Background to the Treaty
1. The UK/US Defence Trade Cooperation Treaty was
signed by former Prime Minister Blair and President Bush in June
2007 and published on 24 September 2007.[1]
The Treaty establishes a framework for defence trade cooperation
between the United Kingdom and the United States of America.[2]
2. In the UK, treaties are ratified by the Government
under the Royal Prerogative, without requirement for parliamentary
approval; but, by Government undertaking ("the Ponsonby rule"),
treaties are laid before Parliament for 21 sitting days before
ratification, to enable Parliament to consider and, if necessary,
to comment on them. At our request, the Government agreed to extend
the period available to Parliament to scrutinise this Treaty until
12 December 2007.
3. Since the 1990s, both Democrat and Republican
Administrations have sought to reform the US arms export control
system. The US Arms Export Control Act gives authority to the
President to make regulations regarding the export and import
of defence articles and services. The items so designated constitute
the US Munitions List. The regulations are the International Traffic
in Arms Regulations (ITAR), which cover the control of arms exports,
the registration of manufacturers and exporters and the administrative
procedures for obtaining licences to export.
4. In May 2000, the Clinton Administration approved
the US Defense Trade Security Initiative (DTSI), which was an
attempt to harmonise export licensing procedures and to shorten
the time needed to process US licences for NATO allies, Australia,
Japan and Sweden.[3] In
January 2001, the UK and the US released a joint statement on
the progress of implementation of DTSI.[4]
As outlined by that statement, one of the UK's main objectives
was to secure an exemption from ITAR for the export of certain
equipment and services. Although proposed texts on an ITAR waiver
were reportedly agreed in June 2003,[5]
the US Congress repeatedly refused to approve a waiver for the
UK. Opposition to granting the waiver has been strongest in the
House of Representatives.
5. We and our predecessor committee supported the
proposal for an ITAR waiver[6]
but we now recognise that this is unlikely to receive approval
in the US Congress, at least in the short term.
6. In the US, ratification of a treaty is subject
to approval by a two-thirds majority in the Senate.[7]
The UK/US Defence Trade Cooperation Treaty was received by the
Senate on 20 September and referred to the Foreign Relations Committee.
It is unclear how long the process of Congressional scrutiny will
take but the UK Government is hopeful that the Senate will consider
the Treaty by January 2008.[8]
While it
cannot be taken for granted that the Treaty will be approved by
the required two-thirds majority of the US Senate, we are confident
that Congressional scrutiny of the Treaty will show that it is
as much in the US interest as it is in the interest of the UK.
Our inquiry
7. Because of the timetable for ratification, our
inquiry has been swift. We held a two-part evidence session on
21 November 2007: first with the Defence Industries Council (DIC),
the Society of British Aerospace Companies (SBAC), the Export
Group for Aerospace and Defence (EGAD), the US Aerospace Industries
Association (AIA), General Dynamics UK and BAE Systems; and secondly
with the Rt Hon Baroness Taylor of Bolton, Minister for Defence
Equipment and Support, and officials from the Ministry of Defence
and the Cabinet Office. We also received written memoranda from
the Government, from industry, from campaigning groups, from individual
commentators and from members of the public. We are grateful to
all those who contributed evidence within the tight timetable
for this inquiry.
8. The Government states that its aim in signing
the Treaty is:
to further strengthen and deepen the UK and US defence
relationship, allowing greater levels of cooperation and interoperability
that will help support our Armed Forces operating side by side
around the world. The Treaty will allow both nations to better
leverage the respective strengths of their security and defence
industries.[9]
9. In examining the Treaty we addressed three questions:
- How will the arrangements underpinning
the Treaty work?
- Will the Treaty be effective in removing barriers
to the arms trade and technology transfer from the US and in improving
cooperation between the US and UK Armed Forces?
- What consequences will the Treaty have for UK
defence manufacturers and UK defence industrial policy and arms
export controls?
1 Treaty between the Government of the United Kingdom
of Great Britain and Northern Ireland and the Government of the
United States of America concerning defense trade cooperation:
London and Washington, 21 June and 26 June 2007, Cm 7213,
September 2007 Back
2
The United States has subsequently signed a similar agreement
with Australia; see and Explanatory Memorandum on the UK/US
Defence Trade Cooperation Treaty, Foreign and Commonwealth
Office, September 2007, para 8 Back
3
Defense Trade Security Initiative, Press Statement by Philip
T. Reeker, Acting Spokesman for the U.S. Department of State,
May 24, 2000 Back
4
Statement on UK-US Discussions On Defense Export Controls,
Ministry of Defence, 18 January 2001 Back
5
HC Deb, 2 June 2003, col 39W Back
6
For example, Fifth Report from the Defence Committee, Session
2002-03, Strategic Export Controls: Annual Report for 2001,
Licensing Policy and Parliamentary Scrutiny, HC 474, para
155 Back
7
An alternative approach is to seek the simple majority of both
Houses of Congress, but there has been no mention of this approach
being adopted. Back
8
Q 148 Back
9
Ev 27, para 1 Back
