The U.K. recently revealed changes to U.K.export licensing would allow the immediate suspension of export licenses to countries that experience a sharp deterioration in security or stability.
Foreign Secretary William Hague said: “I am pleased to report that the new suspension mechanism for UK defense exports is now in place…This new measure will ensure that export licensing policy is more responsive to rapidly changing circumstances overseas. In light of recent events in the Middle East and North Africa, this is now more important than ever.
The suspension mechanism will allow for the immediate suspension of pending license applications to countries experiencing a sharp deterioration in security or stability. This will mean that licenses pending approval will be ‘paused’ for a defined period. The government will notify exporters, Parliament and the media when this has happened.
“Suspension will not be invoked automatically or lightly, but triggered when conflict or crisis conditions suddenly increase the level of risk, or make conducting a proper risk assessment difficult,” Hague said. “We will conduct these assessments on a case-by-case basis, in the same way that we do whenever issuing a license.”
The Secretary of State for Business Vice Cable revealed a series of measures on export licensing building on the Foreign Secretary’s recent review of defense and security export policy conducted in the light of events in the Middle East and North Africa.
Other proposals would promote transparency, such as to insert a provision into open export licenses requiring the exporter to report periodically on transactions and the government would then publish this information. The U.S. defense industry has long pushed for export reform. Recently, the Aerospace Industries Association released a report saying lack of reform and potentially cost defense companies billions in lost sales.
Now the government will speak to various interested parties, including exporters and non-governmental organizations. Cable plans to make a further announcement before the summer recess, setting out government conclusions and plans for implementing any further changes.