1. THE DEVELOPMENT OF THE EU CODE OF CONDUCT ON ARMS EXPORTS: PRACTICAL IMPLEMENTATION IN THE UK Graham Glover Arms Trade Unit FCO, London

2. CRITERIA BASED APPROACH Born out of international commitments and need for greater “Force Protection” UK adopted detailed criteria similar to EU Code in June 1997. EU Code adopted in June 1998 - under UK Presidency of the EU. Criteria expanded from “Force Protection” to include wider CFSP interests.

3. What is the EU Code of Conduct on Arms Exports? Political Declaration by Member States to use identical 8 core criteria to assess export licence applications for arms exports. Responsive tool for Foreign Policy. National competence. Not part of the single market acquis

4. What next for the Code? New legal status. A legally-binding Common Position under Title V (CFSP), Article 15 of EU Treaty. Partners must ensure domestic legislation conforms to the Common Position. New name. “Common Rules” rather than “Code”. New Rules will apply to brokering, transit/transhipment, and intangible transfers - not only to physical exports. Licensed Production. National Annual Report (in addition to EU report)

5. The Criteria 8 Criteria 1-4 : “Shall Deny” 5-8 : “Shall Take into Account” No less important

6. The Criteria Criterion 1: International Obligations Criterion 2: Human Rights and IHL Criterion 3: Internal Situation Criterion 4: Regional Stability Criterion 5: National Security / Allies Criterion 6: International Behaviour Criterion 7: Diversion Criterion 8: Development

7. Information Exchange Vital component Denial Notification Consultation Coherence Consistency Confidence and Commercial Confidentiality

8. UK Position UK has Consolidated EU and National Export Licensing Criteria (goes further in some areas than basic EU Code). “Binding Statutory Guidance” under Export Control Act 2002. Administrative appeal process for companies. “Judicial Review” if disregarded. But no question of being routinely sued! Four Government Departments fully involved: DTI (Licensing body), Foreign Ministry, Defence Ministry and Development (Aid) Ministry (particularly for e.g. Africa).

9. CASE STUDIES: HOW UK MIGHT APPLY THE CRITERIA 1. Chad 2. PR China

10. Case Study 1 Automatic assault rifles plus related ammunition Criterion 2 Is there a risk that the equipment might be used for internal repression? Criterion 4 Is there a risk that the recipient would use the proposed export aggressively against another country or to assert by force a territorial claim? Refusal: Criterion 3 LIGHT WEAPONS AND AMMUNITION Criterion 5 Is there a risk that the goods might be used against friends or allies? Refusal: Criterion 5? Criterion 1 International Obligations. Is the export covered by sanctions or other international obligations? No? Criterion 3 Is there a risk that the export will provoke, prolong or aggravate internal conflict in the country of final destination? Criterion 6 Behaviour. No Criterion 7 Is there a risk the export will be diverted undesirably? Criterion 8 Will be export undermine the economy or hamper development in the recipient?? No? No Refusal: Criterion 7 Refusal: Criterion 2

11. Case Study 2 Possible payloads include Infra Red/laser range finder/SAR/Electronic Intelligence (ELINT) or Communications Intelligence (COMINT) packages Is it a Lethal Weapon or component of? Is it a Complete Weapons Platform? Equipment for Internal Repression? Criterion 4 Is there a risk that equipment would be used aggressively? Will it affect Regional Stability? Is it a significant enhancement? Is it a new capability? Criterion 5 Is there a risk that equipment would be used against allies? Is there a risk of reverse engineering? Does this contain UK military classified information or capabilities? No Embargo Criterion 7 Is there a risk that the goods might be diverted to an undesirable end user? Refusal: Criterion 5 Yes EU Code of Conduct Possible - but assess as a low risk Refusal: Criterion 4 No grounds for refusal under the Embargo but still needs to be assessed against the EU Code of Conduct Mid-altitude Long Endurance Unmanned Aerial Vehicle

12. Case Study 2 Can be air launched and have a range >250km. Normally cruises below the speed of sound. Integrated inertial, GPS navigation systems. Is it a Lethal Weapon or component of? Is it a Complete Weapons Platform? Equipment for Internal Repression? Criterion 4 Is there a risk that equipment would be used aggressively? Will it affect Regional Stability? Is it a significant enhancement? Is it a new capability? Criterion 5 Is there a risk that equipment would be used against allies? Is there a risk of reverse engineering? Does this contain UK military classified information or capabilities? Yes Embargo Refusal: Criterion 5 Yes EU Code of Conduct Refusal: Criterion 4 Refusal: Embargo Both Embargo and EU Code of Conduct have grounds for refusal. Would still be refused if embargo lifted. Land Attack Cruise Missile (LACM)