Swiss Ban Arms Exports to US During Iran War Over Neutrality

(Bloomberg) — Switzerland will temporarily stop exports linked to any new US arms and ammunition orders, citing its tradition of neutrality amid the Iran war.

“Exports of war materiel to the US cannot currently be authorized,” the government said on Friday, citing the country’s involvement in the “international armed conflict” in the Middle East.

Commenting in a statement it highlighted that “since the escalation of the conflict on Feb. 28, no new licences have been issued for exports of war materiel to the US.”

Switzerland’s strict neutrality rules have already led it to close its airspace for US military flights directly linked to the Iran war. Bern announced last weekend that American overflights that rise above normal numbers will be denied unless their purpose is clear and not connected to the conflict.

The US was the second-largest importer of Swiss arms last year, with roughly 10% of shipments going there. The sales worth 94.2 million francs ($119 million) consisted mainly of aerial vehicles, ammunitions and hand-held guns, according to Swiss government data.

“Existing licenses have been determined to be of no relevance to the war at present and can therefore continue to be used,” the government said. “Nevertheless, an interdepartmental expert group will regularly review developments in exports of the goods in question to the US and assess whether any action is required under neutrality law.”

Bern said that “exports of dual-use and specific military goods subject to the Goods Control Act, as well as of non-controlled goods that are nevertheless affected by sanctions against Iran, will also be regularly reviewed by the expert group from now on,” adding that “a restrictive approach is already in place with regard to Israel.”

The country’s neutrality stance has been a consistent headache for Switzerland’s arms producers. The government has blocked allied nations from sending Swiss-made equipment to Ukraine. That meant local producers missed out on a flurry of orders as Europe rearmed in the wake of Russia’s invasion. Fearing exclusion from European supply chains, some Swiss companies shifted production elsewhere to circumvent the rules.

In response, lawmakers in December softened an underlying law, planning to allow exports to a defined group of 25 mostly Western countries — including the US — even if they are involved in a conflict. But the change hasn’t taken effect yet as under Swiss direct democracy, the bill can still be challenged in a referendum if a sufficient amount of signatures is collected through mid-April.

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