Canada reports drop in overseas military exports.

In a report released in November, the Canadian government documented a 35 per cent decline in overseas military exports, from $465 million in 1996 to $304 million in 1997. (1) A reduction in military sales to Saudi Arabia (from $195 million to $82 million) accounted for the majority of change, although this soon may be reversed by a $1.6 billion program to supply Saudi Arabia with 130 assault gun-equipped light armoured vehicles announced in mid-1997. (2) Three additional states (Australia, Malaysia, and the UK) reduced Canadian military purchases by at least $10 million between 1996 and 1997. Only one country--Botswana--increased its import of Canadian arms by more than $10 million between the two years.

The overall decline in military exports included reports of nil sales to three conflict-affected countries that were recipients in 1996--Algeria, India, and Sri Lanka. Nevertheless, despite export control guidelines that stipulate restraint in the case of countries involved in hostilities, in 1997 Canada exported military equipment valued at more than $100,000 to seven countries affected by armed conflict, including two (Egypt and Turkey) where the value of the goods exceeded $1 million (see accompanying map). Two other countries in conflict, Peru and Kenya, received military goods valued at less than $100,000.

As stated in the annual report, export control guidelines also call for control of arms sales to countries whose governments are persistent human rights violators unless there is "no reasonable risk" of use of the Canadian equipment against the civilian population. Yet, in addition to shipments to countries in conflict, all of which are sites of human rights abuse, the report documented 1997 exports of light armoured vehicles (LAVs) to Saudi Arabia, a country regularly cited for serious human rights violations by monitoring groups like Amnesty International and Human Rights Watch. The LAVs were supplied to the National Guard, an armed force charged with internal security, including protection of the governing autocratic elite. Because the National Guard would be in the front line of any armed government response to civil unrest, the risk of use of the LAVs against the civilian population is far from negligible.

Other countries cited for serious human rights violations by security forces, such as Brazil and Thailand, also received Canadian military equipment in 1997. In these cases the

[Part 1 of 2]

           Table 1 - Selected Canadian military exports in 1997

Destination       Government category & comment (1)       Value of shipment


Botswana          Weapons Systems & Munitions - aircraft  $34,221,636


Egypt             Parts - Aircraft parts                  $1,030,678


Republic of       Parts - Thermal imaging & ballistic     $1,175,992
Korea
                  computer parts


Saudi Arabia      Weapons Systems & Munitions             $62,264,677
                  & Parts - LAVs & parts

Singapore         Weapon Systems & Munitions & Parts      $1,195,486
                  - rocket launchers & rocket parts

Thailand          Support Systems - helicopter            $8,583,000


Turkey            Support Systems - navigation systems    $4,774,416


Venezuela         Parts - aircraft parts                  $4,687,659



[Part 2 of 2]

           Table 1 - Selected Canadian military exports in 1997

Destination       Likely equipment (and supplier) (2)


Botswana          Surplus DND CF-5 fighter aircraft
                  (via Bristol Aerospace, Winnipeg)

Egypt             Replacement parts for DHC-5 Buffalo transport
                  aircraft (Bombardier DeHavilland, Toronto)

Republic of       Parts for "Tiger Eye" night vision equipment &
Korea
                  XK-1 battle tank computers (Spar Aerospace,
                  Kanata and Computing Devices Canada, Ottawa)

Saudi Arabia      Light armoured vehicles and parts
                  (General Motors Canada, Diesel Division, London)

Singapore         CRV-7 2.75" air-to-ground rockets & parts
                  (Bristol Aerospace, Winnipeg)

Thailand          Militarized Bell 212 or 412 helicopter (Bell
                  Helicopter Textron Canada, Mirabel)

Turkey            Tactical navigation systems for Cobra attack
                  helicopter (Canadian Marconi, Montreal)

Venezuela         J-85 engine components for F-5 fighter aircraft
                  (Orenda Aerospace, Mississauga)


(1) As reported in "Table 3: Exports of Military Goods by Component
Categories," Export of Military Goods from Canada: Annual Report 1997,
Department of Foreign Affairs and International Trade, November 1998.

(2) Based on press and company reports of military exports compiled in
Project Ploughshares' Canadian Military Industry Database.

detail of the report, while matching an improved level of transparency initiated last year (see Table 1), remains insufficient to independently gauge the risk of Canadian equipment being used against civilian populations.

It is too early to judge whether the welcome reduction in Canadian arms sales in 1997 represents a trend. Traditionally, Canadian military exports have fluctuated, rising and falling under the influence of a volatile market, and the effect of individual large contracts. The 1997 decline may reflect improved export control practices in keeping with government commitment to a policy of "human security." Equally, it may be due to lost orders that could be regained during 1998.

(1) The annual report does not contain figures for the export of military goods to the US. Under the terms of the Defence Production Sharing Arrangements, US-Canada military trade does not require export permits and the government no longer compiles trade statistics once provided on a voluntary basis. At the same time, the US remains by far Canada's largest customer with 1997 military exports estimated at $662 million.

(2) In July 1997 the US Congress received formal notification that the Pentagon was sponsoring under its Foreign Military Sales program the supply of 130 Light Armoured Vehicles - Assault Gun variants (LAV-AGs) to the Saudi Arabian National Guard. General Motors of Canada's Diesel Division in London, Ontario was identified as the prime contractor of the US $1.075 billion program.