Press release

06/06/2008

European arms transfer controls 'showing their age'

Ten years this weekend, the 'EU Code of Conduct on Arms Exports' is already showing its age. Once groundbreaking, the world's first regional arms export control agreement is struggling to cope with the globalised nature of the 21st century arms trade, according to a report published today by Saferworld and several other European NGOs. (1)

"Ten years on, the Code is in need of an overhaul," says Roy Isbister, head of Arms Transfer Controls at Saferworld. "As it stands, it cannot handle the reality of today's globalised arms trade, which is far more complex than when the Code was introduced. Neither will it have the teeth it needs to achieve results until it becomes a legally-binding agreement. The cracks in the Code are showing - now is the time to fill them."

The ongoing globalisation of the defence industry involves the complex movement of equipment and components across the globe. Companies also make use of overseas subsidiaries or 'license' the production of their designs to manufacturers that are located outside the EU - and outside the EU’s control. These trends present an increased danger of arms proliferation but EU members have proven less capable, or willing, to deal with these difficult issues.

"The arms trade is no longer just about exporting finished products. Today, companies manufacture a plethora of components, kit parts and sub-assemblies that are shipped to destinations around the world. Some of these components may be innocuous in themselves but, once outside EU control, they can be incorporated into weapons systems that may then be exported on to countries the EU would not otherwise supply military equipment to." Adds Roy Isbister.

In the last ten years, the shortcomings of the EU Code have meant that EU military equipment has repeatedly found its way to countries of concern. For instance:

- Manufacturers in Ireland, the Netherlands and the UK have all supplied advanced components to the US which were then incorporated into offensive equipment such as F-16 fighter jets and Apache attack helicopters before being exported to Israel.

- Engines copied from those supplied by a German company to a firm in China are now included in armoured vehicles supplied to the Democratic Republic of Congo, North Korea, Sudan and the military regime in Myanmar. Although the German company exported the engines with the agreement that they would only be used for civilian purposes this did not prevent the Chinese firm from 'reverse engineering' the technology and using it to produce their own version of the parts.

- In South Africa, the British-headquartered firm BAE Systems holds a 75% share in a manufacturing company which has exported armoured vehicles to Guinea, Indonesia, the Ivory Coast, Nepal, Rwanda, Serbia and Uganda. Had these exports originated directly from the UK there are serious doubts that they would have been approved.

- In 1998, a Dutch company sold four fast-assault boats to Sudan. The EU has had an arms embargo in place against Sudan since 1994 but these vehicles did not require an export licence as they were not considered military items. However, the manufacturers note that, while they export the ship without armaments, they can supply the bolts needed to fix a machine gun on the craft.

- Austrian producers have been in discussions with companies in Brazil, Dubai, India and Malaysia to transfer production of small arms outside EU territory. As an executive from one of these Austrian companies said: "one has it so difficult in Austria as an arms manufacturer that parts of production have been transferred outside the country". (2)

Today's report by Saferworld and several EU NGOs, Good Conduct? Ten Years of the EU Code of Conduct on Arms Exports, reflects on the Code's relative successes over the last ten years, analyses its shortcomings, highlights instances where it has failed and recommends ways in which it could be made to work better, including:

- Transforming the EU Code into a legally-binding Common Position.
- Addressing the consequences of globalisation and the changing nature of the arms trade.
- Controlling EU citizens engaged in arms brokering even when they do so from outside the EU.
- Tightening controls on the use of equipment after it has been exported from EU territory.
- Improving systems to prevent the diversion of equipment from its intended recipient.
- Giving clearer guidance to Member States about when it is, and when it is not, OK to export.

ENDS

Saferworld is an international, independent NGO that works to prevent and reduce violent conflict and promote co-operative approaches to security.

(1) The report, entitled Good Conduct? Ten Years of the EU Code of Conduct on Arms Exports, is by: Campagne tegen Wapenhandel, the Netherlands; Caritas, France; ControllARMI: Rete Italiana per il Disarmo (Italian Network on Disarmament), Italy; Groupe de recherche et d'information sur la paix et la securite (GRIP), Belgium; Saferworld, UK; School for a Culture of Peace, Spain; Swedish Peace and Arbitration Society (SPAS), Sweden; Transparency International, UK.

(2) 'Lay down the weapons', Profil, 12 June 2006

For further information, please contact:

Tom Donnelly, Advocacy and Policy Officer, Saferworld
Tel: +44 (0)207 324 4633; Mobile: +44 (0) 7746 935 949

Roy Isbister, Arms Transfer Controls, Saferworld
Tel: + 44 (0) 207 324 4646; Mobile + 44 (0) 7867 780 072

The report can be found in the publications section.

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European arms transfer controls 'showing their age'

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