Annual report in conformity with operative provision 8 of the European Union Code of Conduct on Arms Exports
Date: 2009-11-03
Institutions: Council of the European Union
Subjects: European Union, activity report, code of conduct, conventional weapon, export, military equipment

3.11.1999

EN

Official Journal of the European Communities

C 315/1

(Acts adopted pursuant to Title V of the Treaty on European Union)

ANNUAL REPORT IN CONFORMITY WITH OPERATIVE PROVISION 8 OF THE EUROPEAN UNION CODE
OF CONDUCT ON ARMS EXPORTS

(1999/C 315/01)

1. Summary

The European Union Code of Conduct on Arms Exports was
adopted on 8 June 1998. Written into the Code was an annual
reporting procedure, of which this is the first. Over this short
period of implementing the Code considerable progress has
been made. The experiences of the Member States in providing
notifications and consultations on arms exports have been
positive. The Code has ushered in a new degree of
transparency between governments in arms transactions, and
has enabled the Member States to act in greater concert when
considering national arms
It has also
provided a forum for the Member States to discuss their
common concerns when matters of regional stability and
human rights are at issue. The Code has been embraced by
others beyond the Union, with the associated countries of
central and eastern Europe and Cyprus, the EFTA countries
members of
the EEA and Canada all agreeing to align
themselves with its principles.

licensing decisions.

Reflections on the Code after one year offer the opportunity
not only to highlight experiences, but also to consider the way
forward. Consequently the report is structured in four parts.
First reviewed are issues surrounding the pratical application of
the Code. These are followed by guidelines that have been
adopted by the Conventional Arms Exports Working Group
(COARM) to enhance applicaction of the Code. Priorities for
coordinated action in the future are then identified. The report
concludes
States’
conventional arms exports. Recognising the desire of Member
States to increase transparency, the Council has decided to
render the report public.

on Member

providing

statistics

by

2. Introduction

The Council adopted the European Union Code of Conduct on
Arms Exports on 8 June 1998. The initial proposal for the
January 1998 and then
the end of
Code was tabled at
discussed in several meetings of
the Working Group on
Conventional Arms Exports, and in the Political Committee.

The Code builds on the common criteria for arms exports of
Luxembourg and Lisbon that were adopted in 1991 and 1992,
and establishes an information exchange and consultation
mechanism. This is the first such mechanism applied by any
to their conventional arms exports. The
group of

states

adoption of
the Code ushered in a new phase in the EU
development of a common approach to arms exports, as a
component of the EU common foreign and security policy in
accordance with Articles 11 and 17 of the Treaty on European
Union. The Code sets high minimum standards
the
management of, and restraint in, conventional arms transfers
by all Member States. It is designed to strengthen the exchange
of relevant information and to achieve greater transparency in
arms transactions. The convergence of national export policies,
on the basis of the Code of Conduct, complies with the wish
of Member States to maintain a defence industry as part of
their industrial base as well as their defence effort. This process
of convergence is also consistent with European defence
industrial restructuring and cooperation.

for

the Code,

In accordance with its operative provision 8, the Code is now
undergoing its first annual
review. The review covers all
i. e. both the interpretation and the
aspects of
application of
the criteria for the export of conventional
armaments and the implementation of operative provisions. It
also identifies improvements that may be needed. As part
the review effort, each Member State has circulated an
of
annual
report on its conventional arms exports and its
implementation of the Code.

3. The operation of the Code: experiences of the

implementation of the Code of Conduct

The experiences of the Member States in implementing the
Code of Conduct during the first year of its existence have
been positive. The Code has increased mutual understanding of
Member State policies on conventional arms both directly
and
of
through
consultations, and indirectly through contributing to a culture
of greater transparency and openness.

notifications

circulation

denial

the

The unique consultation mechanism set out in the Code has
been deemed to be efficient. A large number of denial
notifications have been circulated and Member States have
engaged in active consultations on specific export licensing
issues.

