Military Equipment and Dual-Use Items Comm. 2019/20:114

Government Communication 2019/20:114

Strategic Export Controls in 2019 – Military Comm. Equipment and Dual-Use Items 2019/20:114

The Government submits this Communication to the Riksdag.

Stockholm, 9 April 2020

Stefan Löfven

Mikael Damberg (Ministry for Foreign Affairs)

Main content of the Communication

In this Communication, the Swedish Government provides an account of Sweden’s export control policy with respect to military equipment and dual-use items in 2019. The Communication also contains a report detailing exports of military equipment during the year. In addition, it describes the cooperation in the EU and other international fora on matters relating to strategic export controls on both military equipment and dual- use items.

Comm. 2019/20:114 Contents

1 Government Communication on Strategic Export Controls ...... 3 2 Military equipment...... 7 2.1 Background and regulatory framework ...... 7 2.2 The role of defence exports from a security policy perspective ...... 11 2.3 Cooperation within the EU on export controls on military equipment ...... 14 2.4 Other international cooperation on export control of military equipment ...... 19 3 Dual-Use Items ...... 22 3.1 Background and regulatory framework ...... 22 3.2 Cooperation within international export regimes ...... 25 3.3 Collaboration within the EU on dual-use items ...... 28 3.4 UN Security Council Resolution 1540 and the Proliferation Security Initiative (PSI) ...... 31 4 Responsible Authorities ...... 32 4.1 The Inspectorate of Strategic Products ...... 32 4.2 The Swedish Radiation Safety Authority ...... 35 5 Statistical report ...... 38 Appendix 1 Exports of Military Equipment ...... 39 Appendix 2 Export of Dual-Use Items ...... 64 Appendix 3 The Inspectorate of Strategic Products on important trends in Swedish and international export control ...... 73 Appendix 4 Selected Regulations ...... 83 Appendix 5 Abbreviations ...... 88 Appendix 6 Guide to other sources ...... 90

1 Comm. Government Communication on 2019/20:114 Strategic Export Controls

In this Communication the Government provides an account of its policy regarding strategic export controls in 2019, i.e. the export controls on military equipment and dual-use items. The term dual-use items (DUIs) is used in reference to items produced for civil use that may also be used in the production of weapons of mass destruction or military equipment. Control of exports of military equipment is necessary in order to meet both our national objectives and our international obligations, and to ensure that the exporting of items from Sweden is done in accordance with established export control rules. Under Section 1, second paragraph of the Military Equipment Act (1992:1300), military equipment may only be exported if there are security or defence policy reasons for doing so, and provided there is no conflict with Sweden’s international obligations or Swedish foreign policy. Applications for licences are considered in accordance with the Swedish guidelines on exports of military equipment, the criteria in the EU Common Position on Arms Exports, and the Arms Trade Treaty (ATT). The Inspectorate of Strategic Products (ISP) is the competent licensing authority. The multilateral agreements and instruments relating to disarmament and non-proliferation of weapons of mass destruction are important manifestations of the international community’s efforts to prevent the proliferation of such weapons. Proliferation can be counteracted by controlling the trade in dual-use items. This is work with objectives that are fully shared by Sweden. Strict and effective national export controls are required for this reason. Export controls are a key instrument for individual governments when it comes to meeting their international obligations with respect to non-proliferation. This is the thirty-sixth time that the Government has reported on Sweden’s export control policy in a Communication to the Riksdag. The first Communication on strategic export controls was presented in 1985. Sweden was among the first countries in Europe to report on activities in the area in the preceding year. Since that time, the Communication has been developed from a brief compilation of Swedish exports of military equipment to a comprehensive account of Sweden’s export control policy in its entirety. More statistics are available today thanks to an increasingly transparent policy and more effective information processing systems. In parallel with Sweden’s policy of disclosure, EU Member States have gradually developed, since 2000, a shared policy of detailed disclosure. The Government continuously strives to increase transparency in the area of export controls. Further improvements have been made in this year’s communication, in accordance with the Government Bill Stricter Export Controls of Military Equipment (Govt Bill 2017/18:23), which was based on the final report Stricter Export Controls of Military Equipment (SOU 2015:72) of the parliamentary all-party Committee for Military Equipment Exports (KEX). As part of the effort to improve openness and transparency in the area of export controls, more detailed information is presented on the 3

Comm. partnership agreements that licence holders are obliged to report annually, 2019/20:114 as well as on Swedish ownership of foreign legal entities active in the area. In addition, several tables contain a comparison with previous years. This Communication consists of three parts and a section on statistics. The first part contains an account of Swedish export controls on military equipment. The second part deals with Swedish export control on dual-use items. In the third part, the Government presents the authorities responsible for this area. Then follow annexes containing statistics covering Swedish exports of military equipment and dual-use items. The ISP and the Swedish Radiation Safety Authority (SSM) contribute statistical data for the Communication at the request of the Government. The statistics in this Communication supplement the information available in these authorities' own publications. In Annex 3 the ISP presents its own view on significant trends in Swedish and international export control.

Significant events during the year Swedish export control rules are updated regularly. The opportunities for successfully addressing the challenges that are a feature of non- proliferation efforts are improved in that way. 2019 was an important year for the ISP to follow up and continue to implement the stricter and modernised Swedish regulatory framework for exports of military equipment, Stricter Export Controls of Military Equipment (Govt Bill 2017/18:23), which with broad parliamentary support came into effect in April 2018. Further information on the regulatory framework is presented in Chapter 2 and Annex 4. In October 2019 the Government appointed a new export council, the Export Control Council (ECC). Under the terms of the KEX Bill, deputy members were also assigned for the first time. Preparation of a proposal to introduce more systematic post-shipment controls (verification visits) abroad of exports of light weapons from Sweden continued during the year at the Government Offices of Sweden. Such controls can be a valuable complement to strict licence assessment in counteracting diversion of military equipment to a non-intended recipient. The review by EU Member States of the implementation of the EU’s Common Position on exports of military technology and equipment (2008/944/CFSP) and its user guide was completed in 2019. The review led to the Common Position being updated through a Council decision in September (CFSP 2019/1560). The updates reflect a number of international changes in the area of export controls that have taken place since the Common Position was introduced in 2008. In addition, the user guide that is available to support interpretation of the position’s criteria was updated. Among other things, Sweden pressed for texts on democracy to be inserted into the sections of the user guide concerned with the situation of a recipient country with regard to human rights and respect for international humanitarian law. There are now new texts of this kind at three places in the revised user guide. The rules for export control of dual-use items are common to the EU Member States. The work of the Working Party on Dual Use Goods 4 (WPDU) was dominated in 2019 by continued negotiations on the

Commission’s proposal for a revision of the Council Regulation (EC) No Comm. 428/2009 setting up a Community regime for the control of exports, 2019/20:114 transfer, brokering and transit of dual-use items (the Dual-Use Regulation). An area to which particular attention was paid during these negotiations was a new EU-autonomous control list of items that can be used for IT surveillance. In December 2019 the Wassenaar Arrangement, which is an international export control regime with 42 participating states, decided to incorporate some of these items into its control list, and consequently also into the EU control list. The decision was based on a proposal by Sweden, among others. The international export control regimes (see section 3.2 for a review of the regimes) have worked for many years on early identification of new non-controlled items and technologies that can be used for military purposes. It became clear during 2019 that ever-accelerating development in emerging technologies, for example artificial intelligence (AI), quantum computers and biotechnology, is making this work increasingly crucial. Sweden is affected by this development, as it has export-oriented and advanced industry with leading-edge technology. Ever-greater attention needs to be paid to emerging sensitive technologies, both at home, for example through strengthened collaboration between government agencies, and internationally through cooperation with other countries in the various export control regimes. In activity under the Arms Trade Treaty, Sweden continued in 2019 to be responsible for a sub-working party concerned with implementation of Articles 6 and 7 of the Treaty. Sweden has also continued to support implementation of the Treaty by the states parties and to promote further accession to the Treaty through voluntary contributions to the funds that exist to support implementation and to the CSO coalition Control Arms. The Arms Trade Treaty had 105 states parties at the end of 2019. The so-called January Agreement, which is a policy agreement between the Social Democratic Party, the Centre Party, the Liberals and the Green Party, expresses a position in principle not to approve arms export deals with non-democratic countries that take part militarily in the Yemen conflict for as long as the conflict continues. Government policy in this area corresponds to the position expressed in the January Agreement, and during the year the Government assessed cases on the basis of the applicable export control regulatory framework.

Summary of the statistical data Combined statistics on licence approval and on Swedish exports of military equipment and dual-use items (DUIs) are presented in two annexes to this communication. Activity related to military equipment in 2019 is presented in Annex 1. Exports are also shown over the course of time, as individual licences and deliveries of major systems may cause wide fluctuations in the annual statistics. In 2019, 261 companies, authorities and private individuals held licences for manufacturing or brokering of military equipment. The number of licence holders has thus increased by just over 40 per cent in two years. One reason for this is that amendments to the Military Equipment Act 5

Comm. mean that some further activities require brokering licences. The increase 2019/20:114 relates principally to operators who provide military equipment to government agencies and to sub-contractors of system manufacturers of military equipment. Fifty-eight countries, as well as the EU, received deliveries of military equipment from Sweden in 2019. Four of the countries received only hunting and sport shooting equipment (Andorra, Malta, Namibia and Zambia). The value of military equipment exports in 2019 was just under SEK 16.3 billion. The value of exports consequently increased by just over 40 per cent in comparison with the previous year. The increase applied to exports both to established partner countries and to the rest of the world. The percentage breakdown between different regions has remained relatively stable over the past five years. By far the largest recipient country for Swedish military equipment in 2019, as in the two previous years, was Brazil (just over SEK 3 billion). This value is principally made up of continued deliveries under the Jas Gripen project. Alongside Brazil, the most significant recipient countries during the year were the United States (SEK 1.71 billion) the United Arab Emirates (SEK 1.36 billion), Pakistan (SEK 1.35 billion) and India (SEK 893 million), The United States received a number of different types of equipment, including further naval artillery systems and rocket- propelled grenade systems. By far the greater part of the value of exports to the United Arab Emirates related to supplementary acquisition of airborne radar (Globaleye). An export licence for the transaction was granted in 2016. No new export deals for the country have been approved since 2017. With regard to Pakistan, by far the greater part of the export value was made up of a follow-on delivery relating to airborne radar (Erieye). Further rocket-propelled grenade ammunition and a large number of components for military equipment were delivered to India. Around 70 per cent of exports in 2019 went to countries that are established recipients for Sweden. Exports to countries in the Middle East and North Africa concerned follow-on deliveries of other military equipment. No new export deals for Saudi Arabia have been approved since 2013. Other military equipment was delivered to Turkey to a value of SEK 41.5 million. These deliveries took place before the ISP decided on 15 October 2019 to revoke all current export licences for sale of military equipment to Turkey. Ahead of the decision, the Government had declared that Turkey’s military operation in Syria contravened the rules of international law and the UN Charter. The value of the export licences granted in 2019 amounted to just over SEK 13.5 billion, which is an increase of 4 per cent compared with 2018. The value of granted licences gives only a preliminary indication of future exports, but the clear increase in 2019 suggests that the value of exports will be relatively high over the next few years. Over half the value of licences in 2019 (SEK 7.8 billion) related to exports to other EU countries. Finland was the single largest recipient country in terms of value of licences (just over SEK 4 billion). The next highest value related to the United States (SEK 2.48 billion) The licensing of dual-use items is presented in Annex 2. Unlike the 6 situation with exports of military equipment, the companies involved do

not submit any delivery declarations. There is consequently a lack of data Comm. on actual exports. As a rule, transfer of dual-use items within the EU does 2019/20:114 not require a licence. In addition, extensive general licences make it possible for exports to certain partner countries outside the EU to not require a licence in individual cases. This means that recipient countries that are the object of most DUI exports are not included in the statistics. The number of granted export licences relating to dual-use items increased in 2019 in comparison with the previous year. Most granted licences related to China, followed by Russia, India, the United States and South Korea. China was also the country that was the object of most denials.

2 Military equipment

2.1 Background and regulatory framework A licence requirement for exports of military equipment is necessary to ensure that exporting of items from Sweden and provision of technical assistance is done in accordance with established export control rules. The regulatory framework for Swedish export controls consists of the Military Equipment Act (1992:1300) and the Military Equipment Ordinance (1992:1303), as well as the principles and guidelines on exports of military equipment decided upon by the Government and approved by the Riksdag. Under Section 1, second paragraph of the Military Equipment Act (1992:1300), military equipment may only be exported if there are security and defence policy reasons for doing so, and provided there is no conflict with Sweden’s international obligations or Swedish foreign policy in general. Sweden’s international obligations also must be taken into account in the examination of applications for licences. This includes Council Common Position 2008/944/CFSP defining common rules governing control of exports of military technology and equipment, as well as the criteria set forth in the Arms Trade Treaty (ATT). Swedish examination of licence applications is based on an overall assessment in accordance with government guidelines and established practice. The international rules are more in the nature of individual criteria to be observed, assessed or complied with. The ISP as an independent authority, is tasked with assessing licence applications independently in accordance with the whole regulatory framework. Under the Military Equipment Act, export controls cover the manufacture, supply and export of military equipment, as well as certain agreements on cooperation and rights to manufacture such equipment. In accordance with the same Act, a licence is required to carry out training with a military purpose. The Act applies both to equipment that is designed for military use and that constitutes military equipment under government regulations and to such technical support for military equipment that, according to the government regulations, constitutes technical assistance. The list of what constitutes military equipment and technical assistance is 7

Comm. contained in the annex to the Military Equipment Ordinance. The Swedish 2019/20:114 list of military equipment is in line with the EU's Common Military List, aside from three national supplements: nuclear explosive devices and special parts for such devices, fortification facilities etc. and certain chemical agents.

Stricter export control of military equipment 2019 was an important year for the ISP to follow up and continue to implement the stricter and modernised Swedish regulatory framework for exports of military equipment, Stricter Export Controls of Military Equipment (Govt Bill 2017/18:23 “the KEX Bill”), which with broad parliamentary support came into effect on 15 April 2018. The background to the stricter regulatory framework is that development over recent decades in the areas of foreign, security and defence policy has led to changes in the circumstances for and requirements to be met in Swedish military equipment export controls. The stricter regulatory framework largely reflects the proposals submitted by the parliamentary Supervisory Committee for Military Equipment Exports in its final report (SOU 2015:72). It follows from the amended regulatory framework that the democratic status of the recipient country should be a key condition in assessment of licence applications. The worse the democratic status, the less scope there is for licences to be granted. If serious and extensive violations of human rights or severe deficits in the recipient’s democratic status occur, this poses an obstacle to granting licences. Assessment of applications for licences must also take account of whether the export counteracts sustainable development in the recipient country. In addition, the principles for follow-on deliveries and international partnerships have been clarified. Furthermore, the changes mean strengthened supervision, sanction charges for certain contraventions of the rules and greater openness and transparency on issues relating to military equipment exports. The day-to-day work of the ISP has been dominated by the agency’s remit to implement the extensive statutory amendments to the military equipment legislation and to apply the Swedish guidelines on exports and other cooperation with foreign partners. Defence and security policy reasons in favour of exports, including follow-on deliveries and international collaboration, are in individual cases set against such foreign policy reasons against exports, such as democratic status and respect for human rights in the country in question, which may exist in individual cases. In accordance with the regulatory framework, an overall assessment is always made of the circumstances existing in the individual case. As highlighted above, in October 2019 the Government appointed new members of the Export Control Council (ECC). Deputy members were also assigned for the first time in order to improve openness and transparency in parliamentary participation in the decision-making process.

Export controls and the Policy for Global Development Comm. One of the Government's explicit aims has been to strengthen work on the 2019/20:114 Policy for Global Development (PGD, Govt Bill 2002/03:122, Report 2003/04:UU3, Riksdag Communication 2003/04:122). The Policy for Global Development has been relaunched in light of the fact that the 2030 Agenda for Sustainable Development was adopted internationally in 2015. The 2030 Agenda contains a declaration, 17 Sustainable Development Goals and 169 sub-goals. Implementation of the 2030 Agenda requires consensus to be strengthened between different policy areas, with the aim of increasing the contribution of combined policy to fair and sustainable development. Synergies must be strengthened and conflicting goals should be clarified and be the subject of conscious and considered choices. The Policy for Global Development is based on the idea that political decisions taken in Sweden often have a global impact, and before decisions are made they should be scrutinised and assessed from a rights perspective and the perspective of poor people. The three dimensions of sustainable development, economic, social and environmental, have become an ever-more important part of work on the Policy for Global Development through the adoption of the 2030 Agenda. Key principles continue, however, to be the rights perspective and the perspective of the poor on development. In March 2019, the 2030 Agenda delegation submitted its final report, Agenda 2030 och Sverige: Världens utmaning – världens möjlighet (SOU 2019:13) (The 2030 Agenda and Sweden: The World’s Challenge – the World’s Opportunity (SOU 2019:13) to the Government with proposals for Sweden’s continued implementation of the 2030 Agenda for Sustainable Development. Among other things, a Riksdag-based goal to bring about a long-term approach and achieve the broadest possible political endorsement is proposed. Consensus for sustainable development in administration is an area that has been highlighted by the delegation. The final report has been sent out for comment, and there is support for clearer governance and a long-term parliamentary goal. The Government therefore intends in the summer of 2020 to present a policy bill to the Riksdag on the 2030 Agenda, including an enhanced consensus policy based on the Policy for Global Development. The Government's desire is to avoid Swedish exports of military equipment that negatively affect efforts to contribute to equitable and sustainable global development. This takes place mainly through it having to be considered in assessment of licence applications whether the export or foreign collaboration counteracts fair and sustainable development in the recipient country (Govt Bill 2017/18:23) and through the application of the EU Common Position on Arms Exports, the eighth criterion of which highlights the technical and economic capacity of recipient countries and the need to consider whether a potential export risks seriously hampering sustainable development.

Export controls and feminist foreign policy By conducting a feminist foreign policy, the Government is endeavouring systematically to achieve outcomes that strengthen the rights, representation and resources of women and girls. The Government puts 9

Comm. strong emphasis on preventing and counteracting gender-based and sexual 2019/20:114 violence in conflicts and in communities in general. An important part of this work is the strict control of exports of military equipment from Sweden. There is often a correlation between accumulations of small arms and light weapons and the occurrence of violence in a conflict or in a society. Illegal and irresponsible transfers of weapons and ammunition are a particular problem in this context, as is inadequate control of the stockpiling of such equipment. Sweden, together with other countries, successfully pressed for introducing the term gender-based violence (GBV) into the Arms Trade Treaty, which was the first time the term had been used in an international, legally binding instrument. In line with its policy, the Government is now actively working for these issues to continue to be highlighted and followed up in work on the Treaty. Sweden is arguing among other things for Article 7(4) of the Arms Trade Treaty to be put into operation and applied in practice by the states parties. The Treaty provides in this article that the states parties have to take into account the risk of exported equipment being used to commit or facilitate serious acts of gender-based violence or serious acts of violence against women or against children. It should be noted that consideration of Article 7(4) of the Treaty takes place in addition to the assessment made previously with respect to human rights under the Swedish guidelines, and according to Criterion Two of the EU's Common Position (2008/944/CFSP) on exports of military equipment. The latter regulatory frameworks are therefore also significant in this context. These issues were among those considered in work on formulating the new regulatory framework for military equipment. The Government Offices of Sweden continuously endeavours to ensure that the ISP has sufficient expertise to be able to include gender equality aspects and risks of gender-based and sexual violence in assessments with regard to human rights and international humanitarian law, and to implement Article 7(4) of the Arms Trade Treaty.

Export controls and sustainable business The Government has prepared a new, ambitious sustainable business policy. In December 2015, a communication was presented to the Riksdag containing the Government’s view on a number of issues in relation to sustainable business, for example human rights, working conditions and environmental concerns (Policy for Sustainable Enterprise, Government Comm. 2015/16:69). A national action plan has also been developed for enterprise and human rights. The Government launched a platform for international sustainable business in 2019. In this platform the Government provides a collective description of what it is doing in relation to sustainable business and what ambitions there are. There is a clear expectation on the part of the Government that Swedish companies will act sustainably and responsibly and base their work on the international guidelines for sustainable enterprise, both at home and abroad. A number of measures have been taken to encourage and support companies in their 10 work on sustainability. Among other things, new legislation on

sustainability reporting for large companies, clearer criteria for Comm. sustainability in the Public Procurement Act and stronger legal protection 2019/20:114 for whistleblowers have been introduced. Anti-corruption is a key issue in the Government’s more ambitious policy for sustainable enterprise. Both the giving and accepting of bribes have long been criminal offences under Swedish law. In addition, the reform of bribery legislation in 2012 introduced among other things a provision making the funding of bribery through negligence a criminal offence. In addition to what is governed by Swedish legislation, the Government expects Swedish companies to apply a clear anti-corruption policy and contribute to greater transparency. The penal provisions can also be assumed to be significant for the international defence equipment market. In various international fora, Sweden actively promotes the effective application of conventions prohibiting bribes in international business transactions. For example, this applies to the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, the UN Convention against Corruption and the Council of Europe’s civil-law and criminal-law conventions in the area. The Government has previously welcomed the initiative for an international code of conduct with zero tolerance of corruption taken by European manufacturers of military equipment through the AeroSpace and Defence Industries Association of Europe, and its American counterpart. The largest Swedish trade association, the Swedish Security and Defence Industry Association (SOFF), which represents more than 95 per cent of companies in the defence industry in Sweden, requires prospective members to sign and comply with its Code of Conduct on Business Ethics in order to be allowed to be members. The Code of Conduct aims to ensure a high level of business ethics. Individuals who represent the companies also undergo special e-training on anti-corruption that has been developed jointly by SOFF and the Defence Materiel Administration (FMV). To date, 4 650 individuals have undergone this training. SOFF also arranges annual experience swapping sessions between senior managers on high business ethics standards, in which the Swedish Anti-Corruption Institute is among the participants.

2.2 The role of defence exports from a security policy perspective The foundations of today’s Swedish defence industries were laid during the Cold War. Sweden’s policy of neutrality, as drawn up following the Second World War, relied on a total defence system with a strong defence force and a strong national defence industry. The ambition was that Sweden would be independent of foreign suppliers. The defence industry thus became an important part of Swedish security policy. Exports of military equipment, which during this time were limited, were an element in ensuring capacity to develop and produce equipment adapted to the needs of the Swedish armed forces. 11

Comm. After the end of the Cold War, this striving for independence in terms of 2019/20:114 access to military equipment for the Swedish armed forces has gradually been replaced by a growing need for equipment cooperation with like- minded states and neighbours. Technical and economic development has meant that both Sweden and its partner countries are mutually dependent on deliveries of components, sub-systems and finished systems manufactured in other countries. These deliveries in many cases are ensured through contractual obligations. The Government will present a proposal for a new defence resolution in autumn 2020, based on the proposals in the Defence Commission’s report Värnkraft – Inriktningen av säkerhetspolitiken och utformningen av det militära försvaret 2021–2025 (Ds. 2019:8) (Resilience – The Focus of Security Policy and the Design of Military Defence 2021–2025 (Ds. 2019:8)). The Commission notes that Sweden's security and defence cooperation is developed together with Finland, the other Nordic countries and the Baltic states, as well as in the framework of the EU, the UN, the Organisation for Security and Co-operation in Europe (OSCE), the NATO partnerships and the transatlantic link. Both Sweden's involvement in international crisis management and its enhanced cooperation in its vicinity emphasise the importance of a capacity for practical military collaboration (interoperability) with other countries and organisations. Interoperability is dependent on Sweden's military equipment systems being able to function together with the equipment of partner countries, as well as being technically mature, reliable and available. In many cases this is at least as important as the equipment being of the highest level of technical performance. It is in Sweden’s security policy interest to safeguard long-term and continuous cooperation on equipment issues with a number of traditional partner countries. This mutual cooperation is based on both exports and imports of military equipment. In the Budget Bill for 2016 (Govt Bill 2015/16:1), the Government emphasises that the armed forces are a national concern, and that the choice of security arrangements made by EU Member States is reflected in equipment supply, e.g. regarding the view of security of supply and the maintenance of strategic competence for military capacities. The continued work on industry and market issues within the EU should therefore consider the distinctive nature of the military equipment market, and the need to meet the security interests of the Member States within the framework of the common market. The possibility of maintaining the transatlantic link should also be considered in this context. The Government further believes that participation in bilateral and multilateral equipment cooperation should make a clear and cost-effective contribution to the Swedish Armed Forces’ operative capability. As civilian-military collaboration increases and new technologies are made available for military applications, growing numbers of IT companies and other high-technology companies deliver products and services to the defence sector. An internationally competitive level of technological development contributes to Sweden continuing to be an attractive country for international cooperation. This also implies greater opportunities for 12 Sweden to influence international cooperation on export control as part of

an international partnership. While this applies principally within the EU, Comm. it can also be applied in a broader international context. 2019/20:114 The meeting of the European Council in June 2015 re-confirmed the importance of continuing to work on the basis of the European Council's discussion in December 2013 on Common Foreign and Security Policy. Particular emphasis was given to the importance of strengthening the competitiveness of the European defence industry. A new level of ambition for Common Foreign and Security Policy was adopted at the meeting of the European Council in December 2016. The Council welcomed the Commission’s proposals on a European action plan in the area of defence as its contribution to the development of European security and defence policy. In 2017 Permanent Structured Cooperation (PESCO) on defence cooperation, a test round of the Coordinated Annual Review on Defence (CARD) was established within the EU, and the negotiations on a new European Defence Fund (EDF), Its two test programmes in the form of the European Defence Industrial Development Programme (EDIDP) and the Preparatory Action for Defence Research continued in 2019. Sweden participates in various cooperation projects conducted by the European Defence Agency (EDA). The Government’s fundamental position is that Sweden should participate in and influence the processes that are getting under way in European cooperation, which also relates to the work as part of the EDA. Cooperation as part of the EDA has led to better opportunities for the Swedish Armed Forces to function effectively and has also improved prospects for more effective research cooperation. By taking part in the Six-Nations Initiative between the six major defence industry nations in Europe (Framework Agreement/Letter of Intent, FA/LoI), Sweden can be involved in and influence the defence industry and export policy being developed in Europe. This will have a major impact on the emerging common defence and security policy in Europe, both directly and indirectly. Cooperation in multilateral frameworks pays dividends in terms of improved resource utilisation from a European perspective and increasingly harmonised and improved European and transatlantic cooperative capability. In this context, the EDA and NATO’s Partnership for Peace, together with the FA/LoI initiative and Nordic Defence Cooperation (NORDEFCO), are vital.

Areas of activity Currently, the most important military product areas for Swedish defence and security companies are: • combat aircraft, • surface vessels and submarines, • combat vehicles and tracked vehicles, • short and long-range weapons systems in the form of land and sea- based and airborne systems, including missiles, • small and large-bore ammunition, • smart artillery ammunition, • land and sea-based and airborne radar and IR systems, 13

Comm. • electronic warfare systems that are passive and active, 2019/20:114 • telecommunications systems, including electronic countermeasures, • command and control systems for land, sea and air applications, • systems for exercises and training, • signature adaptation (e.g. camouflage systems and radar), • systems for civil protection, • encryption equipment, • torpedoes, • maintenance of aircraft engines, • gunpowder and other pyrotechnic materials, • services and consultancy, • support systems for operation and maintenance.

2.3 Cooperation within the EU on export controls on military equipment

EU Common Position on Arms Exports The EU Member States have national rules concerning the export of military equipment. However, the Member States have also chosen to some extent to coordinate their export control policies. The EU Code of Conduct on Arms Exports, adopted in 1998, contains common criteria for exports of military equipment, applied in conjunction with national assessments of export applications. The Code of Conduct was made stricter in 2005, and was adopted as a Common Position in 2008 (2008/944/CFSP). It is applied by all the EU Member States and a number of countries that are not members of the EU (Albania, Bosnia and Herzegovina, Canada, Georgia, Iceland, Montenegro, North Macedonia and Norway). The Common Position contains among other things eight criteria that are to be considered before taking a decision to approve exports of military equipment to a given country. Criterion One stipulates that the international obligations and commitments of Member States must be respected, in particular the sanctions adopted by the UN Security Council or the European Union. Criterion Two is concerned with respect for human rights in the country of final destination as well as respect by that country of international humanitarian law. Export licences are to be denied if there is a clear risk that the military technology or equipment to be exported might be used for internal repression. Criterion Three is concerned with the internal situation in the country of final destination, as a function of the existence of tensions or armed conflicts. Criterion Four is aimed at preservation of regional peace, security and stability. Export licences may not be issued if there is a clear risk that the intended recipient would use the military technology or equipment to be exported aggressively against another country or to assert by force a territorial claim. 14

Criterion Five is concerned with the potential effect of the military Comm. technology or equipment to be exported on the country's defence and 2019/20:114 security interests as well as those of another Member State or those of friendly and allied countries. Criterion Six is concerned with the behaviour of the buyer country with regard to the international community, as regards for example its attitude to terrorism and respect for international law. Criterion Seven is concerned with the existence of a risk that the military technology or equipment will be diverted within the buyer country or re- exported under undesirable conditions. Criterion Eight stipulates that the Member States must take into account whether the proposed export would seriously hamper the sustainable development of the recipient country. Individual Member States may operate more restrictive policies than are stipulated in the Common Position. The Common Position also includes a list of the products covered by the controls (the EU Common Military List). A user’s guide has also been produced that provides more details about the implementation of the agreements in the Common Position on the exchange of information and consultations, and about how these criteria for export control are to be applied. The User's Guide is continually updated.

Work as part of COARM The Working Party on Conventional Arms Exports (COARM) is a forum in which EU Member States regularly discuss the application of the Common Position on Arms Exports and exchange views on various export destinations. An account of this work, the agreements reached and statistics on the Member States’ exports of military equipment is published in an annual EU report. Since the criteria in the Common Position span a number of different policy areas, the goal is to achieve an increased and clear coherence between these areas. Sweden is making active efforts to attain a common view among the Member States on implementation of the Common Position. An important way of bringing this about is to increase transparency between the Member States. The review by COARM of the implementation of the EU’s Common Position on exports of military technology and equipment and its user guide (in accordance with Council Conclusions 10900/15) was completed in 2019. Because it was ten years since the position came into effect, work on reviewing the implementation of the position and its user guide began in 2018. The review led to the Common Position being updated through a Council decision in September 2019 (CFSP 2019/1560). The updates reflect a number of changes in the area of export controls that have taken place since the Common Position was introduced in 2008. This applies to changes at both the EU and international levels, among other things in the form of the Arms Trade Treaty, the 2030 Agenda for Sustainable Development and the EU strategy against illegal firearms and small arms and light weapons. In conjunction with the Council decision, Council decisions were also adopted on the review work (12195/19) in which the EU emphasises the importance of strengthening cooperation and 15

Comm. increasing convergence in the area of military equipment exports under 2019/20:114 EU Common Foreign and Security Policy. In addition, it is noted that revisions have been made to the user guide that is available to support interpretation of the position’s criteria. During the review activity, Sweden pressed for texts on democracy to be inserted into the chapter of the user guide concerned with Criterion Two and the situation of a recipient country with regard to human rights and respect for international humanitarian law. There are now new texts of this kind at three places in the revised user guide associated with the EU Common Position. Within the framework of the COARM dialogue there is also a continuous exchange of information between EU Member States regarding existing international cooperation in the area. The ambition is to find common ground that can strengthen the Member States’ actions in other fora, such as the Arms Trade Treaty. Through COARM, the EU additionally pursues an active policy of dialogue with third countries on export controls. In this context, exchanges took place in 2019 with Canada, Norway, Ukraine and the United States. Another aspect of the work aimed at third countries (outreach) is the support programmes the EU has in order to improve export controls with respect to military equipment, and to promote implementation of the UN Arms Trade Treaty, for those countries choosing to accede to the Treaty.

Exchange of information on denials In accordance with the rules for implementing the Common Position, Member States must exchange details of export licence applications that have been denied. Sweden received 226 denial notifications from other Member States and Norway in 2019. Sweden submitted 19 denial notifications and two revocation of licence notifications. The denials concerned Egypt, Jordan (2), the Philippines (4), Qatar (3), Saudi Arabia (3), Thailand (1), Turkey (3) and the United Arab Emirates (2). All 19 denials were decided with reference to the Swedish national guidelines. The fact that exports to a particular recipient country have been denied in a specific case does not mean that the country is not eligible for Swedish exports of military equipment in other cases. Swedish export controls do not use a system involving lists of countries, i.e. pre-determined lists of countries that are either approved or not approved as recipients. Each individual export application is considered through an overall assessment in accordance with the guidelines adopted by the Government for exports of military equipment, the EU Common Position on arms exports and the Arms Trade Treaty. To allow a licence to be granted, the application must be supported by the regulatory framework as a whole. If another Member State is considering granting a licence for an essentially identical transaction, consultations are to take place before a licence can be granted. The consulting Member State also has to inform the notifying state of its decision. The exchange of denial notifications and consultations on the notifications make export policy in the EU more transparent and uniform in the longer term between the Member States. The consultations also lead to greater consensus on different export destinations. Member States notifying each other about the export 16 transactions that are refused, and explaining the grounds for such refusal,

reduces the risk of another Member State approving the export. The ISP is Comm. responsible for notifications of Swedish denials and arranges 2019/20:114 consultations. Sweden received four consultation enquiries from other EU Member States in 2019. No consultation was initiated by Sweden during the year.

Work on EU Directive 2009/43/EC on transfers of defence-related products within the EU and the EEA Under the Swedish Presidency in 2009, Directive 2009/43/EC of the European Parliament and of the Council of 6 May 2009 simplifying terms and conditions of transfers of defence-related products within the Community, the ICT Directive, was adopted. The intention with the Directive was to allow for more competitive groups of defence industry companies and defence cooperation at the European level. The European Commission is in charge of implementation of the Directive with the assistance of a committee of Member State representatives, the ICT Committee. The committee did not hold any meetings in 2019. The Commission continued its review of the Directive in 2019 in accordance with its Article 17. As part of this work, the ICT Committee organised a technical working group to develop a basis for harmonising the implementation of the Directive at national level. To this end, the working group held one working meeting with representatives of the EU Member States.

Article 10 of the UN Firearms Protocol Regulation (EU) No 258/2012 of the European Parliament and of the Council implementing Article 10 of the Protocol against the Illicit Manufacturing of and Trafficking in Firearms, Their Parts and Components and Ammunition, supplementing the UN Convention against Transnational Organized Crime (UN Firearms Protocol), and establishing export authorisation, and import and transit measures for firearms, their parts and components and ammunition was adopted in 2012. The intention of the regulation, and of the UN protocol, is to combat crime by reducing access to firearms. References to exports in the Regulation indicate exports outside of the EU; from the point of view of Sweden, this means, on the one hand, exports from Sweden to third countries and, on the other, exports from any other Member State to a third country in cases where the supplier is established in Sweden. The Regulation covers firearms, parts for weapons and ammunition for civilian use. It does not apply to firearms etc. that are specially designed for military use, or to fully automatic weapons. Exceptions to the scope of the Regulation are bilateral transactions, firearms etc. that are destined for the armed forces, the police or the authorities of the Member States. Replica weapons, deactivated firearms, antique firearms and collectors or other entities concerned with the cultural and historical aspects of firearms also fall outside of the scope of the Regulation. Those firearms etc. that are encompassed by the EU Regulation are also encompassed, with the exception of smooth-bored hunting and sporting weapons, by the appendix to the Military Equipment Ordinance. 17

Comm. According to Regulation No 258/2012 of the European Parliament and of 2019/20:114 the Council, those aspects that are encompassed by the Common Position must be taken into consideration when assessing licence applications. The Regulation has been applied in Sweden since 2013. There are provisions that complement the EU Regulation in the Ordinance (2013:707) concerning the control of certain firearms, parts of firearms and ammunition. The ISP is the authority responsible for licences in accordance with the EU Regulation. In 2019, 242 cases were received by the ISP and 237 export decisions were issued.

Arms embargoes etc. Within the scope of its Common Foreign and Security Policy (CFSP), the EU implements embargoes that have been adopted by the UN on, for example, the trade in arms and dual-use items. The EU can also decide unanimously on certain embargoes extending beyond those adopted by the UN Security Council. These decisions by the Council of the EU may be regarded as an expression of the Member States’ desire to act collectively on various security policy issues. An arms embargo that has been adopted by the UN or the EU is implemented in accordance with each Member State’s national export control regulations. EU arms embargoes normally also include a prohibition on the provision of technical and financial services relating to military equipment. These prohibitions are governed by Council Regulations. Embargoes on trade in dual-use items are governed by both Council Decisions and Council Regulations. These are normally also accompanied by prohibition of the provision of technical and financial services relating to these items. A decision by the UN Security Council, the EU or the OSCE to impose an arms embargo represents an unconditional obstacle to Swedish exports in accordance with the Swedish guidelines for exports of military equipment. If an arms embargo also applies to imports, special regulations on the prohibition are issued in Sweden. Such regulations have previously been issued for Iran, Libya and North Korea. As a result of EU sanctions against the Russian Federation, the Government decided in December 2014 to impose an arms embargo on Russia. There are currently formal EU decisions, either independent or based on UN decisions, that arms embargoes apply to Afghanistan, Belarus, the Central African Republic, the Democratic Republic of Congo, Iran, Iraq, Lebanon, Libya, Myanmar (Burma), North Korea, the Russian Federation, Somalia, South Sudan, Sudan, Venezuela, Yemen and Zimbabwe. These embargoes vary in their focus and scope. There are also individually targeted arms embargoes against individuals and entities currently named on the UN terrorist list. The EU also applies an arms embargo against China, based on a Council declaration issued as a result of the events in Tiananmen Square in 1989. Sweden does not permit the export of any military equipment to China. Under an OSCE decision, a weapons embargo is also maintained on the area of Nagorno-Karabakh. The Ministry for Foreign Affairs has collated information on what restrictive measures (sanctions) against other countries exist in the EU and thus apply to Sweden. Information can be found on the website 18 www.regeringen.se/sanktioner and is updated regularly. This website

provides a country-by-country account of arms embargoes or embargoes Comm. on dual-use items that are in force. It also contains links to EU legal acts 2019/20:114 covering sanctions and, where applicable, the UN decisions that have preceded the EU measures.

2.4 Other international cooperation on export control of military equipment

Transparency in conventional arms trade The UN General Assembly adopted a resolution on transparency in the arms trade in 1991. The resolution urges the UN member states to voluntarily submit annual reports on their imports and exports of conventional weapon systems to a register administered by the United Nations Office for Disarmament Affairs (UNODA). The reports are concerned with trade in the following seven categories of equipment: tanks, armoured combat vehicles, heavy artillery, combat aircraft, attack helicopters, warships and missiles or missile launchers. The definitions of the different categories have been successively expanded to include more weapons systems, and it is now also possible to voluntarily report trade in small arms and light weapons (SALW). Particular importance is now attached to Man-Portable Air Defence Systems (MANPADS), which have been included in the category of missiles launchers since 2003. The voluntary reporting also includes information on countries' stockpiles of these weapons and procurements from their own defence industries. In consultation with the Ministry of Defence and the ISP, the Ministry for Foreign Affairs compiles annual data, which is submitted to the UN in accordance with the resolution. As the Register is based on reports from many major exporters and importers, a significant share of world trade in heavy conventional weapon systems is reflected here. Sweden’s share of world trade in heavy weapon systems continues to be limited. The report that Sweden will submit to the UN Register for 2019 will include exports of the armoured all-terrain vehicle BvS10 to Austria and exports of the RBS 70 portable air defence system to Brazil, Lithuania and Singapore. Trade in heavy weapons systems and small arms and light weapons is reported annually to the OSCE in the same way as to the UN. The reporting mechanism of the Wassenaar Arrangement regarding exports of military equipment largely follows the seven categories reported to the UN Register. However, certain categories have been refined through the introduction of subgroups and an eighth category for small arms and light weapons has been added. The Member States have agreed to report twice yearly, in accordance with an agreed procedure, and further information may then be submitted voluntarily. The purpose of this agreement is to draw attention to destabilising accumulations of weapons at an early stage. Exports of certain dual-use items and technology are also reported twice yearly.

Comm. The Arms Trade Treaty 2019/20:114 In 2013, the UN General Assembly voted to approve the international Arms Trade Treaty (ATT). The Treaty created an internationally binding instrument that requires its parties to maintain effective national control of the international trade in defence equipment and sets standards for what this control will entail. The anticipated long-term effects of this treaty are a) countries that regularly produce and export military equipment taking greater responsibility; b) a reduction in unregulated international trade, as more states accede and introduce controls; c) better opportunities to counteract the illegal trade, through the increased number of countries that exercise control and through improved cooperation between them. All the EU Member States have since ratified the Treaty and are therefore full states parties to it. The Treaty entered into force in 2014. At the end of 2019, 105 states had ratified the Arms Trade Treaty and a further 33 had signed it. The United States announced in April 2019 that it no longer intended to ratify the Arms Trade Treaty and that it was withdrawing its previous signature. The fifth Conference of States Parties to the ATT was held in 2019. Three working groups have been set up for Treaty work between the Conferences. They discuss effective implementation of the Treaty, increased accession to the Treaty and transparency and reporting issues. In addition, a Voluntary Trust Fund has been established for support to those states parties needing help in improving their control systems. Sweden coordinated work in the area of reporting from 2014–2017. In 2019, Sweden was what is known as a facilitator for issues concerning implementation of Articles 6 and 7 of the Treaty (on prohibition and export assessment respectively), as well as continuing to take part in other working groups and the Voluntary Trust Fund steering group. Sweden was also offered a seat on the advisory group on reporting and transparency issues. EU Member States continued in 2019 to coordinate their actions concerning the ATT in the Council working group COARM. Sweden is one of the major contributors to the ATT’s Voluntary Trust Fund and also contributes to the UN Trust Facility Supporting Cooperation on Arms Regulation (UNSCAR), which was set up previously, including for projects that support the implementation of the ATT. The two funds complement each other in that they are focused on different support channels. The Government attaches great importance to a widespread adoption and effective implementation of the ATT A universal, legally binding treaty that strengthens the control of trade in conventional arms is an effective tool to deal with the cross-border flows of weapons that nurture armed violence and armed conflicts. Sweden therefore plays an active part in continued work aimed at realising the objectives of the Treaty.

Small arms and light weapons (SALW) The expression small arms and light weapons (SALW) essentially refers to firearms which are intended to be carried and used by one person, as well as weapons intended to be carried and used by two or more persons. 20 Examples of the former category include pistols and assault rifles.

Examples of the latter include machine guns, rocket-propelled grenades Comm. and portable missiles. Work to prevent and combat the destabilising 2019/20:114 accumulation and the uncontrolled proliferation of small arms and light weapons is currently taking place in various international fora such as the UN, the EU and the OSCE. No other type of weapons causes more deaths and suffering than these, which are used every day in local and regional conflicts, particularly in developing countries and in connection with serious and often organised crime. In 2001, the United Nations adopted a programme of action (UNPoA) to combat the illegal trade in small arms and light weapons. The aim of the UN’s work is to raise awareness about the destabilising effect small arms and light weapons have on regions suffering from conflict. Non- proliferation is also important in combating criminality and, in particular, terrorism. As a result of the entry into force of the ATT, and as the number of states parties to it grows, efforts under the UN programme of action will be able to benefit from greater control of international trade and focus on measures at national level to combat the illegal proliferation of SALW. Work within the EU is based on a common strategy adopted in 2018 against illegal firearms and small arms and light weapons and ammunition. The strategy contains a number of proposals for measures for work on small arms and light weapons within the Union’s borders and in the vicinity of the EU and reflects Swedish priorities well. The OSCE Ministerial Council in 2018 adopted a declaration on the organisation’s work on standardisation and good approaches to combating illegal proliferation of small arms and light weapons and safe stockpiling of ammunition. Work in the OSCE in 2019 was primarily aimed at improving the organisation’s efforts against small arms and light weapons. During the year, Sweden reported exports of small arms and light weapons to the UN arms trade register as well as to the OSCE Register of Conventional Arms. The Wassenaar Arrangement (WA) also includes an obligation to report trade in these arms, among others. Sweden is working towards a situation where every country establishes and implements a responsible export policy with comprehensive laws and regulations. The aim is for all countries to have effective systems that control manufacturers, sellers, buyers, agents and brokers of SALW.

The Six-Nation Initiative In 2000, the six nations in Europe with the largest defence industries − France, Germany, Italy, Spain, Sweden and the United Kingdom − signed an important defence industry cooperation agreement at the governmental level. This agreement was negotiated as a result of the declaration of intent adopted by the countries’ defence ministers in 1998, the Six-Nation Initiative. The purpose of the agreement is to facilitate rationalisation, restructuring and the operation of the European defence industry. Activity in the six-nation initiative and its working groups has also covered export control issues. In 2019, the Export Control Informal Working Group, chaired by France, continued to deal with the implementation and application of the ICT Directive (2009/43/EC). The work was undertaken in close collaboration with the European Commission’s Directorate-General for 21

Comm. Internal Market, Industry, Entrepreneurship and SMEs and with the group 2019/20:114 that has been established for work under the ICT Committee. Work in the Six-Nation Initiative during the year was focused on opportunities for harmonising the scope of and conditions in general licences the Member States are to issue under the Directive. The group continued to work on finding a joint definition in the EU’s Common Military List for the concept ‘specially designed for military use’. In addition the group has analysed the possible effects of the United Kingdom’s departure from the EU (‘Brexit’). A discussion on export control issues related to the European Defence Fund was also initiated in 2019.

