EU-Thailand Cooperation in Export Control The purpose of export controls Dr Sibylle Bauer Bangkok, April 2011

EU-Thailand Cooperation in Export Control

3  Dual 0B001b7 “Magnetic suspension bearings consisting of an annular magnet suspended within a housing made of or protected by ″materials resistant to corrosion by UF6″ containing a damping medium and having the magnet coupling with a pole piece or second magnet fitted to the top cap of the rotor;” 0B001b12 Scoops consisting of tubes of up to 12 mm internal diameter for the extraction of UF6 gas from within a centrifuge rotor tube by a Pitot tube action, made of or protected by ″materials resistant to corrosion by UF6″; 1C011b “Boron or boron carbide of 85 % purity or higher, and a particle size of 60 μm or less; Note:The metals or alloys specified in 1C011.b. are controlled whether or not the metals or alloys are encapsulated in aluminium, magnesium, zirconium or beryllium”. 0B001g2 Liquid uranium metal handling systems for molten uranium or uranium alloys, consisting of crucibles, made of or protected by suitable corrosion and heat resistant materials (e.g. tantalum, yttria-coated graphite, graphite coated with other rare earth oxides or mixtures thereof), and coolingequipment for the crucibles;

EU-Thailand Cooperation in Export Control 4 Why strategic trade controls: government motivations International and national security Commitments/obligations under international law (UN Security Council Resolutions: including Iran/DPRK sanctions and Resolution 1540) Regional commitments Ability to import weapons and technology (export controls, extraterritorial re-export controls) Reputation (pre-emptive or post-scandal)

EU-Thailand Cooperation in Export Control 5 Why strategic trade controls: industry motivations Business interest: reputation Ability to do business in US etc. Ability to receive technology Obligations under national law and administrative/criminal penalties Extraterritoriality provisions, in particular US re-export controls Company policy, including of parent company and business partners Risk assessment within company

EU-Thailand Cooperation in Export Control 6 UN Security Council Resolution 1540 (2004) Adopted under Chapter VII of the UN Charter (binding) Aims to prevent both access of non-state actors to WMD and proliferation more broadly Creates obligation for states to ‘establish, develop, review and maintain appropriate effective national export and trans-shipment controls’ over NBC weapons and their means of delivery, and related items Explicitly includes ‘appropriate laws and regulations’, ‘establishing end-user controls’; ‘establishing and enforcing appropriate criminal or civil penalties for violations of such export control laws and regulations’; and national control lists.

EU-Thailand Cooperation in Export Control 7 Recent UN Security Council Resolutions on non-proliferation DPRK 1695 (July 2006) and 1718 (Oct. 2006) – inter alia restrictions on missile and nuclear weapon relevant transfers 1874 (May 2009) – gives UN members broader powers to inspect suspicious cargo in transit to and from DPRK Iran 1737 (Dec. 2006), 1747 (Mar. 2007) and 1803 (Mar. 2008) – embargo on missile and nuclear weapon relevant exports; financial vigilance (June 2010) expanded list of sanctioned individuals and entities

EU-Thailand Cooperation in Export Control 8 Key elements of an effective export control system (1) Each country approaches balancing act between trade facilitation and security differently, but key elements of an effective system include: Comprehensive and clear primary legislation and implementing regulations, including - control list (EU model: consolidated list) - catch-all mechanism for non-listed items - covering all actors in the supply chain

EU-Thailand Cooperation in Export Control 9 Key elements of an effective export control system (2) Effective administrative/criminal sanctions Policy-making mechanism Licensing system (inter-agency) Outreach to industry and research community International information exchange and cooperation Enforcement system (involving customs, police, border police, intelligence, prosecutors, …)

EU-Thailand Cooperation in Export Control 10 Trends and challenges Technological developments ITT (intangible transfers of technology) Globalisation/ transnational companies: increased complexity of trade flows Transit, transhipment, brokering Determining true end-use Terrorism/ non-state actors Effective enforcement: matching policy priority with operational resource

EU-Thailand Cooperation in Export Control Dr Sibylle Bauer Regional Officer SE Asia, EU Programme ’Cooperation in Export Control’ Head of Export Control Project, SIPRI Tel (mobile) (office) Trends and challenges