The UK has suspended granting new export licences for arms that might be used by the Saudi Arabia-led coalition in Yemen while it considers a landmark court ruling that found the government’s decision-making processes were unlawful.
The Court of Appeal in London ruled on Thursday that the government had to assess whether the Saudi government violated international human rights law in its military campaign in Yemen before ministers approve further arms sales to the Gulf kingdom.
The decision could have repercussions for BAE Systems, the UK’s largest defence contractor, and particularly the planned export of 48 Eurofighter Typhoon jets worth £5bn to Saudi Arabia. Riyadh represents about 15 per cent of BAE’s annual group earnings and is responsible for its biggest single export contract.
Three senior judges on Thursday dismissed an earlier court ruling over the lawfulness of the government’s decision not to suspend export licences to Riyadh. Announcing the ruling, Terence Etherton said the court had concluded that the government’s decision-making process was “unlawful” and “irrational”.
This was because the UK government had made no “concluded assessments” over whether the Saudi-led coalition fighting in Yemen had committed historic violations of international humanitarian law in the past during the conflict and had made no attempt to do such an assessment.
However, Sir Terence said: “The decision of the court today does not mean that licences to export arms to Saudi Arabia must immediately be suspended.” He added that it did mean the UK government must reconsider its policies and assessments.
Liam Fox, international trade secretary, said in the House of Commons that while the government considers the implications of the ruling on its decision making “we will not grant any new licences for export to Saudi Arabia and its coalition partners which might be used in the conflict in Yemen”.
The Department for International Trade said it disagreed with the judgment and would seek permission to appeal.
The judicial review was brought by the Campaign Against Arms Trade, a non-governmental organisation, which challenged the British government’s decision to continue to license the export of military equipment to Saudi Arabia. It claimed that the UK was in breach of rules prohibiting the supply of arms in cases where there is a “clear risk” they could be used in violation of international human rights law.
The case follows allegations that Saudi forces might have used UK arms in serious violations of international humanitarian law during the coalition’s bombardment of Yemen, which began in 2015.
Coalition air strikes in Yemen have been responsible for about two-thirds of the approximately 11,700 civilian deaths, according to the independent Armed Conflict Location & Event Data Project.
International organisations, including a UN expert panel, the European Parliament and many humanitarian NGOs, have condemned the Saudi air strikes against Yemen as unlawful.
Saudi Arabia is the biggest buyer of British weapons, with billions of pounds of equipment sold to Riyadh including Typhoon and Tornado fighter jets, as well as precision-guided bombs.
Under the Al-Yamamah government-to-government agreement, the first stage of which was agreed in the mid-1980s, Britain agreed to sell 72 Tornado and Hawk trainer jets to the kingdom. It later agreed a further deal to replace these aircraft with 72 Typhoons.
BAE is the lead industrial partner for the pan-European Eurofighter consortium in Saudi Arabia and is responsible for the maintenance and support of the Typhoon jets, including the supply of parts. The company said in February that its support business in the kingdom was worth about £2.5bn annually.
A memorandum of understanding has been signed for an additional 48 Typhoons but the deal has yet to be finalised.
Nick Cunningham, analyst at Agency Partners, said the ruling should not affect BAE’s support business in Saudi Arabia but did “raise questions whether you can or should sell the further 48 Typhoons”.
The key difference, Mr Cunningham said, was that unlike previous arms sales contracts, weapons being sold now were actually being used by certain governments. “That is the issue. It is potentially another roadblock for the further 48,” he added.
