On the Record
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On the Record An audit of Canada’s report on military exports, 2003-05 By Kenneth Epps & Kyle Gossen January 2009 Project Ploughshares On the Record An audit of Canada’s report on military exports, 2003–05 By Kenneth Epps & Kyle Gossen About this Publication In this publication, Project Ploughshares provides detailed analysis of the “Report on Exports of Military Goods from Canada, 2003-2005,” published by the Export Controls Division of Foreign Affairs and International Trade Canada. Kyle Gossen conducted research and co-authored the publication during a term placement under the Co-operative Education program at the University of Waterloo. Kenneth Epps is Senior Program Associate with Project Ploughshares. Project Ploughshares Project Ploughshares is the ecumenical peace centre of The Canadian Council of Churches established to work with churches and related organizations, as well as governments and nongovernmental organizations, in Canada and internationally, to identify, develop, and advance approaches that build peace and prevent war. Project Ploughshares is affiliated with the Institute of Peace and Conflict Studies, Conrad Grebel University College, University of Waterloo. Project Ploughshares 57 Erb Street West Waterloo, Ontario N2L 6C2 Canada 519-888-6541 Fax 519-888-0018 [email protected] www.ploughshares.ca The views presented in this paper do not necessarily reflect the policies of the sponsoring churches of Project Ploughshares. © Project Ploughshares 2009 ISBN 978-1-895722-73-4 Table of Contents 1. Executive Summary 1 2. Why an Audit 3 2A. Introduction 3 2B. Canada and the International Arms Trade 4 2C. Auditing the “Annual” Report 5 2D. Methodology 7 3. A Controlled Trade—What the Report Tells Us 9 3A. Canadian Export Control Policy 9 3B. Authorization and Enforcement 10 3C. Multilateral Commitments 12 3D. Military Exports to the United States 13 3E. Reported Data 16 Total reported exports 16 Largest recipients 17 Regional distribution 18 Multilateral partners 20 Categories of exports 21 4. The Efficacy of Canadian Controls 25 4A. The Four Guidelines 25 Countries that pose a threat to Canada and its allies 25 Countries involved in or under imminent threat of hostilities 25 Countries under United Nations Security Council sanctions 26 Countries whose governments have a persistent record of serious human rights violations unless there is no reasonable risk the goods can be used against civilians 27 4B. The Record 27 4C. Adhering to Canada’s Existing Standards 29 5. Transparency: What the Report Does Not Tell Us 31 5A. Timeliness, Completeness, and Clarity 31 Timeliness 31 Missing item descriptions 31 Double-counting 32 Exports to the US 32 Data on small arms and light weapons 33 5B. Additional Data 33 Export licences 33 Dual-use goods 34 5C. International Reporting Standards 34 5D. Accuracy: Comparison of Reported Data with Data from Other Sources 36 Case study: Armoured vehicles and GDLS Canada 37 6. International Standards: The Arms Trade Treaty and Canadian Commitments 43 6A. Emerging Control Criteria from the ATT and Relevant Indicators 45 6B. Assessing Canadian Exports against Proposed ATT Standards 48 6C. Recipient Case Studies—Colombia and Saudi Arabia 49 7. Unregulated Civilian Equipment for Military End-use 56 7A. Aircraft Engines 57 8. Canadian Arms Export Controls and Reporting: Recommendations for Canadian Action 59 8A. Controlling Arms Exports to the United States 59 8B. Applying Existing Criteria 60 8C. Broadening Control Criteria 60 8D. Controlling All Transfers for Military End-use 61 8E. Improved Transparency 62 8F. Promoting International Standards 64 Appendix 1: Group 2 of Canada’s Export Control List 67 Appendix 2: Members of Relevant Multilateral Instruments 68 Appendix 3: Selected Military Goods Categories 69 Small Arms and Light Weapons 69 Small arms (ECL 2-1) 70 Ammunition (ECL 2-3) 72 Appendix 4: Acronyms and Abbreviations 74 Notes 75 1. Executive Summary In this first detailed audit of a government report on Canada’s export of military goods, Project Ploughshares analyzes the data published by the Department of Foreign Affairs and International Trade (DFAIT) for the period 2003–2005. The purpose of the audit is to examine this published record and other evidence to determine “the propriety, compliance, and adequacy” of Canadian export controls. Compared to many weapons suppliers, Canada is a responsible arms exporter. Canada also was one of the first states to report weapons shipments in some detail. However, there are significant holes in both the practice and transparency of Canada’s export controls. A number of improvements are necessary to ensure that its export authorization system meets the emerging international standards that Canada supports. The key findings of the audit are: • The documented trade during the three-year report period was concentrated by recipient and product. The four largest recipients—Saudi Arabia, Australia, the UK, and New Zealand— together received more than two-thirds of reported military shipments. By far the largest exported goods category was “ground