3 Dual-Use Items

3.1 Background and regulatory framework The issue of non-proliferation of weapons of mass destruction has long been high on the international agenda. Particular attention has been given to the efforts to prevent further states from obtaining weapons of mass destruction. Since the acts of terrorism on 11 September 2001, close attention has also been paid to non-state actors. There is no legal definition of what is meant by weapons of mass destruction. However, the term is commonly used to indicate nuclear weapons and chemical and biological warfare agents. In modern terminology, radiological weapons are also sometimes considered to be covered by the term. In efforts to prevent the proliferation of weapons of mass destruction, certain delivery systems, such as long-range ballistic missiles and cruise missiles, are also included. Multilateral measures to prevent the proliferation of weapons of mass destruction have primarily been expressed through a number of international conventions and cooperation within a number of export control regimes, in which many of the major producer countries cooperate to make non-proliferation work more effective. The term dual-use items (DUIs) is used in reference to items produced for civil use that may also be used in the production of weapons of mass destruction or military equipment. Certain other products of particular strategic importance, including encryption systems, are also classified as dual-use items. In recent decades, the international community has developed a range of cooperation arrangements to limit the proliferation of these products. EU countries have a common regulatory framework in the Dual-Use Regulation. Export control itself is always exercised at national level, but extensive coordination also takes place through international export control regimes (see section 3.2 for a review of the regimes) and within the EU. The EU strategy against proliferation of weapons of mass destruction from 2003 contains a commitment to strengthen the effectiveness of export control of DUIs in Europe. One fundamental reason is that various 22 sensitive products that could be misused in connection with weapons of

mass destruction are manufactured in the EU. The export control measures Comm. required in the EU must, at the same time, be proportionate with regard to 2019/20:114 the risk of proliferation and not unnecessarily disrupt the internal market or the competitiveness of European companies. Within the international export control regimes, control lists have been drawn up establishing which products are to be subject to licensing. This is justified by the fact that some countries run programmes for the development of weapons of mass destruction despite having signed international agreements prohibiting or regulating such activities, or because they remain outside of these agreements. Such countries have often reinforced their capacity by importing civilian products that are then used for military purposes. History has shown that countries which have acquired military capacity in this way have imported those products from companies that were not aware of their contribution to the development of, for example, weapons of mass destruction. Often the same purchase request is sent to companies in different countries. Previously, one country could refuse an export licence while another country granted it. Consequently, there was an obvious need for closer cooperation and information sharing between exporting countries. This need prompted the establishment of the export control regimes. The need for coordinated control has been underscored in recent years by the threat of terrorism. The inclusion of a DUI on a control list does not automatically mean that exports of that item are prohibited, but that the item is assessed as sensitive and that exports are therefore subject to control. In the EU, the control lists adopted by the various regimes are incorporated into Annex 1 of the Dual- Use Regulation and constitute the basis for decisions for granting or denial of export licences. The Dual-Use Regulation states that the Member States can also use a mechanism that enables products not on the lists to be made subject to controls in the event that the exporter or the licensing authorities become aware that the product is or may be intended for use in connection with the production etc. of weapons of mass destruction or for other military purposes. This is known as a catch-all mechanism, and is also common practice within the international export control regimes. Much of the work in the EU and in the regimes consists in the extensive exchange of information, in the form of outreach activities – directed at domestic industry and at other countries – on the need for export control and the development of export control systems. The export control of DUIs and of technical assistance in connection with these products is governed nationally by the Dual-Use Items and Technical Assistance Control Act (2000:1064). The Act contains provisions supplementing the Dual-Use Regulation. It is difficult to provide an overall picture of the industries that work with dual-use items in Sweden, since a considerable proportion of products are sold in the EU market or exported to markets covered by the EU’s general export licences. The principal rule is that no licence is required for transfer to another EU member State. The general licence EU001 applies, with some exceptions, to all products in Annex I to the Dual-Use Regulation regarding export to Australia, Japan, Canada, Liechtenstein, New Zealand, Norway, Switzerland and the United States. 23

Comm. In addition, another five general licences were introduced (EU002– 2019/20:114 EU006) for certain products going to certain destinations, export after repair or replacement, temporary export to exhibitions and trade fairs, certain chemicals and telecommunications. The number of countries covered by licences EU002–EU006 ranges from six countries in EU002 and EU006 to nine in EU005 and 24 countries in EU003 and EU004. The purpose of the general licences is to make it easier for the companies, which only need to report to the licensing authority 30 days after the first export has taken place. Unlike companies which are subject to the military equipment legislation, no basic operating licences under the export control legislation are required for companies that produce or otherwise trade in DUIs. Nor are these companies obliged to make a declaration of delivery in accordance with the export control legislation. However, a company is obliged to make a fee declaration if it has manufactured or sold controlled products subject to supervision by the Inspectorate of Strategic Products (ISP). This includes sales within and outside of Sweden. In the event that a company is aware that a DUI, which the company concerned intends to export and which is not listed in Annex I of the Dual- Use Regulation, is intended to be used in connection with weapons of mass destruction, it is required to inform the ISP. The ISP can, following the customary assessment of the licence application, decide not to grant a licence for export (catch-all). The majority of the DUIs exported with a licence from the ISP are telecommunications equipment containing encryption and thermal imaging devices, both controlled in the Wassenaar Arrangement export regime. Carbon fibre and frequency changers for the dairy and food industry also account for a significant proportion. Another major product in terms of volumes is heat exchangers. These are controlled within the Australia Group. Other products, such as isostatic presses, chemicals or UAVs (unmanned aerial vehicles) and equipment related to such vehicles represent a smaller share of DUIs but can require extensive resources in the assessment of licence applications. The embargo on trade in DUIs is in accordance with decisions by the UN and has been implemented and expanded by the EU to encompass North Korea. Under an EU decision, this embargo is complete, i.e. it covers all products on the EU control list. Certain similar items are also covered by an embargo. The same applies with regard to the embargoes introduced by the EU due to the human rights situation in Iran, which are, however, linked to different types of licensing procedures. Against the background of Russia’s actions in Ukraine, the EU has furthermore adopted certain restrictive measures (sanctions) against Russia. Export restrictions cover the entire EU control list for dual-use items when intended for military end use or for military end users. In accordance with EU decisions, exports of certain DUIs are also prohibited or covered by a licence requirement in relation to Syria. In January 2016 all EU nuclear technology-related sanctions against Iran were lifted in accordance with the JCPoA (Joint Comprehensive Plan of Action), as the IAEA had confirmed that Iran had complied with its obligations under the plan. In May 2018 the United States announced that 24 it intended to leave the JCPoA and unilaterally re-introduce the sanctions

previously lifted as a result of the agreement. The United States sanctions Comm. were then re-introduced in a first stage in August and in a second stage in 2019/20:114 November. The EU’s commitments to the agreement remain in place. Licensing procedures now apply to DUIs that have been previously been subject to embargoes. However, this does not apply to items covered by the Missile Technology Control Regime (MTCR).

3.2 Cooperation within international export regimes

International agreements With regard to the international agreements, specific reference should be made to

– the 1968 Treaty on the Non-Proliferation of Nuclear Weapons (Non- Proliferation Treaty, NPT); – the 1972 Convention on the Prohibition of the Development, Production and Stockpiling of Bacteriological (Biological) and Toxin Weapons and on their Destruction (BTWC); – the 1993 Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction (CWC).

Sweden is a state party to all three conventions (see SÖ 1970:12, SÖ 1976:18 and SÖ 1993:28).

Under the NPT, non-nuclear-weapon states undertake not to receive or manufacture nuclear weapons, while the five nuclear-weapon states (China, France, Russia, the United Kingdom and the United States) commit themselves to disarmament. Furthermore, the parties undertake not to transfer source or special fissionable material, or equipment or material especially designed or prepared for the processing, use or production of special fissionable material to any non-nuclear-weapon state, unless the source or special fissionable material or equipment is subject to the International Atomic Energy Agency's (IAEA) safeguards. In the BTWC, the parties undertake not to transfer, either directly or indirectly, equipment that can be used for the production of biological weapons. In the same way, the CWC stipulates that its parties are not to transfer, either directly or indirectly, chemical weapons to any other state. Although the primary objective of these international agreements is to prevent the proliferation of weapons of mass destruction and to promote disarmament, they also require the parties to promote trade for peaceful purposes. The reason for this is that a substantial proportion of the products and technologies concerned are dual-use items.

Comm. The international export control regimes 2019/20:114 To strengthen international cooperation on the non-proliferation of weapons of mass destruction, some forty countries have, on their own initiative, come together in five international export control regimes: the Zangger Committee, the Nuclear Suppliers Group, the Australia Group, the Missile Technology Control Regime and the Wassenaar Arrangement. The purpose of the regimes is to identify goods and technologies that can be used in connection with weapons of mass destruction and to enhance the uniformity of the participating countries’ export control of these. To support this work, each regime has a list of items subject to control. The lists are revised annually. This work also includes exchanging information on refused exports, proliferation risks and contacts with third countries for the purpose of promoting the regimes’ non-proliferation objectives. Cooperation in the multilateral export control regimes is grounded in a shared political will to prevent the proliferation of weapons of mass destruction. This is achieved through national legislation enabling the export control of goods and technologies identified as strategic. Participation in these regimes makes it easier to meet the legally binding international commitments in the above-mentioned international agreements to refrain from assisting other states, directly or indirectly, in acquiring weapons of mass destruction.

The Zangger Committee The Zangger Committee, which was established in 1974, deals with export control issues related to the Non-Proliferation Treaty. The Committee defines the meaning of equipment or material especially designed or prepared for the production of special fissionable material. Consequently, its responsibilities overlap to some extent with those of the Nuclear Suppliers Group, of which more below. The Non-Proliferation Treaty stipulates that export of such equipment and material, as well as fissionable material, to a non-nuclear-weapon state is only allowed if the fissionable material is subject to IAEA safeguards. The equipment and materials are specified in the Committee’s control list, which is updated to keep pace with technological developments. The list can be found in the IAEA’s Information Circular No 209 (INFCIRC/209/Rev.4). The Swedish Defence Research Agency (FOI) is responsible for setting up the Zangger Committee's website.

The Nuclear Suppliers Group The Nuclear Suppliers Group (NSG) has its origins in the “London Club”, established in the mid-1970s. The work of the NSG is concerned with the export control of products listed in Part 1 and Part 2 of the NSG Guidelines, including products with nuclear applications and DUIs that can be used in connection with the development or production of nuclear weapons. These products are listed in the IAEA’s Information Circular No. 254, which includes two control lists for each group of items (INFCIRC/254/Rev.14/Part 1 and INFCIRC/254/Rev.11/Part 2). 26

In 2019, the NSG Technical Working Group, chaired by Sweden, Comm. continued its work on technical proposals and on updating the contents of 2019/20:114 the control lists. The plenary meeting for the year was held in Nur-Sultan under Kazakh chairmanship. Discussions were held, among other things, on the technical, legal and political aspects of participation in the NSG by states that are not parties to the Non-Proliferation Treaty.

The Australia Group The Australia Group was formed in 1985 on the initiative of Australia. Its aim is to harmonise member countries’ export controls to prevent the proliferation of chemical and biological weapons. Originally, the Group's work only encompassed chemicals and chemical production equipment. In 1990, however, it was decided to expand the control lists to include microorganisms, toxins and certain manufacturing equipment for biological weapons. At the 2019 plenary in Paris, the Group’s members agreed to strengthen work on non-proliferation of biological and chemical weapons among other things by increasing knowledge of emerging technologies and how they can be exploited for the development of such weapons. The plenary expressed strong support for the Organisation for the Prohibition of Chemical Weapons (OPCW). The group also had a specific discussion on possible control listing of Novichok precursors.

The Missile Technology Control Regime The Missile Technology Control Regime (MTCR) was set up as a result of an American initiative in 1982. It focuses on export controls of complete rocket systems (including ballistic missiles, space launch vehicles and sounding rockets) and other unmanned aerial vehicles (including cruise missiles, drones and reconnaissance platforms) with a range of 300 kilometres or more. Controls also extend to components of such systems and other items that can be used to produce missiles, and also smaller unmanned aerial vehicles designed to be able to spread aerosols. Work within the regime continued in 2019 with a review of the contents of the lists of controlled items and exchange of information on sensitive proliferation of missile technology, including intangible technology transfer. At the annual meeting in Auckland chaired by New Zealand, the MTCR states discussed missile proliferation and expressed their concern over this, particularly the missile programmes in Asia and the Middle East.

The Wassenaar Arrangement The Wassenaar Arrangement was formed in 1996 as a successor to the international export control cooperation that had previously taken place within the framework of the Coordinating Committee for Multilateral Export Controls (Cocom). The Arrangement’s work covers the control of conventional weapons, as well as dual-use items and technologies not controlled by other regimes. Consequently, it represents an important complement to the work of other regimes that focus exclusively on weapons of mass destruction and certain delivery systems. The Arrangement has 42 participating states since India was welcomed as a 27

Comm. new member at the end of 2017. Among these are most large producers 2019/20:114 and technology holders in the areas concerned. The Arrangement’s aim is to contribute to regional and international security and stability by promoting openness and responsible action with regard to transfers of conventional weapons and DUIs, thus helping to avoid destabilising accumulations. The basic view taken by the Wassenaar Arrangement is that trading of the items in the control lists should be permitted, but must be controlled. An important function maintained by the Wassenaar Arrangement is to bring together technical expertise from the participating states to update the common control lists in light of technical developments. The Arrangement maintains two control lists that are attached to its basic documents: the Munitions List, which covers conventional military equipment, and the List of Dual-Use Goods and Technologies, which covers products and technologies with both civilian and military uses that are not included in the other regimes' control lists. In practice, the two lists guide the contents of the EU’s corresponding control lists. The Wassenaar Arrangement’s annual plenary meetings are held in Vienna in the late autumn. These meetings address matters of fundamental significance to the continued development of this cooperation. On the basis of the ongoing technical work throughout the year, formal decisions are also made on updating the control lists. The updates reflect the technological development of different types of weapons and underlying technologies. After a long period of detailed expert analysis, in which Sweden had played an active role, the Wassenaar Arrangement was able to adopt a proposal on control of certain equipment for cyber-surveillance in 2019.

Consular vigilance An element of the efforts to limit the risks of the proliferation of nuclear weapons and other weapons of mass destruction is to press for vigilance with regard to the spread of sensitive information through intangible technology transfer, what is known as consular vigilance. This activity is based on the fact that Sweden has both legally binding commitments that have been adopted by the UN and the EU, and political commitments, within the scope of the export control regimes, aimed at limiting the spread of sensitive information and technologies. Consular vigilance covers admission to universities and assessment of applications for residence permits for studies relating to such sensitive information and technology. Cooperation between the authorities concerned, which aims, for example, to increase awareness of risks of spread associated with sensitive university study programmes or research partnerships continued in 2019.

3.3 Collaboration within the EU on dual-use items

The export control regimes and the EU Work within the EU on the export control of dual-use items is closely 28 associated with the international work that takes place as part of the export

control regimes. Coordination in the EU takes place principally in the Comm. Council’s Working Party on Non-Proliferation (CONOP), which deals 2019/20:114 with non-proliferation issues in general, and in the Working Party on Dual- Use Goods (WPDU), which works, among other things, on policy issues and updating the control list of dual-use items which fall under the Dual- Use Regulation. The following section addresses the work of the WDPU. In accordance with the EU’s strategy against the proliferation of weapons of mass destruction, the Member States have to work towards the EU being a leading partner in the export control regimes. The EU has long held the view that all EU Member States should be invited to join all of the export control regimes. The main reason is the EU’s Single Market, which covers the vast majority of dual-use items, as well as the endeavour to maintain effective national export controls that are harmonised for all EU Member States, based on the regimes’ control lists, guidelines for export controls and exchange of information on proliferation risks. Trade within the EU is not counted as exports in this context. EU Member States are thus dependent on each country’s export control systems. This is an additional reason why the issue of membership in the export control regimes is a substantial one. All EU countries are members of the NSG and the Australia Group. This is not the case for the MTCR, where decisions have not yet been made on Croatia, Cyprus, Estonia, Latvia, Lithuania, Malta, Romania, Slovakia and Slovenia. The same applies to Cyprus with regard to the Wassenaar Arrangement.

Work on the control lists during the year The changes made to the regimes' control lists over the course of the year are detailed in Annex I of the Dual-Use Regulation and thus become legally binding for EU Member States. In accordance with the powers delegated to it (Regulation [EU] No 599/2014), the Commission has updated Annex I to reflect the changes determined within the export control regimes, and has made consequential changes to Annex IIa-IIg and Annex IV. The changes are set out in the regimes towards the end of a calendar year and are usually entered in Annex I in the subsequent year.

The Working Party on Dual-Use Activities in the Working Party on Dual-Use Goods (WPDU) in 2019 were dominated by continued negotiations on a proposal for revision of the Dual-Use Regulation, which was presented by the Commission in autumn 2016. This is a comprehensive revision of the current Regulation. The aim, according to the European Commission, is to modernise the rules and make control work more efficient both for export control authorities and for industry. The proposal needs to be approved by both the Council and the European Parliament. The Commission proposes, among other things, that the EU’s export control system for dual-use items should be expanded to cover not just security policy considerations but also clearer consideration of human rights and terrorism. It is already possible in the currently applicable regulation for Member States to control unlisted items on the basis of 29

Comm. considerations relating to public safety or human rights. In this context, 2019/20:114 the Commission focuses in particular on technology that can be used for IT surveillance. The list of dual-use items (Annex I to the Dual-Use Regulation), which is composed entirely of the regimes’ control lists, is to be supplemented, according to the proposal, by a new EU-autonomous list of items of the type mentioned above, which would thus become the object of licensing requirements for exports despite not being listed by the international export control regimes. It is also proposed that the Commission be given a mandate, in close cooperation with the Member States and other affected parties, to draw up guidelines to support the practical application of the revised Regulation. The Commission also proposes an expansion of the catch-all clause, so that licences will also be required for exports from the EU for dual-use items that have not been listed if the exporter has received information from the licensing authority that there is a risk of their being used by persons who are involved in threats to public safety, including terrorism, or in consideration of human rights. The proposed simplifications include the introduction of new general EU export licences relating for instance to encryption, deliveries of low value and intra-company transfers of software and technology. On the basis of the proposal, the Government presented a background brief (2016/17: FPM22) to the Swedish Riksdag on 2 November 2016. The principal parts of the proposal and the Government’s preliminary position were outlined in the background brief. The Government declared that it shared the Commission’s aspiration to endeavour to bring about a strict, effective and modern export control system in the EU and among the Member States. The Government also agreed with the Commission on reducing the risks of IT surveillance software being used in a harmful manner that seriously infringes human rights. With regard to the aspect of human rights in the new proposal, the Government noted that human rights are a priority issue for Sweden and the EU, and that it is in our interests to make a positive contribution to integrating human rights into the external aspects of EU policy. It was also highlighted as important that mechanisms introduced to strengthen human rights and influence repressive regimes are appropriate, precise and effective. This applies in particular if the measures taken concern obstacles to international flows of trade that are crucial to the continued prosperity of both the EU and third countries. The Government argued in the communication that the multilateral export control regimes (e.g. the NSG and the Wassenaar Arrangement) ought to continue to provide the basis for the EU’s list of dual-use items, as these control regimes are well established, have broader accession than the EU and contain the high-level technical expertise that is required. The Government expressed doubt about building up duplicate EU expertise in relation to the control regimes, as the Commission’s proposals intend, as this may lead to divergent EU-autonomous export controls. There was emphasis in this context on the cost-driving effects for the Commission and the Member States, and it was stressed that in times of increased mutual dependence, Sweden and the EU should primarily aim for as global and uniform rules as possible. The Government emphasised the importance of a close and broad analysis of the proposal and its 30 repercussions.

Interinstitutional negotiations - the so-called “trilogue” process - Comm. between the Council, the European Parliament and the Commission 2019/20:114 regarding the revision of the dual-use legislation was initiated in 2019.

Work in the Dual-Use Coordination Group The activities of the Dual-Use Coordination Group (DUCG) are aimed at coordinating application of the Dual-Use Regulation. During the year, the group provided support to work on updating the EU-wide control list, prepared statistical data for the Commission’s annual report on export control, exchanged experience and information on national implementation of the Dual-Use Regulations and assisted in the development of the electronic information system DUeS.

3.4 UN Security Council Resolution 1540 and the Proliferation Security Initiative (PSI) The United Nations Security Council adopted Resolution 1540 in 2004. The Resolution, supported by Chapter VII of the UN Charter, through binding decisions, obliges all UN Member States to prevent non-state actors (terrorists) from gaining access to weapons of mass destruction, their means of delivery and items connected to such weapons. It sets out, among other things, that all states are to establish effective national controls on exports, brokering, transit and trans-shipments. The Resolution also contains provisions on assisting other countries with the implementation of the obligatory measures. It was also decided through Resolution 1540 to establish a committee tasked with reporting to the Security Council on the Resolution's implementation. The UN's Member States are urged to report to this committee on the steps that they have taken to implement the Resolution. The mandate of the 1540 Committee runs until April 2021. An international initiative that shares several points with Security Council Resolution 1540 and partly overlaps with it is the Proliferation Security Initiative (PSI), to which 105 countries have acceded. This initiative, supported by the EU and Sweden, aims to strengthen international cooperation in order to be better able to prevent the transport of weapons of mass destruction and the components of such products to unauthorised recipients within the framework of international and national law. National efforts to maintain the necessary preparedness and to act in an urgent matter of this type are divided between the authorities concerned according to established remit principles.

Comm. 2019/20:114 4 Responsible Authorities

4.1 The Inspectorate of Strategic Products The Inspectorate of Strategic Products (ISP) is the central administrative authority for cases and supervision pursuant to the Military Equipment Act (1992:1300) and the Dual-Use Items (DUI) and Technical Assistance Control Act (2000:1064), provided that, in the latter instance, no other authority has this task. The Swedish Radiation Safety Authority has the same responsibility with reference to particularly sensitive nuclear technology products. The Swedish Defence Research Agency and the Swedish National Defence Radio Establishment assist the ISP by providing technical expertise and organisations including the Swedish Military Intelligence and Security Directorate, the Swedish Security Service and the Swedish National Defence Radio Establishment supply the ISP with information. The ISP also has an established partnership with Swedish Customs. Some of the ISP's supervisory inspections are carried out jointly with Swedish Customs and the authorities also exchange information on export licences. The Government has appointed the ISP as what is known as the competent authority, responsible for executing certain duties stipulated by Council resolutions concerning sanctions that have been decided by the European Union. The ISP also has supervisory duties in relation to special prohibiting regulations issued by the Government with the support of the Act (1996:95) on Certain International Sanctions. The ISP is the national authority under the 1992 Chemical Weapons Convention (CWC) and performs the duties pursuant to the Act (1994:118) concerning inspections under the United Nations Chemical Weapons Convention (1994:118). This aspect of the ISP's activities is not dealt with in the present Communication. The ISP is also the licensing authority for cases in accordance with Regulation No 258/2012 of the European Parliament and of the Council of 14 March 2012, regulating licences to export civilian firearms, their parts and components and ammunition outside of the EU and certain import and transit measures. The authority’s responsibilities are set out in the Ordinance (2010:1101) with instructions for the Inspectorate of Strategic Products. The Ordinance stipulates that the ISP shall present to the Government each year 1) a report on Swedish exports of military equipment and other strategic products during the previous calendar year and 2) a description of significant trends in Swedish and international export control.

Contacts with companies The ISP maintains regular contact with the companies whose exports are subject to control. The Military Equipment Act and the Military Equipment Ordinance set forth most of the obligations for companies to present notifications and data to the ISP. For example, companies have to report regularly to the ISP on their marketing activities abroad. These 32

reports form the basis for the ISP's periodic briefings with the companies Comm. regarding their export plans. The ISP may issue positive or negative 2019/20:114 preliminary decisions to the companies on destinations that are sensitive or have not yet been assessed. In addition to processing export licence applications, the ISP reviews the notifications that companies and authorities are obliged to submit at least four weeks prior to submitting tenders or signing contracts concerning exports of military equipment or other cooperation with foreign partners in this field. At this stage, the ISP has the opportunity to notify prohibitions on submitting tenders or entering into contracts. Exporters of military equipment must also report the deliveries of military equipment that are made under the export licences issued to them. Unlike with regard to military equipment, no licence is required to manufacture dual-use items under export control legislation. Furthermore, as a general rule licences are not required for sales of DUIs within the EU (a licence is only required for what are referred to as Annex IV items). The control list that is drawn up in accordance with the Dual-Use Regulation states which categories of items require licences to be exported outside the EU. It is primarily the companies that have to classify whether a product is to be considered a DUI or not, it is primarily the companies that classify their own items. When a company is unsure whether its item belongs to the controlled items category, the company can submit an enquiry to the ISP. In light of this, the ISP's contacts with DUI companies are different than those that apply to military equipment. With the exception of a few companies, the ISP meets DUI companies less regularly. In its supervisory role, the ISP carries out compliance visits to companies and authorities to monitor their internal export control organisations. In 2019 the ISP carried out 24 compliance visits, evenly distributed between the areas of military equipment and DUIs.

Funding Rules concerning the ISP's funding are detailed in the Ordinance (2008:889) on the financing of the operations of the Inspectorate of Strategic Products (ISP). A large proportion of the authority’s activity is funded by actors whose activities are controlled by the ISP. The Ordinance stipulates that the fee structure is broken down into three categories: military equipment, dual-use items and products covered by the Act Concerning Inspections in Accordance with the UN Convention on the Prohibition of Chemical Weapons. When the Ordinance (2013:707) concerning the control of certain firearms, parts of firearms and ammunition handed the ISP the task of assessing export licence applications in accordance with Regulation (EU) No 258/2012, the ISP was also given the right to charge licence application fees. Parts of the ISP's international operations, support to the Government Offices of Sweden and work on international sanctions are funded by appropriations through the Ministry for Foreign Affairs. The ISP's exports of services should primarily be funded by parties other than the ISP. No services were exported in 2019. 33

Comm. The Export Control Council 2019/20:114 The Riksdag decided in 1984, on the basis of the Government Bill proposing greater transparency and consultation on matters relating to exports of military equipment etc. (Govt Bill 1984/85:82), that an advisory board on military equipment issues should be established. The Government reorganised this board into the Export Control Council (ECC) in connection with the establishment of the ISP in 1996. The rules governing the composition and activities of the ECC are included in the ISP's instructions. All parliamentary parties are represented on the ECC. It is chaired by the Director-General of the ISP. A new Export Control Council started work on 1 November 2019, after being appointed by the Government. In line with the proposals of the KEX Inquiry, deputy members were also appointed for the first time. A list of the Council’s members and deputy members appears below The Director-General of the ISP is responsible for selecting those cases that will be subjected to consultation with the Export Control Council. Consultation can take place, for example, before a preliminary decision is issued to a company. The Director-General has to consult the Council before the ISP submits an application to the Government for final assessment under the Military Equipment Act or the Dual-Use Items and Technical Assistance Control Act. At meetings of the ECC, the Ministry for Foreign Affairs presents assessments of the relevant recipient countries. The Ministry of Defence provides assessments of the defence policy aspects of the cases. The Director-General may also summon other experts. One task of the Council is to present opinions on proposed exports based on the Swedish guidelines, the EU Common Position on Arms Exports and the Arms Trade Treaty in order to provide further guidance to the ISP. The members have unrestricted access to the documentation of all export licence application proceedings. The Director-General reports continuously on all export licence decisions, processed tender notifications and cooperation agreements, as well as preliminary decisions that have been ruled upon. With effect from 2005, the ISP also reports all export licence decisions on dual-use items to the ECC. Taken together, this system ensures good insight into application of the rules on export control for members of parliament from all parties represented in the Riksdag. The intention of the Swedish system, uniquely in international terms in that representatives of the parliamentary parties can discuss potential export transactions in advance, is to build a broad consensus on export control policy and promote continuity in the conduct of that policy. Unlike in many other countries, the Export Control Council deals with cases at an early stage, before a specific transaction is carried out. Since it would harm the exporting companies commercially if their plans were made known before they had concluded a deal, the Export Control Council's discussions are not made public. The assessments of individual countries are normally subject to confidentiality in relation to foreign affairs. The Advisory Council on Foreign Affairs, and not the Export Control Council, is still consulted in cases where this is prescribed by the Instrument of Government. The Export Control Council met eight times

in 2019. The Council discussed 14 matters for consultation, of which 13 Comm. related to military equipment and one to dual-use items. 2019/20:114

The current members of the Export Control Council are:

Janine Alm Ericson, Member of Parliament (Green Party) Jan R Andersson, Member of Parliament (Moderate Party) Annicka Engblom, Member of Parliament (Moderate Party) Kerstin Lundgren, Member of Parliament (Centre Party) Maria Nilsson, Member of Parliament (Liberal Party) Mattias Ottosson, Member of Parliament (Social Democrats) Désirée Pethrus, Member of Parliament (Christian Democrats) Roger Richtoff, Member of Parliament (Sweden Democrats) Marie Granlund, former Member of Parliament (Social Democrats) Stig Henriksson, former Member of Parliament (Left Party) Lars Johansson, former Member of Parliament (Social Democrats) Per Westerberg, former Member of Parliament (Moderate Party)

Deputy members of the Export Control Council:

Camilla Brodin, Member of Parliament (Christian Democrats) Hanna Gustafsson, Member of Parliament (Left Party) Ann-Charlotte Hammar Johnsson, Member of Parliament (Moderate Party) Caroline Nordengrip, Member of Parliament (Sweden Democrats) Eva Sonidsson, former Member of Parliament (Social Democrats)

The Strategic Cooperation Council The Strategic Cooperation Council is a cooperative council attached to the ISP for cooperation on issues related to non-proliferation. It consists of a Director-General and members from the cooperating authorities appointed by the ISP. The Strategic Cooperation Council met once in 2019.

Technical-Scientific Council A Technical-Scientific Council is attached to the ISP to assist the Director- General of the ISP in the discussion of matters concerning the classification of military equipment and dual-use items. The Council consists of representatives of institutions with expertise in the technology's civilian and military applications. The Technical-Scientific Council held one meeting in 2019.

4.2 The Swedish Radiation Safety Authority In accordance with the Ordinance (2008:452) with instructions for the Swedish Radiation Safety Authority, the Swedish Radiation Safety Authority (SSM) is the central government authority for issues relating to the protection of human health and the environment against the harmful 35

Comm. effects of ionising and non-ionising radiation, security and physical 2019/20:114 protection in nuclear and other activities involving radiation and nuclear non-proliferation. The SSM’s non-proliferation remit in connection with exports of nuclear material and nuclear technology products is stated in the Ordinance mentioned and in the Dual-use Items and Technical Assistance Control Ordinance (2000:1217). This states that the SSM decides whether or not to authorise exports to a country outside the EU or for transfers within the EU of nuclear material and nuclear technology products. This does not, however, apply in certain specific cases, stated in the Ordinance, for which the Government is the decision-making body. The items are specified in Annex I, Category 0 and in Annex IV of the Dual-Use Regulation. SSM is also the national supervisory authority with regard to compliance with these provisions. By a Government Decision the SSM is assigned as the authority regarding consideration of applications which follow from Council Regulation (EU) No 267/2012 concerning restrictive measures against Iran and Council Regulation (EC) No 329/2007 concerning restrictive measures against North Korea. In the field of nuclear non-proliferation, the SSM is also the national supervisory authority, under the Act (1984:3) on Nuclear Activities, ensuring that Swedish nuclear activities are conducted in accordance with the obligations resulting from the international agreements to which Sweden is party that aim to prevent the proliferation of nuclear weapons. The SSM is also the national contact point for the IAEA database covering the illicit trafficking and other unauthorised handling of nuclear materials and other radioactive substances. The SSM cooperates with other authorities on export control matters, in particular the ISP. The SSM is also supported by the technical expertise of the Swedish Defence Research Agency, but does itself have a high level of expertise in the field of nuclear technology.

Control of nuclear exports Nuclear materials (uranium, plutonium and thorium) and nuclear technology products are classified as DUIs; consequently, their export is governed by the Dual-Use Regulation. Exports to countries outside the EU require licences, but the EU's general export licences do not apply to these items. For several products licences are also required for transfers within the EU. When an application for a licence to export nuclear fuel is submitted, the SSM assesses, in parallel, the issue of the possible transfer of the nuclear material in accordance with the Act (1984:3) on Nuclear Activity and Ordinance (1984:14) on Nuclear Activities. For spent nuclear fuel, the SSM also investigates the issue of the materials’ final disposal. With regard to spent nuclear fuel originating from nuclear activities in Sweden, the application has to include an assurance that the exporter will recover the material if it cannot be disposed of in the intended manner. Furthermore, the SSM decides how nuclear material will be transported with the aim of preventing radiological accidents and to ensure that there 36 is adequate physical protection.

The conditions imposed in decisions concerning export licences are Comm. based on the guidelines agreed in the Nuclear Suppliers Group (NSG) (see 2019/20:114 section 3.2). The guidelines include obtaining certain specified assurances from the government of the recipient country before a licence to export can be granted. These assurances will state that the items are intended for peaceful use, that the IAEA have full safeguarding rights in the country and that nuclear material has adequate physical protection in the country. In addition, there must be a guarantee that re-exportation will not take place without corresponding assurances. The SSM is tasked by the Government with obtaining these assurances from the government of the country in receipt of exports of nuclear technology, as well as with drawing up and submitting Swedish assurances to exporting countries when Sweden imports such nuclear material. However, in the case of initial transactions, the Ministry for Foreign Affairs obtains the assurances for exports or provides assurances for imports. All EU Member States take part in the European Atomic Energy Community (the Euratom Treaty), one purpose of which is to establish a common market for special materials and equipment in the field of nuclear energy and to guarantee that nuclear material is not used for anything other than its intended purpose. All the EU Member States have also ratified the Non-Proliferation Treaty and have concluded safeguards agreements with the IAEA with associated additional protocols. The Government is of the opinion that the existing licensing procedure for trade within the EU, in accordance with the Dual-Use Regulation and the commitments of the Member States within the scope of Euratom, normally provides sufficient safeguards in the transfer of nuclear material and nuclear technologies between EU Member States and are in accordance with the NSG Guidelines. Within the scope of the Euratom Treaty, the EU has the right to enter into agreements with third countries. Bilateral agreements on the peaceful use of nuclear energy have been entered into with Australia, Canada, Japan, Ukraine, the United States and Uzbekistan. There is an equivalent agreement between the EU and South Africa, but this had not yet entered into force in 2019. All EU Member States have undertaken to report exports of nuclear material and nuclear technologies to the IAEA, under the Additional Protocol to the Safeguards Agreement with the IAEA, in the case of Sweden INFCIRC/193/Add.8. For Sweden, this means that the European Commission, through its safeguards under the Euratom Treaty, reports exports of nuclear material to the IAEA and that the SSM reports exports of nuclear technologies to the IAEA. As opposed to the case with other dual-use items, the SSM must be notified of exports of nuclear technologies listed in Annex 1, Category 0 of the Dual-Use Regulation. The SSM handled 94 applications received for export licences in 2019. Details of the export licences granted by the SSM in 2018 can be found in Annex 2, Table 14. The SSM makes contact with the companies affected by its safeguarding activities where necessary. In its supervisory role, the SSM carries out visits to companies to ensure that they are aware of and comply with the requirements made on them in the event of intra-EU transfers or extra-EU 37

Comm. exports of dual-use items. However, no compliance visits were carried out 2019/20:114 in 2019.

Exports of Military Equipment 5 Statistical report Military equipment

What constitutes military equipment is set out in the annex to the Military Equipment The Inspectorate of Strategic Products (ISP) provides the Government Ordinance (1992:1303), known as the List of Military Equipment. This list corresponds to with the statistical material on which the reporting of Swedish exports of the EU Common Military List and is broken down into 20 categories of equipment, ML1- military equipment and dual-use items is based. The figures in the ML20, software (ML21) and technical assistance (ML22). As well as the 22 categories, the communication are based partly on the ISP’s own figures and partly on the list contains three national supplements (nuclear explosive devices, fortification facilities statutory reporting that licence holders submit annually to the ISP. The and certain chemical warfare agents). Table 1 shows broadly which military equipment is Swedish Radiation Safety Authority (SSM) monitors the development of included in each ML category. nuclear technology in Sweden and provides statistical data for the Government's reporting of exports of dual-use nuclear technologies. The Swedish list of military equipment is supplemented by a division into military equipment for combat purposes (MEC) and other military equipment (OME). Military Changes in reporting equipment for combat purposes means equipment with a destructive impact including The all-party Committee for Military Equipment Exports (KEX) presented sights for such equipment and fire control equipment. Certain parts and components for certain proposals in its final report (SOU 2015:72) on improved openness military equipment for combat purposes, as well as equipment that does not have a directly destructive impact, are counted as other military equipment. and transparency on issues concerning exports of military equipment. The

Government’s assessment in the Government Bill Stricter Export Controls This communication mainly presents the equipment according to the ML categories of the for Military Equipment (Govt Bill 2017/18:23) is mainly in agreement List of Military Equipment and broken down into MEC and OME. Where a table states with the committee’s proposals. The Government notes that the annual that export licences have been granted or that exports have been made within a particular communication presented by the Government to the Riksdag represents an ML category, this refers to one or more items in that category. It does not mean that important element in creating openness and transparency in the area of export licences have been granted or that there have been exports of every one of the items export controls. The Government has stated in the Bill that it intends to in that category of equipment. revise the communication, in close cooperation with the ISP, with the aim of presenting more information. Table 1 Categories of military equipment Last year’s statistical report, relating to data for 2018, contained a number of updates and improvements. This year’s report builds further on Category Item the new structure which, to a greater extent, follows the licence-granting ML1 Smooth-bore weapons with a calibre of less than 20 mm, other arms and automatic weapons process in chronological order for greater clarity. with a calibre of 12.7 mm (calibre 0.50 inches) or less and accessories and specially designed Further facts and figures have been added to the statistical report in this components therefor. ML2 Smooth-bore weapons with a calibre of 20 mm or more, other weapons or armament with a year’s communication as part of efforts to improve openness and calibre greater than 12.7 mm (calibre 0.50 inches), projectors and accessories and specially transparency in the area of export controls. This applies among other designed components for these weapons. things to information about the partnerships permit holders are obliged to ML3 Ammunition and fuse setting devices and specially designed components therefor. report annually, as well as Swedish ownership of foreign legal entities ML4 Bombs, torpedoes, rockets, missiles, other devices and charges with explosive effect and active in the field of military equipment. In addition, more tables contain associated equipment and accessories and specially designed components therefor. ML5 Fire control, and related alerting and warning equipment, and related systems, test and a comparison with previous years. alignment and countermeasure equipment, specially designed for military use, and specially Swedish exports of military equipment in 2019 are presented in Annex 1 designed components and accessories therefor. and exports of dual-use items in Annex 2. ML6 Ground vehicles and components. ML7 Chemical or biological toxic agents, “riot control agents”, radioactive materials, related equipment, components and materials. ML8 “Energetic materials” and related substances. ML9 Vessels of war (surface or underwater), special naval equipment, accessories, components and other surface vessels. ML10 “Aircraft”, “lighter-than-air vehicles”, “unmanned aerial vehicles” (“UAVs”), aero-engines and “aircraft” equipment, related equipment, and components specially designed or modified for military use. ML11 Electronic equipment, “spacecraft” and components not specified elsewhere on the EU 38 Common Military List. ML12 High velocity kinetic energy weapon systems and related equipment, and components specially designed for these weapons. ML13 Armoured or protective equipment, constructions and components.

in 2019. The Council discussed 14 matters for consultation, of which 13 Comm. related to military equipment and one to dual-use items. 2019/20:114 Appendix 1 ExportsThe current of members Military of Equipment the Export Control Council are:

MilitaryJanine equipment Alm Ericson, Member of Parliament (Green Party) Jan R Andersson, Member of Parliament (Moderate Party) WhatAnnicka constitutes Engblom, military M equipmentember of isParliament set out in the(Moderate annex to Party) the Military Equipment OrdinanceKerstin (1992:1303), Lundgren, knownMember as ofthe Parliament List of Military (Centre Equipment. Party) This list corresponds to the EUMaria Common Nilsson, Military Member List of and Parliament is broken down(Liberal into Party) 20 categories of equipment, ML1- ML20,Mattias software Ottosson, (ML21) Member and technical of Parliament assistance (Social (ML22). Democrats) As well as the 22 categories, the list containsDésirée threePethrus, national Member supplements of Parliament (nuclear (Christian explosive Democr devices, ats)fortification facilities and Rogercertain Richtoff,chemical warfareMember agents). of Parliament Table 1 shows(Sweden broadly Democrats) which mili tary equipment is includedMari ine Granlund,each ML category. former Member of Parliament (Social Democrats) Stig Henriksson, former Member of Parliament (Left Party) The LarsSwedish Johansson, list of military former equipment Member isof supplemented Parliament (Social by a division Democrats) into military equipmentPer Westerb for combaterg, former purposes Member (MEC) of and Parliament other military (Moderate equipment Party) (OME). Military equipment for combat purposes means equipment with a destructive impact including sightsDeputy for members such equipment of the Exportand fire Control control Council:equipment. Certain parts and components for military equipment for combat purposes, as well as equipment that does not have a directly destructive impact, are counted as other military equipment. Camilla Brodin, Member of Parliament (Christian Democrats)

ThisHanna communication Gustafsson, mainly Member presents of Parliament the equipment (Left according Party) to the ML categories of the ListAnn of Military-Charlotte Equipment Hammar and Johnsson, broken down Member into MECof Parl andiament OME. (ModerateWhere a table states thatParty) export licences have been granted or that exports have been made within a particular MLCaroline category, Nordengrip, this refers to Member one or more of Parliament items in that (Sweden category. Democrats) It does not mean that exportEva licencesSonidsson, have former been granted Member or ofthat Parliament there have (Social been exports Democrats) of every one of the items in that category of equipment.

TableThe Strategic 1 Categorie Cooperations of military Council equipment

The Strategic Cooperation Council is a cooperative council attached to the Category Item ML1ISP for cooperationSmooth-bore onweapons issues with related a calibre to of non less -thanproliferation. 20 mm, other It arms consists and automatic of a weapons Director-Generalwith a calibre and of members 12.7 mm (calibre from 0.50the inches)cooperating or less and authorities accessories appointed and specially designed by the ISP.components The Strategic therefor. Cooper ation Council met once in 2019. ML2 Smooth-bore weapons with a calibre of 20 mm or more, other weapons or armament with a calibre greater than 12.7 mm (calibre 0.50 inches), projectors and accessories and specially Technicaldesigned-Scientific components Council for these weapons. ML3A Techni calAmmunition-Scientific and Councilfuse setting is devices attached and tospecially the ISP designed to assist components the Director therefor.- ML4 Bombs, torpedoes, rockets, missiles, other devices and charges with explosive effect and General associatedof the equipmentISP in andthe accessories discussion and specially of matters designed componentsconcerning therefor. the ML5classification Fire control,of military and related equipment alerting and warningand dual equipment,-use items and related. The systems, Council test and consists ofalignment representatives and countermeasure of institutions equipment, with specially expert designedise in thefor militarytechnology's use, and specially civilian anddesigned military components applications. and accessories The Technicaltherefor. -Scientific Council held ML6one meetingGround in 201 vehicles9. and components. ML7 Chemical or biological toxic agents, “riot control agents”, radioactive materials, related equipment, components and materials. ML8 “Energetic materials” and related substances. ML94.2 VesselsThe of Swedish war (surface or Radiation underwater), special Safety naval equipment,Authority accessories, components and other surface vessels. ML10In accordance “Aircraft with”, “lighter the -thanOrdinance-air vehicles (2008:452)”, “unmanned with aerial instructionsvehicles” (“UAVs for”), aerothe -engines Swedish andRadiation “aircraft” equipment,Safety Au relatedthority, equipment, the andSwedish components Radiation specially designedSafety or modified Authorityfor (SSM) military is use. the central government authority for issues relating to ML11 Electronic equipment, “spacecraft” and components not specified elsewhere on the EU the protection of human health and the environment against the harmful Common Military List. 35 ML12 High velocity kinetic energy weapon systems and related equipment, and components 39 specially designed for these weapons. ML13 Armoured or protective equipment, constructions and components.

