Principled, pragmatic or expedient.

For several decades under Labour and National-led governments New Zealand has claimed to have an independent (and sometimes autonomous) foreign policy. This foreign policy independence is said to be gained by having a “principled but pragmatic” approach to international relations: principled when possible, pragmatic when necessary. More recently NZ foreign policy has shifted from traditional diplomacy in which trade was a component part to a trade focused orientation to which all other aspects of diplomatic endeavour are subordinated. Seen as a marriage of belief in Ricardian notions of comparative (and now competitive) advantage with a pragmatic understanding that NZ is dependent on trade for its survival and prosperity, the “trade for trade’s sake” approach continues to reign supreme to this day.

It turns out that foreign policy pragmatism or principle may no longer obtain in certain instances, especially when trade is involved. Take the issue of NZ military-related exports. It has been revealed that NZ firms and (possibly) public agencies export everything from airplane parts to small arms, explosive ordinance, training simulators, muzzle flash suppressors, missile guidance systems and artillery range finders to 41 countries and territories. (The term “possibly” is used here because all of the NZ exporting entities are redacted in the export list made public by MFAT. While some private exporters can be broadly identified by the nature of the items sold, other special license categories make ambiguous the provenance of the equipment in question).

Most of these exports go to NATO members and other liberal democracies, while other recipients are regional partners like Singapore, Malaysia , Australia, Tonga and Indonesia. The bulk of what is exported is what might be considered to be on the soft rather than sharp end of the so-called “kill chain:” items that do not impart lethal force directly but which contribute to the accuracy and lethality of weapons systems that do.

None of this would be controversial if it were not for the fact that some of the recipient countries have checkered human rights records (like Indonesia) while others have outright dismal histories of authoritarianism and military criminality. That includes Saudi Arabia, the United Arab Emirates, Turkey, and the PRC. Saudi Arabia and the UAE lead a coalition of Sunni Arab states that have been credibly accused of committing war crimes and genocide against Houthi populations in Yemen. Saudi Arabia does not recognise the Universal Declaration of Human Rights (the UAE was not party to the UDHR vote) and along with the UAE does not recognise a number of human rights conventions involving women’s rights, labour rights, political and social rights. Malaysia, Singapore and Indonesia also are not party to the UDHR and while not as dismal as the Sunni oligarchies, have subpar records when it comes to adhering to international human rights norms and agreements. NZ exports military training material to the PRC, whose human rights history is known for all the wrong reasons. There are other dubious recipients but the issue is clear. In spite of claiming to be a champion and defender of human rights as a matter of principle, NZ exports military equipment to egregious violators of human rights both at home and abroad.

Some will argue that NATO members and other democracies like Australia also violate the laws of war and human rights in their own territories. There is merit to those arguments. But the difference between Australia, Canada, the UK and US and, say, Saudi Arabia and the UAE when it comes to military conduct in conflict theatres is that war crimes committed by the forces deployed by liberal democracies are exceptions to the rule and are punished (even if initially covered up) rather than systematically encouraged and later denied. Domestically, while systemic racism clearly exists throughout the liberal democratic world, it is no longer genocidal in nature even if in previous eras there was a significant element of that.

Conversely, places like the PRC systemically abuse human rights at home, deny individual and collective rights as a matter of course and treat ethnic and religious minorities as if they were foreign enemies. Turkey has grown increasingly authoritarian under President Erdogan, with its treatment of its Kurdish minority a particularly black mark on its record. The UAE and Saudi Arabia are known for their mistreatment of foreign workers, Shiia Muslims in particular but not exclusively. Jordan and Bahrain, other recipients of NZ strategic license exports, are Western allies but not known for their adherence to human rights conventions.

Even Israel, a supposed liberal democracy and a Western ally that is another recipient of NZ military-related exports, systematically violates the rights of Palestinians inside and outside of its recognised territorial limits, including targeting of civilian populations during times of conflict (in Gaza) and forcibly annexing Palestinian territory (in the West Bank) as part of an expansionist doctrine that seeks to eventually expel Palestinians from what they and Israelis consider to be their homelands. Within Israel, in spite of recent electoral gains by so-called “Arab” (Joint List) parties, Palestinians are more often seen and treated as a subversive fifth column rather than full citizens (Arabs make up around 20 percent of the Israeli population).

