Wassenaar Workshop, Vienna, 28 June 2016 Challenges in Export Control for Small States: The Experience of Iceland Wassenaar Workshop, Vienna, 28 June 2016 ICELAND

Overview Legal approach Principal agencies Principal exporters of controlled goods Extensive international cooperation Decision process Challenges Single market issue ICELAND

Legal Approach Control of Services and Items that can have Strategic Significance Act 58/2010 Regulation on Export Control, both based on model laws and from neighbouring countries, implement: EU Directive on Transfers of Defence Related Products 2009/43 (incl. Common Military List) EU Comon Position on Control of Military Exports 2008/944 EU Regulation on Dual-Use Goods 428/2009 EU Aquis is translated and published in Icelandic Must be read with and adaptive text in main Regulation because Iceland is not a EU Member ICELAND

Exceptions Temporary imports for repair, trade shows, training etc Life saving equipment for crisis situations Sporting equipment for private use Certain transit items Items for use on the national sea-bed Items on board national ships and aircraft Temporary exports for Icelandic Government use or repair ICELAND

Principal Agencies Customs National Police Copied all export licenses Three types, individual, general and global export authorisations Licenses issued by MFA Legal Department Sporting weapons excluded, handled by local police commissioners, must consult with MFA on commercial sales ICELAND

Teledyne Gavia www.gavia.is Gavia Defence ICELAND

Arctic Trucks www.defence-arctictrucks.com High Mobility G270 ICELAND

STAR ODDI www.star-oddi.com DST microRF - temperature telemetry ICELAND

Flyware www.flyware.net eLoadsheet ICELAND

Kögun advania.is GSSG/RT - Radar Data Generation ICELAND

Aluminium Industry, Carbon Fibre Rio Tinto Alcan – Capacity: 183.000 mt p/a Century Aluminium – Capacity: 260.000 mt p/a Alcoa – Capacity: 346.000 mt p/a Total: 789.000 mt p/a 3rd largest producer Europe 11th largest producer World 1/3 of production by 2nd largest (Russia) Capacity to produce high quality alloys Plans to produce carbon fibre ICELAND

International Cooperation (incl. UNSC, OPCW, HCOC, FATF, etc.) ICELAND

Decision process Technical assessment (may need outside consultants, bilateral cooperation) Risk assessment (challenge for small countries, cooperation important, open sources, embassies, private companies) Political assessment (based on risk assessment) Minister for Foreign Affairs takes final decision for important exports ICELAND

Challenges Extensive international cooperation Updating of export control lists Technical and risk assessments Non-membership to a regime such as Wassenaar means no access to denials lists, creating a proliferation risk More limited possibilities for discussions and consultations with other countries to align policies End-user controls can be problematic Single market problem ICELAND

Single market issue Iceland is part of the EU Internal Market through the EEA The Intra-Community Transfers Directive simplifies transfers of Wassenaar listed items within the Single Market, which includes Iceland, Norway and Liechtenstein (no export license needed between certified companies) The same applies for dual-use products for Norway and Liechtenstein and soon Iceland There are no practical ways to control Wassenaar list items flowing to these countries All EEA countries are potential exporters of Wassenaar list items produced within the EEA (EU/EEA among world’s top exporters) Therefore participation in Wassenaar would reduce proliferation risks (participation also helps market access, investments) ICELAND

See further: https://www.mfa.is/foreign-policy/export-control/ Thank you Pétur Thorsteinsson Export Control and Sanctions / Directorate of Legal and Executive Affairs Tel (+354) 545-7976 / Cell (+354) 864-9955 / pgt@mfa.is Utanríkisráðuneytið / Ministry for Foreign Affairs Raudararstig 25 / IS-150 Reykjavik / ICELAND / www.mfa.is Tel (+354) 545-9900 / Fax (+354) 562-2373 / external@mfa.is Disclaimer / Fyrirvari varðandi tölvupóst ICELAND