Comm. The Export Control Council 2019/20:114 The Riksdag decided in 1984, on the basis of the Government Bill Appendix 1 proposing greater transparency and consultation on matters relating to Category Itemexports of military equipment etc. (Govt Bill 1984/85:82), that an advisory increased every year since 2015 and that sales in 2019 were just over 30 per cent higher ML14 “Specialisedboard equipmenton military for military equipment training” orissues for simulating should military be scenarios, established. simulators The than in the previous year. speciallyGovernment designed for reorganised training in the this use boardof any firearminto the or Exportweapon specified Control by Council ML1 or ML2 (ECC) and specially designed components and accessories for these. Table 2 Total value of invoiced military equipment in and outside Sweden ML15 Imagingin connect or countermeasureion with equipment, the establishment specially designed of forthe military ISP use,in and1996. specially The rules designedgoverning components the compositionand accessories therefor.and activities of the ECC are included in the 2015–2019 (SEK million) ML16 Forgings,ISP's castingsinstructions. and other All unfinished parliamentary products, partiesthe use of are which represented in a specified on product the ECC. is It identifiableis chaired by material by the composition, Director-General geometry orof function, the ISP. and which are specially designed Type of case 2015 2016 2017 2018 2019 for any products specified by ML1 to ML 4, ML6, ML9, ML10, ML12 or ML19. Total value 18 200 20 703 21 304 23 315 30 408 ML17 MiscellaneousA new equipmExportent, Control materials Council and “libraries started”, and work components on 1 Novemberspecially designed 2019, after therefor.being appointed by the Government. In line with the proposals of the KEX Despite the large number of manufacturing and brokering companies, a handful of these ML18 ProductionInquiry, equipment deputy andmembers components. were also appointed for the first time. A list of account for the majority of sales. Table 3 shows the fifteen largest operators in terms of ML19 Directedthe Council’s Energy Weapon members (DEW) and systems, deputy related members or countermeasure appears equipment below and test sales of military equipment in and outside Sweden. models,The and Director specially designed-General components of the ISP theref is or.responsible for selecting those cases ML20 Cryogenicthat will and “besuperconductive subjected to” equipment, consultation and specially with designedthe Export components Control and Council. accessories for these. Table 3 The largest defence companies and government agencies in terms of ML21 “Software”Consultation can take place, for example, before a preliminary decision is invoiced military equipment in and outside the country in 2018 (SEK) ML22 “Technology”issued to a company. The Director-General has to consult the Council before the ISP submits an application to the Government for final Company Value Principal area of equipment assessment under the Military Equipment Act or the Dual-Use Items and Saab AB, Aeronautics 7 911 780 023 Combat aircraft Manufacturing and brokering Technical Assistance Control Act. Sensor and command and Saab AB, Surveillance 4 977 626 766 At meetings of the ECC, the Ministry for Foreign Affairs presents control systems A basic manufacturing licence is required for the manufacturing of military equipment in Missile and ground combat assessments of the relevant recipient countries. The Ministry of Defence Saab Dynamics AB 3 817 371 035 Sweden. Manufacturing means the production of military equipment or parts thereof which systems provides assessments of the defence policy aspects of the cases. The constitute military equipment. The licence requirement also applies if the manufacturer of BAE Systems Hägglunds AB 2 163 424 067 Armoured vehicles Director-General may also summon other experts. One task of the Council the military equipment is solely the sub-contractor of another party which holds a licence Saab Kockums AB 1 966 789 199 Surface and submarine craft to manufactureis militaryto present equipment. opinions on proposed exports based on the Swedish FMV, Försvarets materielverk - Swedish 1 505 800 000 Leasing of combat aircraft guidelines, the EU Common Position on Arms Exports and the Arms Defence Materiel Administration Licences are requiredTrade Treaty for brokering in order ofto militaryprovide equipment, further guidance inventions to the concerning ISP. military BAE Systems Bofors AB 1 334 432 960 Artillery systems equipment and Themethods members for the have production unrestricted of military access equipment to the documentation in and outsi deof Sweden.all export Saab AB, Support and Services 1 325 384 689 Maintenance activities The same applieslicence to activities application relating toproceedings. provision of technicalThe Directorassistance-General to a party abroad.reports FFV Ordnance AB 851 851 768 Ground combat systems Supply meanscontinuously sale, granting, on offering all export for licencepayment decisions,, loan, gift processedand brokering. tender The notifications licence GKN Aerospace Sweden AB 729 355 085 Aircraft engines requirement appliesand cooperation to Swedish agreements,companies, a asparty well resident as preliminary or permanently decisions domiciled that hinave EURENCO Bofors AB 392 184 053 Gunpowder and explosives Sweden and Swedishbeen ruled authorities. upon. With Trading effect in firearms from 2005, or parts the of ISP such also weapons reports is allexempt export Saab AB, Industrial Products and Services 391 130 349 Components for aircraft from requirementslicence for decisions brokering onlicences. dual- useLicences items for to such the tradingECC. areTaken governed together, by this Nammo Sweden AB, Karlsborg 385 298 941 Small-calibre ammunition provisions ofsystem the Offensive ensures Weapons good insight Act. into application of the rules on export control Hunting and sport shooting Norma Precision AB 337 525 625 for members of parliament from all parties represented in the Riksdag. ammunition The companies,The authorities intention and of private the Sw individualsedish system, who uniquelyhold licences in international to manufacture terms or in Aimpoint AB 213 747 727 Weapon sights broker militarythat equipment representatives are under of the the supervision parliamentary of the Inspectorateparties can ofdiscuss Strategic potential Products (ISP)export and must, transactions on request, in advance,provide the is informationto build a broadand documents consensus needed on export for Activities related to other countries supervisory controlcontrol and policy grant and the promote ISP access continuity to premises in the where conduct the activity of that is po undertaken.licy. Unlike Licence holdersin manyare also other obliged countries, to submit the reportsExport inControl various Council respects deals to the with ISP. cases at an The licensing process for exporting military equipment is made up of several parts. This early stage, before a specific transaction is carried out. Since it would harm communication presents marketing and preliminary decisions, tender notifications, export Swedish defence industry the exporting companies commercially if their plans were made known licences and actual exports. In addition, some other activities related to other countries such as cooperation agreements and further transfer of military equipment are reported. before they had concluded a deal, the Export Control Council's discussions In 2019, manufacturing or brokering licences were held by 261 Swedish companies, are not made public. The assessments of individual countries are normally authorities and private individuals. This represents a continued increase on previous years. Data in the report The number ofsubject licence to holdersconfidentiality has increased in relation by over to 40 foreign per cent affairs. since the new legislation entered into forceThe in Advis 2018. oryThe Council increase onrelates Foreign principally Affairs, to sub-andcontractors not the Export of system Control The countries indicated in the statistics in most cases are the final recipient countries for manufacturersCouncil, of military is equipment.still consulted in cases where this is prescribed by the the military equipment stated. The ISP endeavours as far as possible to follow the Swedish Instrument of Government. The Export Control Council met eight times military equipment to the end-user country. Some components and sub-systems are Among the licence holders, 70 exported military equipment or technical assistance, while acquired by foreign system manufacturers for use in the production of military equipment 34 40 120 only supplied military equipment within the country. 71 licence holders did not report intended for several different final recipients. It is not possible in these cases to know in any sale of military equipment. Table 2 shows the total value of sales of military equipment advance who the end-user is, and the control assessments are therefore focused on the in and outside Sweden in the past five years. It can be seen from the table that sales have in 2019. The Council discussed 14 matters for consultation, of which 13 Comm. related to military equipment and one to dual-use items. 2019/20:114 Appendix 1 Category Item increasedThe current everymembers year since of 201the 5Export and that Control sales in Council 2019 were are: just over 30 per cent higher ML14 “Specialised equipment for military training” or for simulating military scenarios, simulators than in the previous year. specially designed for training in the use of any firearm or weapon specified by ML1 or ML2 Janine Alm Ericson, Member of Parliament (Green Party) and specially designed components and accessories for these. TableJan 2 R Andersson,Total value Member of invoiced of Parliament military (Moderateequipment Party) in and outside Sweden ML15 Imaging or countermeasure equipment, specially designed for military use, and specially designed components and accessories therefor. Annicka Engblom,2015–2019 M(SEKember million) of Parliament (Moderate Party) ML16 Forgings, castings and other unfinished products, the use of which in a specified product is Kerstin Lundgren, Member of Parliament (Centre Party) identifiable by material composition, geometry or function, and which are specially designed TypeMaria of case Nilsson, 2015 Member of201 Parliament6 (Liberal2017 Party) 2018 2019 for any products specified by ML1 to ML 4, ML6, ML9, ML10, ML12 or ML19. TotalMattias value Ottosson,18 200 Member20 of 703 Parliament 21 (Social 304 Democrats)23 315 30 408 ML17 Miscellaneous equipment, materials and “libraries”, and components specially designed Désirée Pethrus, Member of Parliament (Christian Democrats) therefor. Despite the large number of manufacturing and brokering companies, a handful of these ML18 Production equipment and components. Roger Richtoff, Member of Parliament (Sweden Democrats) accountMari fore Granlund, the majority former of sales. Member Table 3of shows Parliament the fifteen (Social largest Democrats) operators in terms of ML19 Directed Energy Weapon (DEW) systems, related or countermeasure equipment and test sales of military equipment in and outside Sweden. Stig Henriksson, former Member of Parliament (Left Party) models, and specially designed components therefor. ML20 Cryogenic and “superconductive” equipment, and specially designed components and Lars Johansson, former Member of Parliament (Social Democrats) Table 3 The largest defence companies and government agencies in terms of accessories for these. Per Westerberg, former Member of Parliament (Moderate Party) ML21 “Software” invoiced military equipment in and outside the country in 2018 (SEK) ML22 “Technology” Deputy members of the Export Control Council: Company Value Principal area of equipment Saab AB, Aeronautics 7 911 780 023 Combat aircraft Manufacturing and brokering Camilla Brodin, Member of Parliament (Christian Democrats)Sensor and command and Saab AB, Surveillance 4 977 626 766 Hanna Gustafsson, Member of Parliament (Left Party)control systems A basic manufacturing licence is required for the manufacturing of military equipment in Missile and ground combat SaabAnn Dynamics-Charlotte AB Hammar Johnsson, Member3 817 371 of 035 Parliament (Moderate Sweden. Manufacturing means the production of military equipment or parts thereof which Party) systems constitute military equipment. The licence requirement also applies if the manufacturer of BAECaroline Systems HägglundsNordengrip, AB Member of Parliament2 163 424 (Sweden 067 Armoured Democrats) vehicles the military equipment is solely the sub-contractor of another party which holds a licence SaabEva Kockums Sonidsson, AB former Member of Parliament1 966 789 (Social 199 Surface Democrats) and submarine craft to manufacture military equipment. FMV, Försvarets materielverk - Swedish 1 505 800 000 Leasing of combat aircraft Defence Materiel Administration Licences are required for brokering of military equipment, inventions concerning military BAE Systems Bofors AB 1 334 432 960 Artillery systems equipment and methods for the production of military equipment in and outside Sweden. SaabThe AB, Strategic Support and Cooperation Services Council 1 325 384 689 Maintenance activities The same applies to activities relating to provision of technical assistance to a party abroad. FFVThe Ordnance Strategic AB Cooperation Council is a cooperative851 851 768 council Groundattached combat tsystemso the Supply means sale, granting, offering for payment, loan, gift and brokering. The licence GKNISP forAerospace cooperation Sweden ABon issues related to non729-proliferation. 355 085 Aircraft It consists engines of a requirement applies to Swedish companies, a party resident or permanently domiciled in EURENCODirector-General Bofors AB and members from the cooperating392 184 053 authorities Gunpowder appointed and explosives Sweden and Swedish authorities. Trading in firearms or parts of such weapons is exempt Saabby the AB, ISP.Industrial The Products Strategic and Cooperation Services Council391 130 met 349 once Components in 2019. for aircraft from requirements for brokering licences. Licences for such trading are governed by Nammo Sweden AB, Karlsborg 385 298 941 Small-calibre ammunition provisions of the Offensive Weapons Act. Hunting and sport shooting Norma Precision AB 337 525 625 Technical-Scientific Council ammunition The companies, authorities and private individuals who hold licences to manufacture or AimpointA Techni ABcal -Scientific Council is attached to213 the 747 ISP 727 to assistWeapon the sights Director - broker military equipment are under the supervision of the Inspectorate of Strategic General of the ISP in the discussion of matters concerning the Products (ISP) and must, on request, provide the information and documents needed for Activitiesclassification related of tomilitary other countriesequipment and dual-use items. The Council supervisory control and grant the ISP access to premises where the activity is undertaken. consists of representatives of institutions with expertise in the technology's Licence holders are also obliged to submit reports in various respects to the ISP. Thecivilian licensing and processmilitary for applications. exporting military The Technical equipment-Scientific is made up Council of several held parts. This

communicationone meeting in presents2019. marketing and preliminary decisions, tender notifications, export Swedish defence industry licences and actual exports. In addition, some other activities related to other countries such as cooperation agreements and further transfer of military equipment are reported. In 2019, manufacturing or brokering licences were held by 261 Swedish companies, authorities and private individuals. This represents a continued increase on previous years. Data4.2 in the report The Swedish Radiation Safety Authority The number of licence holders has increased by over 40 per cent since the new legislation entered into force in 2018. The increase relates principally to sub-contractors of system TheIn accordance countries indicated with the in theOrdinance statistics (2008:452)in most cases with are theinstructions final recipient for thecountries for manufacturers of military equipment. theSwedish military Radiation equipment Safetystated. TheAu thority,ISP endeavours the Swedish as far as Radiationpossible to follow Safety the Swedish militaryAuthority equipment (SSM) isto thethe centralend-user government country. Some authority components for issues and relatingsub-systems to are Among the licence holders, 70 exported military equipment or technical assistance, while acquiredthe protection by foreign of human system healthmanufacturers and the for environment use in the production against the of harmful military equipment 35 120 only supplied military equipment within the country. 71 licence holders did not report intended for several different final recipients. It is not possible in these cases to know in 41 any sale of military equipment. Table 2 shows the total value of sales of military equipment advance who the end-user is, and the control assessments are therefore focused on the in and outside Sweden in the past five years. It can be seen from the table that sales have

Comm. The Export Control Council 2019/20:114 The Riksdag decided in 1984, on the basis of the Government Bill Appendix 1 proposing greater transparency and consultation on matters relating to system manufacturerexports ofand military the country equipment in which etc. the (Govt latter Bill operates. 1984/85:82) Examples, that of ansuch advisory process and reduces the risk of the Swedish defence industry entering into contracts which, products are gunpowder,board on explosivesmilitary andequipment armour plateissuess. should be established. The for example, would conflict with Swedish foreign policy. Government reorganised this board into the Export Control Council (ECC) Some cautionin should connect be exercisedion with inthe reading establishment off trends fromof the the ISPnumerical in 1996. material. The Srulesome A tender notification need not be issued if the tender or contract exclusively relates to statistical datagoverning from previous the compositionyears is therefore and presentedactivities forof thecomparison. ECC are A included more accurate in the spare parts, components or technical assistance for equipment exported previously. It is picture is providedISP's instructions.when looking All at exportsparliamentary over the parties course are of timerepresented as individual on the sales ECC. and It possible to apply for a general exemption from the duty of notification for particular deliveries mayis cause chaired wide by fluctuations the Director in- Generalthe statistics. of the The ISP. financial value stated equipment to specifically stated countries. Most major exporting companies obtain general nevertheless does not provide a full picture of the practical situation in comparison with a exemptions for tenders worth less than SEK 500 million to countries within the European A new Export Control Council started work on 1 November 2019, after particular country or region. An individual transaction may have a great impact on the Union and certain other established partner countries. A large proportion of the tender being appointed by the Government. In line with the proposals of the KEX aggregated export statistics. notifications received by the ISP therefore relate to countries outside the circle of Inquiry, deputy members were also appointed for the first time. A list of established partner countries. Marketing and thepreliminary Council’s decisions members and deputy members appears below The Director-General of the ISP is responsible for selecting those cases Table 5 shows the number of approved tender notifications and general exemptions over Marketing of thatmilitary will equipment be subjected abroad to orconsultation in Sweden requireswith the a basicExport licence Control to Council. the most recent five-year period. manufacture Consultationor broker military can equipment.take place, Afor party example holding, before such a licencepreliminary is obliged decision to is present a reportissued on theto marketinga company. of militaryThe Director equipment-General or technical has to assistanceconsult the that Council has Table 5 Number of approved tender notifications and general exemptions been undertakenbefore abroad. the ThisISP reportsubmits is based an applicationon the regular to meetings the Government which the ISPfor holds final concerning military equipment 2015–2019 with the defenceassessment companies under regarding the Military their export Equipment plans. The Act marketingor the Dual meetings-Use Items enables and the ISP at an Technicalearly stage Assistin the anceexport Control process Act. to steer exporters away from markets for Type of case 2015 2016 2017 2018 2019 which licences atAt a latermeetings stage cannotof the beECC, anticipated. the Ministry This arrangement for Foreign means Affairs that mostpresents of Tender notification 262 252 261 298 309 the ISP’s negativeassessments decisions of are the delivered relevant informally recipient atcountries. the marketing The Ministrymeetings, ofand Defence that General exemption 24 23 20 29 23 actual applicationsprovides relating assessments to undesirable of the recipient defence countries policy are aspects reduced. of the cases. The Total 286 275 281 327 332 Director-General may also summon other experts. One task of the Council In the event thatis to an presentexporter wishesopinions to examineon proposed at an early exports stage whetherbased onan exportthe Swedish of The ISP was notified of a total of 309 tenders to a party abroad in 2019. Of these, 295 tender military equipmentguidelines, or supply the ofEU technical Common assistance Position is possible, on Arms the Exports exporter and can requestthe Arms a notifications were approved, relating to a total of 60 countries. Decisions to prohibit tenders being submitted were made in 14 cases and related to a total of seven countries. preliminary decisionTrade Treaty in writing in order from tothe provide ISP. This further may relate,guidance for example,to the ISP. to a previously

unexamined recipientThe members country haveor take unres placetricted ahead access of a major to the marketing documentation campaign. of all There export is Export licences no statutory requirementlicence a pplicationthat a preliminary proceedings. decision mustThe be requested.Director- TheGeneral decisions reports are non-binding and are issued on the basis of the circumstances prevailing at the time. A continuously on all export licence decisions, processed tender notifications Exports of military equipment and supply of technical assistance to any party outside renewed examinationand cooperation is always conductedagreements, at theas welltime ofas anypreliminary tender notification decisions and that when have an application is made for an export licence, even if a positive preliminary decision has Sweden require licences from the ISP. Applications for export licences may be preceded by been ruled upon. With effect from 2005, the ISP also reports all export already been made. a preliminary decision, and in exporting for sale must be preceded by a tender or agreement licence decisions on dual-use items to the ECC. Taken together, this notification. There are three types of export licences. Individual licences are issued for a Table 4 showssystem the number ensures of goodpreliminary insight decisions into application in writing of concerning the rules on military export control specifically stated recipient in a specific country, while global licences make it possible to equipment issuedfor members by the ISP of in parliament the past five from years. all parties represented in the Riksdag. export an unlimited quantity of military equipment to more than one recipient in more than The intention of the Swedish system, uniquely in international terms in one country. General licences are not limited in quantity or value and make it possible to Table 4 thatNumb representativeser of preliminary of the decisions parliamentary made concerning parties can military discuss equipment potential export to all EEA countries. An export licence is generally also required in transit of exportin 201 5transactions–2019 in advance, is to build a broad consensus on export material equipment through Sweden. There has been an exemption since 2012 from the control policy and promote continuity in the conduct of that policy. Unlike requirement to obtain a licence when transit takes place in transfer from one EEA country Type of case in many other countries,2015 the201 Export6 Control2017 Council201 8deals with 201cases9 at an to another. Preliminary decisionsearly stage, before31 a specific47 transaction30 is carried out.30 Since it would36 harm the exporting companies commercially if their plans were made known The communication presents individual and global licences which have been issued for sale A total of 36 beforepreliminary they decisionshad concl wereuded issued a deal, in the 201 Export9. The Controlnumber Council'sof positive discussions of military equipment. The value and scope of the licences issued by the ISP provide preliminary decisionsare not made issued public. was 20 The and assessmentsrelated to 13 ofdifferent individual countries. countries The arenumber normally of merely an indication of what actual exports may look like in subsequent years. This is due negative preliminarysubject decisionsto confidentiality issued was in 1 relation6 and related to foreign to 12 differentaffairs. countries. in part to not all licences being utilised and to the fact that actual deliveries may take place The Advisory Council on Foreign Affairs, and not the Export Control several years after the export licence has been issued. The aggregate value of granted export Tender notificationsCouncil, is still consulted in cases where this is prescribed by the licences becomes an increasingly poor indicator of the following year's deliveries as more Instrument of Government. The Export Control Council met eight times global licences are issued and more general licences are used. No later than four weeks before a binding tender for sale of military equipment is 4234 submitted or a purchase contract is entered into, the ISP must be informed accordingly. In Table 6 shows the number of applications for export licences processed by the ISP over individual cases the ISP may prohibit tenders being submitted or contracts being entered the past five years. Note that information on the breakdown between individual and global licences is only available from 2018. into. The requirement for tender notification means a further control step in the export

in 2019. The Council discussed 14 matters for consultation, of which 13 Comm. related to military equipment and one to dual-use items. 2019/20:114 Appendix 1 system manufacturer and the country in which the latter operates. Examples of such processThe current and reducesmembers the of risk the of Export the Swedish Control defence Council industry are: entering into contracts which, products are gunpowder, explosives and armour plates. for example, would conflict with Swedish foreign policy. Janine Alm Ericson, Member of Parliament (Green Party) Some caution should be exercised in reading off trends from the numerical material. Some A tenderJan R notification Andersson, need Member not be of issued Parliament if the tender (Moderate or contract Party) exclusively relates to statistical data from previous years is therefore presented for comparison. A more accurate spareAnnicka parts, components Engblom, Morember technical of Parliamentassistance for (Moderate equipment Party) exported previously. It is picture is provided when looking at exports over the course of time as individual sales and possibleKerstin to applyLundgren, for a general Member exemption of Parliament from the (Centre duty of Party) notification for particular deliveries may cause wide fluctuations in the statistics. The financial value stated equipmentMaria Nilsson,to specifically Member stated of c ountries.Parliament Most (Liberal major Party)exporting companies obtain general nevertheless does not provide a full picture of the practical situation in comparison with a exemptionsMattias forOttosson, tenders Memberworth less of than Parliament SEK 500 (Social million Democrats) to countries within the European particular country or region. An individual transaction may have a great impact on the UnionDésirée and certain Pethrus, other Member established of Parliament partner countries. (Christian A large Democr proportionats) of the tender aggregated export statistics. notificationsRoger Richtoff, received Memberby the ISP of therefore Parliament relate (Sweden to countries Democrats) outside the circle of establishedMarie Granlund,partner countries. former Member of Parliament (Social Democrats) Marketing and preliminary decisions Stig Henriksson, former Member of Parliament (Left Party) TableLars 5 shows Johansson, the number former of Memberapproved of tender Parliament notifications (Social and Democrats) general exemptions over Marketing of military equipment abroad or in Sweden requires a basic licence to the most recent five-year period. Per Westerberg, former Member of Parliament (Moderate Party) manufacture or broker military equipment. A party holding such a licence is obliged to present a report on the marketing of military equipment or technical assistance that has Table 5 Number of approved tender notifications and general exemptions Deputy members of the Export Control Council: been undertaken abroad. This report is based on the regular meetings which the ISP holds concerning military equipment 2015–2019 with the defence companies regarding their export plans. The marketing meetings enables the ISP at an early stage in the export process to steer exporters away from markets for TypeCamilla of case Brodin, Member2015 of Parliament2016 (Christian201 Democrats)7 2018 2019 which licences at a later stage cannot be anticipated. This arrangement means that most of TenderHanna notification Gustafsson, Member262 of Parliament252 (Left 2Party)61 298 309 the ISP’s negative decisions are delivered informally at the marketing meetings, and that GeneralAnn exemption-Charlotte Hammar24 Johnsson,2 3 Member of 20Parliament (Moderate29 23 actual applications relating to undesirable recipient countries are reduced. TotalParty) 286 275 281 327 332 Caroline Nordengrip, Member of Parliament (Sweden Democrats) In the event that an exporter wishes to examine at an early stage whether an export of TheEva ISP Sonidsson, was notified former of a total Member of 309 oftenders Parliament to a party (Social abroad Democrats) in 2019. Of these, 295 tender military equipment or supply of technical assistance is possible, the exporter can request a notifications were approved, relating to a total of 60 countries. Decisions to prohibit tenders preliminary decision in writing from the ISP. This may relate, for example, to a previously being submitted were made in 14 cases and related to a total of seven countries. unexamined recipient country or take place ahead of a major marketing campaign. There is The Strategic Cooperation Council no statutory requirement that a preliminary decision must be requested. The decisions are Export licences non-binding and are issued on the basis of the circumstances prevailing at the time. A The Strategic Cooperation Council is a cooperative council attached to the renewed examination is always conducted at the time of any tender notification and when ExportsISP for ofcooperation military equipment on issues and related supply to of non technical-proliferation. assistance It toconsists any party of aoutside an application is made for an export licence, even if a positive preliminary decision has SwedenDirector require-General licences and members from the fromISP. Applications the cooperating for export authorities licences appointed may be preceded by already been made. aby preliminary the ISP. The decision, Strategic and inCooperation exporting for Council sale must met be once preceded in 2019 by. a tender or agreement notification. There are three types of export licences. Individual licences are issued for a specifically stated recipient in a specific country, while global licences make it possible to Table 4 shows the number of preliminary decisions in writing concerning military Technical-Scientific Council equipment issued by the ISP in the past five years. export an unlimited quantity of military equipment to more than one recipient in more than oneA Techni country.cal General-Scientific licences Council are isnot attached limited toin quantitythe ISP toor assist value theand Director make it -possible to Table 4 Number of preliminary decisions made concerning military equipment exportGeneral to allof EEA the countries.ISP in Anthe export discussion licence isof generally matters also concerning required in transitthe of in 2015–2019 materialclassification equipment of militarythrough Sweden.equipment There and has dual been-use an exemptionitems. The since Council 2012 from the requirementconsists of representatives to obtain a licence of institutionswhen transit with takes expertise place in transferin the technology's from one EEA country Type of case 2015 2016 2017 2018 2019 tocivilian another. and military applications. The Technical-Scientific Council held Preliminary decisions 31 47 30 30 36 one meeting in 2019. The communication presents individual and global licences which have been issued for sale A total of 36 preliminary decisions were issued in 2019. The number of positive of military equipment. The value and scope of the licences issued by the ISP provide preliminary decisions issued was 20 and related to 13 different countries. The number of merely an indication of what actual exports may look like in subsequent years. This is due negative preliminary decisions issued was 16 and related to 12 different countries. in4.2 part to not The all licences Swedish being Radiationutilised and to Safety the fact thatAuthority actual deliveries may take place several years after the export licence has been issued. The aggregate value of granted export In accordance with the Ordinance (2008:452) with instructions for the licences becomes an increasingly poor indicator of the following year's deliveries as more Tender notifications Swedish Radiation Safety Authority, the Swedish Radiation Safety global licences are issued and more general licences are used. Authority (SSM) is the central government authority for issues relating to No later than four weeks before a binding tender for sale of military equipment is the protection of human health and the environment against the harmful submitted or a purchase contract is entered into, the ISP must be informed accordingly. In Table 6 shows the number of applications for export licences processed by the ISP over 4335 individual cases the ISP may prohibit tenders being submitted or contracts being entered the past five years. Note that information on the breakdown between individual and global into. The requirement for tender notification means a further control step in the export licences is only available from 2018.

Comm. The Export Control Council 2019/20:114 The Riksdag decided in 1984, on the basis of the Government Bill Appendix 1 proposing greater transparency and consultation on matters relating to Table 6 exportsNumber of ofmilitary processed equipment applications etc. (Govt for Billexpo 1984/85:82)rts of military, that equipment an advisory Number of Categories of military Value of board2015– 201on9 military equipment issues should be established. The Country licences equipment MEC/OME licences Spain MEC/OME Government reorganised this board into the Export Control Council (ECC) 18 1,3,4,6,8,14,22 30 134 553 United Kingdom MEC/OME Type of licencein connect2015 ion with201 6the establishment2017 of the201 ISP8 in 1996.201 9The rules 57 1,2,3,4,5,8,10,14,15,17,18,21,22 725 520 262 Sweden OME Individual governing1 041 the composition969 and 1activities 012 of the581 ECC are included672 in the 3 3,10,17 380 961 Global - - - 300 381 Czech Republic MEC/OME ISP's instructions. All parliamentary parties are represented on the ECC. It 9 2,3,4,5,8,17,18,21,22 422 703 112 Transit 82 90 92 82 49 Germany 78 1,2,3,4,5,6,7,8,10,13,17,21,22 MEC/OME 577 471 041 Total is chaired1 123 by the Director1 059 -General1 104 of the ISP. 963 1 102 Hungary 10 2,3,5,8,10,14,17,18,21,22 MEC/OME 528 615 645 A new Export Control Council started work on 1 November 2019, after Austria 12 1,3,7,17,22 MEC/OME 139 436 793 Table 7 showsbeing the value appointed and percentage by the Government. change regarding In line granted with the export proposals licences of forthe KEX

military equipmentInquiry, in thedeputy past membersfive years, werebroken also down appointed into MEC for and the OME.first time. A list of Total 390 7 830 294 086

the Council’s members and deputy members appears below REST OF EUROPE Table 7 TheThe value Director of granted-General export of the licences ISP is responsible in current forprices selecting and annual those cases Iceland OME thatpercentage will be changesubjected 201 to5 –consultation2019 (SEK million) with the Export Control Council. 2 17 0 Consultation can take place, for example, before a preliminary decision is Norway 62 1,2,3,4,5,8,11,17,18,21,22 MEC/OME 329 152 111 Category of equipmentissued to 201a 5company. 201 The6 Director-General2017 has to201 consult8 the201 Council9 Switzerland 18 3,4,5,6,8,10,11,14,17,22 MEC/OME 29 356 002 Military equipmentbefore for the2 790 ISP (+107) submits 47 790 an(+1 163)application 4 122 to(-91 )the Government4 405 (+7) 7 for047 (+60)final Total 81 358 508 113 combat purposes assessment under the Military Equipment Act or the Dual-Use Items and Other military equipment 2 159 (-31) 14 089 (+553)) 4 106 (-71)) 4 060 (+1) 6 459 (+59) NORTH

Total Technical4 Assist949 (+10)ance 61 Control 879 (+ 1 Act.150) 8 138 (-87) 8 465 (+4) 13 505 (+60) AMERICA At meetings of the ECC, the Ministry for Foreign Affairs presents Canada 10 3,5,10,11,15,17,21,22 MEC/OME 419 938 220 Table 8 showsassessments the individual of andthe globalrelevant export recipient licences countries. issued in T 201he 9Ministry concerning of Defencesale of USA 64 2,3,4,5,6,8,10,14,17,18,21,22 MEC/OME 2 475 220 274 military equipment.provides The assessments table contains of information the defence on policythe number aspects of licences of the issuedcases .per The Total 74 2 895 158 494 country, as wellDirector as the- valueGeneral and, may at an also aggregated summon level, other which experts. categories One task of equipmentof the Council the licences appliedis to.to Notepresent that opinionssome export on licencesproposed cov erexports several recipientbased on countries, the Swedish so CENTRAL

that the total guidelines,value does not the match EU Commonthe sum of Position individual on licences Arms. Exports and the Arms AMERICA Trade Treaty in order to provide further guidance to the ISP. Mexico 1 2 OME 342 250 Table 8 GrantedThe members export have licences unres fortricted sale accessof military to the equipment documentation by country of all export in Total 1 2 342 250 licence2019 application proceedings. The Director-General reports SOUTH continuously on all export licence decisions, processed tender notifications and cooperationNumber of agreements,Categories as well of military as preliminary decisionsValue of that have AMERICA Country been licencesruled upon. With effect fromequipment 2005, theMEC/OME ISP also relicencesports all export Argentina 2 2,14,21,22 OME 7 028 000 EU licence decisions on dual-use items to the ECC. Taken together, this Brazil 4 4,14,17,21,22 MEC/OME 130 498 442 Belgium MEC/OME system8 ensures good insight into application2,3,5,8,13 of the rules on14 654export 807 control Peru 1 8 MEC 5 000 000 Bulgaria OME for members8 of parliament from all parties1,3,8 represented in2 the860 Riksdag.000 Total 7 142 526 442 Cyprus OME The2 intention of the Swedish system, uniquely2,3 in international188 413 terms in Denmark 26 1,2,3,5,6,8,9,14,17,22 MEC/OME 13 730 897 NORTH-EAST that representatives of the parliamentary parties can discuss potential Estonia OME ASIA export8 transactions in advance, is3,5,14,17,22 to build a broad consensus6 900 920 on export Finland MEC/OME Japan 15 2,3,4,14,22 MEC/OME 94 066 278 control39 policy and promote1,2,3,4,5,6,8,9,11,17,21,22 continuity in the conduct of that4 031 po 636licy. 997 Unlike France MEC/OME South Korea 15 4,5,7,8,9,14,15,21,22 MEC/OME 123 665 934 in many45 other countries, the 1,2,3,4,5,8,14,21,22Export Control Council deals825 with 839 cases 821 at an Greece MEC/OME Total 30 217 732 212 early2 stage, before a specific transaction 8,22is carried out. Since500 it000 would harm Ireland 2 3,4 MEC/OME 82 068 000 the exporting companies commercially if their plans were made known SOUTH-EAST Italy 24 3,4,6,8,13,17 MEC/OME 103 720 496 before they had concluded a deal, the Export Control Council's discussions ASIA Latvia 14 1,2,3,5,14,18,22 MEC/OME 222 710 020 are not made public. The assessments of individual countries are normally Philippines 2 5,21,22 OME 46 663 460 Lithuania 3 3,4 MEC/OME 9 250 000 subject to confidentiality in relation to foreign affairs. Indonesia 3 2,17,22 MEC/OME 260 750 000 Luxembourg 1 2 OME 20 313 The Advisory Council on Foreign Affairs, and not the Export Control Malaysia 3 2,3,11,22 MEC/OME 0 Malta 1 3 OME 0 Council, is still consulted in cases where this is prescribed by the Singapore 6 4,5,8,9,21,22 MEC/OME 205 037 103 Netherlands 14 1,2,3,6,13,17,21,22 MEC/OME 18 934 955 Instrument of Government. The Export Control Council met eight times Thailand 5 5,6,9,11,21,22 MEC/OME 287 000 000 Poland 12 2,3,5,8,17 MEC/OME 6 806 800 Total 20 799 450 563 Portugal OME 4434 4 1,2,17,18,22 13 780 000 Romania OME 2 3,22 0 SOUTH ASIA Slovakia 2 3 MEC/OME 296 400 India 24 2,3,5,9,14,17,21,22 MEC/OME 553 669 121 Slovenia 7 3,6,13,14,17,22 MEC/OME 52 132 880 in 2019. The Council discussed 14 matters for consultation, of which 13 Comm. related to military equipment and one to dual-use items. 2019/20:114 Appendix 1 Table 6 Number of processed applications for exports of military equipment The current membersNumber of ofthe Export ControlCategories Council of military are: Value of 2015–2019 Country licences equipment MEC/OME licences SpainJanine Alm Ericson,18 Member of Parliament1,3,4,6,8,14,22 (Green Party)MEC/OME 30 134 553 Type of licence 2015 2016 2017 2018 2019 UnitedJan Kingdom R Andersson, 57 Member1,2,3,4,5,8,10,14,15,17,18,21,22 of Parliament (Moderate MEC/OMEParty) 725 520 262 Individual 1 041 969 1 012 581 672 SwedenAnnicka Engblom,3 Member of Parliament (Moderate3,10,17 OME Party) 380 961 Global - - - 300 381 CzechKerstin RepublicLundgren, 9 Member of Parliament2,3,4,5,8,17,18,21,22 (Centre Party) MEC/OME 422 703 112 Transit 82 90 92 82 49 GermanyMaria Nilsson,78 Member of Parliament1,2,3,4,5,6,7,8,10,13,17,21,22 (Liberal Party) MEC/OME 577 471 041 Total 1 123 1 059 1 104 963 1 102 HungaryMattias Ottosson,10 Member of Parliament2,3,5,8,10,14,17,18,21,22 (Social Democrats) MEC/OME 528 615 645

Austria 12 1,3,7,17,22 MEC/OME 139 436 793 Table 7 shows the value and percentage change regarding granted export licences for Désirée Pethrus, Member of Parliament (Christian Democrats) military equipment in the past five years, broken down into MEC and OME. TotalRoger Richtoff,390 Member of Parliament (Sweden Democrats) 7 830 294 086

Marie Granlund, former Member of Parliament (Social Democrats) REST OF EUROPE Table 7 The value of granted export licences in current prices and annual Stig Henriksson, former Member of Parliament (Left Party) Iceland OME percentage change 2015–2019 (SEK million) Lars Johansson,2 former Member of Parliament (Social17 Democrats) 0 NorwayPer Westerberg,62 former Member1,2,3,4,5,8,11,17,18,21,22 of Parliament (Moderate MEC/OME Party) 329 152 111 Category of equipment 2015 2016 2017 2018 2019 Switzerland 18 3,4,5,6,8,10,11,14,17,22 MEC/OME 29 356 002 Military equipment for 2 790 (+107) 47 790 (+1 163) 4 122 (-91) 4 405 (+7) 7 047 (+60) TotalDeputy members81 of the Export Control Council: 358 508 113 combat purposes Other military equipment 2 159 (-31) 14 089 (+553)) 4 106 (-71)) 4 060 (+1) 6 459 (+59) NORCamillaTH Brodin, Member of Parliament (Christian Democrats)

Total 4 949 (+10) 61 879 (+ 1 150) 8 138 (-87) 8 465 (+4) 13 505 (+60) AMERICAHanna Gustafsson, Member of Parliament (Left Party) Canada MEC/OME Ann-Charlotte 10Hammar Johnsson, 3,5,10,11,15,17,21,22Member of Parliament (Moderate419 938 220 Table 8 shows the individual and global export licences issued in 2019 concerning sale of USA 64 2,3,4,5,6,8,10,14,17,18,21,22 MEC/OME 2 475 220 274 military equipment. The table contains information on the number of licences issued per Party) TotaCarolinel Nordengrip,74 Member of Parliament (Sweden Democrats) 2 895 158 494 country, as well as the value and, at an aggregated level, which categories of equipment the Eva Sonidsson, former Member of Parliament (Social Democrats) licences applied to. Note that some export licences cover several recipient countries, so CENTRAL that the total value does not match the sum of individual licences. AMERICA Mexico 1 2 OME 342 250 Table 8 Granted export licences for sale of military equipment by country in TotalThe Strategic Cooperation1 Council 2 342 250 2019 The Strategic Cooperation Council is a cooperative council attached to the SOUTH

Number of Categories of military Value of AMERICAISP for cooperation on issues related to non-proliferation. It consists of a Country licences equipment MEC/OME licences ArgentinaDirector -General2 and members from the cooperating2,14,21,22 authorities OME appointed7 028 000 EU Brabyzil the ISP. The Strategic4 Cooperation Council4,14,17,21,22 met once MEC/OME in 2019. 130 498 442 Belgium 8 2,3,5,8,13 MEC/OME 14 654 807 Peru 1 8 MEC 5 000 000 Bulgaria 8 1,3,8 OME 2 860 000 TotalTechnical -Scientific7 Council 142 526 442 Cyprus 2 2,3 OME 188 413 A Technical-Scientific Council is attached to the ISP to assist the Director - Denmark 26 1,2,3,5,6,8,9,14,17,22 MEC/OME 13 730 897 NORTH-EAST General of the ISP in the discussion of matters concerning the Estonia OME ASIA 8 3,5,14,17,22 6 900 920 classification of military equipment and dual-use items. The Council Finland MEC/OME Japan 15 2,3,4,14,22 MEC/OME 94 066 278 39 1,2,3,4,5,6,8,9,11,17,21,22 4 031 636 997 consists of representatives of institutions with expertise in the technology's France MEC/OME South Korea 15 4,5,7,8,9,14,15,21,22 MEC/OME 123 665 934 45 1,2,3,4,5,8,14,21,22 825 839 821 civilian and military applications. The Technical-Scientific Council held Greece MEC/OME Total 30 217 732 212 2 8,22 500 000 one meeting in 2019. Ireland 2 3,4 MEC/OME 82 068 000 SOUTH-EAST Italy 24 3,4,6,8,13,17 MEC/OME 103 720 496 ASIA Latvia 14 1,2,3,5,14,18,22 MEC/OME 222 710 020 Philippines 2 5,21,22 OME 46 663 460 Lithuania 3 3,4 MEC/OME 9 250 000 4.2 The Swedish Radiation Safety Authority Indonesia 3 2,17,22 MEC/OME 260 750 000 Luxembourg 1 2 OME 20 313 MalaysiaIn accordance with3 the Ordinance (2008:452) 2,3,11,22with instructions MEC/OME for0 the Malta 1 3 OME 0 SingaporeSwedish Radiation6 Safety Authority, the 4,5,8,9,21,22Swedish MEC/OMERadiation Safety205 037 103 Netherlands 14 1,2,3,6,13,17,21,22 MEC/OME 18 934 955 ThailandAuthority (SSM)5 is the central government authority5,6,9,11,21,22 for MEC/OME issues relating 287 to000 000 Poland 12 2,3,5,8,17 MEC/OME 6 806 800 Totalthe protection of20 human health and the environment against the harmful799 450 563 Portugal OME 4 1,2,17,18,22 13 780 000 4535 Romania OME 2 3,22 0 SOUTH ASIA Slovakia 2 3 MEC/OME 296 400 India 24 2,3,5,9,14,17,21,22 MEC/OME 553 669 121 Slovenia 7 3,6,13,14,17,22 MEC/OME 52 132 880

Comm. The Export Control Council 2019/20:114 The Riksdag decided in 1984, on the basis of the Government Bill Appendix 1 proposing greater transparency and consultation on matters relating to exportsNumber of military of equipmentCategories etc. of(Govt military Bill 1984/85:82),Value that anof advisory it is not self-evident that Sweden will always be able to count on sympathy for all aspects that Country boardlicences on military equipment equipmentissues shouldMEC/OME be established.licences The are unique to its approach with regard to exports to third countries. Total Government24 reorganised this board into the Export Control553 Council 669 121 (ECC)

in connection with the establishment of the ISP in 1996. The rules Historically there has been interest in those licences granted for exports to countries