Most liberal democracies simply do not act this way. The West may be guilty of many things, particularly during the colonial era and Cold War, but even if flawed most liberal democracies at a minimum pay lip service to the rule of law based on civil liberties and human rights at home and abroad. A fair number of the recipients of NZ strategic exports in recent years make no such pretence.

None of this would matter if NZ had a realist approach to foreign policy that was completely pragmatic in orientation based on national self-interest. Matters of principle would not factor into foreign policy-making and trade relations. But that is not the case. Instead, NZ is a very vocal defender of small state and minority rights in the international community as an extension of its championing of international human rights, international norms and the rule of law. That makes trading with authoritarians somewhat hypocritical and exporting military equipment to murderous regimes downright reprehensible. Especially when done for a buck–that is, for the profit gain of NZ private firms.

To be clear, almost any hunting-related equipment can be converted for dual use military purposes. But there is much more to the NZ export list (released by MFAT to a couple of investigative reporters under OIA requests) than converted hunting equipment. It also is interesting that most of the redactions in the sanitised export list are justified on commercial sensitivity rather than national security grounds. If items were merely dual use conversions from hunting equipment, one would think that there are little commercial sensitivities involved given the global scope of the hunting industry. Nor are end users always identified on the list, which makes MFAT assurances that it knows what is ultimately being done with the exports somewhat disingenuous. Either it knows and does not want to say or it does not know even though it allowed the export license request for those items to be approved.

Consider this example. MFAT approved the sale of a general utility aircraft from a Hamilton-based aerospace company (now bankrupt) to a PRC-based aviation firm in spite of numerous concerns about the end use of that aircraft. A year or so after the sale went through the plane was photographed at an airshow wearing North Korean military livery, sparking an investigation into how international sanctions on North Korea were circumvented in the process (the sanctions violation was considered a first order offence given the military use of the aircraft). In the legal process that followed, which resulted in the conviction and fining of the Hamilton firm for violating the international sanctions regime and NZ strategic export requirements, MFAT admitted that it had no clue as to who the end user might be beyond the PRC firm that, incidentally, owned a half interest in the Hamilton company and controlled its board of directors. In other words, it took the exporter’s word as an article of faith and as a result contributed to an egregious violation of UN sanctions that NZ voted to support. Diplomatically speaking, that tarnished NZ’s reputation because neither principle or pragmatism, much less due diligence, was applied to the sale.

Even training equipment has to be considered in proper context. Artillery range finders used for training purposes (which MFAT claims was the case with Saudi Arabia) are being used to train artillery for war, not fun and games. Saudi artillery is regularly used in the Yemen civil war, so it a stretch to say that exporting equipment that trains troops to be more accurate with their artillery fire is not related to the Yemeni conflict. Likewise, even if small in terms of numbers and monetary value, exporting sidearms and squad weapons to human rights violators ignores the fact that they could be used against domestic populations and foreign civilians as well as foreign adversaries.

Again, none of this would be of concern if NZ did not proclaim itself to have an independent foreign policy based on principle as well as pragmatism. If it was a country powered by a military-industrial complex such as the US, it would all be in a day’s business to export military equipment to assorted nefarious regimes. But not so NZ, which has staked its international reputation on being an agent of honest virtue–a good global citizen, as it often says.

The truth is different. If NZ was truly independent it could resist the pressure to act as a cut-out or front for its allies’ military-related services (say, by not allowing the national airline to serve as a sub-contractor for the reconditioning of Saudi Navy gas turbines usually serviced by US Navy contractors). It could pick and choose about when to be principled and when to be pragmatic when it comes to military-related exports (say, by exporting to NATO or liberal democratic partners only). After all, although clearly lacking any basis in principle, it is really pragmatic for NZ to sell the Saudis and Emiratis military equipment when they are involved in industrial-strength war crimes in pursuit of a genocidal campaign in a neighbouring country? Will the diplomatic benefits of courting such states outweigh the costs of making its rank hypocrisy visible to the rest of the international community?

