Finding Common Ground U.S. Export Controls in a Changed Global Environment, Commissioned Papers (1991) / Chapter Skim
Currently Skimming:
CoCom: The European Dimension
CoCom: The European Dimension
Pages 75-101
The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.
From page 75... ...
Energy and raw materials, as well as semi-finished and agricultural products, constitute the bulk of EC imports from Eastern Europe, although the EC is also the largest Western customer for Eastern bloc manufactured products. Meanwhile, machinery and capital goods dominate the CMEA's imports from the EC.
|
From page 76... ...
In a recent communication from the Commission to the Council on the developments in Eastern Europe and the Soviet Union the Commission states that ''by lending its full support to the Helsinki process, while at the same time strengethening links with all its participants, the Community can help manitain stability and confidence which are essential conditions for peace and prosperity throughout Europe. Thisd implies closer Community coordination within the framework of the CSCE.~182 The support for such a strategy arises from Western Europeans geographical proximity to the Eastern bloc, its longstanding cultural and historical ties to the East, and from the belief that "increased economic, political, commercial and other contacts can create step by step a community of common interests leading to increased 181 Ausschuss for Wirtschaft, Wahrung und Industriepolitik, Stellungnahme zu den Beschrankungen des internationalen Technologietransfers durch die USA und deren nachteiligen Auswirkungen auf die industrielle Entwicklung der Gemeinschaft, Doc .
|
From page 77... ...
Only three month after martial law was declared, the European Council stated that the economic ties between the EC and the CMEA countries constituted a stabilizing factor in East West relations, and emphasized the need for the continuation of this relationship.~85 In taking this position, 183 Europaisches Parliament' SitzungsdoRmentel Zweiter Bericht im Namen des Ausschusses fur AuBenwirtschaftsbez iahungen uber die Ausfuhrbeschr~nRungen fur strategische Erzeugnisse und den Technologietransf fir zwischen den Vereinigten Staaten under der Europaischen Gen~einschaft, Michael Toussaint, March 29, 1989, Document A2-31/89Part-3; see also "Entschlie8ung zu den Beziehungen zwischen der EWG und den osteuropfiischen Staatshandelslandern sowie dem ~GW (Comecon)
|
From page 78... ...
Export Controls: A Common European Foreign Policy? Turning specifically to CoCom, the Commission has been less outspoken.
|
From page 79... ...
.190 187 It remains to be seen to what degree this joint proposition by Francois Mitterand and Helmut Kohl to take a decisive step towards political union by calling a second intergovernmental conference that would decide on a timetable towards political union was more a tactical maneuver motivated by each politician's particular concerns or a genuine step towards political integration. i88 Resolution on Technology Transfer, Doc.
|
From page 80... ...
As the Community moves towards the completion of this internal market, defined by an "area without internal frontiers in which the free movement of goods, persons, services and capital is ensured," two problems have emerged.191 The first relates to the barriers that continued export controls on intra-EC trade would impose on the free movement of goods after ~ ~992" . The second problem relates to the question of national dif ferences in export control policies .
|
From page 81... ...
One recently-passed resolution ''draws attention to the possible conflict between COCoM rules and the provisions of the EEC Treaty; calls upon the Commission to examine the compatibility of Member States' application of the COCOM rules with the provisions of the Treaty, and to bring the matter before the Court of Justice, if necessary.''l92 Similarl the Toussaint resolution of 1989 mentioned above "warns that Community integration in the areas most concerned, i.e. data processing, computerization, biotechnology, aeronautics and astronautics, new materials and telecommunications, must not be obstructed by unilateral action by individual COCOM members.''193 Both resolutions also mention the need to develop a common European export control system.
|
From page 82... ...
Individual member countries just like the U.S. can control and thus withhold the free flow of technology within the EC.''196 Furthermore, given that member countries have different restrictions on high-tech exports, national export control policies would automatically become instruments of an industrial 194 Cite 195 Resolution on restrictions on strategic exports and USEC technology transfer, Doc.A2-31/89, April 14, 1989, here sections 12 and 13.
|
From page 83... ...
As one official stated, "Cocom needs to be reevaluated in light of the economic and political reforms under way in the Eastern bloc.''l97 All officials agreed that Cocom is getting "less and less relevant," especially in the dual use area, which provides the foundation for building the infrastructure vital to East European and Soviet economic reconstruction. "We cannot possibly pump billions into these countries and at the same time deny such basic technologies that would enable them to built a modern telecommunications system.''l98 These statements are confirmed by a recently passed resolution in the EP that states "whereas there is a need to support the process of political reform by measures to modernize the economy of the Central and Eastern European .
|
From page 84... ...
Concerning the destruction of the environment, the most recent resolution on CoCom that calls for its abolition "having regard to the appalling state of the environment in the above countries, caused primarily by the use of outdated technology, and aware of the need for determined action to reduce toxic emissions in Eastern Europe.' (see Appendix B' No.3 ) 200 Given the EP's limited political clout, the reports and resolutions discussed above have had little influence on CoCom's 199 Resolution on C0COM, European Parliament, 4.6.1990, PE 139.833.
|
From page 85... ...
More recently, however, the Commission has indicated that it is concerned with the possible repercussions of the CoCom export control regime upon the creation of the Single Market.203 In its 1988 progress 201 See for example "Tackling the democratic deficit," Financial Times, 3.14.1990; "In 9 Languages, Parliament Demands a Bigger Say," New York Times, 3.27.1990; the recent initiative by France and Germany for some form political union by the beginning of 1993 also envisions a greater political role for the EP. 202 The Metten report mentioned above led to a large scale inquiry by the Commission into the CoCom system as well as national export control systems in the EC.
|
From page 86... ...