MIDDLE EASTgoverning the composition and activities of the ECC are included in the outside the traditional circle of cooperation. Table 9 presents more detailed information on United Arab OME licences granted to end-user countries outside the circle of countries identified above. It is Emirates ISP's6 instructions. All parliamentary3,4,5,17,21,22 parties are represented51 684on the000 ECC. It is chaired by the Director-General of the ISP. first indicated whether the licences have related to follow-on deliveries or transactions not Jordan 1 13 OME 4 600 000 linked to previous exports, and then whether these licences have been granted under A new Export Control Council started work on 1 November 2019, after Kuwait 2 4,22 OME 5 519 815 international collaboration with a country in the traditional partnership group, or whether being appointed by the Government. In line with the proposals of the KEX Oman 3 4,5,15,18,21,22 MEC/OME 2 285 000 the export has gone straight from Sweden to the final recipient. The column on the far Qatar Inquiry,2 deputy members were also appointed4,17 OME for the first45 042time. 000 A list of right shows which categories of equipment have been approved for any new transactions. Saudi Arabia the Council’s1 members and deputy4,5,10,11,21,22 members OME appears below0 Note that an export licence may relate to both a follow-on delivery and international Total The15 Director-General of the ISP is responsible for selecting109 130 those 815 cases cooperation. that will be subjected to consultation with the Export Control Council. NORTH AFRICAConsultation can take place, for example, before a preliminary decision is Table 9 Detailed description of granted export licences for sale of military Algeria issued1 to a company. The Director-General18 OME has to consult0 the Council equipment to certain countries Tunisia before1 the ISP submits an application3,14 toMEC/OME the Government 77 886 980 for final assessment under the Military Equipment Act or the Dual-Use Items and Of which Total 2 77 886 980 Total number of Of which follow- Categories of equipment international Technical Assistance Control Act. licences granted on deliveries – new transactions Country cooperations REST OF At meetings of the ECC, the Ministry for Foreign Affairs presents Algeria 1 1 0 - AFRICA assessments of the relevant recipient countries. The Ministry of Defence 2 1 0 ML14/OEM South Africa provides10 assessments of the4,8,10,11,14,21,22 defence policy MEC/OME aspects of78 the 224 232cases . The Argentina Brunei 1 1 0 - Total Director10 -General may also summon other experts. One task78 224of the232 Council 2 2 2 - is to present opinions on proposed exports based on the Swedish Philippines United Arab 6 6 2 - OCEANIA guidelines, the EU Common Position on Arms Exports and the Arms Emirates Australia Trade20 Treaty in order to2,3,4,5,8,11,14,15,17,21,22 provide further guidance MEC/OME to the ISP.422 004 477 India 24 23 2 ML21/OEM, ML22/OEM New Zealand The4 members have unrestricted 2,3,14,21,22access to theMEC/OME documentation 18 909 of 800 all export Indonesia 3 0 0 ML2/MEC ML17/OEM Total licence24 application proceedings. The Director-General440 914 277 reports Jordan 1 1 0 - continuously on all export licence decisions, processed tender notifications Kuwait 2 2 2 - TOTAL and cooperation676 agreements, as well as preliminary decisions13 505 147 that 585 have Malaysia 3 3 0 - been ruled upon. With effect from 2005, the ISP also reports all export Mexico 1 0 1 ML2/OEM Follow-on deliverieslicence and internationaldecisions militaryon dual equipment-use items cooperations to the ECC. Taken together, this Oman 3 3 3 - system ensures good insight into application of the rules on export control Peru 1 0 0 ML8/MEC Follow-on deliveries to previously supplied military equipment occupy a special position in for members of parliament from all parties represented in the Riksdag. Qatar 2 1 2 ML4/OEM the Swedish export guidelines. According to the guidelines, licences should be granted for The intention of the Swedish system, uniquely in international terms in Saudi Arabia 1 1 0 - the exporting of spare parts for military equipment which has previously been exported or that representatives of the parliamentary parties can discuss potential 6 4 3 ML8/MEC, ML9/MEC transferred with a licence, unless there is an unconditional obstacle. The same should apply Singapore export transactions in advance, is to build a broad consensus on export 5 4 1 ML5/MEC to special ammunition for previously supplied military equipment and other deliveries Thailand control policy and promote continuity in the conduct of that policy. Unlike Tunisia 1 1 0 - directly correlatedin many with other previously countries, supplied the Exportmilitary Control equipment. Council Follow deals-on withdeliveries cases should at an Total 65 53 18 be assessed onearly a case stage,-by- casebefore basis a specific under these transaction circumstances. is carried The out. previous Since itguidelines would harm for follow-on deliveries apply to exports approved before 15 April 2018. the exporting companies commercially if their plans were made known General export licences before they had concluded a deal, the Export Control Council's discussions Both the Riksdag and the Government have established on repeated occasions that internal are not made public. The assessments of individual countries are normally cooperation on the development and production of military equipment is crucial to the The ISP decided in 2012 to introduce five different types of general licences. The licences subject to confidentiality in relation to foreign affairs. Swedish defence industry. The Government states in the Government Bill Stricter Export make simplified transfers possible within the European Economic Area (EEA). Use of Controls for MilitaryThe Advis Equipmentory Council (Govt onBill Foreign 2017/18:23) Affairs, that andcooperation not the Exportwith the Control Nordic general licences does not require any application. The holder of a basic brokering licence countries, theCouncil, six-nation is group,still consultedcountries inin the cases EU andwhere Australia, this is Brazil, prescribed Canada, by Japan, the instead has to inform the ISP no later than four weeks prior to the first day on which a Liechtenstein,Instrument New Zealand, of Government.South Africa, SouthThe Export Korea andControl the United Council States met are eight of greatest times general licence is used. General licences are not limited in quantity or value. interest. The Government Bill goes on to state that a balance needs to be struck in 34 46 international partnerships in making an overall assessment of how the need for international Each category has an appendix describing the military equipment and technical assistance it cooperation is to be reconciled with the interests of effective export controls. It is noted that covers. Table 10 shows the five types of general licences introduced in 2012.

in 2019. The Council discussed 14 matters for consultation, of which 13 Comm. related to military equipment and one to dual-use items. 2019/20:114 Appendix 1 Number of Categories of military Value of itThe is not current self-evidentmembers that of Sweden the Export will always Control be ableCouncil to count are: on sympathy for all aspects that Country licences equipment MEC/OME licences are unique to its approach with regard to exports to third countries. Total 24 553 669 121 Janine Alm Ericson, Member of Parliament (Green Party) HistoricallyJan R Andersson, there has be Memberen interest of in Parliament those licences (Moderate granted Party)for exports to countries MIDDLE EAST outsideAnnicka the traditional Engblom, circle Member of cooperation. of Parliament Table (Moderate 9 presents Party)more detailed information on United Arab OME licencesKerstin grantedLundgren, to end- userMember countries of Parliament outside the (Centre circle of Party) countries identified above. It is Emirates 6 3,4,5,17,21,22 51 684 000 first Mariaindicated Nilsson, whether Member the licences of Parliament have related (Liberal to follow Party)-on deliveries or transactions not Jordan 1 13 OME 4 600 000 linkedMattias to previous Ottosson, exports, Member and then of Parliamentwhether these (Social licences Democrats) have been granted under Kuwait 2 4,22 OME 5 519 815 internationalDésirée Pethrus,collaboration Member with ofa country Parliament in the (Christian traditional Democr partnershipats) group, or whether Oman 3 4,5,15,18,21,22 MEC/OME 2 285 000 the exportRoger hasRichtoff, gone straight Member from of ParliamentSweden to the (Sweden final recipient. Democrats) The column on the far Qatar OME 2 4,17 45 042 000 rightMari showse Granlund, which categories former of Member equipment of Parliament have been approved (Social Democrats) for any new transactions. Saudi Arabia OME 1 4,5,10,11,21,22 0 NoteStig that Henriksson, an export licence former may Member relate to of both Parliament a follow -(Lefton delivery Party) and international Total 15 109 130 815 cooperation.Lars Johansson, former Member of Parliament (Social Democrats)

Per Westerberg, former Member of Parliament (Moderate Party) NORTH AFRICA Table 9 Detailed description of granted export licences for sale of military Algeria OME equipment to certain countries 1 18 0 Deputy members of the Export Control Council: Tunisia 1 3,14 MEC/OME 77 886 980 Of which Total 2 77 886 980 Total number of Of which follow- Categories of equipment Camilla Brodin, Member of Parliament (Christianinternational Democrats) licences granted on deliveries – new transactions CountryHanna Gustafsson, Member of Parliament (Leftcooperations Party) REST OF Algeria 1 1 0 - AFRICA Ann-Charlotte Hammar Johnsson, Member of Parliament (Moderate 2 1 0 ML14/OEM South Africa 10 4,8,10,11,14,21,22 MEC/OME 78 224 232 ArgentinaParty) Brunei 1 1 0 - Total 10 78 224 232 Caroline Nordengrip, Member of Parliament (Sweden Democrats) 2 2 2 - PhilippinesEva Sonidsson, former Member of Parliament (Social Democrats) United Arab 6 6 2 - OCEANIA Emirates Australia 20 2,3,4,5,8,11,14,15,17,21,22 MEC/OME 422 004 477 India 24 23 2 ML21/OEM, ML22/OEM New Zealand 4 2,3,14,21,22 MEC/OME 18 909 800 IndonesThe Strategicia Cooperation3 Council0 0 ML2/MEC ML17/OEM Total 24 440 914 277 JordanThe Strategic Cooperation1 Council is1 a cooperative council0 attached to the- KuwaitISP for cooperation on2 issues related2 to non-proliferation.2 It consists of- a TOTAL 676 13 505 147 585 MalaysiaDirector -General and3 members from 3the cooperating0 authorities appointed- Mexiby theco ISP. The Strategic1 Cooperation0 Council met once1 in 2019. ML2/OEM Follow-on deliveries and international military equipment cooperations Oman 3 3 3 - Peru 1 0 0 ML8/MEC Follow-on deliveries to previously supplied military equipment occupy a special position in Technical-Scientific Council Qatar 2 1 2 ML4/OEM the Swedish export guidelines. According to the guidelines, licences should be granted for SaudiA Techni Arabiacal -Scientific1 Council is attached1 to the ISP0 to assist the Director- - the exporting of spare parts for military equipment which has previously been exported or General of the ISP6 in the discussion4 of matters3 concerningML8/MEC the, ML9/MEC transferred with a licence, unless there is an unconditional obstacle. The same should apply Singapore Thailandclassification of military5 equipment4 and dual-use1 items. The CouncilML5/MEC to special ammunition for previously supplied military equipment and other deliveries consists of representatives of institutions with expertise in the technology's directly correlated with previously supplied military equipment. Follow-on deliveries should Tunisia 1 1 0 - Totalcivilian and military65 applications. The53 Technical-Scientific18 Council held be assessed on a case-by-case basis under these circumstances. The previous guidelines for one meeting in 2019. follow-on deliveries apply to exports approved before 15 April 2018. General export licences Both the Riksdag and the Government have established on repeated occasions that internal cooperation on the development and production of military equipment is crucial to the The4.2 ISP decided The in Swedish 2012 to introduce Radiation five different Safety types Authority of general licences. The licences Swedish defence industry. The Government states in the Government Bill Stricter Export make simplified transfers possible within the European Economic Area (EEA). Use of Controls for Military Equipment (Govt Bill 2017/18:23) that cooperation with the Nordic generalIn accordance licences doeswith not the require Ordinance any application (2008:452). The with holder instructions of a basic forbrokering the licence countries, the six-nation group, countries in the EU and Australia, Brazil, Canada, Japan, insteadSwedish has Radiationto inform theSafety ISP noAu laterthority, than fourthe weeksSwedish prior Radiation to the first day Safety on which a Liechtenstein, New Zealand, South Africa, South Korea and the United States are of greatest generalAuthority licence (SSM) is used. is the General central licences government are not authority limited in for quantity issues or relating value. to interest. The Government Bill goes on to state that a balance needs to be struck in the protection of human health and the environment against the harmful 35 international partnerships in making an overall assessment of how the need for international Each category has an appendix describing the military equipment and technical assistance it 47 cooperation is to be reconciled with the interests of effective export controls. It is noted that covers. Table 10 shows the five types of general licences introduced in 2012.

Comm. The Export Control Council 2019/20:114 The Riksdag decided in 1984, on the basis of the Government Bill Appendix 1 proposing greater transparency and consultation on matters relating to Table 10 exportsTypes of generalmilitary licencesequipment concerning etc. (Govt export Bill 1984/85:82) of military, thatequipment an advisory Table 13 Value of actual exports of military equipment by country in 2019 board on military equipment issues should be established. The TFS number GovernmentScope reorganised this board into the Export Control Council (ECC) Categories of military Value of Value of 2012:7 The transfer of military equipment and the provision of technical assistance to armed Country equipment MEC OME Total inforces connect or a contractingion with authoritythe establishment in a country within of thethe European ISP in Economic 1996. AreaThe (EEA) rules governing the composition and activities of the ECC are included in the EU Belgium 3,5,8,13 13 091 930 21 483 522 34 575 452 2012:8 ISP'sThe transferinstructions. of military All equipment parliamentary and the provision parties areof technical represented assistance on to the a certified ECC. It recipient in a country within the European Economic Area (EEA) Bulgaria 1,3,8 8 293 839 2 021 311 10 315 150 is chaired by the Director-General of the ISP. Cyprus 2 0 192 525 192 525 2012:9 TheA new transfer Export of military Control equipment Council and the started provision work of technicalon 1 November assistance to 2019, a country after within the European Economic Area (EEA) for demonstration, evaluation and exhibition Denmark 1,2,3,5,6,8,9,11,13,14,17,21,22 3 587 170 157 187 203 160 774 373 being appointed by the Government. In line with the proposals of the KEX Estonia 1,3,5,6,14,17,22 178 718 320 137 680 810 316 399 130 2012:10 Inquiry,The transfer deputy of military members equipment were and also the provisionappointed of technical for the assistance first time. to a Acountry list of thewithin Council’s the European members Economic and Area deputy (EEA) members for maintenance appears or repair below Finland 1,2,3,4,5,6,8,10,13,14,17,22 91 216 653 363 572 402 454 790 055 2012:11 TheThe transfer Director of military-General equipment of the and ISP the is provision responsible of technical for selecting assistance to those a country cases France 1,2,3,5,6,8,10,11,13,14,17,22 14 155 398 263 148 754 277 304 152 thatwithin will the be European subjected Economic to consultation Area (EEA) following with themaintenance, Export repairControl or Council. Ireland 2,4 0 1 686 546 1 686 546 demonstration Italy 3,4,6,8,10,13,14,17 41 375 003 27 322 317 68 697 320 Consultation can take place, for example, before a preliminary decision is issued to a company. The Director-General has to consult the Council Croatia 3,13 0 696 951 696 951 Table 11 shows the number of notifications of use of the different general licences Latvia 1,3,5,14,18 29 948 17 052 568 17 082 516 in 2019. before the ISP submits an application to the Government for final assessment under the Military Equipment Act or the Dual-Use Items and Lithuania 3,4,13,14,17 42 000 831 3 019 465 45 020 296 Luxembourg 2,22 0 590 293 590 293 Table 11 TechnicalNotification Assist of anceuse of Control general Act. licences concerning export of military At meetings of the ECC, the Ministry for Foreign Affairs presents Malta 3 0 21 882 21 882 equipment in 2019 Netherlands 2,5,6,13,14,17,21 0 534 350 129 534 350 129 assessments of the relevant recipient countries. The Ministry of Defence Poland 3,5,8,10,13,17,22 15 931 713 12 789 082 28 720 795 providesTFS 2012:7assessments TFS of2012:8 the defenceTFS 2012:9 policy aspectsTFS 2012:10 of theTFS cases 2012:11. The Portugal 1,3,17 0 3 109 050 3 109 050 Number of Director-General0 may also0 summon other1 experts. One1 task of the Council1 notifications is to present opinions on proposed exports based on the Swedish Romania 3,6, 60 000 10 924 011 10 984 011 guidelines, the EU Common Position on Arms Exports and the Arms Slovakia 3,5,13 1 781 056 2 558 388 4 339 444 Table 12 showsTrade a listing Treaty of allin notificationsorder to provide of use further of the guidance various general to the licencesISP. since they Slovenia 3,6,14,17,22 2 338 562 8 298 868 10 637 430 were introducedThe in 2012. members have unrestricted access to the documentation of all export Spain 1,3,4,6,8,9,10,11,13,14 7 478 060 48 787 344 56 265 404 1,2,3,4,5,6,8,10, licence application proceedings. The Director-General reports United Kingdom 13,14,16,17,21,22 164 848 452 271 156 887 436 005 339 Table 12 Notification of use of general licences concerning export of military continuously on all export licence decisions, processed tender notifications Czech Republic 1,2,3,4,5,8,10,13,14,21 58 000 543 479 418 711 537 419 254 andequipment cooperation since agreements, introduction as in well 2012 as preliminary decisions that have 1,3,4,5,6,7,8,9,11, been ruled upon. With effect from 2005, the ISP also reports all export Germany 13,14,17,21,22 52 794 779 476 254 544 529 049 323

licenceTFS decisions 2012:7 onTFS dual 2012:8-use itemsTFS 2012:9to the ECC.TFS 2012:10Taken together,TFS 2012:11 this Hungary 2,3,5,8,10,14,17,18,22 20 360 545 861 122 716 881 483 261 Number of system ensures16 good insight8 into application26 of the rules14 on export1 6control Austria 1,2,3,4,6,7,8,10,13,14 333 778 274 480 347 274 814 125 notifications

for members of parliament from all parties represented in the Riksdag. Total 716 396 580 3 978 927 626 4 695 324 206 Actual exports in The201 9intention of the Swedish system, uniquely in international terms in that representatives of the parliamentary parties can discuss potential REST OF EUROPE The actual exportingexport transactionspresented in thein advance,communication is to build concerns a broad military consensus equipment on andexport Andorra 3 5 186 265 905 271 073 technical assistancecontrol both policy supplied and promote and invoiced continuity during in the the current conduct year. of thatThe podatalicy. is basedUnlike Iceland 1,3,8,17 72 823 1 408 438 1 481 261 on the deliveryin declarationsmany other whichcountries, each the holder Export of manufacturing Control Council or brokering deals with licences cases atis an 1,2,3,4,5,6,8,10, Norway 13,14,17,18,21,22 309 811 278 291 292 747 601 104 025 obliged to reportearly to stage, the ISP. before a specific transaction is carried out. Since it would harm Switzerland 1,3,4,5,6,8,10,11,13,14,17,21,22 4 157 686 201 839 021 205 996 707 the exporting companies commercially if their plans were made known The actual exportsbefore as they a rule had are concl the partuded of a thedeal, report the Export that attracts Control most Council's interest discussionsin the Turkey 5,14,22 0 41 554 191 41 554 191 Riksdag, amongare thenot general made public. public andThe in assessments the media. Theof individual communication countries therefore are normally Total 314 046 955 536 360 302 850 407 257 contains a numbersubject of to tables confidentiality with different in interfacesrelation to co foreignncerning affairs. annual exports. The Advisory Council on Foreign Affairs, and not the Export Control NORTH AMERICA Table 13 shows the value of actual exports of military equipment by country in 2019. The 2,3,5,10,11,13, Council, is still consulted in cases where this is prescribed by the Canada 15,17,21,22 94 900 226 837 470 226 932 370 table is brokenInstrument down into of MEC/OME Government. and The contains, Export at anControl aggregated Council level, met information eight times 2,3,5,6,8,10,11, about which categories of equipment the exports related to. United States 13,14,17,18,21,22 860 229 005 853 440 935 1 713 669 940 4834 Total 860 323 905 1 080 278 405 1 940 602 310

CENTRAL AMERICA in 2019. The Council discussed 14 matters for consultation, of which 13 Comm. related to military equipment and one to dual-use items. 2019/20:114 Appendix 1 Table 10 Types of general licences concerning export of military equipment TableThe current 13 membersValue of actualof the Exportexports Control of military Council equipment are: by country in 2019

TFS number Scope Janine Alm Ericson, MemberCategories of ofParliament military (GreenValue Party)of Value of 2012:7 The transfer of military equipment and the provision of technical assistance to armed CountryJan R Andersson, Member of Parliamentequipment (ModerateMEC Party) OME Total forces or a contracting authority in a country within the European Economic Area (EEA) EU Annicka Engblom, Member of Parliament (Moderate Party) 2012:8 The transfer of military equipment and the provision of technical assistance to a certified BelgiumKerstin Lundgren, Member of Parliament3,5,8,13 (Centre13 091 Party) 930 21 483 522 34 575 452 recipient in a country within the European Economic Area (EEA) BulgariaMaria Nilsson, Member of Parliament1,3,8 (Liberal 8 Party)293 839 2 021 311 10 315 150 2012:9 The transfer of military equipment and the provision of technical assistance to a country CyprusMattias Ottosson, Member of Parliament2 (Social Democrats)0 192 525 192 525 within the European Economic Area (EEA) for demonstration, evaluation and exhibition DenmarkDésirée Pethrus, Member1,2,3,5,6,8, 9of,11,1 Parliament3,14,17,21,22 (Christian 3 587 Democr170 157ats) 187 203 160 774 373 2012:10 The transfer of military equipment and the provision of technical assistance to a country EstoniaRoger Richtoff, Member of Parliament1,3,5,6,14,17,22 (Sweden 178 718 Democrats) 320 137 680 810 316 399 130 within the European Economic Area (EEA) for maintenance or repair FinlandMari e Granlund, former1,2,3,4,5,6,8,10,13,14,17,22 Member of Parliament 91 216(Social 653 Democrats)363 572 402 454 790 055 2012:11 The transfer of military equipment and the provision of technical assistance to a country FranceStig Henriksson, former1,2,3,5,6,8,10,11,13,14,17,22 Member of Parliament 14 155(Left 398 Party) 263 148 754 277 304 152 within the European Economic Area (EEA) following maintenance, repair or IrelandLars Johansson, former Member of Parliament2,4 (Social0 Democrats)1 686 546 1 686 546 demonstration Italy Per Westerberg, former Member3,4,6,8,10,13,14,17 of Parliament 41 (Moderate375 003 27Pa 322rty) 317 68 697 320 Croatia 3,13 0 696 951 696 951 Table 11 shows the number of notifications of use of the different general licences LatviaDeputy members of the Export Control1,3,5,14,18 Council: 29 948 17 052 568 17 082 516 in 2019. Lithuania 3,4,13,14,17 42 000 831 3 019 465 45 020 296

LuxembourgCamilla Brodin, Member of Parliament2,22 (Christian Democrats)0 590 293 590 293 Table 11 Notification of use of general licences concerning export of military MaltaHanna Gustafsson, Member of Parliament3 (Left Party)0 21 882 21 882 equipment in 2019 Netherlands 2,5,6,13,14,17,21 0 534 350 129 534 350 129 Ann-Charlotte Hammar Johnsson, Member of Parliament (Moderate PolandParty) 3,5,8,10,13,17,22 15 931 713 12 789 082 28 720 795 TFS 2012:7 TFS 2012:8 TFS 2012:9 TFS 2012:10 TFS 2012:11 Portugal 1,3,17 0 3 109 050 3 109 050 Number of 0 0 1 1 1 Caroline Nordengrip, Member of Parliament (Sweden Democrats) notifications RomaniaEva Sonidsson, former Member of Parliament3,6, (Social60 000 Democrats) 10 924 011 10 984 011 Slovakia 3,5,13 1 781 056 2 558 388 4 339 444 Table 12 shows a listing of all notifications of use of the various general licences since they Slovenia 3,6,14,17,22 2 338 562 8 298 868 10 637 430 were introduced in 2012. SpainThe Strategic Cooperation1,3, Council4,6,8,9,10,11,13,14 7 478 060 48 787 344 56 265 404 1,2,3,4,5,6,8,10, United Kingdom 13,14,16,17,21,22 164 848 452 271 156 887 436 005 339 Table 12 Notification of use of general licences concerning export of military The Strategic Cooperation Council is a cooperative council attached to the Czech Republic 1,2,3,4,5,8,10,13,14,21 58 000 543 479 418 711 537 419 254 equipment since introduction in 2012 ISP for cooperation on issues related to non-proliferation. It consists of a Director-General and members 1,3,4,5,6,from the7,8 ,9cooperating,11, authorities appointed Germany 13,14,17,21,22 52 794 779 476 254 544 529 049 323 by the ISP. The Strategic Cooperation Council met once in 2019. TFS 2012:7 TFS 2012:8 TFS 2012:9 TFS 2012:10 TFS 2012:11 Hungary 2,3,5,8,10,14,17,18,22 20 360 545 861 122 716 881 483 261 Number of 16 8 26 14 16 Austria 1,2,3,4,6,7,8,10,13,14 333 778 274 480 347 274 814 125 notifications Technical-Scientific Council Total 716 396 580 3 978 927 626 4 695 324 206 Actual exports in 2019 A Technical-Scientific Council is attached to the ISP to assist the Director - RESTGeneral OF EUROPEof the ISP in the discussion of matters concerning the The actual exporting presented in the communication concerns military equipment and Andorraclassification of military equipment and dual3 -use 5items 186 . The265 Council 905 271 073 technical assistance both supplied and invoiced during the current year. The data is based Icelandconsists of representatives of institutions1,3,8,17 with expertise72 823 in the technology's1 408 438 1 481 261 on the delivery declarations which each holder of manufacturing or brokering licences is civilian and military applications.1,2,3,4,5,6,8,10, The Technical -Scientific Council held Norway 13,14,17,18,21,22 309 811 278 291 292 747 601 104 025 obliged to report to the ISP. one meeting in 2019. Switzerland 1,3,4,5,6,8,10,11,13,14,17,21,22 4 157 686 201 839 021 205 996 707

The actual exports as a rule are the part of the report that attracts most interest in the Turkey 5,14,22 0 41 554 191 41 554 191 Total 314 046 955 536 360 302 850 407 257 Riksdag, among the general public and in the media. The communication therefore 4.2 The Swedish Radiation Safety Authority contains a number of tables with different interfaces concerning annual exports. NORTHIn accordance AMERICA with the Ordinance (2008:452) with instructions for the Table 13 shows the value of actual exports of military equipment by country in 2019. The 2,3,5,10,11,13, CanadaSwedish Radiation Safety Authority,15,17,21,22 the Swedish94 900Radiation 226 837 Safety470 226 932 370 table is broken down into MEC/OME and contains, at an aggregated level, information Authority (SSM) is the central government2,3,5,6,8,10,11, authority for issues relating to about which categories of equipment the exports related to. Unitedthe protection States of human health13,14,17,18,21,22 and the environment 860 229 against 005 853 the 440 harmful 935 1 713 669 940 Total 860 323 905 1 080 278 405 1 940 602 310 4935

CENTRAL AMERICA

Comm. The Export Control Council 2019/20:114 The Riksdag decided in 1984, on the basis of the Government Bill Appendix 1 proposing greater transparency and consultation on matters relating to exports of militaryCategories equipment of military etc. (GovtValue Bill of 1984/85:82) Value of, that an advisory Categories of military Value of Value of Country board on military equipmentequipment issues MECshould beOME established. TotalThe Country equipment MEC OME Total Mexico Government reorganised this2,5,13,22 board into9 874 the 651 Export 11 Control 932 212 Council21 806 (ECC) 863 New Zealand 1,2,3,14,17 1 310 080 3 605 896 4 915 976 Total in connection with the establishment 9 874 of 651 the ISP11 932in 2121996. The21 806 rules 863 Total 131 456 660 109 175 060 240 631 720 governing the composition and activities of the ECC are included in the SOUTH AMERICAISP's instructions. All parliamentary parties are represented on the ECC. It INTERNATIONAL ORGANISATIONS Argentina is chaired by the Director-General2, 14 of the ISP.0 5 378 915 5 378 915 EU 22 0 947 385 947 385 Brazil A new Export2,4,5,10,14,17,18,21,22 Control Council started86 423 work 939 on2 915 1 November165 333 3 2019,001 589 after 272 Total 0 947 385 947 385 Total being appointed by the Government. In86 423line 939 with 2 the920 544proposals 248 3 of 006 the 968 KEX 187 Inquiry, deputy members were also appointed for the first time. A list of TOTAL 2 983 523 043 13 290 112 821 16 273 635 864 NORTH EASTthe ASIA Council’s members and deputy members appears below Japan The Director-General2,3,4,5,14,22 of the ISP is178 responsible 804 900 133 for 129 selecting 343 those311 934 cases 243 Table 14 shows actual exports of military equipment in 2019 broken down according to the income level of the recipient countries. The breakdown follows World Bank guidelines and South Korea that will be subjected4,5,7,8,9,13, to 14,consultation21,22 2 335with 228 the 496Export 821 913 Control 499 Council. 157 141 is based on the countries’ GDP per capita1. The table also shows the breakdown of exported Total Consultation can take place, for example 181 140, before 128 629a preliminary 951 256 decision811 091 384 is MEC and OME based on the recipient countries’ income level. issued to a company. The Director-General has to consult the Council SOUTH EASTbefore ASIA the ISP submits an application to the Government for final Philippines 5,21,22 0 128 794 648 128 794 648 Table 14 Actual exports of military equipment broken down by country assessment under the Military Equipment Act or the Dual-Use Items and 1 Indonesia 17 0 480 843 480 843 according to income Technical Assistance Control Act. Malaysia At meetings of the ECC, 5,22the Ministry for0 Foreign717 380 Affairs presents717 380 12000 Singapore assessments of the relevant4,5,8,9,13,14,22 recipient 150 countries. 001 961 T126he 773 Ministry 626 of276 Defence 775 587 Thailand provides assessments of2,5,9 the,10,22 defence policy0 aspects401 777 of100 the cases401 777. 100The Total Director-General may also summon other150 001 experts. 961 658 One 543 task597 of the808 Council 545 558 10000 is to present opinions on proposed exports based on the Swedish SOUTH ASIA guidelines, the EU Common Position on Arms Exports and the Arms 8000 India Trade Treaty2,3, in4 ,5order,9,11,13,14,17, to provide18,22 further529 039 guidance 808 363 to 693the 288 ISP. 892 733 096 Pakistan 4,5,10, 22 0 1 353 635 408 1 353 635 408 The members have unrestricted access to the documentation of all export 6000 Total licence application proceedings. 529 039The 808 Director1 717 328 -696General 2 246 368reports 504 continuously on all export licence decisions, processed tender notifications MIDDLE EASTand cooperation agreements, as well as preliminary decisions that have 4000 Bahrain been ruled upon. With effect from15 2005, the0 ISP also160 400reports all160 export 400 United Arab Emirateslicence decisions 4,5,1on 0dual,11,17,21,22-use items to the0 ECC.1 364 011Taken 797 together,1 364 011 797this 2000 Jordan system ensures good insight 13into,14 application 0of the 7rules 366 748 on export7 366control 748 Kuwait 4 0 28 756 994 28 756 994 for members of parliament from all parties represented in the Riksdag. 0 Oman The intention of the Swedish14 system, uniquely0 in1 354international 610 1terms 354 610 in Höginkomstländer Övre Lägre Låginkomstländer Qatar that representatives of the 14,parliamentary17 parties0 5 can002 167discuss 5potential 002 167 medelinkomstländer medelinkomstländer Saudi Arabia export transactions in advance,5,11,21 is to build a0 broad128 741consensus 858 128on 741 export 858 Krigsmateriel för strid (KS) Övrig krigsmateriel (ÖK) Total export Total control policy and promote continuity in the conduct0 1 535 394of that574 po1licy. 535 394 Unlike 574

in many other countries, the Export Control Council deals with cases at an 1 NORTH AFRICAearly stage, before a specific transaction is carried out. Since it would harm A complete list of the country groupings can be found on the website www.worldbank.org. The countries Algeria 5,18 0 1 379 436 1 379 436 Sweden exports military equipment to or has granted export licences to in 2019 are grouped as follows: the exporting companies commercially if their plans were made known High-income countries: Andorra, Australia, Austria, Bahrain, Belgium, Cyprus, Canada, Croatia, Czech Total before they had concluded a deal, the Export Control0 1 379Council's 436 discussions1 379 436 Republic, Denmark, Estonia, Finland, France, Germany, Iceland, Ireland, Italy, Japan, Kuwait, Latvia, are not made public. The assessments of individual countries are normally Lithuania, Luxembourg, Malta, Netherlands, New Zealand, Norway, Oman, Poland, Portugal, Qatar, REST OF AFRICAsubject to confidentiality in relation to foreign affairs. Republic of Korea, Saudi Arabia, Singapore, Slovakia, Slovenia, Spain, Switzerland, United Arab Emirates, United Kingdom, United States. Algeria, Argentina, Brazil, Bulgaria, Namibia 1,3 0 1 680 358 1 680 358 Upper-middle-income countries: The Advisory Council on Foreign Affairs, and not the Export Control Jordan, Malaysia, Mexico, Namibia, Romania, South Africa, Thailand, Turkey. Lower-middle-income South Africa Council, is still 1,3,4,8,10,13,21,22consulted in cases 4 where818 456 this107 is160 prescribed 426 111 978by 882the countries: India, Indonesia, Pakistan, Philippines, Zambia. Low-income-countries: - Zambia Instrument of Government. The3 Export Control0 Council509 240 met eight509 times 240 Total 4 818 456 109 350 024 114 168 480 Military equipment was exported to a total of 58 countries as well as the European Union 5034 in 2019. Table 15 presents corresponding exports in 2019 by region. The regional OCEANIA breakdown follows the breakdown in the EU’s annual statistical report to which the ISP 2,3,4,5,8,10,11,14,15,17,18,21,2 contributes statistical material. Australia 2 130 146 580 105 569 164 235 715 744 in 2019. The Council discussed 14 matters for consultation, of which 13 Comm. related to military equipment and one to dual-use items. 2019/20:114 Appendix 1 Categories of military Value of Value of The current members of theCategories Export ofControl military Council Value are: of Value of Country equipment MEC OME Total Country equipment MEC OME Total Mexico 2,5,13,22 9 874 651 11 932 212 21 806 863 New JanineZealand Alm Ericson, Member of 1,2,3,1Parliament4,17 (Green1 310 080 Party) 3 605 896 4 915 976 Total 9 874 651 11 932 212 21 806 863 TotalJan R Andersson, Member of Parliament (Moderate131 456 660 Party) 109 175 060 240 631 720 Annicka Engblom, Member of Parliament (Moderate Party) SOUTH AMERICA INTERNATIONALKerstin Lundgren, ORGANISATIONS Member of Parliament (Centre Party) Argentina 2, 14 0 5 378 915 5 378 915 EU Maria Nilsson, Member of Parliament (Liberal22 Party)0 947 385 947 385 Brazil 2,4,5,10,14,17,18,21,22 86 423 939 2 915 165 333 3 001 589 272 TotalMattias Ottosson, Member of Parliament (Social Democrats)0 947 385 947 385 Total 86 423 939 2 920 544 248 3 006 968 187 Désirée Pethrus, Member of Parliament (Christian Democr ats) TOTALRoger Richtoff, Member of Parliament (Sweden 2 983 523 Democrats) 043 13 290 112 821 16 273 635 864 NORTH EAST ASIA Marie Granlund, former Member of Parliament (Social Democrats) Japan 2,3,4,5,14,22 178 804 900 133 129 343 311 934 243 TableStig 14 Henriksson,shows actual formerexports Memberof military of equipment Parliament in (Left 2019 Party)broken down according to the South Korea 4,5,7,8,9,13,14,21,22 2 335 228 496 821 913 499 157 141 incomeLars level Johansson, of the recipient former countries.Member ofThe Parliament breakdown (Social follows Democrats) World Bank guidelines and 1 Total 181 140 128 629 951 256 811 091 384 is basedPer onWesterberg, the countries’ former GDP Member per capita of .Parliament The table also (Moderate shows the Pa breakdownrty) of exported MEC and OME based on the recipient countries’ income level. SOUTH EAST ASIA Deputy members of the Export Control Council: Philippines 5,21,22 0 128 794 648 128 794 648 Table 14 Actual exports of military equipment broken down by country 1 Indonesia 17 0 480 843 480 843 Camilla Brodin,according Member to income of Parliament (Christian Democrats) Malaysia 5,22 0 717 380 717 380 Hanna Gustafsson, Member of Parliament (Left Party) Singapore 4,5,8,9,13,14,22 150 001 961 126 773 626 276 775 587 Ann-Charlotte Hammar Johnsson, Member of Parliament (Moderate Thailand 2,5,9,10,22 0 401 777 100 401 777 100 Party) Total 150 001 961 658 543 597 808 545 558 Caroline Nordengrip, Member of Parliament (Sweden Democrats) Eva Sonidsson, former Member of Parliament (Social Democrats) SOUTH ASIA India 2,3,4,5,9,11,13,14,17,18,22 529 039 808 363 693 288 892 733 096 Pakistan 4,5,10, 22 0 1 353 635 408 1 353 635 408 The Strategic Cooperation Council Total 529 039 808 1 717 328 696 2 246 368 504 The Strategic Cooperation Council is a cooperative council attached to the MIDDLE EAST ISP for cooperation on issues related to non-proliferation. It consists of a Bahrain 15 0 160 400 160 400 Director-General and members from the cooperating authorities appointed United Arab Emirates 4,5,10,11,17,21,22 0 1 364 011 797 1 364 011 797 by the ISP. The Strategic Cooperation Council met once in 2019. Jordan 13,14 0 7 366 748 7 366 748 Kuwait 4 0 28 756 994 28 756 994 Technical-Scientific Council Oman 14 0 1 354 610 1 354 610 A Technical-Scientific Council is attached to the ISP to assist the Director- Qatar 14,17 0 5 002 167 5 002 167 General of the ISP in the discussion of matters concerning the Saudi Arabia 5,11,21 0 128 741 858 128 741 858 classification of military equipment and dual-use items. The Council Total 0 1 535 394 574 1 535 394 574 consists of representatives of institutions with expertise in the technology's

1civilian and military applications. The Technical-Scientific Council held NORTH AFRICA one A completemeeting list inof the201 country9. groupings can be found on the website www.worldbank.org. The countries Algeria 5,18 0 1 379 436 1 379 436 Sweden exports military equipment to or has granted export licences to in 2019 are grouped as follows: High-income countries: Andorra, Australia, Austria, Bahrain, Belgium, Cyprus, Canada, Croatia, Czech Total 0 1 379 436 1 379 436 Republic, Denmark, Estonia, Finland, France, Germany, Iceland, Ireland, Italy, Japan, Kuwait, Latvia, Lithuania,4.2 Luxembourg, The Swedish Malta, Netherlands, Radiation New Zealand, Safety Norway, Authority Oman, Poland, Portugal, Qatar, REST OF AFRICA Republic of Korea, Saudi Arabia, Singapore, Slovakia, Slovenia, Spain, Switzerland, United Arab Emirates, United Kingdom, United States. Algeria, Argentina, Brazil, Bulgaria, Namibia 1,3 0 1 680 358 1 680 358 Upper-middle-income countries: Jordan,In accordance Malaysia, Mexico, with Namibia,the Ordinance Romania, South (2008:452) Africa, Thailand, with instructions Turkey. Lower for-middle the-income South Africa 1,3,4,8,10,13,21,22 4 818 456 107 160 426 111 978 882 countries:Swedish India,Radiation Indonesia, Safety Pakistan, AuPhilippines,thority, Zambia. the Swedish Low-income Radiation-countries: - Safety Zambia 3 0 509 240 509 240 Authority (SSM) is the central government authority for issues relating to Total 4 818 456 109 350 024 114 168 480 Militarythe protection equipment of humanwas exported health to and a total the ofenvironment 58 countries against as well theas the harmful European Union in 2019. Table 15 presents corresponding exports in 2019 by region. The regional 5135 OCEANIA breakdown follows the breakdown in the EU’s annual statistical report to which the ISP 2,3,4,5,8,10,11,14,15,17,18,21,2 contributes statistical material. Australia 2 130 146 580 105 569 164 235 715 744

Comm. The Export Control Council 2019/20:114 The Riksdag decided in 1984, on the basis of the Government Bill Appendix 1 proposing greater transparency and consultation on matters relating to Table 15 exportsShare of of actual military exports equipment of military etc. (Govt equipment Bill 1984/85:82) in 2019 by, that region an advisory Table 17 Actual exports in 2019 of small arms, light weapons and MANPADS as board on military equipment issues should be established. The defined in the UN Register of Conventional Arms Region Government reorganisedPercentage this board share into the Export Control Council (ECC) EU in connection with the establishment28,9% of the ISP in 1996. The rules Small arms South America governing the composition18,5% and activities of the ECC are included in the 1. Revolvers and self-loading pistols No exports South Asia ISP's instructions. All parliamentary13,8% parties are represented on the ECC. It 2. Rifles and carbines No exports North America is chaired by the Director-11,9%General of the ISP. 3. Sub-machine guns No exports Middle East A new Export Control Council9,4% started work on 1 November 2019, after 4. Assault rifles No exports Rest of Europe being appointed by the Government.5,2% In line with the proposals of the KEX 5. Light machine guns No exports North East AsiaInquiry, deputy members were5,0% also appointed for the first time. A list of Small-calibre ammunition for military use or components for such South East Asia 5,0% 6. Other ammunition were exported to Austria, Canada, the Czech Republic, the Council’s members and deputy members appears below Denmark, Finland, France, Germany, Italy, Latvia, Japan, Norway, Oceania The Director-General of1,5% the ISP is responsible for selecting those cases Poland, Slovakia, Spain and the United States. Rest of Africa that will be subjected to consultation0,7% with the Export Control Council. Central America and the Consultation can take place,0,1% for example, before a preliminary decision is Light weapons Caribbean issued to a company. The Director-General has to consult the Council 1. Heavy machine guns (12.7 mm) No exports North Africa Less than 0,1% before the ISP submits an application to the Government for final 2. Hand-held underbarrel and International Organisations Less than 0,1% assessment under the Military Equipment Act or the Dual-Use Items and mounted grenade launchers (40 mm) No exports Technical Assistance Control Act. 3. Portable anti-tank guns No exports Table 16 shows actual exports in 2019 by ML category, broken down into MEC and OME. At meetings of the ECC, the Ministry for Foreign Affairs presents 4. Recoilless rifles (rocket-propelled Rocket-propelled grenades were exported to Australia, India, Japan, the It should be noted that ML11, ML13–18 and ML20–22 contain only OME. grenades) United Kingdom and the United States. Spare parts, training assessments of the relevant recipient countries. The Ministry of Defence equipment, components and ammunition for rocket-propelled grenades provides assessments of the defence policy aspects of the cases. The Table 16 The value of actual exports of military equipment in 2019 by category were exported to Argentina, Australia, Austria, Brazil, Canada, the Czech Republic, Denmark, Estonia, Hungary, India, Ireland, Japan, Directorof equipment-General may also summon other experts. One task of the Council is to present opinions on proposed exports based on the Swedish Latvia, New Zealand, Norway, Slovenia, the United Kingdom and the United States. guidelines, the EU Common Position on Arms Exports and the Arms Category of equipment Value of MEC Value of OME 5. Portable anti-tank missile launchers Anti-tank missile launchers were exported to the United States. Spare ML1 Trade Treaty in order to provide1 053 further 365 guidance to the ISP. 13 495 758 and rocket systems parts, training weapons and components for anti-tank systems were exported to Argentina, Austria, Denmark, Ireland, Norway and ML2 The members have unrestricted469 536 access433 to the documentation of342 all 771 export 457 licence application proceedings. The Director-General reports Switzerland. ML3 1 395 672 788 826 672 410 6. Mortars of calibres less than 75 mm No exports ML4 continuously on all export licence457 326 decisions,283 processed tender notifications552 819 226 and cooperation agreements, as well as preliminary decisions that have 7. Other No exports ML5 360 402 548 1 065 187 520 ML6 been ruled upon. With effect14 from218 588 2005, the ISP also reports1 440all 102export 372 licence decisions on dual-use items to the ECC. Taken together, this MANPADS (Man-Portable Air Defence Systems) ML7 613 999 73 350 Missiles, spare parts, training equipment etc. for MANPADS were exported to Australia, Brazil, the Czech ML8 system ensures good insight284 into 699 application 039 of the rules on export control973 079 Republic, Finland, Ireland, Latvia, Lithuania and Singapore. ML9 for members of parliament from all parties0 represented in the Riksdag.110 935 612 ML10 The intention of the Swedish system,0 uniquely in international6 854 terms 197 607 in Actual exports over time ML11 that representatives of the parliamentary- parties can discuss114 potential 648 637 ML12 export transactions in advance, is to0 build a broad consensus on export0 It is preferable for the export statistics to be shown over time to make it easier to identify control policy and promote continuity in the conduct of that policy. Unlike ML13 - 133 434 017 trends and tendencies in the area of military equipment. Individual sales and deliveries of in many other countries, the Export Control Council deals with cases at an major military equipment systems may cause wide fluctuations in the statistics. ML14 - 239 221 689 early stage, before a specific transaction is carried out. Since it would harm ML15 - 18 467 825 the exporting companies commercially if their plans were made known Table 18 shows the value and percentage change compared with the previous year ML16 - 958 300 before they had concluded a deal, the Export Control Council's discussions regarding actual exports in the past five years broken down into MEC/OME. ML17 - 167 778 609 are not made public. The assessments of individual countries are normally ML18 - 16 837 707 subject to confidentiality in relation to foreign affairs. Table 18 The value of actual exports of military equipment in current prices and ML19 0 0 The Advisory Council on Foreign Affairs, and not the Export Control annual percentage change 2015–2019 (SEK million) ML20 - 0 Council, is still consulted in cases where this is prescribed by the ML21 - 149 374 480 Instrument of Government. The Export Control Council met eight times Category of equipment 2015 2016 2017 2018 2019 ML22 - 1 242 163 166 Military equipment for 3 560 (+9) 4 410 (+24) 6 697 (+52) 4 995 (-25) 2 984 (-40) combat purposes 5234 Table 17 shows actual exports of small arms, light weapons and man-portable air defence Other military equipment 4 043 (-14) 6 579 (+63) 4 554 (-30) 6 375 (+40) 13 290(+108) Total 7 603 (-4) 10 989 (+45) 11 251 (+2) 11 370 (+1) 16 274(+43) systems (MANPADS). The data is included in the report presented by Sweden annually to the UN. in 2019. The Council discussed 14 matters for consultation, of which 13 Comm. related to military equipment and one to dual-use items. 2019/20:114 Appendix 1 Table 15 Share of actual exports of military equipment in 2019 by region TableThe current 17 membersActual exports of the inExport 2019 Controlof small Council arms, light are: weapons and MANPADS as defined in the UN Register of Conventional Arms Region Percentage share Janine Alm Ericson, Member of Parliament (Green Party) EU 28,9% SmallJan arms R Andersson, Member of Parliament (Moderate Party) South America 18,5% 1. RevolversAnnicka and Engblom,self-loading pistolsMember No of exportsParliament (Moderate Party) South Asia 13,8% 2. RiflesKerstin and carbinesLundgren, Member Noof Parliamentexports (Centre Party) North America 11,9% 3. SubMaria-machine Nilsson, guns Member of ParliamentNo exports (Liberal Party) Middle East 9,4% 4. AssaultMattias rifles Ottosson, Member ofNo Parliament exports (Social Democrats) Rest of Europe 5,2% 5. LightDésirée machine Pethrus, guns Member ofNo Parliament exports (Christian Democrats) North East Asia 5,0% Roger Richtoff, Member of SmallParliament-calibre ammunition (Sweden forDemocrats) military use or components for such South East Asia 5,0% 6. OtherMari e Granlund, former Memberammunition of Parliament were exported (Social to Austria, Democrats) Canada, the Czech Republic, Stig Henriksson, former MemberDenmark, of Finland,Parliament France, (Left Germany, Party) Italy, Latvia, Japan, Norway, Oceania 1,5% Poland, Slovakia, Spain and the United States. Rest of Africa 0,7% Lars Johansson, former Member of Parliament (Social Democrats) Central America and the Per Westerberg, former Member of Parliament (Moderate Party) 0,1% Light weapons Caribbean 1. Heavy machine guns (12.7 mm) No exports North Africa Less than 0,1% 2.Deputy Hand-held members underbarrel of andthe Export Control Council: International Organisations Less than 0,1% mounted grenade launchers (40 mm) No exports 3. PortableCamilla anti Brodin,-tank guns Member of ParliamentNo exports (Christian Democrats) Table 16 shows actual exports in 2019 by ML category, broken down into MEC and OME. 4. RecoillessHanna Gustafsson,rifles (rocket-propelled Member ofRocket Parliament-propelled (Left grenades Party) were exported to Australia, India, Japan, the It should be noted that ML11, ML13–18 and ML20–22 contain only OME. grenades)Ann- Charlotte Hammar Johnsson,United Kingdom Member and ofthe ParliamentUnited States . Spare(Moderate parts, training equipment, components and ammunition for rocket-propelled grenades Party) Table 16 The value of actual exports of military equipment in 2019 by category were exported to Argentina, Australia, Austria, Brazil, Canada, the Caroline Nordengrip, MemberCzech of Parliament Republic, Denmark, (Sweden Estonia, Democrats) Hungary, India, Ireland, Japan, of equipment Eva Sonidsson, former MemberLatvia, of NewParliament Zealand, Norway, (Social Slovenia,Democrats) the United Kingdom and the United States. Category of equipment Value of MEC Value of OME 5. Portable anti-tank missile launchers Anti-tank missile launchers were exported to the United States. Spare ML1 1 053 365 13 495 758 and rocket systems parts, training weapons and components for anti-tank systems were exported to Argentina, Austria, Denmark, Ireland, Norway and ML2 469 536 433 342 771 457 The Strategic Cooperation Council Switzerland. ML3 1 395 672 788 826 672 410 6.The Mortars Strategic of calibres Cooperation less than 75 mmCouncil No exp is ortsa cooperative council attached to the ML4 457 326 283 552 819 226 7.ISP Other for cooperation on issues relatedNo exports to non-proliferation. It consists of a ML5 360 402 548 1 065 187 520 Director-General and members from the cooperating authorities appointed ML6 14 218 588 1 440 102 372 MANPADSby the ISP. (Man The-Portable Strategic Air Cooperation Defence Systems) Council met once in 2019. ML7 613 999 73 350 Missiles, spare parts, training equipment etc. for MANPADS were exported to Australia, Brazil, the Czech Republic, Finland, Ireland, Latvia, Lithuania and Singapore. ML8 284 699 039 973 079 Technical-Scientific Council ML9 0 110 935 612 ML10 0 6 854 197 607 ActualA Techni exportscal -overScientific time Council is attached to the ISP to assist the Director- ML11 - 114 648 637 General of the ISP in the discussion of matters concerning the ML12 0 0 Itclassification is preferable forof themilitary export equipment statistics to andbe shown dual- overuse itemstime to. Themake Council it easier to identify ML13 - 133 434 017 trendsconsists and of tendencies representatives in the ofarea institutions of military with equipment. expertise Individual in the technology's sales and deliveries of major military equipment systems may cause wide fluctuations in the statistics. ML14 - 239 221 689 civilian and military applications. The Technical-Scientific Council held

ML15 - 18 467 825 one meeting in 2019. Table 18 shows the value and percentage change compared with the previous year ML16 - 958 300 regarding actual exports in the past five years broken down into MEC/OME. ML17 - 167 778 609 ML18 - 16 837 707 Table4.2 18 TheThe Swedishvalue of actual Radiation exports of Safety military Authority equipment in current prices and ML19 0 0 annual percentage change 2015–2019 (SEK million) ML20 - 0 In accordance with the Ordinance (2008:452) with instructions for the Swedish Radiation Safety Authority, the Swedish Radiation Safety ML21 - 149 374 480 Category of equipment 2015 2016 2017 2018 2019 ML22 - 1 242 163 166 MilitaryAuthority equipment (SSM) for is the3 central560 (+9) government4 410 (+24) authority 6 697 for (+ issues52) relating4 995 (-25 to) 2 984 (-40) combatthe protection purposes of human health and the environment against the harmful 5335 Table 17 shows actual exports of small arms, light weapons and man-portable air defence Other military equipment 4 043 (-14) 6 579 (+63) 4 554 (-30) 6 375 (+40) 13 290(+108) systems (MANPADS). The data is included in the report presented by Sweden annually to Total 7 603 (-4) 10 989 (+45) 11 251 (+2) 11 370 (+1) 16 274(+43) the UN.

