Showing posts with label arms sales. Show all posts
Showing posts with label arms sales. Show all posts

Sunday, 18 September 2011

London Arms Fair Shrugs Off Economic Gloom



Protests in Bahrain 2011


First published on Technorati on 16 September 2011

One of the world's biggest arms exhibitions ends in London today after four days of weapons salesmen touting their wares, ranging from guns that can shoot around corners to an "invisible" tank.

With no respite in sight to the economic gloom on both sides of the Atlantic, major defense cutbacks are under way in the UK and the United States.

The British government plans to reduce defense spending by 8 per cent by 2015, and the US is cutting at least $350 billion from previous project spending.

So exhibitors at this week's Defense Security and Equipment International arms fair are looking instead to markets such as India and Africa to boost sales.

And with the continuing unrest in many Arab countries, the Middle East arms market remains extremely lucrative, and unaffected by the international outcry about the violence that governments such as Syria and the Gaddafi regime in Libya used against protesting citizens during the Arab Spring.

Human rights activists and anti-arms campaigners held a series of events across London in protest against the presence of delegates from Bahrain and Saudi Arabia, both accused of using weapons bought from the UK to suppress demonstrations.

Of the 65 national delegations attending the arms fair, 14 were from what human rights groups called "authoritarian regimes".

Libya was not invited, but Western arms dealers will be buoyed by National Transitional Council Chairman Mustafa Abdel Jalil's statement that Tripoli was not planning to buy Russian weapons, and would review arms contracts with Russia signed by the former Libyan government. Russia said earlier this year that it stood to lose as much as $4 billion in existing and potential deals with the Gaddafi regime.

Minister says UK follows strict export rules

British Defense Secretary Liam Fox told delegates at the arms fair that Britain's weapons manufacturers should tailor their products for overseas markets, to protect defense and security jobs and profits during a period of spending cuts at home.

Exports of UK-made weapons would help drive the country's economic recovery, Fox said. But he insisted that Britain would not arm repressive regimes, describing the UK's export-licensing guidelines as being among the toughest in the world.

"Respect for human rights and fundamental freedoms are mandatory considerations for all export license applications, which we consider on a case-by-case basis… When conditions change we act swiftly to revoke licenses that do not meet our strict criteria - just as we did earlier this year as the events in the Middle East and North Africa unfolded," Fox said.

A group of British parliamentarians have called on ministers to stop arms sales to authoritarian regimes around the world. They said that UK Trade and Investment, the government body responsible for promoting British defense exports, had countries including Algeria, Iraq, Libya, Pakistan, Saudi Arabia and the United Arab Emirates as "arms export priority markets" for 2010-2011.

With the exception of Libya, sales efforts were continuing, causing concern over "the inherent conflict between the government's promotion of military exports and its stated desire to help protect human rights overseas", the MPs added.

Green Party MP Caroline Lucas noted that in 2010 the UK had issued over £200m ($318 million) worth of equipment requiring export licenses to Libya, "providing Colonel Gaddafi with resources including tear gas, crowd control equipment, and ammunition for wall and door-breaching projectile launchers."

A government spokesman in London commented: "The British position is clear: we will not issue licenses where we judge there is a clear risk that the proposed export might provoke or prolong regional or internal conflicts, or which might be used to facilitate internal repression."

Britain has the world's second-largest defense industry after the United States, which generated more than 22 billion pounds ($35 billion) in sales in 2010, according to a survey published on 12 September by ADS, the trade group that promotes the UK aerospace, defense, security and space industries. UK defense exports contributed 9.5 billion pounds ($15 billion), about 43 per cent of turnover, with three-quarters of sales generated by the aerospace sector.


Sunday, 5 June 2011

Bribery Act's Impact on British Defence Industry



BAE's Tornado fighter/bomber, sold to Saudi Arabia as well as the RAF - Image: Andrew Parsons/PA

This article was first published in Defence Management Journal, Issue 53 - Summer 2011


The UK Bribery Act 2010 was due to come into force in April 2011, but has been put back until three months after the final official guidance on the Act is published.

The Act has attracted considerable negative media coverage, and anti-corruption groups allege there has been intensive last-minute lobbying against it, from unspecified corporate circles.

It comes at a time when the British defence industry is under increasing public scrutiny.

After the headlines created by the Strategic Defence and Spending Review and consequent job cuts, the uprisings in the Arab world since the end of 2010 focused attention on the weapons that British companies supplied to Bahrain, Libya and others, including teargas and crowd control ammunition, which have been used against protesters and insurgents.

