The Dutch government is set to face new legal challenges aimed at closing “loopholes” in a ban on sending F-35 jet parts to Israel, The National can reveal.
Though highly symbolic, a decision by an EU country to halt exports of components of the US-made F-35 fighter jets to Israel, including those that transit via the United States, would represent a blow to Israel's reputation.
It would also represent one of the few concrete actions taken by an Israeli ally to express disagreement with its war on Gaza, which has killed more than 41,500 people in close to a year despite a January order by the International Court of Justice to stop military operations.
Israel's more recent bombing campaign in Lebanon has killed at least 550 people, including dozens of children, in what Israel says are targeted strikes against Hezbollah. The Lebanese health ministry describes them as indiscriminate.
Dutch NGOs believe that exporting F-35 spare parts to Israel violates their country's obligations in the 2013 Arms Trade Treaty, which bans weapons exports if they are used to commit a serious violation of international law, and the 2008 European Common Position on exporting military equipment. Media reports have confirmed that Israel has used F-35s to bomb Gaza but it has been difficult for external observers to establish what kind of jet was used in which attack.
In highly advanced aerospace technology manufacturing, you can't just jump on Amazon and find a replacement for some of these components
Kelsey Gallagher,
researcher at Project Ploughshares in Canada
Multiple court cases in the Netherlands
The Dutch state is fighting a legal battle against Oxfam and two other NGOs, which in February won a lawsuit forcing the state to stop exporting F-35 parts to Israel. The government implemented the ban but also lodged an appeal at the Supreme Court, which scheduled a hearing with both parties on September 6. A verdict is expected around the end of the year.
“I find it extremely painful after everything that has happened – rulings by ICJ, the request for arrest warrants by the International Criminal Court, all the UN reports and Amnesty reports – the Dutch government still cannot bring itself to actually acknowledge that Israel is violating international law,” Michiel Servaes, president of Oxfam Novib, the Dutch affiliate of the international charity, told The National.
“Every time they refer to the situation in Gaza, they do it indirectly,” added Mr Servaes, a former diplomat and ex-Labour MP in the Netherlands. “They’re extremely concerned by the humanitarian tragedy that’s unfolding there, as if it were the consequence of a natural disaster without someone being responsible for it.”
But a ban on direct exports to Israel is not enough, according to the NGOs. They want to also stop exports of F-35 parts to the US, where most fighter jets are assembled by Lockheed Martin and then exported to third parties, including Israel. The ban concerns parts installed in new aircraft and those that end up in existing fighter jets. Both are supplied by the Netherlands, said Oxfam.
Dutch media reports allege that the government is trying to bypass the February ban by finding other routes to export to Israel – a claim denied by the state. “The big question is: has the Netherlands found ways to bring spare parts to Israel anyway by exporting some materials first to the US and then from the US to Israel?” said Mr Servaes.
The Dutch state also says it cannot trace the F-35 parts after they reach the US. This argument is widely viewed as unconvincing. “They play dumb and say it's impossible to track those parts once they arrive in the US, which is a bizarre claim because you need to know where those parts go,” said Mr Servaes.
Bill Hartung, senior research fellow at the Quincy Institute for Responsible Statecraft, said manufacturing governments are likely to be aware of where spare parts go. “My guess is they are [able to trace components] because they need to track inventory, but that they keep that information very close,” he said.
NGOs have failed so far to force the state to stop exports of F-35 parts to the US and lost a court case in June. But Mr Servaes told The National that the case was lost for largely procedural reasons and that they would take it to a different court in the coming months.
“The government is trying everything to bypass the ban by shifting these goods between different countries before exporting them to Israel. So we'll need more time to be effective on that aspect,” he said.
International reputation at stake
Lawsuits brought by NGOs against the Dutch state are closely scrutinised because the Netherlands is an important part of the F-35 programme, which also includes the US, the UK, Italy, Canada, Denmark, Norway and Australia. Participation in the biggest joint military production programme in the world gives fast-track access to F-35s and allows allies to co-ordinate more easily during a conflict.
“The Netherlands was one of the F-35 programme's first international partners, and has a stake in the industrial support of the aircraft with more than 25 national suppliers participating in the effort,” said Gareth Jennings, aviation editor at Janes, an open-source defence intelligence company.
The government is keen to remain in the F-35 programme and has warned that a withdrawal would have far-reaching consequences because Dutch companies are the sole suppliers of certain components.
Another argument put forward by the Dutch state, which is represented by the Ministry of Trade and Development Co-operation in the court cases against NGOs, has been that it is up to the state to shape foreign policy, not to courts, and that Israel needs F-35s to defend itself against Iran.
The Netherlands appears to be struggling to mitigate reputational damage on two fronts: either it continues selling weapons to Israel despite the global outcry about human rights violations in Gaza, or it comes across as an untrustworthy member of the highly prized F-35 programme.