Comm. The Export Control Council 2019/20:114 The Riksdag decided in 1984, on the basis of the Government Bill Appendix 1 proposing greater transparency and consultation on matters relating to Figure 1 showsexports the growth of military in value equipment over a prolonged etc. (Govt period. Bill 1984/85:82) Note that the, that definition an advisory of Country 2017 2018 2019 what constitutesboard military on equipmentmilitary wasequipment expanded issues in 1993 shouldand 2012 be. established. The Cyprus - - 0.2 Government reorganised this board into the Export Control Council (ECC) Denmark 214 140 161 Figure 1 inGrowth connect inion value with for actualthe establishment exports of military of the equipmentISP in 1996. in current The rules Estonia 72 145 316 prices 1972–governing2019 (SEK themillion) composition and activities of the ECC are included in the Finland 240 137 455 ISP's instructions. All parliamentary parties are represented on the ECC. It France 293 293 277 18000 is chaired by the Director-General of the ISP. Ireland 27 0.5 1.7 A new Export Control Council started work on 1 November 2019, after Italy 91 45 69 16000 being appointed by the Government. In line with the proposals of the KEX Croatia 2.1 0.9 0.7 Inquiry, deputy members were also appointed for the first time. A list of Latvia 33 104 17 14000 the Council’s members and deputy members appears below Lithuania 19 2.3 45 The Director-General of the ISP is responsible for selecting those cases Luxembourg 119 0.025 0.6 12000 that will be subjected to consultation with the Export Control Council. Malta - - 0.0 Consultation can take place, for example, before a preliminary decision is Netherlands 499 365 534 10000 issued to a company. The Director-General has to consult the Council Poland 140 118 29 before the ISP submits an application to the Government for final Portugal 1,2 0.8 3.1 8000 assessment under the Military Equipment Act or the Dual-Use Items and Romania 0.7 18 11 6000 Technical Assistance Control Act. Slovakia 2.8 2.3 4.3 At meetings of the ECC, the Ministry for Foreign Affairs presents Slovenia 0.2 5.6 11 4000 assessments of the relevant recipient countries. The Ministry of Defence Spain 50 38 56 provides assessments of the defence policy aspects of the cases. The United Kingdom 285 356 436 2000 Director-General may also summon other experts. One task of the Council Czech Republic 28 615 537 is to present opinions on proposed exports based on the Swedish Germany 615 425 529 0 guidelines, the EU Common Position on Arms Exports and the Arms Hungary 4.1 763 881 Trade Treaty in order to provide further guidance to the ISP. Austria 133 244 275 1972 1974 The1976 members1978 1980 1982 have1984 1986 unres1988 1990 tricted1992 1994 access1996 1998 to 2000 the 2002 documentation2004 2006 2008 2010 of2012 all2014 export2016 2018 Total 2 931 3 876 4 695 licence application proceedings. The Director-General reports Table 19 showscontinuously the share of on exports all export of military licence equipment decisions, in processed total Swedish tender exports notifications of REST OF EUROPE goods over theand past cooperation five years. Alongsideagreements, this as communication, well as preliminary Swedish decisions exports of that military have Andorra 0.3 0.4 0.3 equipment arebeen reported ruled i nupon. the general With statisticseffect from on foreign2005, trade,the ISP which also are re portsbased allon exportthe Greenland 0.1 0.04 - data submittedlicence to Statistics decisions Sweden on bydual Swedish-use items Customs. to theStatistics ECC. Sweden Taken usestogether, different this Iceland 1.7 1.9 1.5 product categoriessystem than ensures the ISP good in its insight reporting into andapplication the figures of arethe thusrules not on directlyexport control Norway 621 370 601 comparable witforh membersthe ISP's statistics.of parliament from all parties represented in the Riksdag. Switzerland 170 67 206 The intention of the Swedish system, uniquely in international terms in Turkey 71 299 42 Table 19 Share of exports of military equipment in total Swedish exports of that representatives of the parliamentary parties can discuss potential Total 864 738 850 goods in current prices 2015–2019 export transactions in advance, is to build a broad consensus on export

control policy and promote continuity in the conduct of that policy. Unlike NORTH AMERICA Type of export 2015 2016 2017 2018 2019 Military equipmentin manyexports other 7 603 countries, 10the 989 Export Control11 251 Council11 deals370 with 16cases 274 at an Canada 322 231 227 Total exports ofearly goods stage, 1before 180 600 a specific1 192 transaction 700 1 306 is carried900 out.1 441 Since 200 it would1 518 100 harm United States 813 654 1 714 Percentage the exporting0.64% companies 0.92% commer cially0.86% if their plans0.79% were made1.07% known Total 1 134 885 1 941 before they had concluded a deal, the Export Control Council's discussions Table 20 showsare the not value made of public. exports The by recipientassessments country of individual over the past countries three years. are normally CENTRAL AMERICA subject to confidentiality in relation to foreign affairs. Mexico 68 96 22 Table 20 TheThe value Advis ofory actual Council exports on Foreignof military Affairs, equipment and not by the country Export 201 Control7–2019 Total 68 96 22 Council,(SEK million) is still consulted in cases where this is prescribed by the Instrument of Government. The Export Control Council met eight times SOUTH AMERICA Country 2017 2018 2019 Argentina 7.8 15 5.4 34 54 EU Brazil 3 467 2 955 3 002 Belgium 11 33 35 Chile 0.2 0.2 - Bulgaria 50 23 10 Ecuador 0.4 0.9 - in 2019. The Council discussed 14 matters for consultation, of which 13 Comm. related to military equipment and one to dual-use items. 2019/20:114 Appendix 1 Figure 1 shows the growth in value over a prolonged period. Note that the definition of CountryThe current members of the Export Control2017 Council are: 2018 2019 what constitutes military equipment was expanded in 1993 and 2012. Cyprus - - 0.2 DenmarkJanine Alm Ericson, Member of Parliament214 (Green Party)140 161 Figure 1 Growth in value for actual exports of military equipment in current EstoniaJan R Andersson, Member of Parliament72 (Moderate Party)145 316 prices 1972–2019 (SEK million) FinlandAnnicka Engblom, Member of Parliament240 (Moderate Party)137 455 FranceKerstin Lundgren, Member of Parliament293 (Centre Party) 293 277 18000 IrelandMaria Nilsson, Member of Parliament27 (Liberal Party) 0.5 1.7 Italy Mattias Ottosson, Member of Parliament91 (Social Democrats)45 69 16000 CroatiaDésirée Pethrus, Member of Parliament2.1 (Christian Democr0.9ats) 0.7 LatviaRoger Richtoff, Member of Parliament33 (Sweden Democrats)104 17 14000 LithuaniaMari e Granlund, former Member of 19Parliament (Social Democrats)2.3 45 LuxembourgStig Henriksson, former Member of119 Parliament (Left Party)0.025 0.6 12000 MaltaLars Johansson, former Member of Parliament- (Social Democrats)- 0.0 NetherlandsPer Westerberg, former Member of499 Parliament (Moderate365 Pa rty) 534 10000 Poland 140 118 29 PortugalDeputy members of the Export Control 1,2Council: 0.8 3.1 8000 Romania 0.7 18 11 Camilla Brodin, Member of Parliament (Christian Democrats) 6000 Slovakia 2.8 2.3 4.3 SloveniaHanna Gustafsson, Member of Parliament0.2 (Left Party) 5.6 11 Ann-Charlotte Hammar Johnsson, Member of Parliament (Moderate 4000 Spain 50 38 56 UnitedParty) Kingdom 285 356 436 Caroline Nordengrip, Member of Parliament (Sweden Democrats) 2000 Czech Republic 28 615 537 GermanyEva Sonidsson, former Member of Parliament615 (Social Democrats)425 529 0 Hungary 4.1 763 881 Austria 133 244 275

1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 TotalThe Strategic Cooperation Council 2 931 3 876 4 695 The Strategic Cooperation Council is a cooperative council attached to the Table 19 shows the share of exports of military equipment in total Swedish exports of RESTISP for OF cooperation EUROPE on issues related to non -proliferation. It consists of a goods over the past five years. Alongside this communication, Swedish exports of military AndorraDirector -General and members from the0.3 cooperating authorities0.4 appointed 0.3 equipment are reported in the general statistics on foreign trade, which are based on the Greenlandby the ISP. The Strategic Cooperation Council0.1 met once in 20190.04 . - data submitted to Statistics Sweden by Swedish Customs. Statistics Sweden uses different Iceland 1.7 1.9 1.5 product categories than the ISP in its reporting and the figures are thus not directly Norway 621 370 601 comparable with the ISP's statistics. SwitzerlandTechnical -Scientific Council 170 67 206 TurkeyA Techni cal-Scientific Council is attached71 to the ISP to assist 299the Director- 42 Table 19 Share of exports of military equipment in total Swedish exports of TotalGeneral of the ISP in the discussion864 of matters concerning738 the 850 goods in current prices 2015–2019 classification of military equipment and dual-use items. The Council

NORTHconsists AMERICAof representatives of institutions with expertise in the technology's Type of export 2015 2016 2017 2018 2019 Military equipment exports 7 603 10 989 11 251 11 370 16 274 Canadacivilian and military applications. The 322Technical -Scientific 231Council held 227 Total exports of goods 1 180 600 1 192 700 1 306 900 1 441 200 1 518 100 Unitedone meeting States in 2019. 813 654 1 714 Percentage 0.64% 0.92% 0.86% 0.79% 1.07% Total 1 134 885 1 941

Table 20 shows the value of exports by recipient country over the past three years. CENTRAL4.2 AMERICA The Swedish Radiation Safety Authority Mexico 68 96 22 Table 20 The value of actual exports of military equipment by country 2017–2019 TotalIn accordance with the Ordinance (2008:452)68 with instructions96 for the 22 (SEK million) Swedish Radiation Safety Authority, the Swedish Radiation Safety SOUTHAuthority AMERICA (SSM) is the central government authority for issues relating to Country 2017 2018 2019 Argentinathe protection of human health and the7.8 environment against 15the harmful 5.4 35 EU Brazil 3 467 2 955 3 002 55 Belgium 11 33 35 Chile 0.2 0.2 - Bulgaria 50 23 10 Ecuador 0.4 0.9 -

Australia 258 69 236

in 2019. The Council discussed 14 matters for consultation, of which 13 Comm. related to military equipment and one to dual-use items. 2019/20:114 Appendix 1 Country 2017 2018 2019 CountryThe current members of the Export Control2017 Council are: 2018 2019 Peru - 1.5 - New Zealand 12 2 4.9 Uruguay 0.1 0.1 - TotalJanine Alm Ericson, Member of Parliament271 (Green Party)71 241 Total 3 476 2 973 23 007 Jan R Andersson, Member of Parliament (Moderate Party) INTERNATIONALAnnicka Engblom, ORGANISATIONS Member of Parliament (Moderate Party) NORTH EAST ASIA UN Kerstin Lundgren, Member of Parliament0.8 (Centre Party) 1.9 - Japan 26 80 312 EU Maria Nilsson, Member of Parliament- (Liberal Party) - 0.9 South Korea 152 194 499 TotalMattias Ottosson, Member of Parliament0.8 (Social Democrats)1.9 0.9 Total 178 274 811 Désirée Pethrus, Member of Parliament (Christian Democrats) TOTALRoger Richtoff, Member of Parliament11 251 (Sweden Democrats)11 370 16 274 SOUTH EAST ASIA Marie Granlund, former Member of Parliament (Social Democrats) Brunei 52 0.2 - TableStig 21 Henriksson,shows the value former of Swedish Member exports of Parliament of military (Left equipm Party)ent to the top 30 countries Philippines - 19 129 in termsLars of Johansson, receipts of former such equipment Member ofsince Parliament 1993. (Social Democrats) Indonesia 0.3 0.6 0.5 Per Westerberg, former Member of Parliament (Moderate Party) Malaysia 17 55 0.7 Table 21 Value of actual exports of military equipment to the 30 largest Singapore 215 96 277 Deputy membersrecipient of the countries Export Control in current Council: prices 1993-2019 (SEK million) Thailand 52 11 402 Total 336 281 808 PlaceCamilla Brodin,Country Member of Parliament (Christian Democrats) Total 1. Hanna Gustafsson,United States Member of Parliament (Left Party) 18 754 SOUTH ASIA 2. Ann-CharlotteNorway Hammar Johnsson, Member of Parliament (Moderate 16 689 India 1 366 789 893 3. Party) Brazil 14 102 Pakistan 110 1 050 1 354 4. Caroline Nordengrip,South Africa Member of Parliament (Sweden Democrats) 12 844 Total 1 497 1 840 2 246 5. Eva Sonidsson,Netherlands former Member of Parliament (Social Democrats) 12 444 6. India 11 946 MIDDLE EAST 7. Germany 10 618 Bahrain 0.1 0.8 0.2 8.The StrategicPakistan Cooperation Council 10 192 9. Thailand 10 072 United Arab Emirates 149 82 1 364 The Strategic Cooperation Council is a cooperative council attached to the 10. United Kingdom 9 689 Jordan 9,1 13 7.4 ISP for cooperation on issues related to non-proliferation. It consists of a 11. Czech Republic* 9 305 Kuwait - 7.0 29 Director-General and members from the cooperating authorities appointed 12. Finland 9 233 Oman - 4.0 1.4 by the ISP. The Strategic Cooperation Council met once in 2019. Qatar 6.3 2.0 5.0 13. France 8 885 Saudi Arabia 6.6 85 129 14. Singapore 8 609 Total 171 194 1 535 15.Technical -ScientificDenmark Council 7 034 16.A TechnicalS-witzerlandScientific Council is attached to the ISP to assist the Director- 6 782 NORTH AFRICA 17.General ofHungary the *ISP in the discussion of matters concerning the 6 253 Algeria 9.2 11 1.4 18.classification Saudi of Arabia military equipment and dual-use items. The Council 5 456 Tunisia 0.4 - - 19.consists of representativesAustralia of institutions with expertise in the technology's 5 325 Total 9.6 11 1.4 20.civilian andC anadamilitary applications. The Technical-Scientific Council held 4 770 21.one meetingUnited in 201 Arab9. Emirates 4 128 22. Austria 2 951 REST OF AFRICA 23. South Korea 2 885 Botswana 38 0,08 - 24.4.2 TheGreece Swedish Radiation Safety Authority 2 720 Mauritius 0.4 - - 25. Italy 2 425 Namibia 0.1 - 1.7 26.In accordanceJapan with the Ordinance (2008:452) with instructions for the 1 690 South Africa 277 128 112 27.Swedish RadiationMexico Safety Authority, the Swedish Radiation Safety 1 566 Zambia 0.1 0.1 0.5 28.Authority (SSM)Malaysia is the central government authority for issues relating to 1 132 Total 315 128 114 29.the protectionEst oniaof human health and the environment against the harmful 1 009 35 30. Venezuela 1 004 57 OCEANIA * Including lease payments

Australia 258 69 236

governing the composition and activities of the ECC are included in the Brazil 2 17 Agreements concerning manufacturing rights and cooperation ISP's instructions. All parliamentary parties are represented on the ECC. It Denmark 3 2 is chaired by the Director-General of the ISP. Entering into agreements involving the granting or transfer of manufacturing rights to Several EU countries 2 A new Export Control Council started work on 1 November 2019, after parties outside Sweden requires a licence under the Military Equipment Act. In accordance Estonia 1 being appointed by the Government. In line with the proposals of the KEX with Section 8 of the same Act, a licence is required to enter into cooperation agreements EU 1 with parties outsideInquiry, the deputy country members to jointly were with alsosaid parties,appointed or on for their the bfirstehalf, time. provide A list of Finland 2 5 the Council’s members and deputy members appears below technical assistance to parties abroad, develop military equipment or methods for the Several countries 15 The Director-General of the ISP is responsible for selecting those cases manufacture of such material or to jointly manufacture military equipment. France 2 5 that will be subjected to consultation with the Export Control Council. United Arab Emirates 1 Consultation can take place, for example, before a preliminary decision is In 2019, the ISP approved 6 licences for Swedish companies to enter into agreements Greece 1 involving the issuedgranting to or a transfercompany. of manufacturing The Director -rightsGeneral to parties has to outside consult Sweden. the Council In India 8 3 addition, 19 licencesbefore werethe ISPgranted submits for Swedish an application authorities andto theSwedish Government companies for to enterfinal 1 2 into cooperationassessment agreements under with the some Military party Equipmentoutside the country.Act or the Table Dual 22- Useshows Items the and Italy number of licencesTechnical granted Assist perance country Control to enter Act. into licence agreements and partnership Japan 8 3 agreements. At meetings of the ECC, the Ministry for Foreign Affairs presents Canada 5 2 assessments of the relevant recipient countries. The Ministry of Defence Latvia 2 Table 22 providesNumber assessmentsof licences granted of the todefence enter intopolicy agreements aspects of on the licence cases . The Netherlands 1 1 Directorproduction-General and cooperationmay also sum brokenmon other down experts. by country One task in 2019 of the Council Norway 2 6 is to present opinions on proposed exports based on the Swedish Poland 4 Country guidelines, the EULicence Common agreements Position on ArmsCooperation Exports agreements and the Arms Romania 1 Australia Trade Treaty in order to provide further guidance to the ISP.2 Switzerland 2 3 Brazil The members have unres tricted access to the documentation1 of all export Singapore 1 EU licence application proceedings. The Director-General1 reports Spain 4 Finland 1 continuously on all export licence decisions, processed tender notifications United Kingdom 3 19 France 2 1 and cooperation agreements, as well as preliminary decisions that have South Africa 1 2 Several EU countries 2 been ruled upon. With effect from 2005, the ISP also reports all export South Korea 3 1 United Arab Emirates 1 licence decisions on dual-use items to the ECC. Taken together, this Czech Republic 1 India system ensures good insight1 into application of the rules 1on export control Germany 5 7 Canada & Netherlandsfor members of parliament from all parties represented in2 the Riksdag. Total 71 129 Netherlands 1 The intention of the Swedish system, uniquely in international terms in Spain 1 that representatives of the parliamentary parties can discuss potential Ownership abroad United Kingdomexport transactions in advance, is to build a broad consensus3 on export South Korea control policy and promote1 continuity in the conduct of that policy. Unlike A party holding a manufacturing or brokering licence for military equipment is obliged to Germany in many other countries, the Export Control Council deals1 with cases at an provide information to the ISP on ownership in foreign legal entities undertaking United States early stage, before a specific1 transaction is carried out. Since2 it would harm development, manufacturing, marketing or sale of military equipment. Total the exporting companies6 commercially if their plans were19 made known before they had concluded a deal, the Export Control Council's discussions In 2019, 19 companies reported ownership in 101 foreign legal entities in a total of 42 A party that hasare obtainednot made a public.licence toThe enter assessments into agreements of individual is obliged countries to submit are details normally to countries. Table 24 shows the number of foreign legal entities broken down by country in the ISP annuallysubject on the to confidentialityvalidity of these inagreements. relation to Eighteen foreign affairs.companies and two which they operate. government agenciesThe Advis reportedory aCouncil total of on71 licenceForeign production Affairs, and agreements not the andExport 129 Control cooperation agreementsCouncil, is in still2019. consulted Table 23 showsin cases all currently where validthis licisence prescribed agreements by andthe Table 24 Number of reported foreign legal entities broken down by country cooperation agreementsInstrument brokenof Government. down by country. The Export Control Council met eight times Country Number of Swedish-owned legal entities 5834 Table 23 Number of reported licence production and cooperation agreements United States 10 broken down by country Australia 3 Belgium 1 Country Licence agreements Cooperation agreements United States 9 21 in 2019. The Council discussed 14 matters for consultation, of which 13 Comm. related to military equipment and one to dual-use items. 2019/20:114 Appendix 1 Other activity abroad The current members of the Export Control Council are: Country Licence agreements Cooperation agreements Alongside exports, there are certain requirements for licences and reporting for further AustraliaJanine Alm Ericson, Member of Parliament2 (Green Party) 7 activity abroad. BelgiumJan R Andersson, Member of Parliament (Moderate Party) 1

BrazilAnnicka Engblom, Member of Parliament2 (Moderate Party) 17 Agreements concerning manufacturing rights and cooperation DenmarkKerstin Lundgren, Member of Parliament3 (Centre Party) 2 Maria Nilsson, Member of Parliament (Liberal Party) Several EU countries 2 Entering into agreements involving the granting or transfer of manufacturing rights to Mattias Ottosson, Member of Parliament (Social Democrats) Estonia 1 parties outside Sweden requires a licence under the Military Equipment Act. In accordance Désirée Pethrus, Member of Parliament (Christian Democrats) 1 with Section 8 of the same Act, a licence is required to enter into cooperation agreements EU Roger Richtoff, Member of Parliament (Sweden Democrats) 2 5 with parties outside the country to jointly with said parties, or on their behalf, provide FinlandMari e Granlund, former Member of Parliament (Social Democrats) technical assistance to parties abroad, develop military equipment or methods for the SeveralStig countries Henriksson, former Member of Parliament (Left Party) 15 manufacture of such material or to jointly manufacture military equipment. FranceLars Johansson, former Member of2 Parliament (Social Democrats)5

UnitedPer Arab Westerberg, Emirates former Member of Parliament (Moderate Party)1 In 2019, the ISP approved 6 licences for Swedish companies to enter into agreements Greece 1 involving the granting or transfer of manufacturing rights to parties outside Sweden. In India 8 3 addition, 19 licences were granted for Swedish authorities and Swedish companies to enter Deputy members of the Export Control Council: 1 2 into cooperation agreements with some party outside the country. Table 22 shows the Italy number of licences granted per country to enter into licence agreements and partnership JapanCamilla Brodin, Member of Parliament8 (Christian Democrats) 3 agreements. CanadaHanna Gustafsson, Member of Parliament5 (Left Party) 2 LatviaAnn -Charlotte Hammar Johnsson,2 Member of Parliament (Moderate Table 22 Number of licences granted to enter into agreements on licence NetherlandsParty) 1 1 production and cooperation broken down by country in 2019 NorwayCaroline Nordengrip, Member of Parliament2 (Sweden Democrats)6 PolandEva Sonidsson, former Member of 4Parliament (Social Democrats) Country Licence agreements Cooperation agreements Romania 1 Australia 2 Switzerland 2 3 Brazil 1 SingaporeThe Strategic Cooperation Council 1 EU 1 SpainThe Strategic Cooperation Council is 4a cooperative council attached to the Finland 1 UnitedISP for Kingdom cooperation on issues related3 to non-proliferation. It consists19 of a France 2 1 SouthDirector Africa-General and members from the1 cooperating authorities appointed2 Several EU countries 2 Southby the Korea ISP. The Strategic Cooperation3 Council met once in 2019. 1 United Arab Emirates 1 Czech Republic 1 India 1 1 Germany 5 7 Canada & Netherlands 2 Technical-Scientific Council Total 71 129 Netherlands 1 A Technical-Scientific Council is attached to the ISP to assist the Director- Spain 1 OGeneralwnership abroadof the ISP in the discussion of matters concerning the United Kingdom 3 classification of military equipment and dual-use items. The Council South Korea 1 Aconsists party holding of representatives a manufacturing of institutions or brokering with licence expertise for military in the technology'sequipment is obliged to Germany 1 providecivilian information and military to applications.the ISP on ownership The Technical in foreign-Scientific legal entities Council undertaking held United States 1 2 development,one meeting inmanufac 2019.turing, marketing or sale of military equipment. Total 6 19 In 2019, 19 companies reported ownership in 101 foreign legal entities in a total of 42 A party that has obtained a licence to enter into agreements is obliged to submit details to cou4.2ntries. Table The 24 Swedish shows the numberRadiation of foreign Safety legal entitiesAuthority broken down by country in the ISP annually on the validity of these agreements. Eighteen companies and two which they operate. government agencies reported a total of 71 licence production agreements and 129 In accordance with the Ordinance (2008:452) with instructions for the cooperation agreements in 2019. Table 23 shows all currently valid licence agreements and TableSwedish 24 RadiationNumber Safety of reported Authority, foreign the legal Swedish entities brokenRadiation down Safety by country cooperation agreements broken down by country. Authority (SSM) is the central government authority for issues relating to theCountry protection of humanNumber health of Swedishand the- ownedenvironment legal entities against the harmful Table 23 Number of reported licence production and cooperation agreements United States 10 5935 broken down by country Australia 3 Country Licence agreements Cooperation agreements Belgium 1 United States 9 21

Comm. The Export Control Council 2019/20:114 The Riksdag decided in 1984, on the basis of the Government Bill Appendix 1 proposing greater transparency and consultation on matters relating to Country exports of militaryNumber equipment of Swedish etc. (Govt-owned Bill legal 1984/85:82) entities , that an advisory Three licences for military training was issued in 2019. The training programmes related to Brazil board on military equipment 2issues should be established. The participants from Australia, Latvia, the Netherlands, the United Kingdom and the United Bulgaria Government reorganised this board1 into the Export Control Council (ECC) States.

Chile in connection with the establishment1 of the ISP in 1996. The rules governing the composition and activities of the ECC are included in the Further transfer of military equipment Colombia 1 Denmark ISP's instructions. All parliamentary3 parties are represented on the ECC. It is chaired by the Director-General of the ISP. Military equipment which has been exported from Sweden is, as a rule, associated with the Philippines 1 end-use obligations which the purchaser is bound by, by signing an end-user certificate. In A new Export Control Council started work on 1 November 2019, after Finland 2 the event that a previous purchaser wishes to transfer such military equipment further, a being appointed by the Government. In line with the proposals of the KEX France 5 consent is required from the ISP, which can release the purchaser from its end-user Inquiry, deputy members were also appointed for the first time. A list of United Arab Emirates 3 obligations. Approval of such a further transfer is conditional on it being possible for an the Council’s members and deputy members appears below Greece 2 end-user certificate from the new user to be shown. Table 25 shows the licences issued in The Director-General of the ISP is responsible for selecting those cases 2019 for further transfer of equipment originally supplied from Sweden. Note that further India that will be subjected to consultation6 with the Export Control Council. Indonesia 1 transfer within the country and further transfer back to Sweden also require a licence. Consultation can take place, for example, before a preliminary decision is Italy 1 issued to a company. The Director-General has to consult the Council Table 25 Approved further transfer of military equipment in 2019 Japan 1 before the ISP submits an application to the Government for final Canada 2 assessment under the Military Equipment Act or the Dual-Use Items and From To Number approvals Equipment Kenya Technical Assistance Control Act.1 Belgium Belgium 1 Parts for sight systems for helicopters Croatia At meetings of the ECC, the 1Ministry for Foreign Affairs presents Belgium Finland 1 Military trucks Latvia assessments of the relevant recipient1 countries. The Ministry of Defence Bulgaria Sweden 3 Silencers for hunting weapons Malaysia provides assessments of the defence4 policy aspects of the cases. The Denmark Sweden 2 Silencers for hunting weapons Mauritius Director-General may also summon1 other experts. One task of the Council Estonia Estonia 1 Radar System Netherlands is to present opinions on proposed4 exports based on the Swedish Estonia Sweden 1 Silencers for hunting weapons Norway guidelines, the EU Common Position3 on Arms Exports and the Arms France Sweden 3 Silencers for hunting weapons Pakistan Trade Treaty in order to provide further1 guidance to the ISP. Spain Canada 1 Armour plate The members have unrestricted access to the documentation of all export United Poland 1 United Kingdom 1 Explosive Republic of Korealicence application proceedings.2 The Director-General reports Kingdom United States Mexico 1 Parts for ammunition for naval guns Romania continuously on all export licence decisions,1 processed tender notifications United States Sweden 1 Parts for radar systems Saudi Arabia and cooperation agreements, as well2 as preliminary decisions that have been ruled upon. With effect from 2005, the ISP also reports all export United States United States 2 Fuel for satellites Switzerland 3 licence decisions on dual-use items to the ECC. Taken together, this Austria Sweden 1 Silencers for hunting weapons Singapore 3 system ensures good insight into application of the rules on export control Total 19 Spain 2 for members of parliament from all parties represented in the Riksdag. United Kingdom The intention of the Swedish system,6 uniquely in international terms in Individual brokering South Africa that representatives of the parliamentary2 parties can discuss potential Taiwan export transactions in advance, is1 to build a broad consensus on export Swedish authorities, Swedish companies and anyone resident or permanently domiciled in Thailand control policy and promote continuity2 in the conduct of that policy. Unlike Sweden intending to broker military equipment which is located abroad to another party Czech Republic in many other countries, the Export2 Control Council deals with cases at an abroad, must in individual cases hold a licence from the ISP, known as an individual Turkey early stage, before a specific transaction1 is carried out. Since it would harm brokering licence. Licences are required irrespective of whether the military equipment Germany the exporting companies commercially9 if their plans were made known belongs to the applicant or to another party. Table 26 shows the licences issued in 2019 for brokering military equipment between two parties abroad. Hungary before they had concluded a deal, the1 Export Control Council's discussions

Austria are not made public. The assessments1 of individual countries are normally Table 26 Individual brokering licences granted in 2019 broken down by country Total subject to confidentiality in relation101 to foreign affairs. and type of equipment The Advisory Council on Foreign Affairs, and not the Export Control

Military trainingCouncil, is still consulted in cases where this is prescribed by the From To Number of approvals Equipment Instrument of Government. The Export Control Council met eight times Estonia France 1 Parts for military trucks The Swedish Military Equipment Act (1992:1300) stipulates that military training of foreign France France 2 Parts for armoured vehicles 6034 nationals may not be conducted in or outside Sweden without permission from the ISP. France United Kingdom 1 Mine detection systems This prohibition does not apply to training provided by government agencies or training France Czech Republic 1 Identification equipment associated with sales of military equipment for which export licences have been granted. France Germany 2 Parts for armoured vehicles in 2019. The Council discussed 14 matters for consultation, of which 13 Comm. related to military equipment and one to dual-use items. 2019/20:114 Appendix 1 Country Number of Swedish-owned legal entities ThreeThe current licencesmembers for military of thetraining Export was Control issued in Council 2019. The are: training programmes related to Brazil 2 participants from Australia, Latvia, the Netherlands, the United Kingdom and the United Bulgaria 1 States.Janine Alm Ericson, Member of Parliament (Green Party)

Chile 1 Jan R Andersson, Member of Parliament (Moderate Party) FurtherAnnicka transfer Engblom,of military equipment Member of Parliament (Moderate Party) Colombia 1 Kerstin Lundgren, Member of Parliament (Centre Party) Denmark 3 MilitaryMaria equipment Nilsson, which Member has ofbeen Parliament exported (Liberalfrom Sweden Party) is, as a rule, associated with the Philippines 1 end-Mattiasuse obligations Ottosson, which Member the purchaser of Parliament is bound (Social by, by Democrats)signing an end-user certificate. In Finland 2 the eventDésirée that Pethrus, a previous Member purchaser of Parliament wishes to transfer (Christian such Democr militaryats) equipment further, a France 5 consentRoger is required Richtoff, from Member the ISP, of whichParliament can release (Sweden the purchDemocrats)aser from its end-user United Arab Emirates 3 obligations.Marie Granlund, Approval offormer such aMember further transferof Parliament is conditional (Social on Democrats) it being possible for an Greece 2 end-Stiguser Henriksson,certificate from former the new Member user to of be Parliament shown. Table (Left 25 Party) shows the licences issued in India 6 2019Lars for furtherJohansson, transfer former of equipment Member originallyof Parliament supplied (Social from Democrats) Sweden. Note that further transfer within the country and further transfer back to Sweden also require a licence. Indonesia 1 Per Westerberg, former Member of Parliament (Moderate Party)

Italy 1 Table 25 Approved further transfer of military equipment in 2019 Japan 1 Deputy members of the Export Control Council:

Canada 2 From To Number approvals Equipment Camilla Brodin, Member of Parliament (Christian Democrats) Kenya 1 Belgium Belgium 1 Parts for sight systems for helicopters Hanna Gustafsson, Member of Parliament (Left Party) Croatia 1 Belgium Finland 1 Military trucks Ann-Charlotte Hammar Johnsson, Member of Parliament (Moderate Latvia 1 Bulgaria Sweden 3 Silencers for hunting weapons Party) Malaysia 4 Denmark Sweden 2 Silencers for hunting weapons Caroline Nordengrip, Member of Parliament (Sweden Democrats) Mauritius 1 Estonia Estonia 1 Radar System Eva Sonidsson, former Member of Parliament (Social Democrats) Netherlands 4 Estonia Sweden 1 Silencers for hunting weapons Norway 3 France Sweden 3 Silencers for hunting weapons Pakistan 1 Spain Canada 1 Armour plate The Strategic CooperationUnited Council Poland 1 United Kingdom 1 Explosive Kingdom Republic of Korea 2 The Strategic Cooperation Council is a cooperative council attached to the United States Mexico 1 Parts for ammunition for naval guns Romania 1 ISP for cooperation on issues related to non-proliferation. It consists of a United States Sweden 1 Parts for radar systems Saudi Arabia 2 Director-General and members from the cooperating authorities appointed United States United States 2 Fuel for satellites Switzerland 3 by the ISP. The Strategic Cooperation Council met once in 2019. Austria Sweden 1 Silencers for hunting weapons Singapore 3 Total 19 Spain 2 Technical-Scientific Council United Kingdom 6 IndividualA Techni brokeringcal-Scientific Council is attached to the ISP to assist the Director- South Africa 2 General of the ISP in the discussion of matters concerning the Taiwan 1 Swedishclassification authorities, of military Swedish equipmentcompanies andand anyone dual-use resident items or. permanentlyThe Council domiciled in Thailand 2 Swedenconsists intending of representatives to broker militaryof institutions equipment with which expertise is located in the abroad technology's to another party Czech Republic 2 abroad,civilian must and inmilitary individual applications. cases hold Thea licence Technical from the-Scientific ISP, known Council as an heldindividual Turkey 1 brokeringone meeting licence. in 201 Licences9. are required irrespective of whether the military equipment Germany 9 belongs to the applicant or to another party. Table 26 shows the licences issued in 2019 for Hungary 1 brokering military equipment between two parties abroad.

