipment exports

Under the Swedish Military Equipment Act (SFS1992:1300), export licences may only be granted if security and defence policy reasons support this, and provided there is no conflict with Sweden's foreign policy. The detailed principles of the authorisation procedure have been established by Government practice and have been expressed in the Government's guidelines for military equipment exports, which the Riksdag has also approved. Swedish Radiation Safety Authority, SSM, and the Swedish Agency for Non-Proliferation and Export Controls (ISP) are responsible government agencies.

The guidelines specify the factors that should be considered when examining a particular case. A basic requirement is that all circumstances that are relevant to the case must be taken into account. When the various guidelines for the control of military equipment exports are weighed against each other, the interests of the country must take priority. Ultimately, it is a matter of safeguarding Sweden's long-term security.

Unconditional obstacles to exports

There are three kinds of unconditional obstacles that make exports impossible:

1. Decisions by the UN Security Council.
2. International agreements to which Sweden has acceded.
3. Bans imposed under international law on exports from neutral states during war.

Conditional obstacles to exports

They following are examples of other factors, called conditional obstacles, for not granting export licences:

A state is involved in armed conflict with another state.
A state is involved in an international conflict which is feared can lead to armed conflict.
A state is experiencing internal armed disturbances.
Particular importance is to be given to respect for human rights in the recipient country.

Under the Military Equipment Act, military equipment is divided into two categories:

1. Military equipment for combat purposes
2. Other military equipment.

Regulations specifying the equipment included in the two categories are found in the Military Equipment Ordinance (SFS 1992:1303). In brief, the category 'military equipment for combat purposes' includes equipment that has a destructive effect.

Under the guidelines, licences for follow-on deliveries should be granted unless unconditional obstacles exist.

EU Common Position on Control of Arms Exports

An exception is made in EU regulations for trade in military equipment. Under Article 296 of the 'Treaty in the field of defence procurement', each Member State has the right make its own decisions in these issues.

Nonetheless, EU Member States have voluntarily chosen to cooperate on controls of arms exports. This is because there is a conviction that the greater the consensus we have on how and where our military equipment is exported around the world, the greater the influence we can have in efforts to prevent arms from falling into the wrong hands. Further, we avoid countries being tempted to undercut one another so as to benefit from sales when a country is considered to be unsuitable as a recipient of military equipment.

An EU Code of Conduct on Arms Exports was adopted in 1998. The Code received legally binding status as an EU Common Position in December 2008. The Code of Conduct contains common criteria for exports of military equipment. The Common Position represents the lowest common denominator in the EU in the area of export controls. It does not prevent individual Member States from conducting a more restrictive policy.

During 2004 and the spring of 2005, extensive work was done to update and modernise the text. The draft of a new text contains a number of clarifications and, in some cases, more restrictive operative provisions. The new text was adopted as a Common Position in December 2008. In 2012 a review of the Common Position will be made.

The Code's criteria

The Code of Conduct contains criteria that are to be considered before taking a decision to approve arms exports to a given country. The criteria cover:

• The situation in the recipient country Respect for human rights, tensions or armed conflict, the risk that the weapons may be diverted or re-exported and whether the export may seriously interfere with the country's sustainable development.
• The situation in the region of the recipient country Stability in the area and the risk that the recipient could use the weapons in a regional conflict.
• International relations of the sending and recipient countries Arms embargoes must be respected, account is to be taken of the national security of Member States and allies, and consideration given to the recipient country's conduct in the international community. This last point deals with such matters as the country's attitude to terrorism, the kinds of alliances it has with other countries and how well it respects international law.

Proposed Intra-Community Transfer Directive (ICT)

In 2007 the European Commission proposed a directive on a harmonised system of transfer of defence-related products between the Member States. The proposal, the so-called Intra-Community Transfer Directive (ICT), was furher modified during 2008 through negotiations. Still the Member States decide on regulations and licenses. There are three types of licences granted: general, global and individual. The proposal was approved by the European Parliament in December 2008. The directive is implemented in Swedish law and the amendments will come into effect as of 30th of June 2012.

Letter of Intent (LoI) - Framework Agreement

In recent years, the defence industry sector has been marked by growing internationalisation. The Government and the Riksdag have stated that increased international cooperation is necessary to the survival of the Swedish defence industry. Efforts have been underway in Europe since the end of the 1990s to facilitate restructuring and operations of the European defence industry. In 2000, six countries - France, the UK, Germany, Italy, Spain and Sweden - signed a Framework Agreement, based on a Letter of Intent (LoI) that was signed by the countries' defence ministers in 1998.

The Framework Agreement covers the following main sections:

• Security of supply
• Export procedures
• Security of information
• Research and development
• Handling of technical information
• Harmonisation of military requirements

Work in the area of export controls is directed towards developing global licences for joint projects. The EU has followed developments among the LoI signatories with great interest, and there is a political desire within the Union to expand this group to also include other EU countries.

A Global Arms Trade Treaty (ATT)

On the basis of a resolution (A/RES/64/48) adopted by the United Nations General Assembly in 2009 a specific UN Conference will be held in July 2012 to negotiate a binding global treaty on regulating the international trade of military equipment, the so called Arms Trade Treaty (ATT).

Through better regulations of the legal international trade on munitions and making it mandatory for all countries to introduce legislation and administrative structures on control practices an ATT would make it easier for the International Community to hinder the illegal trade of weapons. With an ATT international norms would for the first time arise in this area. An ATT should also in the long term decrease legal but irresponsible trade of munitions.

The Conference in July 2012 has been prepared by a Preparatory Committee during 2010-2011. Sweden and the EU have constructively worked for the UN Conference to be a success, e.g. through actively engaging in the Prep Com process and through organising regional seminars in different parts of the world in support of an ATT. There is a broad consensus within the EU in terms of the negotiating material, which will make it possible for the EUs member states to act effectively as a group in most of the questions treated during the Conference in July. Amongst the member states of the EU there are already significant competence and experience in the area of export control. Therefor the EU can efficiently contribute to the framing of an effective international instrument.