In 2009, UK defence export orders were worth £7.2 billion, according to ADS. The UK was fifth in the global weapons suppliers league after the USA, Russia, Germany and France, although the volume of British arms exports actually fell by 11 per cent between the periods 2001–2005 and 2006–10, the Stockholm International Peace Research Institute (SIPRI) said in data published in March 2011.

With the domestic spending squeeze tightening, Britain's defence manufacturers must maintain if not strengthen their position in the international marketplace. Industry figures are not happy that government guidance on the Bribery Act has been delayed, but say the legislation should not stifle business because anti-corruption measures are already in place.

Penalties

The Bribery Act was enacted in response to growing worldwide pressure on the UK to address a perceived lack of commitment to anti-bribery law enforcement. With this extra-territorial legislation, UK-linked companies involved in bribing officials and executives anywhere can be fined and their assets recovered.

It creates four categories of offences: offering, promising or giving a bribe to another person; requesting, agreeing to receive or accepting a bribe from another person; bribing a foreign public official; and the corporate offence of failing to prevent bribery by individuals acting on its behalf.

Failing to prevent bribery introduces strict liability for corporate organizations and is the most significant departure from current law, legal experts say. Ignoring the Act could cost companies dearly, with the maximum penalty for individuals being 10 years imprisonment and/or a fine, and for the new corporate offence an unlimited fine.

The only defence available to commercial organizations charged with strict liability corporate offences will be to show that the organization had "adequate procedures" in place to prevent bribery being committed.

"The breadth of the act is already prompting complaints from British business abroad, concerned that the strictures will give undue advantage to competitors with no links to the UK, who are not covered by the legislation," the Financial Times commented on 24 February 2011.

Concerns

Tobias Bock, a project officer at the anti-corruption watchdog Transparency International, estimates that the global cost of corruption in the defence sector is at least 12.5 billion pounds a year.

But facilitation payments by UK firms are already illegal and will continue to be banned when the Act comes into force, though the government’s earlier draft guidance failed to make this explicit.

Transparency International UK spokesman Robert Barrington says honest companies "have nothing to fear from the Act, and should welcome it as an opportunity to create a level playing field." But he warns: "Defence is a notably high-risk sector for bribery. The Act should remind every company in every industry that bribery is unacceptable and there is now a greater likelihood of being caught and punished."

Barrington told DMJ in an interview: "If I have a concern about the defence industry, it's that smaller and medium-sized companies that are exporting to difficult markets might be less aware of their obligations and the legal implications."

Derek Marshall, MD of Policy and Public Affairs at ADS, said many of the UK's bigger companies, especially multinationals, "have adjusted for quite a while now to the notion that they will have to comply with legislation like the Bribery Act and the US Foreign Corrupt Practices Act (FCPA), so the impact on them will be very limited."

"The real issue for us is having proper guidance soon (from the Ministry of Justice) on how the Act will be interpreted… For the time being, we seem to be in uncharted waters," he told DMJ.

Further delay in publishing the guidance will not only prolong uncertainty for companies, but could also undermine how the government’s commitment to the Act is perceived.


Sunday, 3 April 2011

UK Arms for Libya Contradict Rights Concerns - Amnesty


Amnesty International contrasts current UK support for ousting Libyan leader Gaddafi with previous arms sales to Tripoli.




Anti-Gaddafi insurgents mourn their dead in Ras Lanuf (IMAGE - BRQ Network)

 
British Foreign Secretary William Hague has justified the international military action against Colonel Gaddafi's forces in Libya, saying the intention is to prevent what he called a humanitarian catastrophe.

Read the full article on Suite 101


Monday, 14 March 2011

Middle East Receives One-Sixth of Global Arms Transfers - SIPRI

In the last five years Middle Eastern states accounted for 17 per cent of international arms transfers, say researchers at Sweden's SIPRI.



Saudi Arabian missile corvette Tabuk  (IMAGE – US Department of Defense)


The Middle East received more than one-sixth of arms transfers worldwide in 2006-10, according to new data published on 14 March 2011 by the Stockholm International Peace Research Institute (SIPRI).

READ THE FULL ARTICLE ON SUITE 101


 

Friday, 4 March 2011

Global Arms Trade Treaty One Step Nearer


The latest round of negotiations at the UN on drawing up an international arms trade treaty has ended on a positive note.



Mark Thomas book on the arms trade  (IMAGE – Richard Peat)

The five days of talks which ended in New York on 4 March 2011 focused on the scope and criteria of the proposed international treaty to control the arms trade: what weapons to include and what activities it should cover, such as imports, exports and trans-shipment.

READ THE FULL ARTICLE ON SUITE 101