In a past life I was involved in the decision-making chain involved in US military sales and training, etc. to Latin American countries. The primary criteria for vetting military equipment and training requests was twofold: the nature of the equipment or training requested and the character of the political regime (government) making the request. If the equipment or training was too sensitive or excessively lethal and/or the regime doing the requesting was of dubious disposition, then the request was denied. If the decision was anything other than an outright “no” on the primary grounds, then other criteria was applied: state of trade and diplomatic relations with the requesting state, the geopolitical balance in the (sub) region in which that state was located, the possibility of a domino proliferation impact, the presence of other foreign weapons suppliers as substitutes for US exports, etc. Once all of this was factored in with input from the various elements of the inter-agency consultation process (involving the State Department, CIA, NSC, Treasury, Commerce and other federal agencies with a potential stake in the matter), sometimes after sounding out other countries in the region about their reactions, a recommendation was sent to the White House for approval/denial. If the White House approved the sale/mission, then the recommendation was sent to Congress for approval, something involving several committee votes and then a general vote in both Houses. The process was slow and circuitous but in the end it was comprehensive and transparent.

Although it is possible that there are similarly robust weapons exportation strategic license vetting protocols in place in NZ, that does not seem to be the case. MFAT appears to make the call, perhaps after consultation with DPMC and/or Cabinet. Parliament is not involved in the decision-making process. No public notification is made. In other words, the entire NZ strategic export licensing regime is opaque at best. You can read the official criteria here.

MFAT says that the vetting process is rigorous and that it knows exactly where NZ sourced military equipment winds up. Yet it has only denied one out of 254 special export license requests in the last three years (to the Saudis for mortar stands and fire control (observation tower) equipment, supposedly in response to the Khashoggi murder). If foreign policy principle were involved, one might expect that the approval rate would be somewhat lower for authoritarian-ruled countries. But if pragmatism and trade are the criteria in play, does it make sense to supply murderous regimes with any kill chain components? Or is the fact that the entire decision-making process for granting special export licenses is so opaque that MFAT and the suppliers thought that they would never be found out if it were not for the good work of a couple of intrepid reporters?

More than principle and pragmatism as guideposts for foreign policy, it seems that trade-promoting expediency is the new normal in NZ foreign affairs, something that continues under the Ardern government. But with expediency comes a loss of independence and autonomy as well, because among other reasons, states with their own agendas can use NZ’s trade zealotry as third party cover for transactions they themselves may be reluctant to admit publicly (even the US has suspended weapons sales to Saudi Arabia because of its behaviour in Yemen). Or authoritarians can hold non-military trade relations with NZ hostage to the provision of military equipment. Either way, that makes NZ a foreign policy tool of others rather than an honest broker in international relations and global good citizen.

Just like the fact that NZ’s “clean and green” image is more myth than reality, the foreign policy reality is that at least when it comes to trading in the paraphernalia of death, NZ is unprincipled, hardly pragmatic and dominated by logics of trade expediency rather than a commitment to the upholding international human rights. While it would be too much to expect a National-led government to put principle before trade expediency, that this continues to occur under a Labour-led government (in which the Prime Minister claims that she was unaware of the strategic export recipient list until asked about it by the media) is all the more outrageous given its constant repetition of the “independent, principled but pragmatic” foreign policy mantra.

If NZ is to regain a semblance of integrity in diplomatic circles, its foreign policy decision-making matrix must change away from trade obsessed expediency and towards the principled but pragmatic orientation that grants it the independence that it claims to have. Conversely, if it wants to put trade before everything else, then it might as well fess up and open up the country’s foreign policy to the highest bidder.

Clueless or cynical?

So, it turns out that Air New Zealand accepted a contract to service three gas turbine engines for the Saudi Arabian Navy through its wholly owned subsidiary, Air New Zealand Gas Turbines. It turns out that Air NZ has a side bar in the gas turbine maintenance business and even has dedicated service facilities for maintenance on military machines (of which the US and Australian navies are clients). Air NZ claims that the contract with the Saudi Navy was actually let by a third party but has not said who that is. Some have speculated that it might be the US Navy, using Air NZ Gas Turbines for what is known as “spillover” work.

