What impact will the directive have on arms trade with third countries?
The new directive will not change the situation for arms trade with third countries, which remain governed by World Trade Organisation rules and, in particular, the Government Procurement Agreement (GPA). It remains the decision of member states whether or not to open competition to non-EU suppliers, in compliance with the GPA. Awarding authorities will still be free to invite EU companies exclusively or to include non-EU companies. Does the directive lead to a “Buy European” policy? The objective of the EC’s initiative is not to introduce a “Buy European” policy, but to foster transparency and openness of defence markets between member states. Intra-European competition has, indeed, proven to be the best means to improve the competitiveness of Europe’s defence industry. The directive will set rules on how to procure defence equipment, but not determine which equipment should be procured. This is the decision of the member states. The proposal, therefore, does not contain a “Buy Europe
