2008/07/05

By: Danielle McClellan

Last year President Bush signed defense trade cooperation treaties with Britain and Australia to make trade in military items easier. The treaties are intended to eliminate the many export licenses companies must obtain before they can sell their products. These treaties will create “approved communities” consisting of companies whom can freely buy and sell MOST military items under circumstances. This should eliminate about two-thirds of the export licenses that the US Department will have to issue for military goods going to Britain and Australia.

This week President Bush has made it clear that he wants senate to put a rush on the ratifications of both treaties. Unfortunately, for both Bush and exporters the Senate has made it very clear that they will not be rushed. On May 21, 2008 members of the Senate Foreign Relations Committee explained that they need to see all the treaties details and the implementing regulations before anything will be ratified. Currently these details are being drafted, but will not be ready until the end of the summer.

The major issues the Senate wants to see resolved is who will be prosecuted when illegal diversion of military goods occurs, the US? Britain? Australia? At this time it is unclear who has jurisdiction. Another question being raised whether or not defense companies will be inspected for compliance with export restrictions since no licenses will be required? The Senate wants to know how stringent Britain and Australia will be when protecting their sensitive military technology, and whether or not Congress will be notified of major arms sales.

When The Senate Foreign Relations Committee can comfortably answer these questions and many more we may see the signed treaties, but don’t hold your breath.

More information:

  • DefenseNews.com Article