24 April 2013

News Story: UN Treaty Could Hurt Indian Arms Deals

French Dassault Rafale, winner of MMRCA contest

By VIVEK RAGHUVANSHI

Exporters Place Restrictions on Military Goods

NEW DELHI — The United Nations Arms Trade Treaty adopted April 3 has sent shockwaves through India’s Defence Ministry as several ongoing projects could be affected. While no MoD official would comment on whether the treaty could impact weapon imports, an MoD source said planners are extremely concerned over the fate of some ongoing contracts and future purchases.

The treaty, aimed at laying down common international standards and limiting the illicit sale of conventional arms, was passed by the UN General Assembly with an overwhelming majority of 154 votes.

Defense analysts, meanwhile, were forthright and unanimous that the treaty could affect the big-ticket Medium Multi-Role Combat Aircraft (MMRCA) program and the contracted deal to buy Boeing Apache attack helicopters for the Indian Air Force.

“The treaty would pose problems for many deals for India, including the MMRCA, Apache attack helicopters — which have been selected — and anti-tank guided missiles in the offing in case the suppliers choose to apply the terms of the [treaty], since some of the deliveries and final contracts have not been signed,” defense analyst Rahul Bhonsle said.

No executive from French company Dassault Aviation, which is negotiating to sell its Rafale aircraft to India for the US $11 billion MMRCA program, would comment on whether the treaty could affect the purchase.

Read the full story at DefenseNews