John Duncan

Why Does UK Industry Support an Arms Trade Treaty?

This article is written by Brinley Salzman of the UK Defence Manufacturers Association. The views expressed here are the DMA’s and do not necessarily represent the views of the British Government.

An initiative that genuinely seeks to establish a global benchmark in export control compliance is to be welcomed and supported. Industry has an important role to play at this vitally important time in the development of the ATT. Defence Industry is already heavily regulated, but that regulation is not universal in scope or effect. This uneven landscape provides one of the key arguments deployed in support of an ATT.

What arms should an ATT control? It must not be limited in scope compared to the range of military systems that might be relevant to the purpose of any ATT and that many countries have already control. An ATT must not exacerbate the problem of an uneven regulatory landscape. A balance must be struck between comprehensiveness and regulatory burden.

How should arms be controlled? Responsible industry recognises that defence exports are at the heart of the foreign and security policy interests of any State. A Treaty would require states to consider their existing obligations under international law; but many nations appear to have differing views on how those obligations should be interpreted and brought to bear on export licensing decisions.
 
It is recognised that Governments have the moral and practical responsibility to implement controls responsibly, fairly and transparently. But how could this be brought together into a coherent package in a community of vastly different interests?

Industry has an important role to play. The moral arguments for an ATT, that underpin human security, social and economic development, are not incompatible with good business practice. Corporate responsibility is a fundamental part of good business strategy. Ethical and responsible business gives competitive commercial advantage.

The concept of a ‘level playing field’ is important during global economic crisis. Pressure on Industry and Governments is growing. Driven, at least in part, by smaller slices of the cake being available to high-value manufacturers, this pressure presents the increased risk of some suppliers entering or revisiting markets that, until recently, would have been considered off limits. This would be a highly undesirable outcome.

The global supply chain supports many thousands of skilled jobs in many parts of the world. Defence Industry is, therefore, a catalyst for high-value manufacturing growth in developed and developing economies. Openness in the world trade system is essential for successful growth, but that trade must be 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 achieving this.

Final exports of defence materiel must be licensed, but the bureaucracy attached to the international movement of components in the supply chain must be reduced. There are countries where we would welcome the opportunity to place work for reasons both of cost and of the availability of skilled people; our ability to do so is limited at present. An ATT must give Governments confidence to trust the extension of the supply chain and reduce bureaucracy.

The potential, long-term benefits of a Treaty to regulate the trade in conventional arms extends beyond Defence Industry: spin-off benefits of good governance, transparency and stability feed into inward investment, supply-chain security and economic growth that allow for poverty reduction and respect for human rights.

There are many arguments in favour of an ATT, but a broader horizon is required, based on the way we characterise 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 international community to address the inter-relationships between conflict, poverty, development, human rights and trade. All sectors, health, education, agriculture should be engaged in this debate and appreciate the opportunities for growth and security.

Posted at 16:42 16 July 2009 by John Duncan  |  Comments[0]