1. Brief to TechUK Defence & Security Councils 7 th October 2014 International Acquisition Valerie Evans Head of International Relations Group

2. 2 Objectives Role of the International Relations Group. Basic overview of International Acquisition Policy. Hot topics of interest, including EU activities. How can we improve interaction with techUK?

3. 3 Role of International Relations Group Input to International Acquisition Policy. Briefings for Ministers & CDM on International Acquisition. Support CDM as UK National Armaments Director. Policy lead for acquisition business in NATO, European Defence Agency, OCCAR & EDTIB. Policy lead on US Export Controls, including ITAR and ECR. Advice & guidance to Project Teams on International Acquisition & co- operation, including MoUs. Provide international acquisition training. Lead on US UK Defence Trade Cooperation Treaty. Support implementation of UK FR Defence Treaty. Policy lead for all Equipment & Support Memoranda of Understanding and other international agreements. Defence & Security Industrial Engagement Policy.

4. 4 Strategic Defence and Security Review  Sets three priorities: –Ensure Armed Forces have support for contingent operations; –Bring an overheated Defence programme back into balance; –Develop flexible, capable and affordable Armed Forces for the future.  Sets mandate for defence procurement and industrial policy to: ‘secure the independence of action we need for our Armed Forces, while allowing for increased numbers of off-the-shelf purchases and greater promotion of defence exports’.

5. 5 International Cooperation National Security Though Technology set the context for our International Strategic Approach: –Benefits of cooperation: economies of scale & maximising capabilities. But can be hampered by political issues & over complex – harmonizing requirements, work share. –International programmes can also offer benefits for UK industry (including exports). Support participation consistent with White Paper principles. –Preference is Bilateral. US & France are top priorities, but relationship not exclusive. Keen to increase co-operation with range of other countries, e.g. IT, GE, AUS, JPN & CAN. –Will also consider multilateral where there is clear benefit to the UK, including NATO – Smart Defence & multi-national Approaches; and EDA – Pooling & Sharing.

6. 6 Acquisition Stakeholders European Defence Agency – Aim is to help identify opportunities for collaboration – identify common requirements. Also progresses a number of enablers such as airworthiness & standardisation. OCCAR – UK founding member & it aims to be first choice for European collaborative programmes. Promotes competition rather than work share. NATO – NETMA, CNAD, proposed new NATO procurement entity. European Commission – 2007 Defence Package: Defence Procurement Directive & Intra Community Transfers Directive; July 2013 Communications and subsequent road map. Letter of Intent Framework Agreement – 6 major defence spenders. Formed to restructure European Defence Industry. Bilateral Intergovernmental MOUs/Treaties – e.g. USA, FR & AUS.

7. 7 Key international business – current & future Joint Strike Fighter (F35 Lightning II) Typhoon A400M Complex Weapons, e.g. METEOR and FASGW, Stormshadow Air Seeker Unmanned Air Vehicles Protected mobility vehicles NATO Improved Link Eleven (NILE) (Link 22) Battlefield Information Collection & Exploitation System (BICES)

8. 8 Current International Acquisition Issues Implementing DEC13 EU Council Conclusions and EU Commission Communication road map. Strengthening UK FR cooperation. NATO procurement reform. Taking forward SMART Defence and Pooling & Sharing. Defence & Security Industrial Engagement Policy. Impact of US Export Control Reforms. US UK Defence Trade Cooperation Treaty. Recent NATO Summit.

9. 9 December EU Council 2013 Three strands discussed:- –Capabilities. –Common Security and Defence Policy (CSDP), and –Defence Industry. HMG’s key objectives:- –Promoting competition in the defence internal market. –Supporting SMEs across the EU. –Encouraging more collaboration and cooperations. –Supporting research, including improving civ-mil synergies. –Preventing EU competence creep, particularly ownership of defence capabilities.

10. 10 June 2015 EU Council Update planned for June 2015. Focus on Commission Implementation Plan for their Communication. Areas of opportunity. –Preparatory action for CSDP research. –Common standards and certifications. –Promoting opening up of defence services and support sectors. –Encouraging defence industry access to existing EU funds.

11. 11 How we interact with Industry currently International Strategy Forum. LoI Industry Group. Export Group for Aerospace and Defence (EGAD). NATO Industry Advisory Group (NIAG) and TADIC. OCCAR Defence Industry Group (ODIG). Initial engagement with TechUK.

12. Questions