However, their disappearance must not create problems for the various policies which depend on inspections at the internal frontiers, particularly those concerning the protection of Member States' cultural heritage and the control of trade in strategic goods.tl2o6 The above statements clearly indicate that the Community will have to undertake some action as Europe approaches the completion of the Single Market. All Community member states 204 Commission of the European Communities, Completing The Internal Market An Area Without Internal Frontiers, The Progress Report required By Article 8B Of The Treaty, 11.17.1988, COM(88)
|
From page 87... ...
No member State she l l be ob l i ged to supp l y i n f ormati on the di sc ~ osure of which it cons i ders contrary to the essent i a ~ i nterests of s ecur ity; b ~ Any member state may take such measures as it cons iders necessary f or the protection of or trade in arms, munitions and war material; such measures shall not adversely af f ect the conditions of competition in the common market regarding products which are not intended for specifically military purposes.
|
From page 88... ...
Therefore, the exception contained in Article 223(2) does not cover dual use technology, and all respondents concluded that current export control practices by individual countries -- with the exception of the munitions list -- violate EC law.210 This has been confirmed by commissioner DeClerq in an answer to a question by an EP member regarding CoCom.
|
From page 89... ...
In addition, EC officials interpret Article 36 in a manner such that the burden of proof is on the controlling authority and not on the exporter, which reemphasizes the primary goal of establishing the free movement of goods, capital and labor by the end of 1992.213 Given the above, all respondents agreed that some solution has to be found to reconcile the current discrepancies between the CoCom list and the EC munitions list. One obvious solution would be to enlarge the current EC 211 "Joint answer to the Written Questions No3015/86 and Nol109/87 given by Mr DeClerq on behalf of the Commission," Official Journal of the European Communities, No.
|
From page 90... ...
that dual use goods and technology should be excluded from future export control schemes, especially in light of the current reforms under way in Eastern Europe and the Soviet Union. Another possibility that might resolve the discrepancy between the CoCom lists and the EC munitions list would be to rely on the increasing liberalization of Intra-Cocom trade in dual use goods.
|
From page 91... ...
Secondly, by leaving the liberalization process to individual countries, member countries would likely violate paragraph lube of Article 223, which states that unilateral actions by members may not ''adversely affect the conditions of competition in the common market regarding products which are not intended for specifically military purposes." If EC members start liberalizing on an individual bases, they automatically create competitive asymmetries among themselves. In addition, such unilateral liberalizing measures would probably lead to a process of competitive deregulation among member countries, which should not be the basis for the reform of the CoCom lists.
|
From page 92... ...
Countries whose export control regime is more liberal would unfairly support their own industries' exports to third countries. Such unfair competition is entirely irreconcilable with the completion of the internal market.
|
From page 93... ...
J Kuyper, "New Developments in Trade Sanctions and Export Controls by the I:EC, mimeo.
|
From page 94... ...
If CoCom streamlines the present list to a core list which conforms to the exceptions granted under Article 223, then there would be no need for the EC to intervene, since the administration of export controls would fall in the domain of national sovereignty. However, most officials agreed that there will probably be a small residual list of dual use items which will not fall under the narrow definition of Article 223 ~ but whose exports EC members want to control for the foreseeable future.
|
From page 95... ...
However, given the current discrepancies in the effectiveness of individual countries' export control bureaucracies, some cooperative effort among the twelve is necessary in order to harmonize their export control procedures. The legal and organizational basis for an EC export control regime is contained in Article 125 of the Schengen accOr~.221 The prospects for such a harmonization are good, given the fact that a similar EC agreement in the area of chemical weapons precursors already exists.
|
From page 96... ...
It seems likely that such political will is indeed present in the case of dual use technology. All EC members agree that the military threat emanat i ng from the Eastern bloc has 222 See for example EC Bulletin, No.3 (1984)
|
From page 97... ...
technology", as quoted in "East Bloc Pot of Gold," National Journal, 2.10.199O, here p.314. For the Commissions perspective on the recent developments in Eastern Europe and the Soviet Union and its repercussions on the EC's relations to these countries, see Mitteilung der Kommission and den Rat, Auswirkungen der jungsten Vera~derungen in Mittel- und Osteuropa auf die Be 2 i ehungen der Gemeinschaft zu den dortigen Landern, Brussels, 1.23.1990, SEK(901111 fin.
|
From page 98... ...
its central role ...should be fully reflected through appropriate represntation at the forthcoming CSCE summit and within future structures which may emerge within the Helsinki process or according to ther proposals recently pur forward."229 Finally, if by the end of 1990 CoCom fails to come up with a drastically reduced core list, EC member countries might actually welcome an initiative by the Commission to develop its own list based on article 223. ~~ "EC pledges aid to nations embracing democracy," Financial Times, 11.20.1989; "Les Douze Sont Favorables A On Assouplissement Des Restrictions Du CoCom A Declare Mme Cresson," Agence Europe, No.
|
From page 99... ...
Whether the EC is in fact willing to do this is not quite clear.230 So far it has expressed no desire -- at least not publicly -- to join.231 To the contrary, during a recent debate in the EP the current president of the Council Gerard Collins stated that the Council will not participate in CoCom.232 In addition EC officials emphasize that CoCom is not an internationally recognized organization. CoCom "has no legal 230 The EP has deplored "the fact that the Community ....has not been represented in one form or another" in CoCom.
|
From page 100... ...
Many EC officials agreed that the EC should focus on playing a constructive role in shaping the future of Europe, rather than joining an outmoded institution which derives its legitimacy from the continued existence of the Cold War. This would involve the creation of an entirely restructured export control regime that reflects the changing nature of East-West relations, as well as new security threats ~ .
|
From page 101... ...
section will sketch out some central considerations such a regime shout d take into account.
|
Key Terms
This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More
information on Chapter Skim is available.