This has just come to light via the dogged persistence of a TVNZ reporter who faced more than eight weeks of stone-walling from the company before he got an answer. When he did, he was told that the contract was “small” (worth $3 million), signed off by people well down the executive chain of command, and let in 2019, when current National MP Chris Luxon was CEO. Apparently MFAT and government ministers were not advised of the contract offer, which is doubly problematic because doing business with the Saudi military is controversial at the best of times and Air New Zealand is 52 percent owned by NZ taxpayers through the Crown (as Minister of State Owned Enterprises Grant Robertson being the minister responsible). The issue involves more than potentially bad PR. It has potential diplomatic implications.

Revelation of the business relationship has sparked a bit of a furore. With typical understatement, the Greens are calling for an investigation into Air NZ involvement in Saudi genocide and war crimes in Yemen. Other leftists extend the critique to any relationship between Air NZ Gas Turbines and the US and Australian militaries. Right-wingers say that it is a simple commercial decision and so is business as usual, plus Saudi Arabia is a “friendly” country while Iran is not (yes, they get that simplistic). Much frothing has ensured.

Iranian news outlets have picked up on the story, questioning why a trade partner like NZ would provide support to a major military and political rival in the Gulf region. NGOs like Amnesty International are also aghast at the news, especially since NZ provides millions of dollars in humanitarian aid to Yemen in an effort to help alleviate the humanitarian crisis produced by the proxy war conducted between a Saudi-led Arab military coalition and Iran-backed Houthi rebels in the North and West of the country. Houthis compromise the majority of the 45 percent of Shiia Muslims in Yemen, with 55 percent of the population being Sunni Arabs and various smaller sects in the South and East.

in order to put context on the situation, let’s consider some background. The fault lines of contemporary Middle Eastern conflicts are drawn along the Sunni Arab-Persian Shiia line. The Sunni Arabs, most of who have quiet understandings with Israel that permit discrete cooperation between them and the Jewish state, are implacable enemies of the theocratic Shiia regime in Teheran. Although born of historical enmity between the two branches of Islam, in modern times the conflict between Arabs and Iranians has been accelerated by Iran’s efforts to be recognised as a regional power, including by acquiring nuclear weapons. Most of the principals in the conflict are authoritarians, but the Sunni Arabs have the backing of the US and other Western nations, much of which is specifically due to the shared hostility towards the Iranians and their purported “rogue” international behaviour (including their nuclear weapons desires and support for irregular fighting forces in and out of the Middle East). Iran, for its part, receives support from Russia, China, North Korea, Cuba and Venezuela precisely because of its anti-US and anti-Western orientation since the 1979 Revolution, so the vicious circle of homicidal enmity and distrust has global reach.

Over the years the main conflict zones between Arab Sunnis and Iranian Shiites have been in Lebanon, Syria (the Alawite regime led by Bashar al-Assad is a sub-sect of Shiia Islam), Iraq and Yemen. Because of the fear of escalation into major war if they fight directly, physical confrontations between Iran and the Sunni Arab states are conducted by proxies such as Hamas, Hezbollah, the Syrian military and the Houthis (for Iran), and (for the Arabs) various Sunni militias and/or governments in the contested areas, as well as Israel directly and indirectly.

The results of this multi-dimensional conflict ebb and flow over time, but the situation today is that the Iranians have increased their influence in Iraq after the US invasion and fall of Saddam Hussein, have successfully (along with the Russians) propped up the Assad regime against ISIS, Kurds, Turkey and the US-led military coalition that began as an anti-ISIS force and then mission-creeped into a regime change-focused (and now departed) occupation inside Syria, have maintained the stalemate in Lebanon between Hezbollah and various other armed sectarian movements while threatening Israel, continue to support Hama’s standoff with Israel in Gaza and have helped prevent the Houthis from being cleansed from Yemen by the Saudi-led and US-supplied Sunni Arab military coalition. Domestically, the Iranian regime, while fronted by an elected executive and parliament, is dominated by conservative clerics and military hard-liners who have a poor human rights record and little tolerance for dissenters at home or abroad. They are no angels but are a force to be reckoned with in Middle Eastern politics.