The increased dialogue on the implementation and national
interpretation of the Code of Conduct has been valuable. This

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Official Journal of the European Communities

3.11.1999

practical cooperation, based on the principles and operative
provisions of the Code, contributes to a convergence of the
arms exports policies and procedures of the European Union
Member States.

with the aim of creating a comprehensive common European
list of military equipment that reflects current international
security and human rights concerns.

The Member States have urged non-members to adopt the
principles of the Code and have welcomed the alignment to
these principles of
the associated countries of central and
eastern Europe and Cyprus, the EFTA countries members of
the European Economic Area, and Canada. These countries
have declared that they share the principles contained in the
EU Code of Conduct and will use them to guide their national
export licensing decisions. In the spirit of the Code, some of
these countries have now begun to circulate information on
their conventional arms export control procedures.

While the general experience of the implementation of the
Code of Conduct has indeed been a positive one, there remain
issues requiring additional clarification and development.
In
the Code to further
fact,
enhance the high common European standards
for arms
exports will be an ongoing process, of which the annual
review is an essential element.

improving the effectiveness of

During the first year of the Code of Conduct the COARM
working group discussed a number of issues relating to the
practical
particular
of
importance, Member States have exchanged views on the
following issues:

the Code. Of

implementation

(cid:151) the practical details of the consultation process,

(cid:151) clarification of definitions set out in the Code,

(cid:151) the legal status of the Code,

(cid:151) options for enhancing the participation of countries that
have declared their alignment with the Code’s principles,

(cid:151) condern by some countries that

the denial notification
system could be overloaded if appropriate thresholds are
not set,
in particular when the end users are private
persons,

(cid:151) the possibility of taking into account recipient countries
participation in the United Nations arms register when
considering arms exports licences,

(cid:151) interpretations of arms export embargoes, in particular in
relation to equipment used in humanitarian aid operations.

In addition, a separate working group under COARM has
discussed the finalisation of a common European list of
military equipment. Work continues on items still to be added
to the list. Various national proposals are under discussion

4. Guidelines adopted by COARM to enhance the

practical implementation of the Code of Conduct

During the first year of implementation, the COARM Working
Group has adopted the following guidelines:

(cid:151) serial number indicating the country of origin and the
number of
the denial will be introduced for denial
notifications (accompanied by the Community acronym of
the Member State concerned and indication of the year),

(cid:151) denials still subject to appeal under national procedures
will be notified under the Code of Conduct with an
indication to that effect,

(cid:151) decisions to revoke extant licences will be dealt with in the

same way as refusals of licence applications,

(cid:151) consensus has been reached to use the Austrian Presidency
proposal as a basis for the continued discussions on the
common list of equipment. Denials on items subject to
national controls by Member States, but not included in
the abovementioned list, will continue to be notified to all
Member States. Member States which do not control these
items will inform others,

(cid:151) non-EU countries which have declared their adherence to
the principles and criteria of the Code, and which have
become involved in the restructuring of
the European
defence industry, shall be allowed to gain access to the
evolving interpretation of the Code’s principles and criteria.
This shall not entail access to information made available
in the course of the procedures referred to in the operative
provisions of the Code,

(cid:151) any individual case of arms exports can be raised for
discussion by delegations in the COARM Working Group,
if
licensing
deliberations,

is considered to be useful

for national

it

(cid:151) denial notifications

that have been circulated in the
international export control regimes will also be circulated
as Code of Conduct denial notifications if relevant to the
scope of the code,

(cid:151) a period of two to four weeks from the date the request
for consultations has been received is established for the

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Official Journal of the European Communities

C 315/3

consultation procedure envisaged in operative provision 3
of the Code, unless a different time period is agreed on
between the parties concerned,

(cid:151) when an arms embargo is lifted, denials solely based on
the embargo will expire unless they are renewed by the
denying country within a period of one month on the
basis of other criteria of the Code.

