DTCT
Defence Trade Cooperation Treaty
As one of his final acts as Prime Minister, Rt Hon Tony Blair signed with President Bush a Defence Trade Cooperation Treaty. The text of the treaty is available at http://www.state.gov/t/pm/rls/othr/misc/92770.htm
The treaty will permit, under certain conditions, US Munitions List items to be transferred without licences/TAAs to the UK. These conditions will include:
- Transfers will be in support of US, US-UK or specified UK programmes only;
- Only 'qualified companies' (criteria to be established, but List X as a minimum) will be able to benefit from this facility;
- All controlled items will be given a classification of Restricted in the UK and will therefore be subject to the legal constraints of the Official Secrets Act.
- Reexports and retransfers to 3rd parties/countries will require prior State Department authority in the usual way;
- Reexports will require confirmation of US authority by HMG, through the F680 system.
The implementing arrangements are the subject of discussion between MoD(UK) and Industry, and negotiation between the UK and US authorities. These negotiations are nearing completion.
A similar treaty has been signed between the US and Australia.
As a treaty, the agreement will require the approval of the respective legislatures before it comes into effect. In the case of the US, this means consideration by the Senate Foreign Relations Committee and a two thirds majority of the full Senate. The Senate begins a three week 'wrap up' session at the end of January, and it is hoped that the approval procedure will take place then. EGAD will issue further updates in due course.