1. The number of known arms producers has doubled after the end of the cold war.

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2 1. The number of known arms producers has doubled after the end of the cold war. 2. The present arms technology market is a buyers market where a range of modern as well as outdated defense technologies is generally available to any nation that can pay for it. 3. The present financial constraints force developed nations: To develop new DT in cooperation To compensate reduction of military expenses by transferring DT. 4. Some countries stream to become regional defence industry hubs: Brasil, Malaysia, South Africa, Turkey, Sudan.

3 1. Manufacturing license 2. Technology transfer 3. Joint development of Arms 4. Offset deals 5. Reverse Engineering

4 What are the most demanded defence technologies? Aeronautics and aerospace (incl. unmanned aerial vehicles) Armaments (Small arms, Artillery systems and ammunition, Tank armament) Electronic warfare Radars Command and control software and decision-making tools Computing technologies Laser Technology Combat vehicles Naval technologies (Sonars, Torpedoes, Information command and control systems, Mines) Missile systems (anti-tank missile, cruise missiles, ICBM) Anti-satellite weapon Advanced transportation and engine technology Advanced materials and coatings (stealth technologies).

5 Increasing control Regulating civilian access Regulating state access Reducing demand Development Culture of peace Peaceful resolution of conflict Reform of the security sector Improving compliance/implementation National/regional/global focal points Regional harmonization of laws/moratoria Brokering Marking, tracing, record-keeping Assistance and follow-up Financial and technical assistance Follow-up/Review meetings

6 The number of legal manufacturers increased from less than 200 companies in 1980 to more than 600 today. At least 95 countries have the capacity to undertake the legal production of small arms. More than half of the world s producers are located in the United States. Much of the growth in the number of companies that produce small arms has come from the spread of licensed production to more regions and countries and the rise of numerous small, niche manufacturers. The highly competitive nature of the global small arms market, together with increasing numbers of producers, may undermine the efforts of the international community to tackle the small arms proliferation problem.

7 AK-47 (USSR) Original Manufacturer Defense Industry Website (African Country) MAZ / 7.62 Submachine Gun CZ-75 (Czech Republic) Pistol Marra 9mm

8 Original Manufacturer Rheinmetall AG MG3 (Germany) Defense Industry Website (African Country) KARAR 7.62x51mm Heckler und Koch MP-5 (Germany) Tihraga

9 Predator (USA) Hermes (Israel) II Angha (Turkey) (Russia) Israel has supplied systems and licenses for production for more than 100 UAVs to 18 states, including all of the world s top five suppliers. Turkey has orders for Angha UAVs from 4-5 countries including Pakistan

10 Categories of Weapons and Equipment The UN Register of Conventional Arms, 1992 Wassenaar Reports OSCE Reports SIPRI arms transfers register I. Battle tanks II. Armored combat vehicles III. Large caliber artillery systems IV. Combat aircraft V. Attack helicopters VI. Warships VII. Missiles or missile systems MANPADS Sensors (radars, fire control, sonars) + Air Defence Systems + Engines + Turrets + Small Arms Dual-use technologies denials + Dual-use technologies transfer + Defense Technologies Transfers + + Reporting Period Annual Semi-Annual Annual Annual Information Access Public Internal Internal Public

11 1. National Export Control Regimes 2. Regional EU Code of Conduct NIS agreement on MANPADS control 3. International COCOM, 1960s Nuclear Non-Proliferation Treaty (NPT), 1970 Missile Technology Control Regime (MTCR), 1987 Wassenaar Arrangements, 1996

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13 Member states: Argentina, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, Malta, Netherlands, New Zealand, Norway, Poland, Portugal, Republic of Korea, Romania, Russian Federation, Slovakia, Slovenia, South Africa, Spain, Sweden, Switzerland, Turkey, Ukraine, United Kingdom, United States None-member states - major arms suppliers and recipients: Belarus, Brazil, Chile, China, Jordan, India, Indonesia, Iran, Israel, Libya, Pakistan, Serbia, Singapore, Syria, Vietnam, UAE

14 Numerous centers of advanced defense industry and technology emerge among developing nations around the globe. Proliferation of sophisticated weapons and technologies creates uncertainty and concern into international relations. Procurement of defence technologies and erection of a national defence industry might be a haven for those who is deprived of the possibility to buy arms after ATT comes in effect. There is a need to timely address the threat of proliferation of defence technologies in ATT.

15 Problem of proliferation increases because no single nation (or group of nations to date) can control the ultimate distribution of advanced weapons and the technologies necessary to build them.

16 Enhance transparency and information sharing on TDT licensing and deliveries by including it into the scope of the ATT. It might be a step-by-step process which can start with small arms know-how and gradually come to the most advanced one.

17 Regulate offset transfers of defense technologies which stimulate cheap and fast proliferation. Prohibit re-transfer of technologies which are not authorized by country of origin.

18 Initiate research in the sphere of military knowhow transfers and publication of detailed best practice guidelines for effective export control compliance programs as well as risk assessment of future misuse of technologies transferred.

19 Gradually enhance control over transfers of the most destabilizing technologies. The process could begin with limitation of transfers of the most lethal weapons like SALW or space-warfare technologies.

20 Find incentives to those who do not procure defence technologies. As an example: international security guaranties; assistance in development of peaceful technologies.

21 Design and propose to the UN member states a kind of buy-back program for countries which are willing to get rid of their military production programs in favor of peaceful industries.

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