Select Committee on European Scrutiny Twenty-Second Report


COMMUNITY CONTROL ON DUAL-USE GOODS



(21118)
— 

Presidency text of draft Council Regulation setting up a Community
régime for the control of exports of dual-use items and technology.


Legal base: Article 133 EC; qualified majority voting
Department: Trade and Industry
Basis of consideration: Minister's letter of 15 June 2000
Previous Committee Report: HC 23-xv (1999-2000), paragraph 10 (19 April 2000)
To be discussed in Council: No date set; but see (21272) at paragraph 8 of this Report
Committee's assessment: Politically important
Committee's decision: Cleared (decision reported on 19 April 2000)

Background

  6.1  The term 'dual-use goods' covers goods and technologies which are primarily intended for civil applications, but which may be used for military purposes, or which could significantly enhance the military capacities of the countries acquiring them. We cleared this draft Council Regulation, revising earlier legislation, on 19 April, but put a question to the Minister for Competition and Consumers Affairs at the Department of Trade and Industry (Dr Howells) which he answers in a letter of 15 June.

  6.2  We noted that the Government had successfully argued for a change in Article 4(2) to include a definition of military end-use control which specifies categories of destination to which the control will apply. These will be countries which are subject to a binding UN arms embargo, or to an arms embargo imposed by a Common Position or Joint Action adopted by the Council or a decision of the OSCE. We concluded that this was an improvement on the earlier text but asked whether the Government intended that the controls should apply to the People's Republic of China (PRC). The PRC does not fit into any of the categories specified.

The Minister's letter

  6.3  The Minister replied that, in brief, the military end-use control in the draft Regulation would not currently apply to China, but the UK has the discretion to apply such a control under other powers if it chose. The arms embargo currently in force for the PRC follows a declaration by the Madrid European Council of 27 June 1989.

  6.4  However, the Minister says, national controls on the export of dual-use goods to China could be imposed either under Article 11 of Regulation (EEC) No. 2603/69, if the controls were justified on grounds of public policy, public security or the protection of human health and life, or under Article 5(1) of the draft Regulation, if they were considered appropriate for reasons of public security or human rights considerations.

Conclusion

  6.5  We cleared this proposal in April and the Minister has now responded to our query with regard to the People's Republic of China. He does not comment on how effective the present embargo is, and makes no suggestion of a change of policy, at either EU or national level, on the export of dual-use goods to the PRC.

  6.6  We now expect this revised Regulation to be adopted at an early Council, together with the Joint Action on Weapons of Mass Destruction, which we also consider today[13].



13  (21272) - ; see paragraph 8 of this Report. Back


 
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