Austria 1 Table4.2 26 TheIndividual Swedish brokering Radiation licences Safety granted Authority in 2019 broken down by country Total 101 and type of equipment

In accordance with the Ordinance (2008:452) with instructions for the Military training Swedish Radiation Safety Authority, the Swedish Radiation Safety From To Number of approvals Equipment EstAuthorityonia (SSM)Fran is thece central government1 authority Partsfor issuesfor military relating trucks to The Swedish Military Equipment Act (1992:1300) stipulates that military training of foreign Franthe ceprotection ofFran humance health and the environment2 Parts against for armoured the harmful vehicles nationals may not be conducted in or outside Sweden without permission from the ISP. 6135 France United Kingdom 1 Mine detection systems This prohibition does not apply to training provided by government agencies or training associated with sales of military equipment for which export licences have been granted. France Czech Republic 1 Identification equipment France Germany 2 Parts for armoured vehicles

Comm. The Export Control Council 2019/20:114 The Riksdag decided in 1984, on the basis of the Government Bill Appendix 1 proposing greater transparency and consultation on matters relating to From exportsTo of military equipmentNumber of etc. approvals (Govt BillEquipment 1984/85:82) , that an advisory Table 28 Number of licences granted concerning exports of civil firearms 2017– France boardU nitedon Statesmilitary equipment2 issuesParts should for training be aircraftestablished. The 2019 by country Canada GovernmentDenmark reorganised this board3 into theAmmunition Export Control components Council (ECC) Kosovo in connectGeorgia ion with the establishment1 Pofrotective the ISP equipment in 1996. The rules Destination 2017 2018 2019 Latvia governingGreece the composition and1 activitiesDiving of the equipment ECC are included in the EUROPE Netherlands ISP'sFran instructions.ce All parliamentary1 partiesParts are for represented military trucks on the ECC. It Andorra 1 2 2 Netherlands is chairedFrance by the Director-General1 of the PartsISP. for military trucks Faroe Islands - - 1 Switzerland A newSwitzerland Export Control Council1 started Partswork for on anti 1- tankNovember weapons 2019, after Greenland 2 1 - Switzerland beingUnited appointed Kingdom by the Government.3 In lineParts with for anti the-tank proposals weapons of the KEX Iceland 8 5 5 Switzerland Inquiry,United deputy States members were1 also appointedParts for for training the aircraftfirst time. A list of Montenegro 1 - - United Kingdomthe Council’sLatvia members and deputy1 membersGround appears sensor systembelow Norway 178 132 126 United Kingdom TheNetherlands Director -General of the1 ISP is responsibleParts for military for selecting trucks those cases Switzerland 24 16 26 United Kingdomthat Switzerlandwill be subjected to consultation5 withParts thefor antiExport-tank weapons Control Council. Ukraine - - 1 United KingdomConsultation Germany can take place, for1 exampleParts, before for surface a preliminary vessels decision is Total 214 156 161 United Kingdomissued United to aStates company. The Director3 -GeneralParts forhas training to consult aircraft the Council Germany beforeGermany the ISP submits an 2application Parts to forthe military Government trucks for final NORTH AMERICA Germany assessmentUnited States under the Military1 EquipmentParts Act for or training the Dual aircraft-Use Items and Canada 6 8 5 United States TechnicalFinland Assist ance Control 1Act. Parts for automatic weapons United States 47 40 41 United States At Unitedmeetings States of the ECC, 10the MinistryFuel forfor satellites,Foreign parts Affairs for training presents aircraft Total 53 48 46 Total assessments of the relevant recipient46 countries. The Ministry of Defence provides assessments of the defence policy aspects of the cases. The SOUTH AMERICA Civil firearmsDirector -General may also summon other experts. One task of the Council Argentina 2 1 - is to present opinions on proposed exports based on the Swedish Chile 1 1 1 Licences fromguidelines, the ISP are the required EU Common for exports Position of civil firearmson Arms (hunting Exports and and sport the Arms Uruguay 1 1 - shooting weapons),Trade Treatyparts for in firearms order to and provide ammunition further forguidance these weapons to the ISP. outside the EU. Total 4 3 1 The members have unrestricted access to the documentation of all export Examination licenceof exports a ofpplication civil firearms proceedings. to countries outsideThe theDirector EU takes-General place in reports NORTH EAST ASIA accordance withcontinuously Regulation on (EU) all exportNo 258/2012 licence ofdecisions, the European processed Parliament tender and notifications of the Japan 3 5 1 Council of 14and March cooperation 2012 implementing agreements, Article as well10 of as the preliminary UN Protocol decisions against the that Illicit have Total 3 5 1 Manufacturingbeen of and ruled Trafficking upon. With in Firearms, effect from Their 2005, Parts theand ISPComponents also reports and all export Ammunition,licence supplementing decisions the onUnited dual Nations-use items Convention to the ECC.against TakenTransnational together, this MIDDLE EAST Organized Crime (UN Firearms Protocol), and establishing export authorisation, and system ensures good insight into application of the rules on export control United Arab Emirates 1 - - import and transit measures for firearms, their parts and components and ammunition, and for members of parliament from all parties represented in the Riksdag. Total 1 - - in accordance with the Military Equipment Act (1992:1300). This does not, however, apply The intention of the Swedish system, uniquely in international terms in to exports of smooth-bore shotguns and parts and ammunition for such weapons, and assessment thereforthat representatives only takes place of according the parliamentary to the EU Regulation parties can mentioned. discuss potential REST OF AFRICA export transactions in advance, is to build a broad consensus on export Botswana 1 1 - Table 27 showscont therol policynumber and of promoteapplications continuity according in theto conductRegulation of that(EU) po Nolicy. 258/2012 Unlike Namibia 1 2 5 received by thein ISPmany in otherthe past countries, three years. the Export Control Council deals with cases at an South Africa 11 11 12 early stage, before a specific transaction is carried out. Since it would harm Zambia - 1 2 Table 27 theNumber exporting of applications companies commerreceivedcially concerning if their exports plans were of civil made firearms known Total 13 15 19 before2017– 201they9 had concluded a deal, the Export Control Council's discussions are not made public. The assessments of individual countries are normally OCEANIA Type of case subject to confidentiality2017 in relation to foreign2018 affairs. 2019 Australia 4 5 2 Applications for exportThe licencesAdvis ory Council308 on Foreign Affairs,248 and not the Export242 Control New Caledonia - 1 - Council, is still consulted in cases where this is prescribed by the New Zealand 10 10 6 Table 28 showsInstrument the numbe ofr ofGovernment. licences granted The perExport country Control under Council the same met Regulation. eight times As Total 14 16 8 a large proportion of the licences issued under the Regulation relate to own use, gifts and 6234 loans, and no values are presented in this table. TOTAL 302 243 236

in 2019. The Council discussed 14 matters for consultation, of which 13 Comm. related to military equipment and one to dual-use items. 2019/20:114 Appendix 1 From To Number of approvals Equipment TableThe current 28 membersNumber of thelicences Export granted Control concerning Council are: exports of civil firearms 2017– France United States 2 Parts for training aircraft 2019 by country Canada Denmark 3 Ammunition components Janine Alm Ericson, Member of Parliament (Green Party) Kosovo Georgia 1 Protective equipment DestinationJan R Andersson, Member201 of7 Parliament (Moderate2018 Party) 2019 Latvia Greece 1 Diving equipment EUROPEAnnicka Engblom, Member of Parliament (Moderate Party) Netherlands France 1 Parts for military trucks AndorraKerstin Lundgren, Member1 of Parliament (Centre2 Party) 2 Netherlands France 1 Parts for military trucks FaroeMaria Islands Nilsson, Member of -Parliament (Liberal Party)- 1 Switzerland Switzerland 1 Parts for anti-tank weapons GreenlandMattias Ottosson, Member 2of Parliament (Social1 Democrats) - Switzerland United Kingdom 3 Parts for anti-tank weapons IcelandDésirée Pethrus, Member of8 Parliament (Christian5 Democrats) 5 Switzerland United States 1 Parts for training aircraft MontenegroRoger Richtoff, Member of1 Parliament (Sweden -Democrats) - United Kingdom Latvia 1 Ground sensor system NorwayMari e Granlund, former Member178 of Parliament 132(Social Democrats) 126 United Kingdom Netherlands 1 Parts for military trucks SwitzerlandStig Henriksson, former Member24 of Parliament 16(Left Party) 26 United Kingdom Switzerland 5 Parts for anti-tank weapons UkraineLars Johansson, former Member- of Parliament (Social- Democrats) 1 United Kingdom Germany 1 Parts for surface vessels TotalPer Westerberg, former Member214 of Parliament (Moderate156 Party) 161 United Kingdom United States 3 Parts for training aircraft Germany Germany 2 Parts for military trucks NORTHDeputy AMERICAmembers of the Export Control Council: Germany United States 1 Parts for training aircraft Canada 6 8 5 United States Finland 1 Parts for automatic weapons UnitedCamilla States Brodin, Member of 47Parliament (Christian40 Democrats) 41 United States United States 10 Fuel for satellites, parts for training aircraft TotalHanna Gustafsson, Member53 of Parliament (Left Party)48 46 Total 46 Ann-Charlotte Hammar Johnsson, Member of Parliament (Moderate SOUTHParty) AMERICA Civil firearms ArgentinaCaroline Nordengrip, Member2 of Parliament (Sweden1 Democrats) - ChileEva Sonidsson, former Member1 of Parliament (Social1 Democrats) 1 Licences from the ISP are required for exports of civil firearms (hunting and sport Uruguay 1 1 - shooting weapons), parts for firearms and ammunition for these weapons outside the EU. Total 4 3 1 The Strategic Cooperation Council Examination of exports of civil firearms to countries outside the EU takes place in NORTHThe Strategic EAST ASIACooperation Council is a cooperative council attached to the accordance with Regulation (EU) No 258/2012 of the European Parliament and of the Japan 3 5 1 Council of 14 March 2012 implementing Article 10 of the UN Protocol against the Illicit ISP for cooperation on issues related to non-proliferation. It consists of a TotalDirector -General and members3 from the cooperating5 authorities appointed1 Manufacturing of and Trafficking in Firearms, Their Parts and Components and by the ISP. The Strategic Cooperation Council met once in 2019. Ammunition, supplementing the United Nations Convention against Transnational MIDDLE EAST Organized Crime (UN Firearms Protocol), and establishing export authorisation, and United Arab Emirates 1 - - import and transit measures for firearms, their parts and components and ammunition, and TotalTechnical -Scientific Council 1 - - in accordance with the Military Equipment Act (1992:1300). This does not, however, apply to exports of smooth-bore shotguns and parts and ammunition for such weapons, and A Technical-Scientific Council is attached to the ISP to assist the Director- assessment therefor only takes place according to the EU Regulation mentioned. RESTGeneral OF AFRICAof the ISP in the discussion of matters concerning the Botswanaclassification of military equipment1 and dual-use1 items. The Council- Table 27 shows the number of applications according to Regulation (EU) No 258/2012 Namibiaconsists of representatives of institutions1 with expertise2 in the technology's5 received by the ISP in the past three years. Southcivilian Africa and military applications.11 The Technical-Scientific11 Council held12 Zambiaone meeting in 2019. - 1 2 Table 27 Number of applications received concerning exports of civil firearms Total 13 15 19 2017–2019 OCEANIA4.2 The Swedish Radiation Safety Authority Type of case 2017 2018 2019 Australia 4 5 2 Applications for export licences 308 248 242 NewIn accordance Caledonia with the Ordinance- (2008:452) with1 instructions for the- NewSwedish Zealand Radiation Safety Au10 thority, the Swedish10 Radiation Safety6 Table 28 shows the number of licences granted per country under the same Regulation. As TotalAuthority (SSM) is the central14 government authority16 for issues relating to8 a large proportion of the licences issued under the Regulation relate to own use, gifts and the protection of human health and the environment against the harmful loans, and no values are presented in this table. TOTAL 302 243 236 6335

very limited extentInquiry, according deputy tomembers the provisions were alsoof Annex appointed IV to forCouncil the first Regulation time. A (EC) list of No 428/2009 of 5 May 2009 setting up a Community regime for the control of exports, Table 3 Number of notifications of the general licences EU002–EU006 the Council’s members and deputy members appears below transfer, brokeringThe and Director transit- Generalof dual- useof theitems ISP (the is responsibleDual-Use Regulation for selecting). those cases Licences Notifications in 2019 Notifications since introduction in 2012 that will be subjected to consultation with the Export Control Council. EU002 1 5 Table 1 Number of processed applications for transfer licences to another EU Consultation can take place, for example, before a preliminary decision is EU003 0 11 Member State in 2019 issued to a company. The Director-General has to consult the Council EU004 0 8 EU005 0 1 Granted before the ISP submitsDenials an application to theTotal Government for final EU006 0 1 2 assessment under 0the Military Equipment Act 2or the Dual-Use Items and Technical Assistance Control Act. Exports supported by individual and global export licences Exports supportedAt meetings by general of licencethe ECC, to Austthe ralia,Ministry Canada, for ForeignJapan, Liechtenstein,Affairs presents Norway, Newassessments Zealand, Switzerlandof the relevant and recipient the United countries. States. The Ministry of Defence In Tables 4 and 5 the number of decisions on applications for export licences relating to provides assessments of the defence policy aspects of the cases. The dual-use items is broken down into granted and rejected applications for licences. The According toDirector Statistics- GeneralSweden, maySwedish also exports summon of othergoods experts. to Australia, One Canada,task of the Japan, Council tables cover applications for both global and individual export licences. Liechtenstein,is Norway, to present New Zealand,opinions Switzerland on proposed and theexports United based States accouon thented Swedish for a total of 23.5 perguidelines, cent of total the SwedishEU Common goods exportsPosition in 2019.on Arms This Exportsmay be assumed and the also Arms to Table 4 shows the number of decisions on applications for export licences concerning apply to exportsTrade of dualTreaty-use in items. order to provide further guidance to the ISP. dual-use items listed in Annex I to the Dual-Use Regulation. The table classifies the item The members have unrestricted access to the documentation of all export concerned according to the control regime under which it is controlled. The control There is a generallicence licence, application very extensive proceedings. in terms of theThe number Director of products,-General for tradingreports in regimes are the Australia Group (AG), Missile Technology Control Regime (MTCR), the dual-use itemscontinuously to the countries on all mentioned export licence (EU001). decisions, A Swedish processed exporter tender wishing notifications to export Nuclear Suppliers Group (NSG) and the Wassenaar Arrangement (WA). dual-use itemsand under cooperation the general agreements, licence is required as well only as topreliminary make a one decisions-off notification that h atave the time when the licence is first used. An individual or global licence for any of the been ruled upon. With effect from 2005, the ISP also reports all export Table 4 The number of granted and rejected applications for export licences in countries mentioned is required only to very limited extent. licence decisions on dual-use items to the ECC. Taken together, this 2019 concerning dual-use items, broken down by control regime

system ensures good insight into application of the rules on export control Table 2 Number of notifications for use of the general licence EU001 Control regime Granted Denials for members of parliament from all parties represented in the Riksdag. Australia Group (AG) 483 5 The intention of the Swedish system, uniquely in international terms in Missile Technology Control Regime Licences Notifications in 2019 Notifications since introduction in 2009 13 3 EU001 that representatives30 of the parliamentary200 parties can discuss potential (MTCR) export transactions in advance, is to build a broad consensus on export Nuclear Suppliers Group (NSG) 53 3 Exports supportedcontrol bypolicy general and promotelicence to continuity certain other in the countries conduct of that policy. Unlike Wassenaar Arrangement (WA) 580 87 in many other countries, the Export Control Council deals with cases at an Total 1129 98

According toearly Statistics stage, Sweden, before Swedish a specific exports transaction of goods is carried to other out. countries Since itin would the world, harm Table 5 shows applications for export licences concerning products not covered by control i.e. exports not going to EU Member States, Australia, Canada, Japan, Liechtenstein, New the exporting companies commercially if their plans were made known through application of Article 4 of the Dual-Use Regulation, the ‘catch-all’ clause. Zealand, Norway, Switzerland and the United States, totalled 18.6% of total Swedish goods before they had concluded a deal, the Export Control Council's discussions Application of this clause means that products not listed in Annex 1 of the Dual-Use exports in 2019. This may be assumed also to apply to exports of dual-use items. are not made public. The assessments of individual countries are normally Regulation are to be covered by licence requirements under a decision in the individual case

subject to confidentiality in relation to foreign affairs. by the ISP. Decisions on licence requirements, under catch-all, may cover products that are There are five general licences, not particularly extensive in terms of number of products, The Advisory Council on Foreign Affairs, and not the Export Control or may be wholly or partially intended for biological and chemical weapons and for nuclear for trade in dual-use items to certain other countries in the world, known as EU002– Council, is still consulted in cases where this is prescribed by the weapons or missiles capable of carrying such weapons. The licence requirement may also EU006. An exporter in Sweden wishing to export dual-use items under any of the five Instrument of Government. The Export Control Council met eight times cover products intended for a military end-use in countries covered by a weapons embargo,

6434

in 2019. The Council discussed 14 matters for consultation, of which 13 Comm. related to military equipment and one to dual-use items. 2019/20:114 Appendix 2 Export of Dual-Use Items generalThe current licences members is only requiredof the Export to make Control a one- Counciloff notification are: at the time the licence is first used. Transfers within the EU Janine Alm Ericson, Member of Parliament (Green Party) In theJan event R Andersson, that none ofMember the five of general Parliament licences (Moderate EU002–EU006 Party) is applicable, either a According to Statistics Sweden, Swedish exports of goods to EU Member States accounted globalAnnicka or an individual Engblom, export Member licence of Parliamentis required for (Moderate trade with Party) dual- use items to countries for 57.9% of total Swedish goods exports in 2019. This may be assumed also to apply to in theKerstin rest of Lundgren, the world. LicencesMember EU002of Parliament–EU006 (Centre were introduced Party) in accordance with exports of dual-use items. RegulationMaria Nilsson,No 1232/2011 Member of theof ParliamentEuropean Parliament (Liberal Party) and of the Council of 16 NovemberMattias 2011. Ottosson, Figures Member for the totalof Parliament number of (Social notifications Democrats) of use of the general licences Licences for transfer of dual-use items to another EU Member State are required only to a EU002Désirée–EU006 Pethrus, therefore Member start from of Parliament 2012. (Christian Democrats) very limited extent according to the provisions of Annex IV to Council Regulation (EC) Roger Richtoff, Member of Parliament (Sweden Democrats) No 428/2009 of 5 May 2009 setting up a Community regime for the control of exports, TableMari 3 e Granlund,Number former of notifications Member of of Parliament the general (Social licences Democrats) EU002–EU006 transfer, brokering and transit of dual-use items (the Dual-Use Regulation). Stig Henriksson, former Member of Parliament (Left Party) Licences Notifications in 2019 Notifications since introduction in 2012 EU002Lars Johansson,1 former Member of Parliament5 (Social Democrats) Table 1 Number of processed applications for transfer licences to another EU EU003Per Westerberg,0 former Member of Parliament11 (Moderate Party) Member State in 2019 EU004 0 8 DeputyEU005 members 0of the Export Control Council: 1 Granted Denials Total EU006 0 1 2 0 2 Camilla Brodin, Member of Parliament (Christian Democrats) ExportsHanna supported Gustafsson, by Member individual of Parliamentand global (Leftexport Party) licences Exports supported by general licence to Australia, Canada, Japan, Liechtenstein, Ann-Charlotte Hammar Johnsson, Member of Parliament (Moderate Norway, New Zealand, Switzerland and the United States. In Tables 4 and 5 the number of decisions on applications for export licences relating to dualParty)-use items is broken down into granted and rejected applications for licences. The According to Statistics Sweden, Swedish exports of goods to Australia, Canada, Japan, tablesCaroline cover Nordengrip,applications for Member both global of Parliament and individual (Sweden export Democrats) licences. Liechtenstein, Norway, New Zealand, Switzerland and the United States accounted for a Eva Sonidsson, former Member of Parliament (Social Democrats) total of 23.5 per cent of total Swedish goods exports in 2019. This may be assumed also to Table 4 shows the number of decisions on applications for export licences concerning apply to exports of dual-use items. dual-use items listed in Annex I to the Dual-Use Regulation. The table classifies the item concernedThe Strategic according Cooperation to the control Council regime under which it is controlled. The control There is a general licence, very extensive in terms of the number of products, for trading in regimes are the Australia Group (AG), Missile Technology Control Regime (MTCR), the The Strategic Cooperation Council is a cooperative council attached to the dual-use items to the countries mentioned (EU001). A Swedish exporter wishing to export Nuclear Suppliers Group (NSG) and the Wassenaar Arrangement (WA). ISP for cooperation on issues related to non-proliferation. It consists of a dual-use items under the general licence is required only to make a one-off notification at Director-General and members from the cooperating authorities appointed the time when the licence is first used. An individual or global licence for any of the Table 4 The number of granted and rejected applications for export licences in countries mentioned is required only to very limited extent. by the ISP. The201 9Strategic concerning Cooper dualation-use Council items, broken met once down in 2019 by control. regime

Table 2 Number of notifications for use of the general licence EU001 TechnicalControl regime-Scientific Council Granted Denials Australia Group (AG) 483 5 AMissile Techni Technologycal-Scientific Control RegimeCouncil is attached to the ISP to assist the Director- Licences Notifications in 2019 Notifications since introduction in 2009 13 3 EU001 30 200 General(MTCR) of the ISP in the discussion of matters concerning the classificationNuclear Suppliers of Group military (NSG) equipment53 and dual-use items. 3The Council Exports supported by general licence to certain other countries consistsWassenaar of Arrangement representatives (WA) of institutions580 with expertise in the87 technology's Total 1129 98 civilian and military applications. The Technical-Scientific Council held According to Statistics Sweden, Swedish exports of goods to other countries in the world, Tableone meeting 5 shows in applications 2019. for export licences concerning products not covered by control i.e. exports not going to EU Member States, Australia, Canada, Japan, Liechtenstein, New through application of Article 4 of the Dual-Use Regulation, the ‘catch-all’ clause. Zealand, Norway, Switzerland and the United States, totalled 18.6% of total Swedish goods Application of this clause means that products not listed in Annex 1 of the Dual-Use exports in 2019. This may be assumed also to apply to exports of dual-use items. Regulation are to be covered by licence requirements under a decision in the individual case 4.2 The Swedish Radiation Safety Authority by the ISP. Decisions on licence requirements, under catch-all, may cover products that are There are five general licences, not particularly extensive in terms of number of products, orIn mayaccordance be wholly with or partially the Ordinance intended for(2008:452) biological with and chemicalinstructions weapons for theand for nuclear for trade in dual-use items to certain other countries in the world, known as EU002– weaponsSwedish or Radiation missiles capable Safety of carryingAuthority, such the weapons. Swedish The Radiationlicence requirement Safety may also EU006. An exporter in Sweden wishing to export dual-use items under any of the five coverAuthority products (SSM) intended is the forcentral a military government end-use authorityin countries for covered issues relatingby a weapons to embargo, the protection of human health and the environment against the harmful 6535

Comm. The Export Control Council 2019/20:114 The Riksdag decided in 1984, on the basis of the Government Bill Appendix 2 proposing greater transparency and consultation on matters relating to or products thatexports are or of may military be intended equipment to be etc. used (Govt as components Bill 1984/85:82) for military, that anequipment advisory Individual Global export that has beenboard exported on from military the EU equipmentwithout a licence issues or inshould contravention be established. of a licence. The Categories 1–9 in Annex I export licences licences Total Category 8 Government reorganised this board into the Export Control Council (ECC) Marine 0 0 0 Table 5 inNumber connect ofion granted with theand establishmentrejected applications of the forISP export in 1996. licences The in rules Category 9 governing2019 concerning the composition dual-use itemsand activities covered ofby thelicence ECC requirem are includedents underin the Aerospace and propulsion 2 2 4 ISP'sArticle instructions. 4 (catch-all) All of parliamentary the Dual-Use parties Regulation are represented on the ECC. It is chaired by the Director-General of the ISP. The applications for export licences that constitute the statistical material for Tables 8 and Granted Denials Total A new Export Control Council started work on 1 November 2019, after 9 comprise only applications to countries that are not Member States of the EU and that 8 2 10 are not covered by the general licences EU001–EU006. Tables 8 and 9 cover both global being appointed by the Government. In line with the proposals of the KEX Inquiry, deputy members were also appointed for the first time. A list of and individual export licences. Table 6 covers the number of granted and rejected applications for export licences under the Council’s members and deputy members appears below Council Regulation 267/2012 concerning restrictive measures against Iran. In comparison Table 8 Countries covered by the greatest number of granted export licences The Director-General of the ISP is responsible for selecting those cases with the Dual-Use Regulation, more products are covered by licence requirements under concerning dual-use items in 2019 Council Regulationthat will 267/2012 be subjected concerning to consultation restrictive measures with the against Export Iran. Control For this Council. reason, the applicationsConsultation are presented can separately take place, in Tablefor example 6. These, before applications a preliminary for export decision licences is Country Number of licences are thus not includedissued to in athe company. statistical Thematerial Director for other-General tables. has to consult the Council China 244 before the ISP submits an application to the Government for final Russia 78 Table 6 assessmentNumber of under granted the andMilitary rejected Equipment applications Act or for the export Dual -licencesUse Items in and India 77 Technical2019 under Assist Councilance RegulationControl Act. 267/2012 concerning restrictive United States 77 measures against Iran. South Korea 62 At meetings of the ECC, the Ministry for Foreign Affairs presents Israel 59 assessments of the relevant recipient countries. The Ministry of Defence Taiwan 53 Granted provides assessmentsDenials of the defence policy Totalaspects of the cases. The Hong Kong 46 281 0 281 South Africa 43 Director-General may also summon other experts. One task of the Council is to present opinions on proposed exports based on the Swedish Brazil 40 Table 7 covers the number of granted applications for export licences broken down into Indonesia 39 product categoriesguidelines, 1–9 in theAnnex EU 1 Commonof the Dual Position-Use Regulation on Arms. Annex Exports I also and covers the Arms Malaysia 39 category 0, whichTrade concerns Treaty innuclear order materials, to provide facilities further and guidance equipment. to the Applications ISP. for Singapore 39 export licences Thein accordance members withhave category unrestricted 0 are access reported to theseparately documentation by the Swedish of all export Thailand 32 Radiation Safetylicence Authority application (SSM) to theproceedings. Government. The Director-General reports Qatar 30 continuously on all export licence decisions, processed tender notifications Chile 27 Egypt 26 Table 7 andNumber cooperation of granted agreements, applications as well for exportas preliminary licences decisionsin 2019 concerning that have Mexico 24 beendual -ruleduse items upon. broken With effectdown frominto categories 2005, the 1ISP–9 inalso Annex reports I to all the export Saudi Arabia 24 licenceDual-Use decisions Regulation on dual and- usebroken items down to theinto ECC. individual Taken and together, global this Serbia 23 systemexport ensureslicences good insight into application of the rules on export control for members of parliament from all parties represented in the Riksdag. Table 9 Countries with the greatest number of denials concerning dual-use The intention of the SwIndividualedish system, uniquelyGlobal export in international terms in items in 2019 Categories 1–that9 in Annexrepresentatives I of exportthe parliamentary licences licences parties can discussTotal potential Category 1 export transactions in advance, is to build a broad consensus on export Country Number of licences denied Special materials and related equipment 176 2 178 China 56 Category 2 control policy and promote continuity in the conduct of that policy. Unlike Russia 12 Materials processingin many other countries,4 the25 Export Control18 Council deals with443 cases at an Turkey 5 Category 3 early stage, before a specific transaction is carried out. Since it would harm Saudi Arabia 4 Electronics 82 8 90 United Arab Emirates 3 Category 4 the exporting companies commercially if their plans were made known before they had concluded a deal, the Export Control Council's discussions Israel 3 Computers 1 0 1 Lebanon 3 Category 5 are not made public. The assessments of individual countries are normally Hong Kong 2 Telecommunications and information security 170 52 222 subject to confidentiality in relation to foreign affairs. Pakistan 2 Category 6 Taiwan 2 Sensors and lasers The Advisory Council183 on Foreign Affairs,6 and not the 189Export Control Armenia 1 Category 7 Council, is still consulted in cases where this is prescribed by the Burkina Faso 1 Navigation and avionicsInstrument of Government.2 The Export Control0 Council met2 eight times Egypt 1 Cote d’Ivoire 1 6634

in 2019. The Council discussed 14 matters for consultation, of which 13 Comm. related to military equipment and one to dual-use items. 2019/20:114 Appendix 2 or products that are or may be intended to be used as components for military equipment The current members of the Export ControlIndividual Council are:Global export that has been exported from the EU without a licence or in contravention of a licence. Categories 1–9 in Annex I export licences licences Total CategoryJanine 8 Alm Ericson, Member of Parliament (Green Party) Marine 0 0 0 Table 5 Number of granted and rejected applications for export licences in CategoryJan R 9 Andersson, Member of Parliament (Moderate Party) 2019 concerning dual-use items covered by licence requirements under AerospaceAnnicka and propulsion Engblom, Member of Parliament2 (Moderate2 Party) 4 Article 4 (catch-all) of the Dual-Use Regulation Kerstin Lundgren, Member of Parliament (Centre Party) The Mariaapplications Nilsson, for Memberexport licences of Parliament that constitute (Liberal the Party) statistical material for Tables 8 and Granted Denials Total 9 compriseMattias only Ottosson, applications Member to countries of Parliament that are (Social not Member Democrats) States of the EU and that 8 2 10 are notDésirée covered Pethrus, by the Member general licences of Parliament EU001 –(ChristianEU006. Tables Democr 8 andats) 9 cover both global

and Rogerindividual Richtoff, export Memberlicences. of Parliament (Sweden Democrats) Table 6 covers the number of granted and rejected applications for export licences under Council Regulation 267/2012 concerning restrictive measures against Iran. In comparison Marie Granlund, former Member of Parliament (Social Democrats) TableStig 8 Henriksson,Countries former covered Member by the of greatest Parliament number (Left ofParty) granted export licences with the Dual-Use Regulation, more products are covered by licence requirements under concerning dual-use items in 2019 Council Regulation 267/2012 concerning restrictive measures against Iran. For this reason, Lars Johansson, former Member of Parliament (Social Democrats) Per Westerberg, former Member of Parliament (Moderate Party) the applications are presented separately in Table 6. These applications for export licences Country Number of licences are thus not included in the statistical material for other tables. China 244 DeputyRussia members of the78 Export Control Council: Table 6 Number of granted and rejected applications for export licences in India 77 2019 under Council Regulation 267/2012 concerning restrictive UnitedCamilla States Brodin, Member77 of Parliament (Christian Democrats) measures against Iran. SouthHanna Korea Gustafsson, Member62 of Parliament (Left Party) Israel 59 TaiwanAnn -Charlotte Hammar53 Johnsson, Member of Parliament (Moderate Granted Denials Total HongParty) Kong 46 281 0 281 SouthCaroline Africa Nordengrip,43 Member of Parliament (Sweden Democrats) BrazilEva Sonidsson, former40 Member of Parliament (Social Democrats) Table 7 covers the number of granted applications for export licences broken down into Indonesia 39 product categories 1–9 in Annex 1 of the Dual-Use Regulation. Annex I also covers Malaysia 39 category 0, which concerns nuclear materials, facilities and equipment. Applications for Singapore 39 export licences in accordance with category 0 are reported separately by the Swedish TheThailand Strategic Cooperation32 Council Radiation Safety Authority (SSM) to the Government. Qatar 30 TheChile Strategic Cooperation27 Council is a cooperative council attached to the ISPEgypt for cooperation on 26issues related to non-proliferation. It consists of a Table 7 Number of granted applications for export licences in 2019 concerning DirectorMexico -General and members24 from the cooperating authorities appointed dual-use items broken down into categories 1–9 in Annex I to the bySaudi the Arabia ISP. The Strategic24 Cooperation Council met once in 2019. Dual-Use Regulation and broken down into individual and global Serbia 23 export licences TableTechnical 9 -ScientificCountries Council with the greatest number of denials concerning dual-use Individual Global export A Technical-itemsScientific in 201 Council9 is attached to the ISP to assist the Director- Categories 1–9 in Annex I export licences licences Total Category 1 General of the ISP in the discussion of matters concerning the classificationCountry of militaryNumber equipment of licences and denied dual -use items. The Council Special materials and related equipment 176 2 178 China 56 Category 2 consistsRussia of representatives12 of institutions with expertise in the technology's Materials processing 425 18 443 civilianTurkey and military applications.5 The Technical-Scientific Council held Category 3 oneSaudi meeting Arabia in 2019. 4 Electronics 82 8 90 United Arab Emirates 3 Category 4 Israel 3 Computers 1 0 1 Lebanon 3 Category 5 Hong Kong 2 Telecommunications and information security 170 52 222 4.2 The Swedish Radiation Safety Authority Pakistan 2 Category 6 Taiwan 2 Sensors and lasers 183 6 189 In accordance with the Ordinance (2008:452) with instructions for the Armenia 1 Category 7 Swedish Radiation Safety Authority, the Swedish Radiation Safety Burkina Faso 1 Navigation and avionics 2 0 2 AuthorityEgypt (SSM) is the 1central government authority for issues relating to theCote protection d’Ivoire of human1 health and the environment against the harmful 6735

Comm. The Export Control Council 2019/20:114 The Riksdag decided in 1984, on the basis of the Government Bill Appendix 2 proposing greater transparency and consultation on matters relating to Country exports of militaryNumber equipmentof licences denied etc. (Govt Bill 1984/85:82), that an advisory United Arab 0 2 Software Philippines board on 1military equipment issues should be established. The Emirates Morocco 1 Israel 0 1 Telecommunications Thailand Government1 reorganised this board into the Export Control Council (ECC) Lebanon 0 3 Software, telecommunications in connection with the establishment of the ISP in 1996. The rules Pakistan 0 1 Software Individual andgoverning global exportthe composition licences for and dual activities-use items of thewith ECC a military are included end-user in the Saudi Arabia 0 3 For demonstration, area protection, ISP's instructions. All parliamentary parties are represented on the ECC. It software Taiwan 0 1 Area protection Table 10 coversis chaired granted byapplications the Director for- exportGeneral licences of the forISP. dual -use items with military Turkey 0 1 For electronic systems end-users. The Anumber new Export of granted Control applications Council for started export work licences on 1 is November broken down 2019, into after Total 0 16 global and individualbeing appointed export licences. by the AreaGovernment. of end-use In and line country with the of proposals end-user areof the also KEX shown. Inquiry, deputy members were also appointed for the first time. A list of Preliminary decisions concerning exports of dual-use items the Council’s members and deputy members appears below Table 10 NumberThe Director of granted-General export of the licences ISP is responsibleconcerning fordual selecting-use items those for cases The number of resolved requests for preliminary decisions is broken down into two main thatmilitary will endbe subjected-users in 201to 9consultation with the Export Control Council. categories. The first category concerns the number of resolved requests for preliminary Consultation can take place, for example, before a preliminary decision is decisions relating to items controlled under Annex I of the Dual-Use Regulation. The issued Globalto a company. export TheIndividual Director -General has to consult the Council second category concerns the number of resolved requests for preliminary decisions Country licences export licences End-use areas relating to non-controlled items. Afghanistan* before 0 the ISP submits1 an applicationReturn to the after Governmentrepair for final Algeria assessment0 under the Military2 EquipmentSoftware Act or the Dual-Use Items and Technical Assistance Control Act. Identification of detonating and Table 12 shows the number of resolved requests for preliminary decisions concerning Australia At meetings0 of the ECC,1 the Ministrychemical for Foreignexplosives Affairs presents items controlled in Annex I to the Dual-Use Regulation, broken down into positive and Bangladesh 0 1 Telecommunications negative preliminary decisions. A positive preliminary decision means that the ISP has Chile assessments0 of the relevant1 recipient countries.Return after The repair Ministry of Defence provides assessments of the defence policy aspects of the cases. The issued a positive non-binding preliminary decision that a licence could probably be For demonstration and border expected in an assessment of an application for an export licence. A negative preliminary Georgia Director0 -General may also1 summon othersurveillance experts. One task of the Council decision means that the ISP has issued a negative non-binding preliminary decision that a India is to present0 opinions 2 on proposed exportsFor naval use,based for replacementon the Swedish licence could probably not be expected in an assessment of an application for an export guidelines, the EU Common Position onMarine Arms communication Exports and and trafficthe Arms surveillance, identification of detonating licence. A final position is always adopted at the time when an application for an export Indonesia Trade Treaty0 in order to 2provide further guidanceand chemical to explosives the ISP. licence is assessed. Japan The members0 have unres2 tricted access toFor the use documentation in electronic systems of all export Kuwait licence0 application proceedings.1 TheLoan duringDirector repair- General reports Table 12 Number of positive and negative preliminary decisions issued in 2019 Border surveillance, spare parts, continuously on all export licence decisions, processed tender notifications concerning exports of items controlled in Annex I to the Dual-Use Oman and cooperation0 agreements,5 as well as telecommunicationspreliminary decisions that have Singapore 0 2 Telecommunications Regulation been ruled upon. With effect from 2005,Coastal the ISPsurveillance, also re forports use inall export South Korea licence0 decisions on dual4 -use items to electronicthe ECC. systems, Taken sensor together, systems this Ukraine system0 ensures good insight1 into applicationReturn of after the repairrules on export control Positive preliminary decisions Negative preliminary decisions Total Total for members0 of parliament28 from all parties represented in the Riksdag. 34 44 78 *The application relates to an export to an end-user belonging to a nation which is a member state of NATO The intention of the Swedish system, uniquely in international terms in

that representatives of the parliamentary parties can discuss potential Table 11 covers the number of denials in applications for export licences for dual-use items Table 13 shows resolved enquiries regarding whether export licences are required for non- with military exportend-users. transactions The numbe inr ofadvance, export licencesis to build denied a broad is broken consensus down into on globalexport control policy and promote continuity in the conduct of that policy. Unlike controlled items – “catch-all”. The enquiries are broken down into the following decision and individual export licences. Area of end-use and country of end-user are also shown. categories: decision on licence requirement for exports and positive preliminary decision, in many other countries, the Export Control Council deals with cases at an early stage, before a specific transaction is carried out. Since it would harm decision on licence requirements for exports and negative preliminary decision and Table 11 Number of denied applications for export licences concerning dual- decision that an export licence is not required. The decision category of decision on licence the exporting companies commercially if their plans were made known use items for military end-users in 2019 requirement for exports and positive preliminary decision means that the ISP has made a before they had concluded a deal, the Export Control Council's discussions decision that items included in the request are covered by a licence requirement under are notDenials made of public. DenialsThe assessments of of individual countries are normally Article 4 of the Dual-Use Regulation, and that the Authority has issued a non-binding global export individual export subject to confidentiality in relation to foreign affairs. preliminary decision that a licence can probably be expected in an assessment of an Country Thelicences Advis ory Councillicences on Foreign Affairs,End-use and areas not the Export Control Armenia 0 1 Border surveillance application for an export licence. Burkina Faso Council,0 is still consulted1 in cases Softwarewhere this is prescribed by the Egypt Instrument0 of Government.1 The ExportArea Control protection Council met eight times The decision category of decision on licence requirement for exports and negative Philippines 0 1 For electronic systems preliminary decision means that the ISP has made a decision that items included in the 6834

in 2019. The Council discussed 14 matters for consultation, of which 13 Comm. related to military equipment and one to dual-use items. 2019/20:114 Appendix 2 Country Number of licences denied TheUnited current Arab members0 of the Export2 Control CouncilSoftware are: Philippines 1 Emirates Morocco 1 IsraelJanine Alm Ericson,0 Member1 of Parliament (GreenTelecommunications Party) Thailand 1 Lebanon 0 3 Software, telecommunications Jan R Andersson, Member of Parliament (Moderate Party) Pakistan 0 1 Software Annicka Engblom, Member of Parliament (Moderate Party) Individual and global export licences for dual-use items with a military end-user Saudi Arabia 0 3 For demonstration, area protection, Kerstin Lundgren, Member of Parliament (Centresoftware Party) Taiwan 0 1 Area protection Table 10 covers granted applications for export licences for dual-use items with military Maria Nilsson, Member of Parliament (Liberal Party) TurkeyMattias Ottosson,0 Member of1 Parliament (SocialFor Democrats) electronic systems end-users. The number of granted applications for export licences is broken down into Total 0 16 global and individual export licences. Area of end-use and country of end-user are also Désirée Pethrus, Member of Parliament (Christian Democrats) shown. PreliminaryRoger Richtoff, decisions Member concerning of Parliament exports of(Sw dualeden-use Democrats) items Marie Granlund, former Member of Parliament (Social Democrats) Table 10 Number of granted export licences concerning dual-use items for The Stignumber Henriksson, of resolved former requests Member for preliminary of Parliament decisions (Left is Party)broken down into two main military end-users in 2019 categories.Lars Johansson, The first category former concernsMember theof Parliament number of resolved(Social Democrats) requests for preliminary decisionsPer Westerb relatingerg, to items former controlled Member under of Parliament Annex I of (Moderate the Dual-Use Party) Regulation . The Global export Individual second category concerns the number of resolved requests for preliminary decisions Country licences export licences End-use areas relatingDeputy to members non-controlled of the Exportitems. Control Council: Afghanistan* 0 1 Return after repair Algeria 0 2 Software Identification of detonating and TableCamilla 12 shows Brodin, the numberMember of of resolved Parliament requests (Christian for preliminary Democrats) decisions concerning Australia 0 1 chemical explosives itemsHanna controlled Gustafsson, in Annex Member I to the of Dual Parliament-Use Regulation (Left Party), broken down into positive and Bangladesh 0 1 Telecommunications negativeAnn-Charlotte preliminary Hammar decisions. Johnsson, A positive Member preliminary of decisionParliament means (Moderate that the ISP has Chile 0 1 Return after repair issuedParty) a positive non-binding preliminary decision that a licence could probably be For demonstration and border expected in an assessment of an application for an export licence. A negative preliminary Georgia 0 1 surveillance Caroline Nordengrip, Member of Parliament (Sweden Democrats) India 0 2 For naval use, for replacement decisionEva Sonidsson, means that former the ISP Member has issued of a Parliament negative non (Social-binding Democrats) preliminary decision that a Marine communication and traffic licence could probably not be expected in an assessment of an application for an export surveillance, identification of detonating licence. A final position is always adopted at the time when an application for an export Indonesia 0 2 and chemical explosives licence is assessed. Japan 0 2 For use in electronic systems The Strategic Cooperation Council Kuwait 0 1 Loan during repair Table 12 Number of positive and negative preliminary decisions issued in 2019 Border surveillance, spare parts, The Strategic Cooperation Council is a cooperative council attached to the Oman 0 5 telecommunications ISP for cooperationconcerning on issues exports related of items to non controlled-proliferation. in Annex It consists I to the of Dual a -Use Singapore 0 2 Telecommunications Director-GeneralRegulation and members from the cooperating authorities appointed Coastal surveillance, for use in by the ISP. The Strategic Cooperation Council met once in 2019. South Korea 0 4 electronic systems, sensor systems Ukraine 0 1 Return after repair Positive preliminary decisions Negative preliminary decisions Total Total 0 28 Technical34 -Scientific Council 44 78 *The application relates to an export to an end-user belonging to a nation which is a member state of NATO A Technical-Scientific Council is attached to the ISP to assist the Director- General of the ISP in the discussion of matters concerning the Table 11 covers the number of denials in applications for export licences for dual-use items Table 13 shows resolved enquiries regarding whether export licences are required for non- with military end-users. The number of export licences denied is broken down into global classification of military equipment and dual-use items. The Council controlledconsists of items representatives – “catch-all ”of. The institutions enquiries with are brokenexpertise down in the into technology's the following decision and individual export licences. Area of end-use and country of end-user are also shown. categories: decision on licence requirement for exports and positive preliminary decision, civilian and military applications. The Technical-Scientific Council held decision on licence requirements for exports and negative preliminary decision and one meeting in 2019. Table 11 Number of denied applications for export licences concerning dual- decision that an export licence is not required. The decision category of decision on licence use items for military end-users in 2019 requirement for exports and positive preliminary decision means that the ISP has made a decision that items included in the request are covered by a licence requirement under Denials of Denials of Article4.2 4 of tThehe Dual Swedish-Use Regulation, Radiation and that Safety the Authority Authority has issued a non-binding global export individual export Country licences licences End-use areas preliminary decision that a licence can probably be expected in an assessment of an Armenia 0 1 Border surveillance applicationIn accordance for an with export the licence. Ordinance (2008:452) with instructions for the Burkina Faso 0 1 Software Swedish Radiation Safety Authority, the Swedish Radiation Safety Egypt 0 1 Area protection TheAuthority decision (SSM) category is the of decisioncentral government on licence requirement authority for for issues exports relating and negat to ive Philippines 0 1 For electronic systems preliminarythe protection decision of human means healththat the and ISP the has environment made a decision against that itemsthe harmful included in the 6935

Comm. The Export Control Council 2019/20:114 The Riksdag decided in 1984, on the basis of the Government Bill Appendix 2 proposing greater transparency and consultation on matters relating to enquiry are coveredexports by of a military licence requirement equipment etc.under (Govt Article Bill 4 1984/85:82) of the Dual-Use, that Regulation an advisory, Recipient country Number Number Item categories and that the Authorityboard on has military issued a non-equipmentbinding preliminaryissues should decision be that established. a licence can The global individual probably not be expected in an assessment of an application for an export licence. Government reorganised this board into the Export Control Council (ECC) licences licences in connection with the establishment of the ISP in 1996. The rules The decision category of decision that an export licence is not required means that the ISP Denmark 1* 0 0E001 governing the composition and activities of the ECC are included in the Finland 2 4 0A001d, 0A001f, 0A001h, 0D001, 0D001, 0E001 has made a decisionISP's instructions. that the items All included parliamentary in the enquiry parties are are not represented covered by on licence the ECC. It France 4 3 0a001F, 0a001h, 0E001 requirements isunder chaired Article by the4 of Director the Dual--GeneralUse Regulation of the ISP.. Japan 1 0 0E001 A new Export Control Council started work on 1 November 2019, after

being appointed by the Government. In line with the proposals of the KEX Luxembourg 2* 0 0E001 Table 13 Number of resolved enquiries in 2019 concerning non-controlled items Inquiry, deputy members were also appointed for the first time. A list of Netherlands 2* 0 0E001 – catch-all. Norway 1 0 0D001 the Council’s members and deputy members appears below TheDecisions Director on licence-General ofDecisions the ISP onis responsiblelicence for selecting those cases Switzerland 1 3 0A001f0, 0A001h), 0C002, 0D001, 0E001 thatrequirements will be subjected for to requirementsconsultation for with exports the - ExportDecisions Control that an Council. Slovenia 1 0 0E001 Consultationexports - positive can take place,negative for example preliminary, before a exportpreliminary licence isdecision is Spain 1* 2 0A001h, 0E001 Country issuedpreliminary to a company. decision Thedecision Director -General has notto consultrequired the CouncilTotal Egypt 0 1 0 1 United Kingdom 2 0 0E001 United Arab before the ISP submits an application to the Government for final Taiwan 1 0 0D001, 0E001` assessment under the Military Equipment Act or the Dual-Use Items and Emirates 0 0 2 2 Czech Republic 2 1 0A001f, 0D001, 0E001 India Technical0 Assistance Control1 Act. 0 1 Indonesia 0 0 1 1 Germany 17* 4 0A001f, 0A001h, 0D001, 0E001 At meetings of the ECC, the Ministry for Foreign Affairs presents 0A001d, 0A001f, 0A001h, 0C001, 0C002, 0D001, Iran assessments2 of the relevant0 recipient countries. The1 Ministry of Defence3 Israel 0 0 1 1 United States 16 8 0E001 Italy provides0 assessments of 0the defence policy aspects1 of the cases. 1The * of which one or more in the framework of a licence with more than one recipient country China Director6 -General may also2 summon other experts. One13 task of the Council21 Croatia is 0to present opinions on0 proposed exports based1 on the Swedish1 Table 15 Membership of multilateral export control regimes in 2019 Lebanon guidelines,0 the EU Common0 Position on Arms Exports1 and the Arms1 Pakistan Trade0 Treaty in order to provide1 further guidance to0 the ISP. 1 Russia 2 4 11 17 Country ZC NSG AG MTCR WA Saudi Arabia The0 members have unres0tricted access to the documentation2 of all export2 Argentina x x x x x South Africa licence0 application proceedings.0 The Director1 -General reports1 Australia x x x x x South Korea continuously0 on all export 0licence decisions, processed1 tender notifications1 Belgium x x x x x Taiwan and0 cooperation agreements,0 as well as preliminary1 decisions that h1 ave Brazil - x - x - Germany 0 0 1 1 Bulgaria x x x x x Ukraine been0 ruled upon. With effect0 from 2005, the ISP 3also reports all export3 Cyprus - x x - - Total licence10 decisions on dual9- use items to the ECC.41 Taken together, 60this system ensures good insight into application of the rules on export control Denmark x x x x x Table 14 forExport members licences of parliament granted for from dual all-use parties items represented (DUIs), belonging in the Riksdag. to Estonia - x x - x CategoryThe intention 0 in Annex of the 1Sw toedish the Dual system,-Use uniquely Regulation, in international from companies terms in in European Union - - x - - thatSweden representatives (source: SSM) of the parliamentary parties can discuss potential Finland x x x x x export transactions in advance, is to build a broad consensus on export France x x x x x In the nuclearcont area,rol licences policy areand mandatory promote continuity for exports in outside the conduct the EU. of Forthat thepolicy. majority Unlike of Greece x x x x x products, licencesin many are alsoother requi countries,red for transferthe Export between Control EU Council countries. deals The with items cases affected at an India - - x x x are describedearly in Annex stage, IV before Part 2 a to specific the Dual transaction-Use Regulation is carried. General out. Since licences it would may not harm be Ireland x x x x x used for thesethe products. exporting 80 licencescompanies were commer granted ciallyfor exports if their or forplans transfers were madewithin knownthe EU Iceland - x x x - in 2019. before they had concluded a deal, the Export Control Council's discussions Italy x x x x x are not made public. The assessments of individual countries are normally Japan x x x x x Recipient countrysubject Numberto confidentiality inNumber relation to foreignItem categories affairs. Canada x x x x x The Advisglobal ory Council individualon Foreign Affairs, and not the Export Control Kazakhstan x x - - - Council,licences is still consultedlicences in cases where this is prescribed by the China x x - - - Argentina Instrument0 of Government.2 The Export0C002 Control Council met eight times Korea (Rep.) x x x x x Croatia x x x - x Belgium 3 0 0E001 7034

in 2019. The Council discussed 14 matters for consultation, of which 13 Comm. related to military equipment and one to dual-use items. 2019/20:114 Appendix 2 enquiry are covered by a licence requirement under Article 4 of the Dual-Use Regulation, TheRecipi currentent country members Number of the Export ControlNumber Council Item are: categories and that the Authority has issued a non-binding preliminary decision that a licence can global individual probably not be expected in an assessment of an application for an export licence. Janine Alm Ericson, Member of Parliament (Green Party) licences licences Jan R Andersson, Member of Parliament (Moderate Party) Denmark 1* 0 0E001 The decision category of decision that an export licence is not required means that the ISP Annicka Engblom, Member of Parliament (Moderate Party) has made a decision that the items included in the enquiry are not covered by licence FinlandKerstin Lundgren,2 Member of Parliament4 (Centre0A001d, Party) 0A001f, 0A001h, 0D001, 0D001, 0E001 requirements under Article 4 of the Dual-Use Regulation. FranceMaria Nilsson, Member4 of Parliament3 (Liberal Party)0a001F, 0a001h, 0E001 JapanMattias Ottosson,1 Member of Parliament0 (Social0E001 Democrats) LuxembourgDésirée Pethrus,2* Member of Parliament0 (Christian0E001 Democr ats) Table 13 Number of resolved enquiries in 2019 concerning non-controlled items NetherlandsRoger Richtoff, 2*Member of Parliament0 (Sweden0E001 Democrats) – catch-all. NorwayMari e Granlund,1 former Member of0 Parliament 0D001(Social Democrats) Stig Henriksson, former Member of Parliament (Left Party) Decisions on licence Decisions on licence Switzerland 1 3 0A001f0, 0A001h), 0C002, 0D001, 0E001 requirements for requirements for exports - Decisions that an SloveniaLars Johansson,1 former Member of0 Parliament (Social0E001 Democrats) exports - positive negative preliminary export licence is SpainPer Westerberg,1* former Member of2 Parliament (Moderate0A001h, 0E001 Pa rty) Country preliminary decision decision not required Total United Kingdom 2 0 0E001 Egypt 0 1 0 1 Deputy members of the Export Control Council: United Arab Taiwan 1 0 0D001, 0E001` Emirates 0 0 2 2 Czech Republic 2 1 0A001f, 0D001, 0E001 India 0 1 0 1 Camilla Brodin, Member of Parliament (Christian Democrats) Indonesia 0 0 1 1 GermanyHanna Gustafsson,17* Member of Parliament4 (Left Party)0A001f, 0A001h, 0D001, 0E001 Iran 2 0 1 3 0A001d, 0A001f, 0A001h, 0C001, 0C002, 0D001, UnitedAnn States-Charlotte Hammar16 Johnsson, 8 Member of 0E001Parliament (Moderate Israel 0 0 1 1 Party) Italy 0 0 1 1 * of which one or more in the framework of a licence with more than one recipient country Caroline Nordengrip, Member of Parliament (Sweden Democrats) China 6 2 13 21 Eva Sonidsson, former Member of Parliament (Social Democrats) Croatia 0 0 1 1 Table 15 Membership of multilateral export control regimes in 2019 Lebanon 0 0 1 1 Pakistan 0 1 0 1 Russia 2 4 11 17 Country ZC NSG AG MTCR WA Saudi Arabia 0 0 2 2 ArgentinaThe Strategic Cooperationx Council x x x x South Africa 0 0 1 1 AustraliaThe Strategic Cooperationx Council is ax cooperative xcouncil attachedx to the x South Korea 0 0 1 1 BelgiumISP for cooperation on issuesx related tox non-proliferation.x It consistsx of a x Taiwan 0 0 1 1 Brazil - x - x - Germany 0 0 1 1 Director-General and members from the cooperating authorities appointed Bulgaria x x x x x Ukraine 0 0 3 3 by the ISP. The Strategic Cooperation Council met once in 2019. Cyprus - x x - - Total 10 9 41 60 Denmark x x x x x Technical-Scientific Council Table 14 Export licences granted for dual-use items (DUIs), belonging to Estonia - x x - x Category 0 in Annex 1 to the Dual-Use Regulation, from companies in EuropeanA Techni Unioncal-Scientific Council- is attached- to the ISPx to assist the Director- - - Sweden (source: SSM) FinlandGeneral of the ISP in x the discussionx of mattersx concerningx the x Franceclassification of military x equipment xand dual-usex items. The Councilx x In the nuclear area, licences are mandatory for exports outside the EU. For the majority of Greececonsists of representativesx of institutionsx with expertxise in the technology'sx x products, licences are also required for transfer between EU countries. The items affected Indiacivilian and military applications.- The- Technical-Scientificx Councilx held x are described in Annex IV Part 2 to the Dual-Use Regulation. General licences may not be Irelandone meeting in 2019. x x x x x used for these products. 80 licences were granted for exports or for transfers within the EU Iceland - x x x - in 2019. Italy x x x x x Japan x x x x x Recipient country Number Number Item categories Canada4.2 The Swedishx Radiationx Safety xAuthority x x global individual KazakhstanIn accordance with the Ordinancex (2008:452)x with- instructions -for the - licences licences ChinaSwedish Radiation Safetyx Authority,x the Swedish- Radiation - Safety - Argentina 0 2 0C002 KoreaAuthority (Rep.) (SSM) is the centralx governmentx authorityx for issues relatingx to x Croatia x x x - x Belgium 3 0 0E001 the protection of human health and the environment against the harmful 7135