5. Priorities for coordinated action in the future

The Code of Conduct is a unique document that demonstrates
to maintaining high
the European Union commitment
common standards on arms exports. However,
it is a new
document and this review can therefore reflect only the initial
aim of
experiences with its
strengthening
transparency,
enhancing harmonisation and promoting the respect of human
rights, some key areas have been identified for consideration
and action in the near term:

implementation. With the

the Code,

achieving

greater

I.

It

the

finalisation of

is a top priority.

common European list of military
The
this list
is necessary that
equipment
reflects the present
threats to international peace and
security and to the respect of human rights. The list is to
be a cornerstone of the Code of Conduct and should not
be limited to the lowest common denominator of existing
national control lists.

II. To strengthen further the implementation of the Code of
seek to develop common
Conduct, Member States will
understandings of what
constitutes and (cid:145)essentially identical
transaction(cid:146). Member States will continue to engage in
pre-consultation dialogue to determine whether particular
transactions are essentially identical or not.

III. To help Member States

in their national

licensing
refusal
deliberations a fuller description of
should be
included in the denial notification. This would
facilitate understanding of the general thinking behind each
other’s
refusals, and help the Member States decide
whether consultation would be warranted in cases where
the proposed export is not essentially identical.

the reasons for

IV. Member States will

information on
national interpretations of UN, EU and OSCE embargoes with a
view to developing common understandings and practices.

to exchange

continue

In addition, Member States welcome the Moratorium on the
importation, exportation and manufacture of light weapons by
the Economic Community of West African States (Ecowas),
and will continue to discuss further how to take into account
licensing
the principles of the Moratorium in their national
deliberations.

6. Information on Member States conventional arms exports and implementation of the Code of

Conduct

Country

Reporting
period

Total value of arms
exports (EUR)

Total number
of licences issued

Number of notified
denials

Number of
bilateral
consultations

Austria

1998

War material:
not available
Other weapons:
208 741 703 (1)

War material: 292
Other weapons:
1 313

War material: 0
Other weapons: 13

Belgium

1998

649 671 652 (1)

1 067

29 (of which 5 since
the adoption of the
Code)

Denmark

1998

Not available

219

2

Finland

1998

30 934 318 (2)

155

5 (of which 3 since
the adoption of the
Code)

2

1

0

0

France

1998

6 277 545 600 (2)

50 (from 8 June
1998 to 31 May
1999)

5 (from
8 June 1998
to 31 May
1999)

7 222
(cid:151) 2 353 prior

approvals of the
level of sales
(cid:151) 4 869 authori-

sations of exports
of war material

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Official Journal of the European Communities

3.11.1999

Country

Reporting
period

Total value of arms
exports (EUR)

Total number
of licences issued

Number of notified
denials

Number of
bilateral
consultations

Germany

1998

2 829 222 407 (1)

11 400

27 (since the
adoption of the Code)

Greece

1998

Not available

Ireland

1998

20 060 000 (1)

22

381

Italy

1998

949 414 596 (1)

Final: 593
For temporary export:
140
Licence extensions:
63

Luxembourg

1998

23 547 (1)

27

0

0

7

0

Netherlands

1998

431 862 632 (1)

Not available

16 (since the
adoption of the Code)

Portugal

1998

14 690 185 (1)

116

Spain

1998

163 847 920 (1)

2 019

Sweden

1998

407 987 925 (2)

United
Kingdom

1998

Not available

542 (export permits
for sales)

Total number of
licences: 10 385 (3)
Standard individual
export licences: 9 869
Open individual
export licences: 499
Standard individual
transhipment licences:
17

0

1

0

43 (since the
adoption of the Code)

1

0

0

1

0

0

0

1

0

7

(1)(1) Total value of licences issued.
(2) Actual value of exports.
(3) These figures include licences for goods on the UK military list as well as licences for other goods.
NB: Not all countries have been able to submit this information due to present procedures or legislation in the area of arms exports

controls or data protection legislation.