{"id":27469,"date":"2016-06-03T15:39:40","date_gmt":"2016-06-03T15:39:40","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2016\/06\/03\/france-and-germany-aim-for-export-agreement\/"},"modified":"2026-08-07T22:13:43","modified_gmt":"2026-08-07T22:13:43","slug":"france-and-germany-aim-for-export-agreement","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/global\/2016\/06\/03\/france-and-germany-aim-for-export-agreement\/","title":{"rendered":"France and Germany Aim for Export Agreement"},"content":{"rendered":"\n

PARIS \u2014 Seeking an intergovernmental agreement on arms exports,\u00a0France and Germany are discussing\u00a0have discussed <\/span>the level of national content in weapons as well as and lists of <\/span>countries mutually acceptable for foreign sales, as the two partner countries pursue an intergovernmental agreement on arms exports, <\/span>said Louis Gautier, head of the Secr\u00e9tariat G\u00e9n\u00e9ral de la Defense and S\u00e9curit\u00e9 Nationale.<\/p>\n\n\n\n

A bilateral pact for foreign sales of weapons is seen as key to the future of the 50\/50 joint venture holding company\u00a0created by France’s state-owned French and German partners <\/span>Nexter and family-controlled Krauss-Maffei Wegmann of Germany, two specialists in land systems.\u00a0<\/p>\n\n\n\n

“We hope the new company will be integrated and build common equipment,” Gautier said. “So we have to find a simplification of authorization.”<\/p>\n\n\n\n

SGDSN, which reports to the prime minister\u2019s office, heads the interministerial commission (interminist\u00e9rial pour l\u2019\u00e9tude des exportations de mat\u00e9riels de guerre) <\/span>that\u00a0an interministerial committee which <\/span>authorizes arms exports.\u00a0One of the issues under discussion is discussed has been a<\/span> requiring joint authorization only needed <\/span>when French or German content in a weapon exceeds exceeded <\/span>a certain level. That seeks a simplification as weapons which had less than an agreed threshold would need just one clearance, while those above would need approval from both countries.<\/span><\/p>\n\n\n\n

Another approach would be a bilateral committee drawing up a list of acceptable countries for a company to pitch products. Each exporter country has its own concerns and objectives.<\/p>\n\n\n\n

“In my opinion there will be a combination of both approaches,” Gautier said.<\/p>\n\n\n\n

“Such an agreement will be of fundamental importance,” said H\u00e9l\u00e8ne Masson, senior research fellow at think tank Fondation pour la R\u00e9cherche Strat\u00e9gique. The joint venture will need a success in exports to deliver competitiveness.\u00a0<\/span><\/p>\n\n\n\n

The partnership will have annual sales of almost \u20ac2 billion (US $2.3 billion)\u00a0euros <\/span>and\u00a0an order book of \u20ac9 billion (US $10.2 billion), and employ more than 6,000 staff, the companies said.<\/p>\n\n\n\n

The partnership seeks to cut costs, such as buying raw materials and manufacturing tools, and boost foreign sales by agreeing which products to pitch.\u00a0Exports account for 56 percent of annual sales for Nexter and some 80 percent for KMW, a French defense official said.<\/p>\n\n\n\n\n\n

KMW and Nexter closed the joint venture deal in December. Because the intergovernmental talks had been slow, reflecting highly distinct political approaches to exports, SGDNS had suggested it should continue negotiating with its German counterpart, the economy ministry, rather than hold up the corporate talks, Gautier said.<\/p>\n\n\n\n

That led to a government statement of intent when the joint venture agreement was announced, but progress has been slow.<\/p>\n\n\n\n

There has been slow and disappointing progress on talks on the bilateral pact,\u00a0Nexter chairman\u00a0St\u00e9phane Mayer told Feb. 15 the National Assembly parliamentary defense committee.<\/p>\n\n\n\n

France\u00a0will carry on negotiating with Germany but\u00a0sees no need to hurry as KMW and Nexter will continue to offer independently produced products over the interim period of the next five years, Gautier said.<\/p>\n\n\n\n

KMW and Nexter aim to jointly produce\u00a0hope to build together <\/span>a future tank to replace the French Leclerc and German Leopard, and that platform weapon <\/span>is expected to include have <\/span>a high level of integration of content from each company.\u00a0the partner\u2019s equipment.<\/span><\/p>\n\n\n\n

As a joint venture, however, the two companies face unique <\/span>challenges in arms exports. Germany, for example, is grappling with sensitivities in doing business with\u00a0An example of German sensitivity lies with <\/span>Saudi Arabia. Germany’s\u00a0In Germany, <\/span>minister of economic affairs, economy minister, <\/span>Sigmar Gabriel, reported government approval\u00a0has written to the economy committee of the lower house Bundestag that the Federal Security Council has approved <\/span>for delivery of 23 Airbus helicopters to Saudi Arabia, and other arms deals to Oman, United Arab Emirates, Indonesia and Thailand., Reuters reported.\u00a0<\/span>\u00a0But that approval That<\/span>\u00a0had to be wrested when Gabriel said follows Gabriel saying <\/span>in January that Berlin may review its policy toward Riyadh after the Saudi authorities executed 47 prisoners. The economy minister, a member of the Social Democrat party, has called for less reliance on arms exports.<\/span><\/p>\n\n\n\n\n\n

Complicating matters is that the The <\/span>European parliament has voted a nonbinding ban of arms sales by European Union members to Saudi Arabia, responding to concerns over civilian deaths \u00a0the loss of civilians <\/span>due to bombing in Yemen.<\/p>\n\n\n\n

France, meanwhile,\u00a0says it observes international conventions and embargoes, and\u00a0sees little or no problem in selling weapons to Riyadh.<\/p>\n\n\n\n

Paris has simplified its authorization procedure, cutting bureaucracy and installing an online system for applications, but \u00a0An authorization can take up to 18 months, with an initial nine months, renewable for a further nine. <\/span>the timing of an authorization can signal a political judgment, reflecting concerns over international and national risks, and sensitivities of a neighbor to the client country. If a clearance fails to be granted after 18 months, that could be seen as a polite rejection.<\/p>\n\n\n\n

Even when an approval has been given, France can restrict the performance of weapons, depending whether the client is a close ally or a purely commercial partner.<\/p>\n\n\n\n

One of the grey areas is equipment for dual civil-military use, where the SGDNS does not hold the lead authorizing role. Officials\u00a0from customs, defense, economy, foreign and interior ministries, and intelligence agencies gather for a\u00a0A <\/span>monthly authorization meeting. gathers officials from customs, defense, economy, foreign, interior ministries, and intelligence agencies.<\/span><\/p>\n\n\n\n

France last year won its largest foreign arms orders of \u20ac16 billion ($18 billion US), up from \u20ac8.2 billion in 2014, and hopes to garner a similar value this year.<\/p>\n","protected":false},"excerpt":{"rendered":"

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