Comm. The Export Control Council 2019/20:114 The Riksdag decided in 1984, on the basis of the Government Bill Appendix 2 proposing greater transparency and consultation on matters relating to Country exports of militaryZC equipmentNSG etc. (GovtAG Bill 1984/85:82)MTCR , that an advisoryWA Latvia board on military- equipmentx issuesx should be - established.x The Important trends in Swedish and international export control Lithuania Government reorganised- thisx board intox the Export Control- Councilx (ECC) Luxembourg x x x x x in connection with the establishment of the ISP in 1996. The rules General information about the purpose of and trends in Swedish and international Malta - x x - x governing the composition and activities of the ECC are included in the export control Mexico ISP's instructions.- All parliamentaryx partiesx are represented- on the ECC.x It Netherlands x x x x x is chaired by the Director-General of the ISP. The purpose of export control Norway x x x x x A new Export Control Council started work on 1 November 2019, after New Zealand being appointedx by the Government.x In xline with the proposalsx of thex KEX The principal and overriding purpose of export control is often expressed as a country that Poland Inquiry, deputyx members werex also appointedx for the xfirst time. Ax list of controls exports not wanting a product or a technology of a particular type to be Portugal the Council’s xmembers andx deputy membersx appears belowx x Romania x x x - x proliferated to undesirable recipients. An undesirable recipient may be both an end-user The Director-General of the ISP is responsible for selecting those cases country and, for example, a terrorist organisation. Russia x x - x x that will be subjected to consultation with the Export Control Council. Switzerland x x x x x Consultation can take place, for example, before a preliminary decision is To simplify, in the view of the Inspectorate of Strategic Products (ISP), there are two main Serbia - x - - - issued to a company. The Director-General has to consult the Council reasons for a country that manufactures and exports military equipment or dual-use items Slovakia before the ISPx submits xan applicationx to the Government- forx final (DUIs) not to want the equipment or items to proliferate to undesirable recipients, namely Slovenia assessment underx the Militaryx Equipmentx Act or the Dual- -Use Itemsx and a threat to the security of the exporting country, or allied or related countries, or the fact Spain Technical Assistx ance Controlx Act. x x x that it conflicts with the principles and objectives of the exporting country’s foreign policy. United Kingdom At meetingsx of the ECC,x the Ministryx for Foreignx Affairs presentsx Sweden assessments ofx the relevantx recipient countries.x The Ministryx of Defencex The trend in export control – arms build-up around the world and the internationalisation of the defence South Africa provides assessmentsx of thex defence -policy aspects x of the casesx . The industry and the DUI industry are making great demands on export control Czech RepublicDirector -Generalx may alsox sum mon otherx experts. Onex task of the Councilx Turkey is to presentx opinions onx proposed x exports basedx on the Swedishx In recent years there has been a substantial build-up of arms around the world, and Germany guidelines, thex EU Commonx Positionx on Arms Exportsx and thex Arms according to some analysts, total global military spending in 2018 reached the highest level Ukraine Trade Treaty inx order to providex furtherx guidance to thex ISP. x since the late 1980s. According to the ISP there is reason to assume that this trend has Hungary The membersx have unresxtricted accessx to the documentationx of allx export continued in 2019. United States licence applicationx proceedings.x xThe Directorx- General xreports Belarus continuously onx all export licencex decisions,- processed -tender notifications- The general build-up of military forces around the world and the return of the “great Austria and cooperationx agreements,x as well asx preliminary decisionsx thatx have strategic game” between the major powers mean that the trend towards the significance of TOTAL been ruled upon.39 With effect48 from 2005,43 the ISP also35 reports all42 export export control internationally is clear. The major powers want to prevent other major powers or other countries from gaining the same technological advantages and level of licence decisions on dual-use items to the ECC. Taken together, this build-up they have themselves, and export control is a means that can be applied. In view system ensures good insight into application of the rules on export control of Sweden’s high-tech industry, Sweden is also affected by this to a very great extent. for members of parliament from all parties represented in the Riksdag. The intention of the Swedish system, uniquely in international terms in The arms build-up is making great demands on export control. It is to a large extent the that representatives of the parliamentary parties can discuss potential combination of the arms build-up and the internationalisation of both the Swedish and export transactions in advance, is to build a broad consensus on export foreign defence industries and the DUI industry that is leading to heavy demands being made control policy and promote continuity in the conduct of that policy. Unlike on export control. These requirements go far beyond the traditional export control task of in many other countries, the Export Control Council deals with cases at an assessing the suitability of a particular kind of military equipment or a particular kind of dual- early stage, before a specific transaction is carried out. Since it would harm use item reaching a particular recipient or end-user. the exporting companies commercially if their plans were made known before they had concluded a deal, the Export Control Council's discussions For the past two decades the Swedish defence industry has exported more than half the are not made public. The assessments of individual countries are normally military equipment produced in Sweden. In addition, in recent decades the Swedish subject to confidentiality in relation to foreign affairs. defence industry and DUI industry have placed a large part of their research and The Advisory Council on Foreign Affairs, and not the Export Control development abroad. This inevitably leads to a risk of technology regarded as sensitive in Council, is still consulted in cases where this is prescribed by the terms of Swedish defence capability being proliferated in a way that previously could not Instrument of Government. The Export Control Council met eight times have been imagined. Business arrangements where a country in which the Swedish defence industry undertakes research and development wishes to sell a military equipment system 7234 containing parts or components of Swedish origin or technology partly originating from a Swedish company to a recipient undesirable to Sweden are becoming increasingly common.

in 2019. The Council discussed 14 matters for consultation, of which 13 Comm. related to military equipment and one to dual-use items. 2019/20:114 Appendix 3 Country ZC NSG AG MTCR WA The current members of the Export Control Council are: Latvia - x x - x I mportant trends in Swedish and international export control Lithuania - x x - x Janine Alm Ericson, Member of Parliament (Green Party) Luxembourg x x x x x Jan R Andersson, Member of Parliament (Moderate Party) General information about the purpose of and trends in Swedish and international Malta - x x - x Annicka Engblom, Member of Parliament (Moderate Party) export control Mexico - x x - x Kerstin Lundgren, Member of Parliament (Centre Party) Netherlands x x x x x Maria Nilsson, Member of Parliament (Liberal Party) The purpose of export control Norway x x x x x Mattias Ottosson, Member of Parliament (Social Democrats) New Zealand x x x x x Désirée Pethrus, Member of Parliament (Christian Democrats) Poland x x x x x The Rogerprincipal Richtoff, and overriding Member purpose of Parliament of export (Sw controleden isDemocrats) often expressed as a country that Portugal x x x x x controlsMari exportse Granlund, not wanting former a Member product orof aParliament technology (Social of a particular Democrats) type to be Romania x x x - x proliferatedStig Henriksson, to undesirable former recipients. Member An of undesirable Parliament recipient (Left Party) may be both an end-user country and, for example, a terrorist organisation. Russia x x - x x Lars Johansson, former Member of Parliament (Social Democrats)

Switzerland x x x x x Per Westerberg, former Member of Parliament (Moderate Party) To simplify, in the view of the Inspectorate of Strategic Products (ISP), there are two main Serbia - x - - - reasons for a country that manufactures and exports military equipment or dual-use items Slovakia x x x - x Deputy members of the Export Control Council: (DUIs) not to want the equipment or items to proliferate to undesirable recipients, namely Slovenia x x x - x a threat to the security of the exporting country, or allied or related countries, or the fact Spain x x x x x thatCamilla it conflicts Brodin, with Memberthe principles of Parliament and objectives (Christian of the Democrats)exporting country’s foreign policy. United Kingdom x x x x x Hanna Gustafsson, Member of Parliament (Left Party) Sweden x x x x x TheAnn trend-Charlotte in export control Hammar – arms Johnsson, build-up around Member the world of and Parl theiament internationalisation (Moderate of the defence South Africa x x - x x industryParty) and the DUI industry are making great demands on export control Czech Republic x x x x x Caroline Nordengrip, Member of Parliament (Sweden Democrats) Turkey x x x x x In Evarecent Sonidsson, years there former has been Member a substantial of Parliament build-up (Socialof arms Democrats)around the world, and Germany x x x x x according to some analysts, total global military spending in 2018 reached the highest level Ukraine x x x x x since the late 1980s. According to the ISP there is reason to assume that this trend has Hungary x x x x x continuedThe Strategic in 2019. Cooperation Council United States x x x x x Belarus x x - - - TheThe generalStrategic build Cooperation-up of military Council forces is around a cooperative the world council and the attached return ofto thethe “great Austria x x x x x strategicISP for game”cooperation between on theissues major related powers to meannon-proliferation. that the trend Ittowards consists the of significance a of Director-General and members from the cooperating authorities appointed TOTAL 39 48 43 35 42 export control internationally is clear. The major powers want to prevent other major by the ISP. The Strategic Cooperation Council met once in 2019. powers or other countries from gaining the same technological advantages and level of build-up they have themselves, and export control is a means that can be applied. In view ofTechnical Sweden’s- Scientifichigh-tech industry, Council Sweden is also affected by this to a very great extent.

TheA Techni arms calbuild-Scientific-up is making Council great is attacheddemands toon the export ISP to control. assist theIt isDirector to a large- extent the combinationGeneral of ofthe the ISParms in build the-up discussion and the internationalisation of matters concerning of both thethe Swedish and foreignclassification defence ofindustries military and equipment the DUI industry and dual that- useis leading items to. heavyThe Council demands being made onconsists export of control. representatives These requireme of institutionsnts go farwith beyond expert theise traditionalin the technology's export control task of assessingcivilian andthe suitabilitymilitary applications.of a particular Thekind Technicalof military -equipmentScientific orCouncil a particular held kind of dual- useone item meeting reaching in 201 a particular9. recipient or end-user.

For the past two decades the Swedish defence industry has exported more than half the military4.2 equipmentThe Swedish produced in Radiation Sweden. In addition, Safety in Authority recent decades the Swedish defence industry and DUI industry have placed a large part of their research and developmentIn accordance abroad. with Thisthe inevitablyOrdinance leads (2008:452) to a risk ofwith technology instructions regarded for asthe sensitive in termsSwedish of Swedish Radiation defence Safety capability Authority, being proliferated the Swedish in a wayRadiation that previously Safety could not haveAuthority been imagined. (SSM) is Businessthe central arrangements government where authority a country for issuesin which relating the Swedish to defence industrythe protection undertakes of human research health and development and the environment wishes to sellagainst a military the harmful equipment system containing parts or components of Swedish origin or technology partly originating from a 7335 Swedish company to a recipient undesirable to Sweden are becoming increasingly common.

Comm. The Export Control Council 2019/20:114 The Riksdag decided in 1984, on the basis of the Government Bill Appendix 3 proposing greater transparency and consultation on matters relating to exports of military equipment etc. (Govt Bill 1984/85:82), that an advisory board on military equipment issues should be established. The The ISP commented as follows on the amended guidelines on its website on 15 April 2018. During the year,Government the ISP laid reorganised great emphasis this boardin the intoareas the of Exportboth military Control equipment Council and(ECC) DUIs on assessingin connect advancedion contractwith the arrangements establishment where of counterthe ISP-purchase in 1996. requirements The rules - The greatest change in the new guidelines and the most important way in which from a purchasinggoverning country the may composition lead to permanent and activities technology of the transfer, ECC arewhich included in turn inposes the they have been made more stringent is the introduction of the democratic status of a risk of leadingISP's to instructions.undesirable technology All parliamentary transfer to parties third countries.are represented on the ECC. It the recipient state as a key condition in considering licence applications. It should is chaired by the Director-General of the ISP. be noted, however, that it is not a prohibition, as the Government states that The closer the EuropeanA new Export defence Control industry Council is interlinked started throughwork on partnerships, 1 November mergers 2019, after and licences may be granted if there are substantial national defence or security policy acquisitions, the greater the challenge becomes when one country, for example Sweden, interests in international cooperation in individual cases. New deals with such states being appointed by the Government. In line with the proposals of the KEX says no to a third-country transaction in which its defence industry acts as subcontractor will possibly be granted primarily in connection with international cooperation Inquiry, deputy members were also appointed for the first time. A list of when another EU Member State has sold a system in its entirety to a third country. With where there are substantial defence or security policy reasons in individual cases. the aim of avoiding,the Council’s or in any members case mitigating, and deputy tensions members that have appears arisen below as a consequence of such scenarios, TheGermany Director and- GeneralFrance entered of the intoISP anis responsibleagreement at for the selecting end of 2019 those that cases - Although the ISP will refuse licences for new deals with states that have serious includes a de minimisthat will rule. be This subjected provision to meansconsultation that if thewith proportion the Export of militaryControl equipment Council. deficits in democratic status, it is clearly stated by the Government that follow-on (parts and components)Consultation for can which take the place, defence for industryexample in, before the subcontractor a preliminary country decision is is deliveries under such deals as have been approved prior to 15 April 2018 should be responsible inissued the complete to a company. military equipment The Director system-General does not has exceed to consult 20%, thethe Council assessed in accordance with the previous guidelines for follow-on deliveries. States subcontractorbefore country the should ISP notsubmits prevent an export application to a third to country the Government that the main for final that may be perceived by the general public as having serious deficits in democratic contractor countryassessment has already under approved. the Military Equipment Act or the Dual-Use Items and status will therefore probably, following a case-by-case assessment, receive Swedish Technical Assistance Control Act. military equipment in the form of follow-on deliveries for several decades to come. Military equipmentAt meetings of the ECC, the Ministry for Foreign Affairs presents Follow-on deliveries for a previously delivered system may continue for several assessments of the relevant recipient countries. The Ministry of Defence decades, and there are examples of follow-on deliveries being made for systems Amendments toprovides the legislation assessments and updated ofguidelines the defence policy aspects of the cases. The originally delivered from Sweden 30–40 years ago. Director-General may also summon other experts. One task of the Council From the Inspectorateis to present of Strategic opinions Product’s on proposed point of view, exports 2019 basedwas an importon theant Swedish year for Assessment of licence applications in 2019 the implementationguidelines, of the the extensive EU Common statutory Positionamendments on Armsto the militaryExports equipment and the Arms legislation thatTrade entered Treaty into inforce order on to15 provide April 2018 further and forguidance application to the of ISP. the changes to As in 2018, the day-to-day work of the ISP in 2019 was notable for the authority’s remit to the Swedish guidelinesThe members on exports have and unres othertricted international access to cooperationthe documentation on military of all export interpret the amended guidelines in the light of changes in the world at large. equipment appliedlicence from a thepplication same date. proceedings. The Director-General reports continuously on all export licence decisions, processed tender notifications Defence and security policy reasons in favour of exports, including follow-on deliveries The guidelinesand were cooperation amended in agreements, 2018 with regard as well to tashe democraticpreliminary status decisions of the thatrecipient have and international collaboration, are set in individual cases against such foreign policy country, respectbeen for ruled human upon. rights With in the effect recipient from country, 2005, thethe impactISP also of retheports export all onexport fair reasons against exports, such as democratic status and respect for human rights in the and sustainable development in the recipient country, follow-on deliveries and international country in question, that may exist in an individual case. As previously an overall licence decisions on dual-use items to the ECC. Taken together, this . assessment is ultimately made of the circumstances existing in the individual case. cooperation Thesystem reason ensures for the good amendments, insight into according application to the of Government,the rules on export was the control endeavour to promote democracy, human rights and sustainable development having for members of parliament from all parties represented in the Riksdag. become an increasingly important part of Swedish foreign policy (Govt Bill 2017/18:23 The parliamentary assembly attached to the ISP, the Export Control Council, played a very The intention of the Swedish system, uniquely in international terms in Stricter export control of military equipment p. 38). important advisory role during the year with regard to interpretation of the guidelines. The that representatives of the parliamentary parties can discuss potential Government appointed new members to the Council on 31 October 2019. The number of The most importantexport transactionschange concerns in advance, the democratic is to buildstatus aof broad the recipient consensus state, on which export in members and the distribution among the parliamentary parties was the same as previously, the future is tocont berol a key policy condition and promote in consideration continuity of inlicence the conduct applications. of that The po licy. Unlike but a new development with effect from 31 October 2019 was that the Government also Government instates many in otherthe Bill countries, on which the the Export amended Control guidelines Council are based deals thatwith the cases worse at an appointed deputy members to the Council. the democraticearly status stage, is, the before less scopea specific there transaction is for licences is carried to be granted. out. Since In theit would event harmthat there are seriousthe democraticexporting companiesdeficits, this commer poses ancially obstacle if their to granting plans licences.were made The known latter Cooperation with other authorities means, accordingbefore to theythe Gover had conclnment,uded that a deal,there theis a Exportpresumption Control that Council's a licence discussions will not be granted, but ifare there not aremade substantial public. Thenational assessments defence or of security individual policy countries interests are in normally An important trend in relation to export control is for recipient countries to make greater international subjectcooperation to confidentiality in individual cases, in relation licences to may foreign nevertheless affairs. be granted demands for technology transfer and development cooperation in connection with major following carefulThe asses Advissmentory (Govt Council Bill 2017/18:23on Foreign p.Affairs, 67 and and72). Thenot thepreparatory Export Control purchases of military systems. This trend, combined with the risk of military equipment, materials stateCouncil, that the democraticis still consulted status of thein casesrecipient where country this constitutes is prescribed a conditional by the technology or dual-use items possibly being used for a capability-enhancing purpose, obstacle (GovtInstrument Bill 2017/18:23 of Government. p. 71). The Export Control Council met eight times including weapons of mass destruction, for the military forces of a country to whose build- up aims Sweden does not wish to contribute, has made great demands in recent years on 7434 the ISP’s technical expertise and on the authority’s security policy risk assessments.

in 2019. The Council discussed 14 matters for consultation, of which 13 Comm. related to military equipment and one to dual-use items. 2019/20:114 Appendix 3 The current members of the Export Control Council are: The ISP commented as follows on the amended guidelines on its website on 15 April 2018. During the year, the ISP laid great emphasis in the areas of both military equipment and Janine Alm Ericson, Member of Parliament (Green Party) DUIs on assessing advanced contract arrangements where counter-purchase requirements -Jan The R Andersson, greatest change Member in the of new Parliament guidelines (Moderate and the most Party) important way in which from a purchasing country may lead to permanent technology transfer, which in turn poses Annickathey have Engblom, been made Member more of stringent Parliament is the (Moderate introduction Party) of the democratic status of a risk of leading to undesirable technology transfer to third countries. Kerstinthe recipient Lundgren, state Member as a key ofcondition Parliament in considering (Centre Party) licence applications. It should Mariabe noted,Nilsson, however, Member that of it Parliament is not a prohibition, (Liberal Party)as the Government states that The closer the European defence industry is interlinked through partnerships, mergers and Mattiaslicences Ottosson, may be Membergranted if of there Parliament are substantial (Social national Democrats) defence or security policy acquisitions, the greater the challenge becomes when one country, for example Sweden, Désiréeinterests Pethrus, in international Member of cooperation Parliament in (Christian individual Democrcases. Newats) deals with such states says no to a third-country transaction in which its defence industry acts as subcontractor Rogerwill Richtoff,possibly be Member granted of primarily Parliament in connection (Sweden withDemocrats) international cooperation when another EU Member State has sold a system in its entirety to a third country. With Mariwheree Granlund, there are former substantial Member defence of Parliamentor security policy(Social reasons Democrats) in individual cases. the aim of avoiding, or in any case mitigating, tensions that have arisen as a consequence of Stig Henriksson, former Member of Parliament (Left Party) such scenarios, Germany and France entered into an agreement at the end of 2019 that -Lars Although Johansson, the ISPformer will Memberrefuse licences of Parliament for new deals(Social with Democrats) states that have serious includes a de minimis rule. This provision means that if the proportion of military equipment Perdeficits Westerb inerg, democratic former Memberstatus, it isof clearly Parliament stated (Moderateby the Government Party) that follow-on (parts and components) for which the defence industry in the subcontractor country is deliveries under such deals as have been approved prior to 15 April 2018 should be responsible in the complete military equipment system does not exceed 20%, the assessed in accordance with the previous guidelines for follow-on deliveries. States Deputy members of the Export Control Council: subcontractor country should not prevent export to a third country that the main that may be perceived by the general public as having serious deficits in democratic contractor country has already approved. status will therefore probably, following a case-by-case assessment, receive Swedish Camillamilitary Brodin, equipment Member in theof Parliamentform of follow (Christian-on deliveries Democrats) for several decades to come. Military equipment HannaFollow Gustafsson,-on deliveries Member for aof previously Parliament delivered (Left Party) system may continue for several Ann-decades,Charlotte and Hammar there are Johnsson, examples ofMember follow- onof deliveries Parliament being (Moderate made for systems Amendments to the legislation and updated guidelines Party)originally delivered from Sweden 30–40 years ago. Caroline Nordengrip, Member of Parliament (Sweden Democrats) From the Inspectorate of Strategic Product’s point of view, 2019 was an important year for AssessmentEva Sonidsson, of licence applica formertions Member in 2019 of Parliament (Social Democrats) the implementation of the extensive statutory amendments to the military equipment legislation that entered into force on 15 April 2018 and for application of the changes to As in 2018, the day-to-day work of the ISP in 2019 was notable for the authority’s remit to the Swedish guidelines on exports and other international cooperation on military interpretThe Strategic the amended Cooperation guidelines Council in the light of changes in the world at large. equipment applied from the same date. DefenceThe Strategic and security Cooperation policy reasonsCouncil in is favour a cooperative of exports, council including attached follow to- onthe deliveries The guidelines were amended in 2018 with regard to the democratic status of the recipient andISP internationalfor cooperation collaboration, on issues arerelated set in to individual non-proliferation. cases against It consistssuch foreign of a policy country, respect for human rights in the recipient country, the impact of the export on fair reasonsDirector against-General exports, and members such as democratic from the cooperating status and respect authorities for human appointed rights in the and sustainable development in the recipient country, follow-on deliveries and international countryby the ISP.in question, The Strategic that may Cooper exist ination an individ Councilual met case. once As previously in 2019. an overall cooperation. The reason for the amendments, according to the Government, was the assessment is ultimately made of the circumstances existing in the individual case. endeavour to promote democracy, human rights and sustainable development having Technical-Scientific Council become an increasingly important part of Swedish foreign policy (Govt Bill 2017/18:23 The parliamentary assembly attached to the ISP, the Export Control Council, played a very Stricter export control of military equipment p. 38). importantA Techni caladvisory-Scientific role duringCouncil the is year attached with toregard the ISPto interpretation to assist the Director of the guidelines.- The GovernmentGeneral of appointedthe ISP newin membersthe discussion to the Councilof matters on 31 Octoberconcerning 2019. the The number of The most important change concerns the democratic status of the recipient state, which in membersclassification and theof distributionmilitary equipment among the andparliamentary dual-use partiesitems. wasThe the Council same as previously, the future is to be a key condition in consideration of licence applications. The butconsists a new of development representatives with of effect institutions from 31 with October expert 2019ise in was the thattechnology's the Government also Government states in the Bill on which the amended guidelines are based that the worse appointedcivilian and deputy military members applications. to the Council. The Technical -Scientific Council held the democratic status is, the less scope there is for licences to be granted. In the event that one meeting in 2019. there are serious democratic deficits, this poses an obstacle to granting licences. The latter Cooperation with other authorities means, according to the Government, that there is a presumption that a licence will not be granted, but if there are substantial national defence or security policy interests in An4.2 important The trend Swedish in relation toRadiation export control Safety is for recipientAuthority countries to make greater international cooperation in individual cases, licences may nevertheless be granted demands for technology transfer and development cooperation in connection with major following careful assessment (Govt Bill 2017/18:23 p. 67 and 72). The preparatory purchasesIn accordance of military with systems. the Ordinance This trend, (2008:452) combined with with instructionsthe risk of military for the equipment, materials state that the democratic status of the recipient country constitutes a conditional technologySwedish Radiationor dual-use Safetyitems possibly Authority, being theused Swedishfor a capability Radiation-enhancing Safety purpose, obstacle (Govt Bill 2017/18:23 p. 71). includingAuthority weapons (SSM) isof themass central destruction, government for the authority military forces for issues of a countryrelating to to whose build- upthe aims protection Sweden of does human not wish health to contribute,and the environment has made great against demands the harmful in recent years on the ISP’s technical expertise and on the authority’s security policy risk assessments. 7535

Comm. The Export Control Council 2019/20:114 The Riksdag decided in 1984, on the basis of the Government Bill Appendix 3 proposing greater transparency and consultation on matters relating to exports of military equipment etc. (Govt Bill 1984/85:82), that an advisory To ensure effecboardtive controlon military of these aspects,equipment in 2019 issues the ISPshould continued be workestablished. with the The negotiate a sub-agreement concerning export control. The agreement negotiations entered cooperation forum,Government the Military reorganised Equipment this boardSecurity into Group the Export (MSG), Control which wasCouncil established (ECC) their final stage in 2019. in 2017 and inin which connect issuesion are with discussed the establishment with the Swedish of Armedthe ISP Forces, in 1996. the Swedish The rules Defence Materigoverningel Administration, the composition the Swedish and Defenceactivities Research of the ECC Agency are and included the Ministry in the The European Defence Fund of Defence (GovernmentISP's instructions. Offices All of parliamentarySweden). In 2019, parties as in are 2018, represented there was on special the ECC. focus It on defining productsis chaired and by technologies the Director particularly-General of sensitive the ISP. in terms of security policy, Work on setting up the European Defence Fund continued during the year. The idea is irrespective of whetherA new Exportthey represent Control military Council equipment, started work dual on-use 1 itemsNovember or non- 2019,controlled after that the Fund will gradually come to total SEK 130 billion and that the money can be items. distributed to collaborative projects with participants from various EU Member States. A being appointed by the Government. In line with the proposals of the KEX provision has been included in the EU Regulation on the European Defence Fund Inquiry, deputy members were also appointed for the first time. A list of Post-shipment controls of military equipment abroad indicating that the issue of third-party exports will be decided by the individual Member the Council’s members and deputy members appears below States after an assessment in each individual case. The GovernmentThe decided Director on- 19General October of the2017 ISP that is theresponsible ISP should for analyse selecting the issuethose of cases post-shipmentthat controls will be abroad subjected of military to consultation equipment that with has the been Export exported Control with Council.licences In consideration of the differing views that largely exist between the leading defence under the MilitaryConsultation Equipment can Act take and place, submit for proposals example ,for before the design a preliminary of a system decision for such is industry countries in the EU on the matter of third-country exports, the ISP anticipates controls. In itsissued inquiry to presented a company. in March The Director2018, the- GeneralISP made has the toassessment consult thethat Councilex-post that differing views may arise between the collaborating countries when the fully developed controls shouldbefore be focused the ISP on fivesubmits different an typesapplication of light weaponsto the Government and their associated for final systems in the individual projects are to be exported to third countries in the future. With ammunition systemsassessment manufactured under the inMilitary and exported Equipment from Sweden.Act or the It isDual required-Use thatItems the and regard to international collaboration of the type that will be relevant through the European end-user countryTechnical has approved Assistance such Control visits in Act.an end -user certificate. The system should Defence Fund and the issue of third-country exports, the Government has stated that ‘it is only cover stateAt end meetings-users and of not the weapons ECC, manufacturedthe Ministry underfor Foreign licence abroad.Affairs P ostpresents not obvious that Sweden can always count on a sympathetic hearing for all the aspects that shipment controlsassessments should asof a the rule relevant not take recipientplace in countries countries. for T whichhe Ministry the guidelines of Defence and are unique to our approach with regard to cooperation with or export to a third country’ preliminary workprovides statements assessments indicate ofthat the there defence are in principlepolicy aspectsno foreign of andthe securitycases. The (Govt Bill 2017/18:23 p. 66). policy obstaclesDirector to international-General maycooperation. also sum Formon all other other experts. countries, One post task shipment of the Council controls shouldis asto a presentrule take opinionsplace through on on-proposedsite verification exports visits based in theon country the Swedish of the International export control policy weapons. Theguidelines, ISP’s investigation the EU has Common been sent Position out for consulon Armstation Exports and is nowand underthe Arms discussion at Tradethe Government Treaty in orderOffices to ofprovide Sweden. further guidance to the ISP. With regard to international export control policy, the year was dominated firstly by various The members have unrestricted access to the documentation of all export countries’ application of exports of military equipment to those countries taking part with A significant licenceinternational application trend in export proceedings. control is an increasedThe Director number-General of countries reports military forces in the Yemen conflict, and secondly application by various countries of conducting postcontinuously-shipment controlson all export of military licence equipment decisions, that processed has been tender exported notifications to exports of military equipment to Turkey after the country’s military forces entered Syria in another countandry. Untilcooperation 2012 the agreements, United States as was well in principleas preliminary alone in decisions conducting that such have the beginning of October. Following the murder of the Saudi journalist Khashoggi at the post shipmentbeen controls ruled. Switzerland upon. With began effect a programmefrom 2005, of the regular ISP alsopost shipmentreports all controls export Saudi consulate in Istanbul in Turkey in September 2018, Germany, Denmark, Finland and in 2012, followed by Germany in 2015. Spain is currently investigating whether such a Norway, among others, announced that they would have an export control policy in licence decisions on dual-use items to the ECC. Taken together, this programme should be introduced. relation to Saudi Arabia similar to the one that Sweden de facto has had for a long time, system ensures good insight into application of the rules on export control which means that the countries do not issue any export licences for new military equipment Review of the Commonfor members Position of parliament from all parties represented in the Riksdag. export deals to Saudi Arabia. Sweden has not issued any export licences for new export The intention of the Swedish system, uniquely in international terms in deals to Saudi Arabia since 2013. Germany went a step further than the other countries and The third reviewthat ofrepresentatives the Council Common of the Positionparliamentary 2008/944/CFSP parties can defining discuss common potential also temporarily prohibited follow-on deliveries for previously supplied military equipment rules governingexport control transactions of exports inof advance,military technology is to build and a equipmentbroad consensus was completed on export in to Saudi Arabia. 2019. The Commoncontrol Positionpolicy and came promote into effect continuity in 2009. in In the the conduct same way of thatas during policy. the Unlike previous reviews,in many which other took countries, place in 2012 the Exportand 2015, Control the 2019 Council review deals did notwith lead cases to anyat an Several of the countries mentioned also announced in 2018 that, in future, they would have changes in criteriaearly instage, the position before a. Aspecific number transaction of new formulations, is carried out. including Since iton would the harm an export control policy in relation to the United Arab Emirates similar to the one Sweden democratic statusthe exporting of the recipient companies country, commer were, however,cially if addedtheir plans to the were user guidemade that known de facto has had since June 2017, which means that they will not issue any export licences for offers supportbefore in interpreting they had theconcl criteriauded fora deal, the theposition. Export Control Council's discussions new military equipment export deals to the United Arab Emirates. are not made public. The assessments of individual countries are normally Nordic agreementsubject on export to confidentialitycontrol in relation to foreign affairs. The largest suppliers of military equipment to Saudi Arabia and the United Arab Emirates The Advisory Council on Foreign Affairs, and not the Export Control in 2019, as in recent decades, were the United States, the United Kingdom and France. On 12 NovemberCouncil, 2013 isthe still Government consulted decided in cases that Swedenwhere thiswould is sign prescribed an agreement by the Exports from these countries continued in the same way as previously in 2019 although concerning supportInstrument for industrial of Government. cooperation The in Export the area Control of military Council equipment met eightwith times there is a vigorous internal debate on completely or partially halting deliveries, particularly Denmark, Finland and Norway. The states signed the agreement on 10 March 2015. In in the United States and the United Kingdom. 7634 2016 the Government authorised the ISP, together with Denmark, Finland and Norway, to

in 2019. The Council discussed 14 matters for consultation, of which 13 Comm. related to military equipment and one to dual-use items. 2019/20:114 Appendix 3 The current members of the Export Control Council are: To ensure effective control of these aspects, in 2019 the ISP continued work with the negotiate a sub-agreement concerning export control. The agreement negotiations entered cooperation forum, the Military Equipment Security Group (MSG), which was established theirJanine final stage Alm in Ericson, 2019. Member of Parliament (Green Party) in 2017 and in which issues are discussed with the Swedish Armed Forces, the Swedish Jan R Andersson, Member of Parliament (Moderate Party) Defence Materiel Administration, the Swedish Defence Research Agency and the Ministry The EuropeanAnnicka Defence Engblom, Fund M ember of Parliament (Moderate Party) of Defence (Government Offices of Sweden). In 2019, as in 2018, there was special focus Kerstin Lundgren, Member of Parliament (Centre Party) on defining products and technologies particularly sensitive in terms of security policy, WorkMaria on setting Nilsson, up theMember European of Parliament Defence Fund (Liberal continued Party) during the year. The idea is irrespective of whether they represent military equipment, dual-use items or non-controlled that Mattiasthe Fund Ottosson, will gradually Member come of to Parliament total SEK 130(Social billion Democrats) and that the money can be items. distributedDésirée to Pethrus, collaborative Member projects of Parliament with participants (Christian from Democr various ats)EU Member States. A provisionRoger has Richtoff, been included Member in ofthe Parliament EU Regulation (Sw edenon the Democrats) European Defence Fund Post-shipment controls of military equipment abroad indicatingMarie that Granlund, the issue former of third- Memberparty exports of Parliament will be decided (Social by Democrats) the individual Member StatesStig after Henriksson, an assessment former in each Member individual of Parliament case. (Left Party) The Government decided on 19 October 2017 that the ISP should analyse the issue of Lars Johansson, former Member of Parliament (Social Democrats) post-shipment controls abroad of military equipment that has been exported with licences In considerationPer Westerb oferg, the former differin Memberg views thatof Parliament largely exist (Moderate between the Pa leadingrty) defence under the Military Equipment Act and submit proposals for the design of a system for such industry countries in the EU on the matter of third-country exports, the ISP anticipates controls. In its inquiry presented in March 2018, the ISP made the assessment that ex-post that differing views may arise between the collaborating countries when the fully developed Deputy members of the Export Control Council: controls should be focused on five different types of light weapons and their associated systems in the individual projects are to be exported to third countries in the future. With ammunition systems manufactured in and exported from Sweden. It is required that the regard to international collaboration of the type that will be relevant through the European end-user country has approved such visits in an end-user certificate. The system should DefenceCamilla Fund Brodin, and the Member issue of of third- Parliamentcountry (Christianexports, the Democrats) Government has stated that ‘it is only cover state end-users and not weapons manufactured under licence abroad. Post notHanna obvious Gustafsson, that Sweden Member can always of Parliament count on a (Leftsympathetic Party) hearing for all the aspects that shipment controls should as a rule not take place in countries for which the guidelines and areAnn unique-Charlotte to our approach Hammar with Johnsson, regard to Member cooperation of Parlwithiament or export (Moderate to a third country ’ preliminary work statements indicate that there are in principle no foreign and security (GovtParty) Bill 2017/18:23 p. 66). policy obstacles to international cooperation. For all other countries, post shipment Caroline Nordengrip, Member of Parliament (Sweden Democrats) controls should as a rule take place through on-site verification visits in the country of the InternationalEva Sonidsson, export control former policy Member of Parliament (Social Democrats) weapons. The ISP’s investigation has been sent out for consultation and is now under discussion at the Government Offices of Sweden. With regard to international export control policy, the year was dominated firstly by various countries’The Strategic application Cooperation of exports Council of military equipment to those countries taking part with A significant international trend in export control is an increased number of countries military forces in the Yemen conflict, and secondly application by various countries of conducting post-shipment controls of military equipment that has been exported to exportsThe Strategic of military Cooperation equipment Council to Turkey is a after cooperative the country’s council military attached forces to entered the Syria in another country. Until 2012 the United States was in principle alone in conducting such theISP beginning for cooperation of October. on issues Following related the to murder non-proliferation. of the Saudi journalist It consists Khashoggi of a at the post shipment controls. Switzerland began a programme of regular post shipment controls SaudiDirector consulate-General in Istanbuland members in Turkey from in the September cooperating 2018, authorities Germany, appointedDenmark, Finland and in 2012, followed by Germany in 2015. Spain is currently investigating whether such a Norway,by the ISP. among The others, Strategic announced Cooper ationthat they Council would met have once an exportin 2019 control. policy in programme should be introduced. relation to Saudi Arabia similar to the one that Sweden de facto has had for a long time, whichTechnical means-Scientific that the countries Council do not issue any export licences for new military equipment Review of the Common Position export deals to Saudi Arabia. Sweden has not issued any export licences for new export dealsA Techni to Saudical- ScientificArabia since Council 2013. Germanyis attached went to the a step ISP further to assist than the the Director other -countries and The third review of the Council Common Position 2008/944/CFSP defining common alsoGeneral temporarily of the prohibited ISP in follow the -discussionon deliveries offor previouslymatters concerning supplied military the equipment rules governing control of exports of military technology and equipment was completed in toclassification Saudi Arabia. of military equipment and dual-use items. The Council 2019. The Common Position came into effect in 2009. In the same way as during the consists of representatives of institutions with expertise in the technology's previous reviews, which took place in 2012 and 2015, the 2019 review did not lead to any Severalcivilian of and the militarycountries applications. mentioned also The announced Technical in- Scientific2018 that, Councilin future, held they would have changes in criteria in the position. A number of new formulations, including on the anone export meeting control in 201 policy9. in relation to the United Arab Emirates similar to the one Sweden democratic status of the recipient country, were, however, added to the user guide that de facto has had since June 2017, which means that they will not issue any export licences for offers support in interpreting the criteria for the position. new military equipment export deals to the United Arab Emirates. 4.2 The Swedish Radiation Safety Authority Nordic agreement on export control The largest suppliers of military equipment to Saudi Arabia and the United Arab Emirates inIn 201 accordance9, as in recent with decades, the Ordinance were the United(2008:452) States, with the Unitedinstructions Kingdom for andthe France. On 12 November 2013 the Government decided that Sweden would sign an agreement ExportsSwedish from Radiation these countries Safety continuedAuthority, in thethe same Swedish way as Radiationpreviously inSafety 2019 although concerning support for industrial cooperation in the area of military equipment with thereAuthority is a vigorous (SSM) internalis the central debate government on completely authority or partially for haltingissues relatingdeliveries, to particularly Denmark, Finland and Norway. The states signed the agreement on 10 March 2015. In ithen the protection United States of human and the health United and Kingdom. the environment against the harmful 2016 the Government authorised the ISP, together with Denmark, Finland and Norway, to 7735

