To whom does Spain export military equipment?

MadridIn the midst of the debate on increased defense spending and just the day before Pedro Sánchez's appearance in Congress, the Lower House's Defense Committee warmed up with an analysis of military equipment exports from Spanish companies. According to a report prepared by the State Secretariat for Trade, Spain exported defense equipment worth €1.976 billion in the first half of 2024. This is 13% more than the same period last year, according to the head of this secretariat, Amparo López Senovilla, in an appearance on Tuesday. The main recipients were European Union (EU) countries with 61% of total exports (€1.212 billion), and the best-selling product was aircraft (€1.339 billion, almost 70% of the total).

The country that purchased the most from Spain during the first six months of last year was, by far, Germany. With almost €576 million, it leads the way, followed by France (€339 million) and the United Kingdom (€185 million). What did Spanish companies sell to them? Aircraft were sold to the top two in the ranking. Spain exported three transport aircraft to Germany and one to France, as well as components related to these vehicles. In the United Kingdom, the largest amount corresponds to spare parts and special tools for the assembly of Ajax armored vehicles. In the case of Ukraine, in fourth place (€130 million), in the midst of a war with Russia, the type of purchase changes, and more than 80% of sales are ammunition. The figure does not take into account material donations in the Ukrainian case, which do appear in the report, but without quantifying the cost—in 2024, Sánchez committed more than €1.1 billion. Luxembourg is in fifth place (€129 million), with the purchase of a transport aircraft.

The demand generated by the proximity to the Russian border is also reflected in purchases from Poland, in ninth place (39 million), to which the main purchasers were ammunition. This is also the case with sales to Saudi Arabia, the eighth largest buyer (50 million), to which more than half of the product shipped is ammunition. "It is obvious to everyone that these exports do not help end armed conflicts," complained ERC MP Teresa Jordà, referring to sales to, among others, this Persian Gulf country. López Senovilla countered that the authorization system prior to these sales, managed by the Inter-Ministerial Board for the Regulation of Foreign Trade in Defense and Dual-Use Materials (Jimddu), is "robust, guarantees, and cutting-edge." "They are analyzed case by case and in this process the advisability of a specific export is assessed according to variables such as the sensitivity of the product, the country, the reliability of the end user, denials by other countries and the risk of the export being diverted to an improper use or destination," he added.

Although the most recent data provided by López Senovilla is from the first half of 2024, the report also breaks down the data for the whole of 2023, which was not yet available. The picture is similar to that of the beginning of 2024. Of the 3,764 million in exports made, 8% less than in 2022, a third was in France (771 million) and Germany (494) with the delivery, again, mainly of aircraft. Now, Saudi Arabia rises to second position (562 million), mainly due to the sale of two warships.

In line with the speech of the President of the Spanish Government, the Secretary of State for Trade has rejected the term rearmament, but defended the "importance" of this industry, which represents nearly 12% of Spain's industrial GDP (€13.9 billion), directly employs 36,000 workers, and exports 80% of its production. The Secretary of State for Trade emphasized that 8% of the sector's revenue is invested in research and that, therefore, "investing in defense is investing in innovation" and is an "opportunity for technological development."

The situation in Israel

"As of October 7, 2023, no new definitive export operations of defense material to Israel have been authorized." López Senovilla insisted that since the Hamas attack on Israel, which marked the beginning of the Israeli government's indiscriminate offensive in the Gaza Strip, no operations with Israel as their final destination have been carried out. While the registry shows that almost €48 million was exported two years ago, the Spanish government specifies that €43.2 million corresponds to eighteen armored vehicles whose final destination was the Philippines and which passed through Israel for equipment modernization. Between January 1 and the aforementioned October 7, operations worth €4.7 million of "non-lethal material" were authorized, the Sánchez administration specifies. These are "image sensors or spare parts for remote control systems."

On the other hand, the State Secretariat has emphasized that material from the Spanish Ministry of Defense is also being temporarily sent for repair and maintenance work in Israel. This is the case for the majority of the 1.2 million euros reported for the first half of 2024, it asserted. Less than 100,000 euros correspond to "fiberglass sheets or power amplifiers." López Senovilla has asserted that Spain's position on Israel is "clear and forceful" and that no lethal material has been sent since 2001.