Effect of the proposed War Materiel Act revision

Under the new Article 22b, the Federal Council could depart from all the licensing criteria in Article 22a under vaguely defined ‘exceptional circumstances’. The public would not have to be informed. For the United States, as a current Annex 2 state, Article 22a paragraph 2bis would remove the exclusion criterion based on participation in an armed conflict and make approval the rule. The Federal Council could refuse a licence only in exceptional cases. The Federal Council could add Indonesia, Thailand, Malaysia and Brazil to Annex 2 by amending the War Materiel Ordinance. This would remove the exclusion criterion based on participation in an armed conflict and make approval the rule. The Federal Council could refuse a licence only in exceptional cases. Article 18 paragraph 1 would abolish non-re-export declarations in the vast majority of cases. Weapons for Indonesia, Thailand, Malaysia and Brazil could thus easily be supplied through a subsidiary or intermediary in a third country. For example, the following states could serve as third countries, having supplied substantial quantities of war materiel in recent years according to SIPRI: Indonesia: United States (1’248 million TIV); Thailand: United States (476 million TIV); Malaysia: Spain (292 million TIV); Brazil: France (1’475 million TIV).