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State Dept. Rule Codifies Opened US Defense Trade With Several Countries

The State Department amended the International Traffic in Arms Regulations (ITAR) to designate Tunisia as a major non-NATO ally, and to update defense trade policy for Eritrea, Somalia, the Democratic Republic of the Congo (DRC), Liberia, the Ivory Coast, Sri Lanka and Vietnam, State announced in an interim final rule (here). As a major non-NATO ally, Tunisia can now receive loans of equipment and materials for cooperative research and development projects and evaluations with the U.S., and is authorized to use U.S. financing to buy or lease certain defense equipment, among other things. The ITAR now reflects an Oct. 23, 2015, UN Security Council resolution reaffirming the arms embargoes on Eritrea and Somalia, as well as new exceptions for both countries enumerated in the resolution. A June 23 resolution expanded DRC arms embargo exemptions, and the ITAR updates reflect this, too. Further, State removed from the ITAR its general license denial policy for defense exports to and imports from Liberia and the Ivory Coast. The rule also removes licensing restrictions relating to defense trade with Sri Lanka, and reflects Secretary of State John Kerry’s May 2016 termination of the U.S. arms embargo on Vietnam. State is accepting comments on the rule until Oct. 31.

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(Federal Register 9/29/16)