For its part, Saudi Arabia is a despotic, deeply corrupt oligarchy with a notoriously poor human rights record at home, involvement in war crimes in Yemen on an industrial scale, responsibility for the murder of dissidents abroad (because Jamal Khashoggi was not the only one) and which has within its ruling structure people who support, fund and arm Sunni extremists world-wide. It is, in a phrase, an international bad actor. One that is deeply mired in a proxy war in Yemen in which its Navy is used to enforce a maritime blockade of Houthi-held regions, including the blockade of humanitarian assistance to displaced and starving civilians.

Against that backdrop, why on earth did Gas Turbines go through with the contract? Did it ask about what naval ships were the end users of the equipment (since it could be argued that supplying equipment destined for support vessels was ethically different than supplying equipment destined for warships)? Did a bunch of clueless engineers sign off on the deal because it was within their authority as a commercial transaction and they did not even consider the PR, domestic political or broader geopolitical ramifications of the end user? Or, because middle management recognised the political sensitivities involved, did the contract offer get pushed up the hierarchy to the parent company and its senior management at the time but that is now being denied?

Was there anything in place to prompt a “trigger” for higher level vetting of the contract and/or automatic consultation with MFAT and the minister responsible for SOEs? After all, this type of potentially controversial transaction would seem to fall under the “no surprises” bureaucratic dictum dating back to the 5th Labour government, and it would only seem surprising if the foreign ministry and minister responsible for the Crown’s stake in Air NZ were not informed prior to signing the deal.

Or did Air NZ management decide that they could slide the contract under the radar, perhaps using the cover of existing contracts with the US Navy (which does in fact have a logistical support and weapons supply arrangement with the Royal Saudi Navy, which uses a mix of French and US-built ships in its fleet). If so, did they think that they could keep knowledge of the contract away from government as well as the public, or did they let someone in a position of political authority in on the secret? If all of this was above-board, why did Air NZ delay responding to the reporter’s requests? Why did Grant Robertson initially say that the issue was “an operational matter” for Air NZ and why has MFAT said nothing about the affair?

Given the potential political fallout and diplomatic blow-back, can we really take at face value assurances that no one outside of Gas Turbines had knowledge of the contract when it was negotiated?

NZ has good trade relations with both Saudi Arabia and Iran, the former much more extensive than the latter. NZ has good diplomatic relations with both countries, although unlike other Western countries it has been viewed as an honest interlocutor by the Iranians in the past. Given the ongoing conflict between the two countries, it would seem that providing any sort of material assistance to the military of one rather than the other is like sticking a NZ pinky into a pot of boiling water. It could get burned.

NZ professes to have a “principled but pragmatic” foreign policy. Semantics aside, the decision to accept the contract to service Saudi Navy turbine engines was neither principled or pragmatic. No due diligence or political risk assessment appears to have been done during the contract negotiations. Instead, the deal reeks of myopic commercial opportunism disengaged from the larger context and consequences of the transaction.

Whether than was caused by cynicism or cluelessness is the question of the day.

Guest Post by Kate: Human Rights are Universal.

On returning this week from his trade mission in the Middle East, John Key stated on Breakfast TV that countries such as Saudi Arabia have views of human rights that are “different” from our own, justifying the government’s decision to exclude human rights issues from any trade agreement that New Zealand is able to secure in the region. That is putting it rather mildly. Saudi Arabia has one of the consistently worst human records in the world. While the mainstream media is quick to focus in on a discriminatory gender regime that bans women from driving and requires them to be covered from head-to-toe, such problems pale in comparison to the treatment of the foreign workers who make up at least a third of the country’s population, or the torture, imprisonment, and death sentences handed down to Christian converts, human rights workers, activists, journalists, and other critics of the ruling elite. Unlike the distinctly Saudi approach to gender relations, it is difficult to see how the Saudis themselves could seriously attempt to justify such severe human rights abuses in religious or cultural terms.