vehicles,” representing more than half the total value of shipments. These were almost exclusively armoured vehicles manufactured by one company, General Dynamics Land Systems Canada, based in London. Less than 10 per cent of reported arms exports went to states outside those with which Canada has security or arms control arrangements. • The most conspicuous failing of the Report is its omission of data on Canada’s military exports to the United States. The US is by far the largest recipient of military goods from Canada. During the period of the report, the US imported an estimated $4-billion in Canadian arms and components. At nearly 70 per cent of total estimated shipments, exports to the US represented well over twice the combined reported value of Canadian exports to all other countries. The omission of US data is a major lapse in transparency. • Although most Canadian military exports are shipped to allied and stable governments, there is evidence that Canada does not always adhere to its own control guidelines. In most cases limited detail in the Report precludes a conclusive assessment of the risks associated with specific shipments, but there are cases in which a bias toward commercial benefit has clearly prevailed over justifiable caution. The export of armoured vehicles to the Saudi Arabian National Guard—worth almost $400-million from 2003 to 2005—is the most prominent example. • Beyond the lack of US data, the Report has other significant transparency failings. These include a multiyear delay in its release, a decline in detail from previous reports, and several areas in which other supplier governments (such as the US and Sweden) report relevant information that Canada does not. In addition there are serious questions about the accuracy of the data reported. Quite apart from marked differences with other data sources (illustrated by annexed reviews of small arms and ammunition exports), some figures in the Report do not line up with data provided by the same government department (i.e., DFAIT) to the UN. On the Record 1 • During the period of the Report, there were important examples of unregulated and unreported civilian Canadian equipment shipped for military end-use. The most prominent was a shipment of helicopters to the Pakistan Armed Forces in the face of a Canadian ban on military exports to Pakistan. Other examples during the period occurred in the form of aircraft engine shipments. Although for use by armed forces, none of the unregulated shipments were reported as military exports. • Evidence from the audit points to needed improvements in Canadian export control policy and practice. These include: o Authorizing and reporting all military exports, including those to the US; o Applying existing export controls on a stricter and more consistent basis; o Broadening controls to meet relevant international obligations and emerging standards; o Controlling the shipment of all major equipment destined for the military; and o Providing greater and timelier transparency to facilitate independent scrutiny. Canada supports effective, legally binding global standards for arms transfers through universal adoption of an international Arms Trade Treaty. It can strengthen this support and lead by example by addressing the identified deficiencies in its military exports regime. 2 On the Record 2. Why an Audit? 2A. Introduction During 2004 and 2005 Canadian-manufactured helicopters worth in excess of $100-million were delivered to the Pakistan Armed Forces for use against “terrorism.” In the same two-year period, Canadian military goods worth more than $2-billion were delivered to the United States, including hundreds of armoured vehicles for US Army operations in Iraq. Canada’s latest report on the export of military goods provides data on transfers to 77 countries for the three–year period 2003–2005, yet it does not document any Pakistani or US transfers. Why the omissions? Canadian export controls regulate the transfer of military goods to other states. Decisions by the Foreign Affairs Minister and department officials are made on a “case-by-case” basis according to established guidelines. The guidelines are restrictive but not prohibitive and military shipments may be made to states that contravene control criteria. Moreover, the guidelines do not cite genocide, war crimes, corruption, and other relevant considerations that arise out of Canada’s commitments under international law. Is Canada’s export control system doing its job? To explore these and related questions, Project Ploughshares has undertaken an “audit” of the Report on the Export of Military Goods from Canada, 2003-2005. Canada claims to be—and compared to many other suppliers arguably is—a responsible arms trader and Canadian exports of military equipment are largely transparent. Yet, despite their comparative standing, Canadian export controls and reporting standards are not what they could or should be. It is not difficult to find examples of Canadian weapons transfers that point to a control system that is marred by significant holes, not compliant with accepted standards, or prone to commercial pressures.