Comm. The Export Control Council 2019/20:114 The Riksdag decided in 1984, on the basis of the Government Bill Appendix 3 proposing greater transparency and consultation on matters relating to exports of military equipment etc. (Govt Bill 1984/85:82), that an advisory On 15 Octoberboard 2019 onthe ISPmilitary revoked equipment all current exportissues licences should for besale established.of military The New development, maintenance and upgrading of military equipment by the Swedish defence industry equipment toGovernment Turkey. The reorganisedprincipal reason this forboard the intoISP’s the decision Export was Control that on Council 10 October (ECC) 2019 the Governmentin connect declared,ion with through the establishment the Minister for of Foreign the ISP Affairs, in 1996. that Turkey’s The rules Apart from the major powers, there is no other country manufacturing military equipment military operationgoverning in Syria the infringes composition the rules and of activitiesinternational of thelaw ECCand the are UN included Charter. in On the that has the expertise or technical capability to surpass the high-tech quality, breadth and 11 October 2019,ISP's all instructions. parliamentary All parties parliamentary backed the parties Government are represented proposal on that the the ECC. EU It product range the Swedish defence industry can demonstrate with regard to platforms, should imposeis anchaired arms embargoby the Director on Turkey.-General EU foreign of the ISP.ministers adopted Council sensors, command and control systems, protection and effect. The Swedish defence conclusions on Anorth- neweast Export Syria Control on 14 October Council 2019. started In pointwork 5on of 1 the November Council conclusions,2019, after industry has the capability to manufacture and develop advanced combat aircraft, stealth the EU Member States are urged to exercise restraint in exports of military equipment to warships (corvettes or derivatives of other warships), submarines (or other underwater being appointed by the Government. In line with the proposals of the KEX Turkey based on Criterion Four on regional stability in the EU’s Common Position crafts), combat vehicles, tracked vehicles, reconnaissance radar aircraft, advanced Inquiry, deputy members were also appointed for the first time. A list of 2008/944/CFSP defining common rules governing control of exports of military command and control systems, advanced simulator systems, land- and sea-based radar technology andthe equipment. Council’s members and deputy members appears below systems, advanced missile systems and technologies for the systems mentioned. The Director-General of the ISP is responsible for selecting those cases No EU Memberthat Statewill otherbe subjected than Sweden to consultation revoked export with licences the Export to Turkey Control in 2019, Council. but An important national trend, closely associated with export controls in the past 20 years, is several EU MemberConsultation States declared,can take place,in accordance for example with the, before Council a preliminary conclusions, decision that they is that the increase in technical capability of the Swedish defence industry over that period of were observingissued restraint to a in company. assessing licenceThe Director applications-General that werehas toregarded consult as thepotentially Council time can be largely ascribed to international cooperation. The reason for this is to some being used bybefore Turkey the in Syria ISP submits an application to the Government for final extent that exports of military equipment have increased in the past two decades compared assessment under the Military Equipment Act or the Dual-Use Items and with the level of exports in the 1990s, but this is largely due to the orders to the defence Foreign acquisitionsTechnical of the defence Assist industryance Controland DUI Act. industry industry from the Swedish Armed Forces, including allocation of resources for research At meetings of the ECC, the Ministry for Foreign Affairs presents and development, having significantly declined. A consequence of this is that over that A significant assessmentstrend in Swedish of the and relevant international recipient export countries. controls isT hefor Ministryseveral countries of Defence in period of time, the defence industry has to a greater extent committed significant financial recent years toprovides have launched assessments a strategy of ofthe acquiring defence ownership policy aspects in companies of the that cases . The resources to research and development of military equipment for the international market manufacture Directoror sell military-General equipment may also or sumstrategicallymon other important experts. dual One-u setask items. of the This Council often and no longer primarily for the Swedish market. The international operations of the involves countriesis to thatpresent are the opinions object of onarms proposed embargoes exports or other based international on the sanctions Swedish defence industry now account for around 60 per cent of the military equipment and that thereforeguidelines, find it difficultthe EU toCommon purchase Positionmilitary equipment on Arms orExports strategically and importantthe Arms manufactured in Sweden. dual-use items.Trade The Treatyaim of ownershipin order to is provide often to further simplify guidance transfer toof themilitary ISP. equipment or strategically importantThe members dual-use have items unres for militarytricted access end-use to tothe the documentation country concerned. of all exportAs a The political focus in Sweden is on Swedish defence capability having to increase result of intricatelicence ownership application relationships proceedings. in the country The in question, Director a potential-General foreign reports substantially over the next ten-year period, sometimes expressed in such a way that the buyer may, forcontinuously example, appear on all to export be a private licence venture decisions, capital processed company tender without notifications any share of GDP allocated to defence should increase from around 1.0% in 2019 to 1.5% in government link,and whereascooperation there agreements, can be a concealed as well state as militarypreliminary interest decisions in the that have 2025. Despite this, the ISP judges that the international operations of the defence industry background. Inbeen response ruled upon.to the problemsWith effect outlined, from during2005, the yearISP thealso EU re portsadopted all export will also account for around 50% of military equipment produced in the country over the Regulation (EU) 2019/452 of the European Parliament and of the Council of 19 March next ten years. The reason for this is that not just Sweden but the rest of the world are licence decisions on dual-use items to the ECC. Taken together, this 2019 establishing a framework for the screening of foreign direct investments into the substantially building up their military forces. system ensures good insight into application of the rules on export control Union, see below under ‘Dual-use items’. for members of parliament from all parties represented in the Riksdag. The Swedish defence industry invests a large share of its revenue in research and Ownership restrictionThe and intention foreign ownership of the Sw in theedish defence system, industry uniquely in international terms in development (R&D). R&D relates to both maintenance and upgrades of existing military that representatives of the parliamentary parties can discuss potential platforms, sometimes so that these become a new version of the system, often marketed The defence induexportstry transactions is the only industry in advance, in Sweden is to currently build a tobroad be covered consensus by owner on exportship with the term mark (Mk) followed by a number designating the version concerned, and restriction rules.cont Therol policyrules are and set promote out in military continuity equipment in the legislation.conduct of Underthat po thelicy. Unlike new development of completely new military equipment systems. Maintenance, upgrading provisions, thein defencemany other industry countries, in Sweden the Exporttoday is Control relatively Council protected deals against with acquisition cases at an and new development of military equipment systems takes place by foreign companiesearly stage, that before are undesirable a specific on transaction defence or is security carried policyout. Since grounds. it would harm 1. following an order placed by the Defence Materiel Administration or the Swedish the exporting companies commercially if their plans were made known Armed Forces Four of the fivebefore largest they defence had concl industryuded firmsa deal, in the Sweden Export today Control are foreign- Council'sowned discussions by 2. following an order placed by both the Defence Materiel Administration (or the companies basedare not in the made United public. Kingdom The assessments, Norway and of Finland. individual The countries acquisitions are havenormally been Swedish Armed Forces) and one (or more) foreign armed forces, which has on approved by subjectthe Government to confidentiality or the Inspectorate in relation of to Strategic foreign Productsaffairs. in connection with occasion entered into an international agreement on collaboration on the new or assessment of applicationsThe Advis oryfor manufacturingCouncil on Foreign or brokering Affairs, licences and not for thethe Exportindividual Control upgraded military equipment system and engaged both Swedish and foreign company, followingCouncil, an assessmentis still consulted of whether in therecases are where security this and is defence prescribed policy byreasons the industry, to grant such Instrumenta licence and of whether Government. it contravenes The Export Swed en’sControl foreign Council policy. met eight times 3. following an order placed by foreign armed forces, 4. through self-funding by the defence industry or 7834 5. through joint development between and self-funding by Swedish industry and foreign industry.

in 2019. The Council discussed 14 matters for consultation, of which 13 Comm. related to military equipment and one to dual-use items. 2019/20:114 Appendix 3 The current members of the Export Control Council are: On 15 October 2019 the ISP revoked all current export licences for sale of military New development, maintenance and upgrading of military equipment by the Swedish defence industry equipment to Turkey. The principal reason for the ISP’s decision was that on 10 October Janine Alm Ericson, Member of Parliament (Green Party) 2019 the Government declared, through the Minister for Foreign Affairs, that Turkey’s ApartJan from R Andersson, the major powers, Member there of Parliamentis no other country(Moderate manufacturing Party) military equipment military operation in Syria infringes the rules of international law and the UN Charter. On that Annickahas the expertise Engblom, or technicalMember capabilityof Parliament to surpass (Moderate the high Party)-tech quality, breadth and 11 October 2019, all parliamentary parties backed the Government proposal that the EU productKerstin range Lundgren, the Swedish Member defence of industry Parliament can demonstrate(Centre Party) with regard to platforms, should impose an arms embargo on Turkey. EU foreign ministers adopted Council sensors,Maria command Nilsson, and Member control of systems, Parliament protection (Liberal and Party) effect. The Swedish defence conclusions on north-east Syria on 14 October 2019. In point 5 of the Council conclusions, industryMattias has theOttosson, capability Member to manufacture of Parliament and develop (Social advanced Democrats) combat aircraft, stealth the EU Member States are urged to exercise restraint in exports of military equipment to warshipsDésirée (corvettes Pethrus, or Memberderivatives of of Parliament other warships), (Christian submarines Democr (orats) other underwater Turkey based on Criterion Four on regional stability in the EU’s Common Position craftRogers), combat Richtoff, vehicles, Member tracked of vehicles, Parliament reconnaissance (Sweden Democrats) radar aircraft, advanced 2008/944/CFSP defining common rules governing control of exports of military commandMarie andGranlund, control formersystems, Member advanced of simulator Parliament systems, (Social land Democrats)- and sea-based radar technology and equipment. systems,Stig advancedHenriksson, missile former systems Member and technologies of Parliament for (Left the systems Party) mentioned. Lars Johansson, former Member of Parliament (Social Democrats) No EU Member State other than Sweden revoked export licences to Turkey in 2019, but An importantPer Westerb nationalerg, former trend, closelyMember associated of Parliament with export (Moderate controls Pa inrty) the past 20 years, is several EU Member States declared, in accordance with the Council conclusions, that they that the increase in technical capability of the Swedish defence industry over that period of were observing restraint in assessing licence applications that were regarded as potentially time can be largely ascribed to international cooperation. The reason for this is to some Deputy members of the Export Control Council: being used by Turkey in Syria extent that exports of military equipment have increased in the past two decades compared with the level of exports in the 1990s, but this is largely due to the orders to the defence Foreign acquisitions of the defence industry and DUI industry industryCamilla from Brodin, the Swedish Member Armed of Parliament Forces, including (Christian allocation Democrats) of resources for research andHanna development, Gustafsson, having Member significantly of Parliament declined. A(Left consequence Party) of this is that over that A significant trend in Swedish and international export controls is for several countries in periodAnn of-Charlotte time, the Hammardefence industry Johnsson, has toMember a greater of extent Parl iamentcommitted (Moderate significant financial recent years to have launched a strategy of acquiring ownership in companies that resourcesParty) to research and development of military equipment for the international market manufacture or sell military equipment or strategically important dual-use items. This often andCaroline no longer Nordengrip, primarily for Member the Swedish of Parliament market. The (Sweden international Democrats) operations of the involves countries that are the object of arms embargoes or other international sanctions defenceEva Sonidsson, industry now former account Member for around of Parliament 60 per cent (Social of the Democrats)military equipment and that therefore find it difficult to purchase military equipment or strategically important manufactured in Sweden. dual-use items. The aim of ownership is often to simplify transfer of military equipment or strategically important dual-use items for military end-use to the country concerned. As a TheThe political Strategic focus Cooperation in Sweden is Council on Swedish defence capability having to increase result of intricate ownership relationships in the country in question, a potential foreign substantially over the next ten-year period, sometimes expressed in such a way that the buyer may, for example, appear to be a private venture capital company without any shareThe Strategic of GDP allocatedCooperation to defence Council should is a cooperative increase from council around attached 1.0% in t2019o the to 1.5% in government link, whereas there can be a concealed state military interest in the 2025.ISP for Despite cooperation this, the on ISP issues judges related that the to internationalnon-proliferation. operations It consists of the defenceof a industry background. In response to the problems outlined, during the year the EU adopted willDirector also account-General for and around members 50% fromof military the cooperating equipment producedauthorities in appointed the country over the Regulation (EU) 2019/452 of the European Parliament and of the Council of 19 March nextby the ten ISP. years. The The Strategic reason for Cooper this isation that Councilnot just Sweden met once but in the 2019 rest. of the world are 2019 establishing a framework for the screening of foreign direct investments into the substantially building up their military forces. Union, see below under ‘Dual-use items’. Technical-Scientific Council The Swedish defence industry invests a large share of its revenue in research and Ownership restriction and foreign ownership in the defence industry developmentA Technical -(R&DScientific). R&D Council relates is to attached both maintenance to the ISP toand assist upgrad thees Director of existing- military platformsGeneral , ofsometimes the ISP so thatin thesethe discussionbecome a new of versionmatters of theconcerning system, often the marketed The defence industry is the only industry in Sweden currently to be covered by ownership withclassification the term mark of military(Mk) followed equipment by a number and dual designating-use items the. versionThe Council concerned, and restriction rules. The rules are set out in military equipment legislation. Under the newconsists development of representatives of completely of institutions new military with equipment expertise systems. in the technology's Maintenance, upgrading provisions, the defence industry in Sweden today is relatively protected against acquisition andcivilian new developmentand military ofapplications. military equipment The Technical systems -takesScientific place Council held by foreign companies that are undesirable on defence or security policy grounds. one1. meeting following in 201 an 9order. placed by the Defence Materiel Administration or the Swedish Armed Forces Four of the five largest defence industry firms in Sweden today are foreign-owned by 2. following an order placed by both the Defence Materiel Administration (or the companies based in the United Kingdom, Norway and Finland. The acquisitions have been 4.2 SwedishThe Armed Swedish Forces) Radiation and one (or more)Safety foreign Authority armed forces, which has on approved by the Government or the Inspectorate of Strategic Products in connection with occasion entered into an international agreement on collaboration on the new or assessment of applications for manufacturing or brokering licences for the individual In accordanceupgraded with military the equipmentOrdinance system (2008:452) and engaged with instructionsboth Swedish for and the foreign company, following an assessment of whether there are security and defence policy reasons Swedishindustry, Radiation Safety Authority, the Swedish Radiation Safety to grant such a licence and whether it contravenes Sweden’s foreign policy. Authority3. following (SSM) an is order the central placed governmentby foreign armed authority forces, for issues relating to the 4.protection through ofself human-funding health by the and defence the environment industry or against the harmful 5. through joint development between and self-funding by Swedish industry and 7935 foreign industry.

Comm. The Export Control Council 2019/20:114 The Riksdag decided in 1984, on the basis of the Government Bill Appendix 3 proposing greater transparency and consultation on matters relating to exports of military equipment etc. (Govt Bill 1984/85:82), that an advisory In both the latterboard cases, on theremilitary is often equipment no pre-determined issues acquiringshould customer,be established. and the The Assessment of licence applications in 2019 project is insteadGovernment self-funded reorganised by the industry, this board but the into marketing the Export is oftenControl initially Council focused (ECC) on a particular armedin connect force thation haswith expressed the establishment interest in the of equipment the ISP inin question. 1996. The rules Assessment of licence applications for dual-use items is based on foreign and security governing the composition and activities of the ECC are included in the policy considerations, as set out in Article 12(1) of EU Regulation 428/2009, and mainly Dual-Use ItemsISP's instructions. All parliamentary parties are represented on the ECC. It concerns whether the item can be assumed to be used, in the end-user country, or after is chaired by the Director-General of the ISP. diversion to another country, to strengthen military potential in the country or in some The possibility of givingA new the Export ISP the Controlright to make Council use of thestarted Swedish work National on 1 NovemberDefence Radio 2019, after other way be directly or indirectly used or diverted for a destructive purpose. Establishment being appointed by the Government. In line with the proposals of the KEX With regard to assessment of licence applications in 2019, changes in the surrounding Inquiry, deputy members were also appointed for the first time. A list of All the parliamentary parties except the Left Party backed the Riksdag’s announcement to world, including the build-up of military forces taking place around the world and increased the Governmentthe Council’sin March 2018 members that the and Government deputy members should appears review the below possibility of insecurity in the world, have resulted in an increase in the large number of complex cases giving the ISP theThe right Director to make-General use of ofsignals the ISP intelligence is responsible from the for Swedish selecting National those cases requiring in-depth analysis before a decision is made. Another consequence of the changes Defence Radiothat Establishment will be subjected (report to2017/18: consultation FöU5, withwritten the communications Export Control from Council. the in the world at large is that, as in 2018, these led in 2019 to many denials of applications for Riksdag 2017/18:178Consultation and 2017/18:179) can take place,. The for matter example is under, before discussion a preliminary in the Government decision is export licences. Offices of Sweden.issued to a company. The Director-General has to consult the Council before the ISP submits an application to the Government for final Cooperation with other authorities New EU Regulationassessment on DUI under control the Military Equipment Act or the Dual-Use Items and Technical Assistance Control Act. The ISP saw a great need to consult other affected authorities in the field of non- On 30 SeptemberAt 2016meetings the Commission of the ECC, presented the Ministry a proposal for for Foreign amendments Affairs to thepresents EU proliferation in 2019. These consultations take place both through bilateral contacts with Regulation governingassessments control of theof dual relevant-use items recipient (Council countries. Regulation The (E MinistryC) No 428/2009 of Defence affected authorities and in various cooperation forums that include authorities working on setting up a Communityprovides assessments regime for the of control the defence of exports, policy transfer, aspects brokering of the andcases transit. The non-proliferation issues. Operationally focused cooperation at administrative level takes of dual-use items).Director Negotiations-General may on the also new sum EUmon Regulation other experts. took place One intask 201 of9 ,the as inCouncil 2017 place within the Non-Proliferation and Export Control Group (ISEK) through regular and 2018. Theis ISPto haspresent greatly opinions assisted theon Ministry proposed for Foreigexportsn Affairs based with on expertthe Swedish support meetings with the National Defence Radio Establishment, the Swedish Armed Forces in the negotiations.guidelines, A decision the EU on anCommon amended Position EU Regulation on Arms will Exportsprobably andbe made the Arms through the Swedish Military Intelligence and Security Service, the Swedish Security during 2020. Trade Treaty in order to provide further guidance to the ISP. Service, the Swedish Defence Research Institute and Swedish Customs. A council for The members have unrestricted access to the documentation of all export cooperation between authorities on non-proliferation issues (the Cooperation Council) is New EU Regulationlicence on screeningapplication of foreign directproceedings. investments The Director-General reports attached to the ISP and is intended to promote effective coordination between authorities continuously on all export licence decisions, processed tender notifications with regard to measures against the proliferation of weapons of mass destruction. The During the year,and the cooperation EU adopted agreements, Regulation (EU)as well 2019/452 as preliminary of 19 March decisions 2019 of that the have Cooperation Council consists of the director-generals of the authorities mentioned and met European Parliamentbeen ruled and upon. of the WithCouncil effect establishing from 2005, a framework the ISP foralso screening reports ofall foreignexport once in 2019. direct investments into the European Union. licence decisions on dual-use items to the ECC. Taken together, this Non-controlled items and technology system ensures good insight into application of the rules on export control In a consultation response in December 2017, the ISP recommended that, with certain proposed amendments,for members the of new parliament EU Regulation from allshould parties be introducedrepresented and in thethat Riksdag. Sweden, An important trend in Swedish and international export control is the increased focus by after proper inquiry,The intentionshould introduce of the Sw throughedish system,legislation uniquely a system in of international control of foreign terms in many countries on detecting and identifying at an early stage non-controlled items and acquisitions ofthat companies representatives that manufacture of the parliamentaryor sell dual-use partiesitems within can thediscuss limits potential technologies that may be of crucial significance in a future military conflict. permitted by exportthe EU transactionsRegulation. in advance, is to build a broad consensus on export control policy and promote continuity in the conduct of that policy. Unlike Detecting and identifying Swedish companies that have operations that are fundamentally The Governmentin many decided other at countries, a Cabinet meetingthe Export on Control22 August Council 2019 to deals task withan inquiry cases chair at an civilian but have products that are nevertheless attractive to the armed forces of other with proposingearly a system stage, for before reviewing a specific foreign transaction direct investments is carried out.in areas Since meriting it would harm countries, without constituting controlled dual-use items, is very labour-intensive and protection. Stenthe Heckscher,exporting companiesformer supreme commer courtcially justice if andtheir President plans were of the made Supreme known complicated. Administrativebefore Court, they was had appointed concluded as inquiry a deal, chair the Export from 22 Control August Council's 2019. The discussions inquiry has adopted the nameare not the made Direct public. Investment The assessments Inquiry. An ofofficial individual from thecountries ISP is taking are normally part in An example of such a company is a subcontractor of a defence industry company whose the inquiry assubject an expert. to confidentialityUnder its terms in of relation reference, to theforeign inquiry affairs. is to propose by 4 May product may be five or six subcontractor links down from the final product. Another 2020 the adaptationsThe Advis and supplementaryory Council on provisions Foreign necessaryAffairs, andto enable not the the Export ordinance Control to be example is companies that operate in the fields of emerging technologies, such as artificial applied in SwedenCouncil, from is 11 still October consulted 2020. Underin cases the termswhere of reference,this is prescribed the inquiry by is tothe intelligence (AI), quantum computers/quantum cryptography, nanotechnology and report on theInstrument part concerned of Government. with proposing The a Swedish Export systemControl for Council review ofmet foreign eight directtimes biotechnology, and whose products are not yet subject to export control. investments by 2 November 2021 at the latest. 8034 To enable such Swedish companies to be detected and identified, interaction is necessary between several different authorities, where the ISP is one actor and the Swedish Armed

in 2019. The Council discussed 14 matters for consultation, of which 13 Comm. related to military equipment and one to dual-use items. 2019/20:114 Appendix 3 The current members of the Export Control Council are: In both the latter cases, there is often no pre-determined acquiring customer, and the Assessment of licence applications in 2019 project is instead self-funded by the industry, but the marketing is often initially focused on Janine Alm Ericson, Member of Parliament (Green Party) a particular armed force that has expressed interest in the equipment in question. AssessmentJan R Andersson, of licence applications Member of for Parliament dual-use items(Moderate is based Party) on foreign and security policyAnnicka considerations, Engblom, as Msetember out in ofArticle Parliament 12(1) of (Moderate EU Regulation Party) 428/2009, and mainly Dual-Use Items concernsKerstin whether Lundgren, the item Member can be ofassumed Parliament to be (Centreused, in Party)the end- user country, or after diversionMaria to Nilsson, another Membercountry, toof strengthenParliament military (Liberal potential Party) in the country or in some The possibility of giving the ISP the right to make use of the Swedish National Defence Radio otherMattias way be Ottosson, directly or Member indirectly of used Parliament or diverted (Social for a Democrats)destructive purpose. Establishment Désirée Pethrus, Member of Parliament (Christian Democrats) WithRoger regard Richtoff, to assessment Member of licence of Parliament applications (Sw ineden 201 9Democrats), changes in the surrounding All the parliamentary parties except the Left Party backed the Riksdag’s announcement to world,Mari includinge Granlund, the build former-up of Member military of forces Parliament taking place (Social around Democrats) the world and increased the Government in March 2018 that the Government should review the possibility of insecurityStig Henriksson, in the world, former have resulted Member in anof Parliamentincrease in the (Left large Party) number of complex cases giving the ISP the right to make use of signals intelligence from the Swedish National requiringLars Johansson,in-depth analysis former before Member a decision of Parliament is made. Another (Social Democrats)consequence of the changes Defence Radio Establishment (report 2017/18: FöU5, written communications from the in thePer world Westerb at largeerg, is former that, as Member in 2018, theseof Parliament led in 2019 (Moderate to many denials Party) of applications for Riksdag 2017/18:178 and 2017/18:179). The matter is under discussion in the Government export licences.

Offices of Sweden. Deputy members of the Export Control Council: Cooperation with other authorities New EU Regulation on DUI control TheCamilla ISP saw Brodin, a great Memberneed to consult of Parliament other affected (Christian authorities Democrats) in the field of non- On 30 September 2016 the Commission presented a proposal for amendments to the EU proliferationHanna Gustafsson, in 2019. Th Memberese cons ofultation Parliaments take place (Left both Party) through bilateral contacts with Regulation governing control of dual-use items (Council Regulation (EC) No 428/2009 affectedAnn- Charlotteauthorities Hammarand in various Johnsson, cooperation Member forums of Parlthat iamentinclude (Moderateauthorities working on setting up a Community regime for the control of exports, transfer, brokering and transit non-Party)proliferation issues. Operationally focused cooperation at administrative level takes of dual-use items). Negotiations on the new EU Regulation took place in 2019, as in 2017 placeCaroline within Nordengrip,the Non-Proliferation Member andof Parliament Export Control (Sweden Group Democrats) (ISEK) through regular and 2018. The ISP has greatly assisted the Ministry for Foreign Affairs with expert support meetingsEva Sonidsson, with the National former MemberDefence Radioof Parliament Establishment, (Social the Democrats) Swedish Armed Forces in the negotiations. A decision on an amended EU Regulation will probably be made through the Swedish Military Intelligence and Security Service, the Swedish Security during 2020. Service, the Swedish Defence Research Institute and Swedish Customs. A council for cooperationThe Strategic between Cooperation authorities Council on non- proliferation issues (the Cooperation Council) is New EU Regulation on screening of foreign direct investments attached to the ISP and is intended to promote effective coordination between authorities withThe regardStrategic to meaCooperationsures against Council the proliferation is a cooperative of weapons council of attached mass destruction. to the The During the year, the EU adopted Regulation (EU) 2019/452 of 19 March 2019 of the CooperationISP for cooperation Council consistson issues of relatedthe director to non-generals-proliferation. of the authorities It consists mentioned of a and met European Parliament and of the Council establishing a framework for screening of foreign onceDirector in 201-General9. and members from the cooperating authorities appointed direct investments into the European Union. by the ISP. The Strategic Cooperation Council met once in 2019. Non-controlled items and technology In a consultation response in December 2017, the ISP recommended that, with certain Technical-Scientific Council proposed amendments, the new EU Regulation should be introduced and that Sweden, An important trend in Swedish and international export control is the increased focus by after proper inquiry, should introduce through legislation a system of control of foreign manyA Techni countriescal-Scientific on detecting Council and identifyingis attached at to an the early ISP stage to assist non- thecontrolled Director items- and acquisitions of companies that manufacture or sell dual-use items within the limits technologiesGeneral of thatthe may ISP be ofin crucialthe discussionsignificance inof a mattersfuture military concerning conflict. the permitted by the EU Regulation. classification of military equipment and dual-use items. The Council Detectingconsists of and representatives identifying Swedish of institutions companies with that expert have iseoperations in the technology's that are fundamentally The Government decided at a Cabinet meeting on 22 August 2019 to task an inquiry chair civiliancivilian but and have military products applications. that are nevertheless The Technical attractive-Scientific to the armed Council forces held of other with proposing a system for reviewing foreign direct investments in areas meriting countries,one meeting without in 201 constituting9. controlled dual-use items, is very labour-intensive and protection. Sten Heckscher, former supreme court justice and President of the Supreme complicated. Administrative Court, was appointed as inquiry chair from 22 August 2019. The inquiry has adopted the name the Direct Investment Inquiry. An official from the ISP is taking part in An4.2 example Theof such Swedish a company Radiation is a subcontractor Safety of a Authoritydefence industry company whose the inquiry as an expert. Under its terms of reference, the inquiry is to propose by 4 May product may be five or six subcontractor links down from the final product. Another 2020 the adaptations and supplementary provisions necessary to enable the ordinance to be exampleIn accordance is companies with thatthe Ordinanceoperate in the (2008:452) fields of emerging with instructions technologies, for such the as artificial applied in Sweden from 11 October 2020. Under the terms of reference, the inquiry is to intelligenceSwedish Radiation (AI), quantum Safety computers/quantum Authority, the cryptography,Swedish Radiation nanotechnology Safety and report on the part concerned with proposing a Swedish system for review of foreign direct biotechnology,Authority (SSM) and iswhose the central products government are not yet authority subject to for export issues control. relating to investments by 2 November 2021 at the latest. the protection of human health and the environment against the harmful To enable such Swedish companies to be detected and identified, interaction is necessary 8135 between several different authorities, where the ISP is one actor and the Swedish Armed

A very importantthe Council’s aspect, but members one that isand difficult deputy to members address under appears the belowinternational export control regimesThe that Directordraw up -theGeneral control of liststhe ofISP what is responsible constitutes formilitary selecting equipment those andcases dual-use itemsthat, will will in futurebe subjected therefore to be consultation to demarcate withthe areas the Exportof emerging Control technologies Council. so that the civilConsultation benefit of these can takeis maximised place, for without example being, before unnecessarily a preliminary hindered decision by is export control,issued at the to same a company. time as the The military Director benefit-General becomes has subject to consult to export the controls.Council before the ISP submits an application to the Government for final Internationalassessment sanctions under the Military Equipment Act or the Dual-Use Items and Technical Assistance Control Act. Iran At meetings of the ECC, the Ministry for Foreign Affairs presents assessments of the relevant recipient countries. The Ministry of Defence The plan of actionprovides for Iran’sassessments nuclear technologyof the defence programme policy from aspects 2016, of the the Joint cases . The ComprehensiveDirector Plan of-General Action (JCPOA),may also sumremainsmon in other force experts. despite Onethe United task of States the Council’ unilateral decisionis to inpresent 2018 to withdrawopinions fromon proposedthe agreement. exports The rebased-introduction on the andSwedish expansion byguidelines, the United Statesthe EU of sanctionsCommon agai Positionnst Iran, on with Arms some Exports impact alsoand inthe relation Arms to third countriesTrade (secondary Treaty in effect order) tohas provide had a powerful further guidancebraking effect to the on ISP. trade. This has been chiefly manifestedThe members in an unwillingnesshave unrestricted in the access banking to theworld documentation to handle payments of all export to and from Iranlicence as well asa Iranianpplication entities. proceedings. The Director-General reports continuously on all export licence decisions, processed tender notifications The economicand sanctions cooperation that the agreements, EU continues as towell uphold as preliminary against Iran decisionsunder the JCPOAthat have are unchangedbeen and, ruled as previously, upon. With cover effect a large from number 2005, of theitems ISP for also which re portsa licence all isexport mandatory. The EU sanctions, combined with the uncertainty brought about by the licence decisions on dual-use items to the ECC. Taken together, this American secondary sanctions, mean that the ISP continues to receive a significant number system ensures good insight into application of the rules on export control of applications and questions from Swedish companies. for members of parliament from all parties represented in the Riksdag. Consultations at anThe early intention stage of the Swedish system, uniquely in international terms in that representatives of the parliamentary parties can discuss potential As a result ofexport the complexity transactions of the in sanction advance, rules, is tothe build risk awarenessa broad consensus of exporters on and export uncertainty overcont whatrol policy applies and with promote regard tocontinuity new sanction in the regulations conduct of combined that policy. with Unlike a changing worldin ,many the ISP other is often countries, consulted the Exportbefore a Control company Council submits deals a licence with application.cases at an The vast majorityearly of stage, the questions before a specificput to the transaction ISP are already is carried answered out. Since during it the would initial harm contacts withoutthe aexporting case needing companies to be established. commercially if their plans were made known before they had concluded a deal, the Export Control Council's discussions The Chemicalare Weapons not made Conventionpublic. The assessments of individual countries are normally subject to confidentiality in relation to foreign affairs. The OrganisationThe for Advis the Prohibitionory Council of onChemical Foreign Weapons Affairs, (OPCW) and not conductedthe Export three Control routine inspectionsCouncil, of theis chemicalstill consulted industry inin Swedencases where during thethis year. is prescribedThe ISP assisted by the the OPCW inInstrument the inspections. of Government. The Export Control Council met eight times

8234

Comm. Selected Regulations 2019/20:114 Appendix 4 The Military Equipment Act Forces, the Swedish Defence Materiel Administration, the Swedish Defence Research The Military Equipment Act (1992:1300) applies both to equipment Agency and the Swedish intelligence agencies are other actors. designed for military use and that constitutes military equipment under government regulations and to technical support regarding such military Most people are aware that artificial intelligence, quantum computers and biotechnology equipment. In the Ordinance (1992:1303) on Military Equipment, the will be of enormous significance to the development of civil society. It is less well known Government specified in more detail what is covered by the provisions of that the areas of technology mentioned may also have a crucial impact militarily. The the Act. What constitutes military equipment under the Ordinance military benefit of the emerging technologies is so crucial that many commentators coincides with the EU's Joint Military List, with three national consider that whoever leads technological development in these areas in the future can also supplements. In addition, a distinction between military equipment for anticipate military superiority in certain vital respects. combat purposes and other military equipment is made. Military

equipment for combat purposes means equipment with a destructive A very important aspect, but one that is difficult to address under the international export impact including sights for such equipment and fire control equipment. control regimes that draw up the control lists of what constitutes military equipment and Certain parts and components for military equipment for combat purposes, dual-use items, will in future therefore be to demarcate the areas of emerging technologies so that the civil benefit of these is maximised without being unnecessarily hindered by as well as equipment that does not have a directly destructive impact in a export control, at the same time as the military benefit becomes subject to export controls. combat situation are counted as other military equipment. Under the Military Equipment Act, there are general prohibitions on International sanctions manufacturing, supply and export of military equipment and on the provision of technical assistance to anyone outside the country. Licences Iran may, however, be granted for these activities. The holder of a licence to manufacture and supply military equipment is under the supervision of the The plan of action for Iran’s nuclear technology programme from 2016, the Joint ISP. Comprehensive Plan of Action (JCPOA), remains in force despite the United States’ With effect from 1 February 1996, questions on whether to grant unilateral decision in 2018 to withdraw from the agreement. The re-introduction and licences under the Military Equipment Act are examined primarily by the expansion by the United States of sanctions against Iran, with some impact also in relation ISP, except in such cases where a matter is deemed to be of fundamental to third countries (secondary effect) has had a powerful braking effect on trade. This has significance or otherwise of particular importance. In such a case, the been chiefly manifested in an unwillingness in the banking world to handle payments to matter must be handed over to the Government for a ruling. Consultation and from Iran as well as Iranian entities. must take place with the Export Control Council before the ISP hands a case over to the Government. The Director-General of the ISP determines The economic sanctions that the EU continues to uphold against Iran under the JCPOA which cases are to be submitted to the Export Control Council before the are unchanged and, as previously, cover a large number of items for which a licence is decision is made. mandatory. The EU sanctions, combined with the uncertainty brought about by the American secondary sanctions, mean that the ISP continues to receive a significant number of applications and questions from Swedish companies. Swedish guidelines for exports of military equipment and other foreign cooperation Consultations at an early stage Under Section 1, second paragraph of the Military Equipment Act, licences for exports of military equipment may only be granted if there are As a result of the complexity of the sanction rules, the risk awareness of exporters and security or defence policy reasons for doing so and provided there is no uncertainty over what applies with regard to new sanction regulations combined with a conflict with Sweden’s international obligations or Swedish foreign changing world, the ISP is often consulted before a company submits a licence application. policy. The principles applied when examining licence applications were The vast majority of the questions put to the ISP are already answered during the initial established on the basis of government practice and were detailed in the contacts without a case needing to be established. Government's guidelines for the export of military equipment and other foreign cooperation, approved by the Riksdag (cf. Govt Bill 1991/92:174 The Chemical Weapons Convention pp. 41–42, Govt Bill 1995/96:31 pp. 23–24 and Govt Bill 2017/18:23).

The complete text of these guidelines is provided below. The Organisation for the Prohibition of Chemical Weapons (OPCW) conducted three routine inspections of the chemical industry in Sweden during the year. The ISP assisted the OPCW in the inspections.

Comm. On April 15 2018, revised guidelines for military equipment exports were 2019/20:114 adopted. Full text of the Swedish guidelines (Government Bill Appendix 4 2017/18:23, pp. 66–68) reads as follows: When assessing licences for exports of military equipment or for other cooperation with foreign partners involving military equipment, the following should apply: A licence should only be granted if the export or cooperation:

1. is needed in order to meet the Swedish Armed Forces’ requirements for equipment or expertise, or there are other security policy reasons for granting it, and 2. is not incompatible with the principles and objectives of Sweden´s foreign policy.

When considering a licence application, a holistic assessment of all relevant circumstances shall be made, with the basic principles mentioned above as the point of departure. In terms of foreign policy, there are no obstacles to cooperation with, or exports to, the Nordic countries, the member states of the European Union or the traditionally non-aligned countries in Europe. In principle, cooperation with these countries may be considered consistent with Sweden’s foreign and security policy. A licence may only be granted to a government, a government authority or a government-authorised recipient. Furthermore, exports of military equipment require an end-user certificate, unless this is not necessary. A state which, in contravention of an undertaking to Sweden, has allowed – or failed to prevent – re-export of Swedish military equipment will in principle not be eligible to receive such equipment from Sweden as long as these circumstances remain. Licences for exports or for other cooperation with foreign partners under the Military Equipment Act shall not be granted if this would contravene an international agreement to which Sweden is a party, a decision by the UN Security Council, the Organisation for Security and Cooperation in Europe (OSCE) or the European Union, or international legal rules concerning exports from neutral states in times of war (unconditional obstacles). Respect for human rights and the democratic status of the recipient country are key assessment requirements. The weaker the democratic status the less scope for granting a licence. Serious and extensive human rights violations or grave deficiencies in the recipient country's democratic status constitute obstacles to granting a licence. The licencing assessment shall also take into account whether the export or cooperation runs counter to equitable and sustainable development in the recipient country. Licences for exports of military equipment for combat purposes, or for other cooperation with foreign partners concerning military equipment for combat purposes or other military equipment, should not be granted if the state in question is involved in an armed conflict with another state, regardless of whether or not a state of war has been declared, is involved

in an international conflict that risks becoming an armed conflict, or is Comm. experiencing internal armed unrest. 2019/20:114 Licences should be granted for exports of equipment classified as other Appendix 4 military equipment. This presumption applies if the recipient state is not involved in an armed conflict with another state or subject to internal armed unrest, if no serious and extensive human rights violations are taking place in the recipient state, if there are no grave deficiencies in the recipient state’s democratic status, and if there are no unconditional obstacles. An export licence that has been granted shall be revoked if an unconditional obstacle arises. A licence should also be revoked if the recipient state becomes involved in an armed conflict with another state or becomes subject to internal armed unrest. Exceptionally, it should be possible to forego the revocation of a licence in the latter two cases, if consistent with the international legal rules and the principles and objectives of Swedish foreign policy. Licences should be granted for exports of spare parts for military equipment previously exported or transferred under a licence, provided there are no unconditional obstacles. The same should apply to ammunition specific to military equipment previously exported and other deliveries that are directly linked to previously delivered military equipment. Follow-on deliveries shall be assessed on a case-by-case basis in accordance with the above-mentioned requirements. Regarding agreements with a foreign partner on the joint development or manufacture of military equipment, the basic criteria mentioned above are to be applied when licence applications are assessed. Exports to the partner country under the agreement should be permitted unless an unconditional obstacle arises. Exports from a partner country to a third country under the agreement should be assessed by weighing together the Swedish interest of the cooperation, the interest of maintaining responsible export controls, and the Swedish contribution’s importance for the equipment or the cooperation. In cases involving more extensive and, for Sweden, more important international partnerships in the field of military equipment, an intergovernmental agreement should be concluded between Sweden and the partner country. The Advisory Council on Foreign Affairs should be consulted before such agreements are concluded.

Overriding criteria and assessment criteria The guidelines have broad parliamentary support and are used by the ISP when assessing export licence applications in accordance with the Military Equipment Act and the Military Equipment Ordinance. In addition to the guidelines themselves, international commitments Sweden has made and is bound by are also considered. These are, first and foremost, the EU Common Position (2008/944/CFSP) on Arms Exports and Articles 6 and 7 of the UN Arms Trade Treaty, but may also include other commitments, e.g. not to export anti-personnel mines under the Ottawa Convention.

Comm. Regulation (EU) No 258/2012 of the European Parliament and of the 2019/20:114 Council of 14 March 2012 implementing Article 10 of the United Appendix 4 Nations’ Protocol against the illicit manufacturing of and trafficking in firearms, their parts and components and ammunition, supplementing the United Nations Convention against Transnational Organised Crime (UN Firearms Protocol), and establishing export authorisation, and import and transit measures for firearms, their parts and components and ammunition.

The Ordinance (2013:707) on the control of certain firearms, their parts and ammunition, and including certain amendments to the Military Equipment Ordinance (1992:1303) came into force on 30 September 2013. The Ordinance, and the amendments to the Military Equipment Ordinance, complement Regulation (EU) No 258/2012 of the European Parliament and of the Council of 14 March 2012, which regulates licences to export civilian firearms, their parts and ammunition outside the EU, as well as certain import and transit measures for such exports. A list of the firearms, their parts and essential components and ammunition that are subject to control is contained in an annex to Regulation 258/2012. The ISP is the licensing authority under the Ordinance.

Council Regulation (EC) No 428/2009 of 5 May 2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items

Common EU legislation In 2009, the Council adopted Council Regulation (EC) No 428/2009 setting up a Community regime for control of exports, transfer, brokering and transit of dual-use products (Recast). The Regulation came into force on 27 August 2009, replacing an EU regulation from 2000, Council Regulation (EC) No 1334/2000. Unlike the international export control regimes, the Regulation is legally binding for Sweden and all other EU Member States. The purpose is to, as far as possible, establish free movement of controlled products within the internal market while reinforcing and harmonising the various national systems for the control of exports to third countries. The Regulation unites Member States’ undertakings within the scope of the international export control regimes with the greatest possible freedom of movement of goods within the internal market. Developments within the regimes are taken into account through regular amendments and updates of the item lists included in the Regulation. The annexes to the Regulation are determined within the framework of first pillar cooperation within the EU, meaning they have a direct effect at the national level. In accordance with the Regulation, the annexes are to be updated annually. The Regulation facilitates the assessment of licence applications by including common criteria that Member States have to take into account in their assessments. However, licences are granted at the national level (see below). In addition, there is a general community licence for exports of certain products to certain specified third countries. This type of licence facilitates the work of exporting companies in that the same licence can be 86

invoked regardless of where in the EU the exports originate. This has also Comm. led to increased consensus in the EU on exports of this kind. 2019/20:114 Appendix 4 Swedish legislation In Sweden, the EU Regulation is complemented by the Dual-Use Items and Technical Assistance Control Act (2000:1064) and Ordinance (2000:1217). Both statutes came into force on 1 January 2001. In contrast to the military equipment legislation, where export licences represent exceptions to a general prohibition on exports, the reverse is true under the regulations governing the controls on dual-use items. In this case, the basic premise is that an export licence will be granted as long as this does not conflict with the interests of foreign or security policy as these are described in the EU Regulation. Licences are required for exports, transfers and brokering of dual-use items. The ISP is the licensing authority. However, the Swedish Radiation Safety Authority (SSM) provides licences that apply to nuclear materials etc. included in category 0 in Annex I of the EU Regulation. Like its predecessor, the Dual-Use Items and Technical Assistance Control Act lacks specific rules regarding opportunities to receive preliminary decisions regarding whether or not an export licence will be provided for any potential export of dual-use items to a specific destination. However, a practice has been developed that involves the ISP providing companies with preliminary decisions.

The catch-all clause Under Article 4 of Council Regulation (EC) No 428/2009, a licence may also be required for exports of items that are not specified in the annexes to the Regulation (non-listed items) if the exporter has been informed by the Swedish authorities that the item is or may be entirely och partly intended to be used in connection with the production etc. of weapons of mass destruction or missiles that are capable of delivering such weapons. This catch-all clause has been included to prevent the regulations from being circumvented due to the fact that, on account of rapid technological developments, the lists are seldom completely comprehensive. For the catch-all clause to be applicable, the exporter must have been informed of the item's area of use by the Swedish authorities. However, if the exporter is aware that an item is entirely or partly intended for uses regulated in Articles 4(1) to 4(3) of the EU Regulation, they are required to report this to the Swedish authorities. The ISP or the SSM will then determine whether a licence is required for the export. In certain cases, the catch-all clause also contains special licensing requirements for exports related to military end-use or military equipment and for exports of non-listed items that are or may be intended for military end-use in a country subject to a UN, EU or OSCE embargo, as well as for non-listed items that are or could be intended for use as parts or components for illegally exported military equipment.

Comm. 2019/20:114 Abbreviations Appendix 5

AG Australia Group ATT Arms Trade Treaty BTWC Biological and Toxic Weapons Convention CARD Coordinated Annual Review on Defence CBW Chemical and Biological Weapons CFSP EU Common Foreign and Security Policy COARM Council Working Group on Conventional Arms Exports COCOM Coordinating Committee for Multilateral Export Controls CONOP Council Working Group on Non- Proliferation CWC Chemical Weapons Convention DUIs Dual-Use Items EDA European Defence Agency EDF European Defence Fund EDIDP European Defence Industrial Development Programme EC European Community EKR Export Control Council EU European Union FA Framework Agreement FMV Swedish Defence Materiel Administration FOI Swedish Defence Research Agency FRA Swedish National Defence Radio Establishment FXM Swedish Defence and Security Export Agency GTRI Global Threat Reduction Initiative IAEA International Atomic Energy Agency ISP The Inspectorate of Strategic Products JCPoA Joint Comprehensive Plan of Action KEX Parliamentary Committee for Military Equipment Exports LoI Letter of Intent MANPADS Man-Portable Air Defence Systems MEC Military equipment for combat purposes ML Military List MTCR Missile Technology Control Regime Must Swedish Military Intelligence and Security Directorate NATO North Atlantic Treaty Organization NETTEM New and Evolving Technologies Technical Experts Meeting NL National additions, where applicable Nordefco Nordic Defence Cooperation NPT Non-Proliferation treaty 88

NSG Nuclear Suppliers Group Comm. OECD Organisation for Economic Cooperation and 2019/20:114 Development Appendix 5 OME Other military equipment OSCE Organisation for Security and Cooperation in Europe Pesco Permanent Structured Cooperation PGD Policy for Global Development PSI Proliferation Security Initiative SALW Small arms and light weapons SCB Statistics Sweden SIPRI Stockholm International Peace Research Institute SOFF Swedish Security and Defence Industry Association SSM Swedish Radiation Safety Authority Säpo Swedish Security Service SÖ Swedish Treaty Series TI Transparency International TSC Technical-Scientific Council UN United Nations UNODA United Nations Office for Disarmament Affairs UNPoA United Nations Programme of Action to Prevent, Combat and Eradicate the Illicit Trade in Small Arms and Light Weapons in All Its Aspects WA Wassenaar Arrangement WPDU Working Party on Dual-Use Goods ZC Zangger Committee

Comm. 2019/20:114 Guide to other sources Appendix 6 Source references in alphabetical order Australia Group: www.australiagroup.net Council of the European Union: www.consilium.eu European Parliament: www.europarl.europa.eu European Union: www.europa.eu Export Control Council: www.isp.se/om-isp/vara-rad/exportkontrollradet Inspectorate of Strategic Products: www.isp.se International Atomic Energy Agency: www.iaea.org Missile Technology Control Regime: www.mtcr.info Nuclear Suppliers Group: www.nuclearsuppliersgroup.org Organization for Security and Cooperation in Europe: www.osce.org Organization for the Prohibition of Chemical Weapons: www.opcw.org Stockholm International Peace Research Institute: www.sipri.org Swedish Export Control Society: www.exportkontrollforeningen.se Swedish Ministry for Foreign Affairs: www.ud.se Swedish Radiation Safety Authority: www.ssm.se United Nations: www.un.org Wassenaar Arrangement: www.wassenaar.org Zangger Committee: www.zanggercommittee.org