What is especially surprising about the Prime Minister’s statement is that, if he genuinely believes that Saudi Arabian understandings of human rights are “different” rather than simply wrong, this would put him far over on the fringes of moral philosophy into the cultural relativist camp. This is a space occupied only by academic extremists who have followed the logics of social constructionism to their absolute and final conclusions (i.e. there is no such thing as truth, which makes it rather hard to speak truth to power as many of these theorists seem to want to do), or a small minority on the extreme right, which proposes that liberal values can only ever be achieved in supposedly superior Western cultures. Sticking to this line of argument means that anything whatsoever can be justified in cultural terms to the point where, essentially, nothing practised by any society at any point in history can be criticised at all. What strange company for a Mr. Moderate who usually tries to avoid coming to any conclusions that could undermine his apparently undying popularity to be found in.

Furthermore, this is not the generally shared understanding most reasonable people have of these issues. In fact, New Zealand, along with just about every other country in the world, is a signatory to the Universal Declaration of Human Rights, adopted in the wake of the horrors of World War Two and aimed at establishing a basic set of rights and liberties that countries should do their very best to uphold. Least it isn’t clear from the title of the Declaration, most of the world believes that human rights are universal, Mr. Key, not particular.

Saudi Arabia, by the way, does not accept these principles, rejecting the Declaration on the grounds that guaranteeing freedom of religion would be detrimental to the country’s own traditions, and that its own version of Islamic law supposedly upholds a higher threshold of human rights than this or any other international agreement. By far the more important point, however, is that New Zealand is itself a signatory to the Universal Declaration, which not only obligates us to ensuring that we uphold basic human rights within our own borders, but also to promote human rights abroad.

Yet when it comes to trade agreements, the explicit approach adopted by both recent centre-right and centre-left governments has been to exclude human rights from the negotiating agenda. This puts us at odds with the other members of the international “club” we belong to, to use another of the Prime Minister’s terms. Based on academic research, the World Trade Organization states that about 75 percent of contemporary trade agreements include human rights clauses, whether binding or non-binding, driven largely by the human rights promotion agenda of Canada, the European Union, and yes, the United States. It obviously cannot be assumed that these clauses always lead to substantive improvements in human rights outcomes, but they are a start.

The real reason behind both National and Labour’s exclusion of human rights concerns from the negotiation of trade deals is two-fold. Firstly, to state the obvious, New Zealand is very small in global terms, and thus cannot exercise much leverage over larger countries in the Asia and the Middle East. When countries are dependent on us for aid, absolutely do we try to influence human rights, most notably in the Pacific (which also occasionally invokes issues of culture and human rights that I don’t intend to get into here). Realistically, if we are to incorporate human rights concerns into our trade relations framework, this might more successful if done through multilateral arrangements—yet is it difficult to see human rights becoming a major concern of the kind of multilateral trade deals that New Zealand has wedded itself to, such as the Trans Pacific Partnership.

Secondly, the bipartisan approach reveals not only a deep ideological commitment to free trade that is not necessarily shared by other developed countries, in which the influence of large protectionist interest groups often moderates that stance, but a rather naïve belief that trade deals and trade relationships can be separated from everything else. Despite good empirical and historical evidence that trade cannot be viewed independently from other aspects of foreign policy, we do this with regard to our security relations, in which government officials cannot see the long-term problem emerging out of the contradiction between an Asia-oriented trade policy and a Five Eyes-oriented security one, and we also apparently do it when it comes to more noble causes.

So herein lies the hypocrisy not only of our current leadership, but all those sectors of our community who stress trade above all other national goals. We tend to have a rather rosy view of our country not only as an independent voice in the international arena, but as a progressive force in the big wide world. We ban nuclear ships and we save whales. We were the first to give women the vote and at least some of protested against the Springbok Tour. We think we deserve a seat on the Security Council because we are nice (alternatively, to carry on the theme, there are those who no doubt think it will help us out on the trade front). Not caring—or pretending not to care— about the worst instances of human rights abuses, however, not only threatens to undermine this aspect of our national identity, but undermines both our reputation and potential as a global player that punches above our weight on moral issues.