Defence and the Arms Trade Treaty
by Colonel (retd) Gobinder Singh, South Asia representative, Defence Manufacturers Association, UK | Published: Sunday, January 31, 2010
The speech “Defence and the Arms Trade Treaty” was delivered by Colonel (retd) Gobinder Singh, South Asia representative of Defence Manufacturers Association on 24th September 2009 at the Experts Conference titled “Armament, Disarmament & Non- Proliferation: Continuing our quest for strengthening sustainable peace and security in India and Southern Asia region and understanding the United Nations Process for a proposed Arms Trade Treaty” organized by Control Arms Foundation of India, held at UN Conference Hall, United Nations Information Centre, New Delhi. Colonel (retd) Gobinder Singh gave an insight of defence industries perspective on UN process for an Arms Trade Treaty.
The conference was a part of a 12 days international campaign from International Day of Peace to International Day of Non-Violence and was successfully observed with active participation of experts, diplomats, government officials from Ministry of Defence and Ministry of External Affairs, defence & security analyst, military personnel, delegates of the arms and defence industries, parliamentarians, journalists, lawyers, rights groups and survivors of armed violence.
I have been asked to provide an industry perspective, on the process toward an Arms Trade Treaty. In providing these views, I will draw on my position as a representative of the DMA UK.
The DMA UK is a trade association, just like the CII, but essentially has a membership of UK defence oriented companies. We now have a membership of about 800 UK defence sector companies. So in a way, in the next 10 to 15 minutes, I will be representing a range of UK defence industry positions on the ATT and not one corporate vision.
Above all, global trade matters to us. We place the highest priority on compliance with export controls, wherever we operate. So, an initiative that genuinely seeks to establish a global benchmark is to be welcomed and supported.
As momentum builds in the diplomatic process, discussion is moving toward practical aspects of scope and implementation of an Arms Trade Treaty, it is both natural and essential that industry in all regions, and of all views, is involved. This is an important time.
We shouldn’t forget that the majority of the arms industry is already one of the most heavily regulated in the world, but that regulation is by no means universal in scope or effect. This uneven landscape provides one of the key arguments deployed in support of an ATT and one of our major challenges for compliance.
Where regulations do exist, they differ greatly in scope, ranging from the obvious; like lethal weapons of war like combat aircraft, warships and tanks; to components, associated technology and software, in tangible and intangible form. Many countries also control dual-use technology, where this has both civilian and military applications. Establishing what to control is extremely complex and many countries have chosen to adhere to common lists, for example the countries of the Wassenaar Arrangement, whose Military and Dual-Use lists are also implemented in the EU.
Industry has an important role to play. The moral arguments for a treaty are in no way incompatible with good business practice. Corporate responsibility should be a fundamental part of business strategy, making a key contribution to success in the markets in which we operate. Thus conducting business in an ethical and responsible way brings us competitive advantage.
The moral argument for an ATT, one that underpins human security, social and economic development is overwhelming. This new type of treaty, and the unique process envisaged for its development, has the potential to touch on many drivers, some increasingly topical. It’s now vitally important to build these broader practical arguments on the foundation of conceptual work developed so far.
Openness in the world trade system is essential for successful growth. It’s important, however, that such trade is carried out both responsibly and securely. A treaty that clearly establishes the highest common standards and transparency of implementation can go a long way toward this.
There are now many familiar arguments in favour of an ATT, but we need to broaden our horizons a little, based on the way we characterize an ATT. It should not be viewed through the optic of a traditional disarmament or arms control instrument. It is a new way for the UN to address the inter-relationships between conflict, poverty, development, human rights and trade.
Now in the following slide presentation, as prepared by my colleague Mr. Brinley Salzmann, DMA UK Exports Director and thus our experts on ATT, are a few comments that have emerged so far from the UK industry, for consideration by all defence global industry as well:-
The Basic Problem: Diversity of Systems
• National export control systems have developed egocentrically with little (if any) relationship to those of other nations
• Almost no two export control systems anywhere in the World are totally 100% identical in terms of policies, systems and procedures
• This diversity in export control systems means that proliferation cannot be prevented, but only delayed (at best)
• This has created a fertile environment for proliferators, a bureaucratic nightmare for legitimate Industry, and a lack of confidence in each others’ systems
• This, in turn, has resulted in the arbitrary introduction of extraterritorial controls which will create enormous potential for future jurisdictional conflicts between nations
There must be a better way to do it!
• Multinational collaboration in export controls must be a better way to proceed
• This will require greater consistency and co-ordination of export control policies, systems and procedures by Governments
• The “Arms Trade Treaty” (ATT) initiative tries to address the export control policy issue
What’s in it for companies?
• Reduced bureaucracy for companies in operating within global supply chains;
• Reduced bureaucracy for companies in operating within joint venture partnerships;
• Reduced and more efficient operating costs;
• Increased harmonisation and consistency, and, thus, predictability in licence decision-making
• Enhanced reputation of the defence sector, as a whole;
• Increased focus of efforts and resources by Governments on the illicit side of the business;
• Industry should engage constructively in the framing of the proposals
Reduction in Bureaucracy
An ATT will benefit both customers and suppliers within global supply chains, as well in joint venture partnerships, making their lives easier and simpler
Increase in Predictability
If all companies are operating on a “level playing field”, they have a better chance of knowing where they stand, and being able to comply with their regulatory responsibilities;
Reputation of the Sector
• The Defence Industry has a very poor reputation in some parts of civil society;
• The ATT should help to enhance the reputation of those operating within nations who sign up to it;
• Many potential investors currently refuse to invest in anything to do with “the arms trade”, but may be able to do so if there is an ATT
Constructive Engagement is the Key
• At this stage, no-one knows what the final shape of the ATT may be;
• What will the ATT encompass and how it will function?
• This is a debate that we must all engage in constructively to ensure buy-in to the final outcome, rather than seeking to stand aloof as it is developed.
In Conclusion
Thus, these questions or comments by the UK industry, are categorically not a reason to oppose an ATT, they acknowledge some practical and political problems that are decades old, the solution to which has so far eluded consensus since the League of Nations. What is different now is in a world of increasing interdependency, both economic and security-related; we face a global problem, seeking a global solution.
Thus, to conclude, now is the time for the global defence industry as well to get engaged on the ATT.
We immensely thank Lt Gen BS Malik President CAFI, Bina with the entire CAFI support staff and as well as all participants, for hosting this excellent interactive forum.
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