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Strategic Export Controls in 2006 – Military Equipment and Dual-Use

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Strategic Export Controls in 2006 – Military Equipment and Dual-Use Government Communication 2006/07:114 Strategic Export Controls in 2006 – Military Communication Equipment and Dual-Use Products 2006/07:114 The Government hereby presents this Communication to the Riksdag. Stockholm, 15 March 2007 Fredrik Reinfeldt Sten Tolgfors (Ministry for Foreign Affairs) Brief summary of the Communication In this Communication, the Swedish government reports on Sweden’s export control policy with respect to military equipment and dual-use products in 2006. The Communication also contains a presentation of actual exports of military equipment in 2006 and describes the ongoing cooperation in the EU and other international fora on matters relating to military equipment and dual-use products. 1 Contents Part I – Introduction...................................................................................5 1 The Government Communication on strategic export controls ........5 2 Exports of military equipment in 2006 and export controls of dual- use products .......................................................................................6 3 Information activities.......................................................................10 Part II – Export controls in Sweden, competent authorities, etc. ............11 4 Swedish exports, export controls and export aid ..............................11 4.1 Export control of military equipment ...............................11 4.2 Control of dual-use products and of technical assistance .14 5 The Military Equipment Commission.............................................16 6 Sweden’s defence industry – structure and products ......................16 7 Swedish companies that work with dual-use products....................19 8 The Swedish Inspectorate for Strategic Products............................19 9 The Swedish nuclear industry and the Swedish Nuclear Power Inspectorate......................................................................................24 Part III – International Cooperation.........................................................28 10 Cooperation in the EU on export controls of military equipment...28 11 International reporting on arms transfers ........................................32 12 The state of play as regards arms embargoes ..................................34 13 An international Arms Trade Treaty ...............................................36 14 Efforts to combat the proliferation of small arms and light weapons ............................................................................36 15 International cooperation on military equipment ............................38 16 The international arms trade............................................................41 17 Combating corruption in the international arms trade.....................41 18 Cooperation in the international export control regimes.................42 19 Cooperation in the EU on dual-use products...................................49 20 Raising awareness about export control policy – outreach .............51 21 Intangible transfers ..........................................................................53 22 Galileo – a European positioning system ........................................54 Annexes ...................................................................................................56 23 Annex 1: Swedish exports of military equipment in 2006..............56 23.1 Introduction.......................................................................56 23.2 Explanations to the tables, etc. (categories of military equipment, export licences, actual deliveries, follow-on deliveries, leasing, transfers of manufacturing rights and cooperation, military-oriented training)............................56 2 23.3 Statistical tables ................................................................60 23.3.1 Value of export licences granted, 2002-2006, broken down into military equipment for combat purposes (MEC) and other military equipment (OME)...........................................60 23.3.2 Actual exports, 2001-2006..............................60 23.3.3 Export licences and actual exports between 2002 and 2006, broken down into OME and MEC................................................................61 23.3.4 Export licences and actual exports in 2006 by recipient region and country, including statement of product categories ......................62 23.3.5 Pie chart of exports of military equipment, broken down by region as a percentage of their value, 2006......................................................64 23.3.6 Export of military equipment 2004-2006 by country and broken down into MEC and OME...............................................65 23.3.7 Follow-on deliveries in 2006 ..........................67 23.3.8 Transfer of manufacturing rights, cooperation agreements in 2006 .........................................68 23.3.9 Value of actual exports 2005-2006 by product category...........................................................69 23.3.10 Swedish exports in 2006 of small arms and light weapons as defined in the UN Weapons Register ...........................................................70 23.3.11 Swedish export in 2006 of MANPADs (Man- Portable Air Defence Systems) as defined in the UN Weapons Register ....................................72 23.3.12 Exports of military equipment broken down by country according to income ..........................73 23.3.13 Exporting companies in 2006 .........................75 23.3.14 Categories of military equipment – the Swedish military list and the EU list, description of types of products......................76 24 Annex 2: The Swedish Inspectorate of Strategic Products on trends in Swedish and international export control....................................77 25 Annex 3: Swedish arms brokers......................................................86 25.1.1 Registrered brokers in 2006............................86 26 Annex 4: Dual-use products ............................................................86 26.1 Activities of the Inspectorate of Strategic Products..........87 26.1.1 Number of export applications received for dual-use products 2003-2006..........................89 26.1.2 Number of individual licences for dual-use products granted in 2006 ................................90 26.1.3 Number of positive advance rulings and enquiries about uncontrolled products............91 26.1.4 Number of applications concerning requests for advance rulings – controlled and uncontrolled products in 2006 ........................91 3 26.1.5 No. of denials (controlled products) and catch- all-denials (uncontrolled products) .................91 26.2 Activity at the Swedish Nuclear Power Inspectorate.......92 26.2.1 Export licences granted for products on NSG’s list from companies in Sweden to recipient countries (reported by the Swedish Nuclear Power Inspectorate) ........................................92 27 Annex 5: Regulatory framework.....................................................93 27.1 The Military Equipment Act.............................................93 27.2 Swedish guidelines on exports of military equipment and other cooperation with foreign partners............................94 27.2.1 Full text of the Swedish guidelines.................96 27.3 The European Union Code of Conduct on Arms Exports....................................................................99 27.3.1 The Swedish military list ..............................107 27.4 Regulation (EC) No. 1334/2000 on Control of Exports of Dual-Use Products ........................................111 27.4.1 Membership of multilateral export control regimes in 2005.............................................113 28 Annex 6: International weapon embargoes ...................................114 28.1.1 International weapon embargoes in 2006 .....114 29 Annex 7: Explanations ..................................................................119 30 Annex 8: List of abbreviations ......................................................121 31 Annex 9: A guide to other sources ................................................122 4 Part I – Introduction 1 The Government Communication on strategic export controls This is the twenty-second year that the Government is reporting on Sweden’s export control policy in a Communication to the Riksdag. The first Communication was presented in 1985. Sweden is not under any formal obligation to present a report on the practical conduct of export control policy. Nevertheless, it was one of the first countries in Europe to present transparent reports on the preceding year’s activities in the export control sector. The aim has always been to provide a basis for wider discussion of issues related to export controls and non-proliferation of military equipment and dual-use products. The form and content of the Communication have changed out of all recognition since 1985. The Communication was then a very brief summary of Sweden's exports of military equipment. The annexed tables gave a general picture of the latest statistics, but they contained no detailed explanations or comparative data. Today, the Communication is a rather detailed report on Swedish export control policy as a whole. More statistical data are also available nowadays thanks to an increasingly transparent policy and more effective information processing systems. The Government constantly seeks to improve and make the information that is presented to the Riksdag more transparent. Analyses are made of the proposals and comments made by Members of Parliament
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