In a statement published in February to explain why it was lodging an appeal at the Supreme Court, the ministry said: “The government will do everything it can to convince allies and partners that the Netherlands remains a reliable partner in the F-35 project and in European and international defence co-operation.” Contacted by The National, the ministry said it could not comment because the appeal at the Supreme Court is ongoing.
“It cuts both ways,” said Mr Hartung. “In the larger scheme of things, any country enabling Israel to commit these crimes is already suffering, or should suffer, from major reputational damage. The narrower question of whether it will survive in the programme is harder to say, but the humanitarian issue should take precedence because we haven't seen this kind of slaughter in such a short amount of time in a long time.”
So far, the Netherlands appears to be more keen on sticking to the F-35 programme than on taking public action against the Israeli government over the war in Gaza. The Netherlands is viewed as one of the EU's more pro-Israeli members. The bloc, which is deeply divided over the conflict, has been slow to react and has adopted similar sanctions to the US targeting Hamas leaders and against extremist Israeli settlers in the occupied West Bank.
The Netherlands houses a large warehouse for F-35 spare parts. Maintenance, repair and overhaul was shifted to the Netherlands and Norway from Turkey when Ankara was expelled from the F-35 programme, according to Mr Jennings.
Redundancy is built into the programme to minimise the impact of any country being unable to fulfil its commitments, said Mr Jennings. It is also likely that Israel has an extensive pool of spares to prevent its F-35 fleet from being impacted by unilateral national actions.
“As such, Dutch court efforts to stop F-35 exports to Israel are likely to have a more symbolic than practical effect, with little to no operational impact on the Israeli Air Force or its ongoing operations,” Mr Jennings told The National. “Where things might get testy for Israel and Lockheed Martin, however, is if any Dutch action might lead to similar judicial actions in other partner countries.”
So far, F-35 partners that have implemented partial bans on weapons exports to Israel citing human rights concerns, including the UK and Canada, have refused to touch the F-35 programme. Both countries have exceptions regarding transfers of F-35 parts to the US, meaning there is no vetting for the end user of the fighter jets, said Kelsey Gallagher, a researcher at Project Ploughshares, where he monitors Canadian arms exports.
Implementing an end user ban on Israel may cause a ripple effect that would be detrimental to its political image. Manufacturing companies may also worry over losing contracts with Lockheed Martin, though Mr Gallagher said this concern is largely unfounded. “It's a possibility, but in highly advanced aerospace technology manufacturing, you can't just jump on Amazon and find a replacement for some of these components,” he said.
Ultimately, this is a test case of the Dutch state's commitment to respecting human rights, said Mr Servaes. “We are not asking the Dutch government to stop the whole F-35 programme, just to not contribute to what's happening in Gaza,” he said. “We are asking them to abide [by] international law.”
Six large-scale objects on show
- Concrete wall and windows from the now demolished Robin Hood Gardens housing estate in Poplar
- The 17th Century Agra Colonnade, from the bathhouse of the fort of Agra in India
- A stagecloth for The Ballet Russes that is 10m high – the largest Picasso in the world
- Frank Lloyd Wright’s 1930s Kaufmann Office
- A full-scale Frankfurt Kitchen designed by Margarete Schütte-Lihotzky, which transformed kitchen design in the 20th century
- Torrijos Palace dome
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
MATCH INFO
Uefa Champions League final:
Who: Real Madrid v Liverpool
Where: NSC Olimpiyskiy Stadium, Kiev, Ukraine
When: Saturday, May 26, 10.45pm (UAE)
TV: Match on BeIN Sports
The National in Davos
We are bringing you the inside story from the World Economic Forum's Annual Meeting in Davos, a gathering of hundreds of world leaders, top executives and billionaires.
Jeff Buckley: From Hallelujah To The Last Goodbye
By Dave Lory with Jim Irvin
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Fixtures
Opening day Premier League fixtures for August 9-11
August 9
Liverpool v Norwich 11pm
August 10
West Ham v Man City 3.30pm
Bournemouth v Sheffield Utd 6pm
Burnley v Southampton 6pm
C Palace v Everton 6pm
Leicester v Wolves 6pm
Watford v Brighton 6pm
Tottenham v Aston Villa 8.30pm
August 11
Newcastle v Arsenal 5pm
Man United v Chelsea 7.30pm
Western Clubs Champions League:
- Friday, Sep 8 - Abu Dhabi Harlequins v Bahrain
- Friday, Sep 15 – Kandy v Abu Dhabi Harlequins
- Friday, Sep 22 – Kandy v Bahrain
How to get there
Emirates (www.emirates.com) flies directly to Hanoi, Vietnam, with fares starting from around Dh2,725 return, while Etihad (www.etihad.com) fares cost about Dh2,213 return with a stop. Chuong is 25 kilometres south of Hanoi.
Indoor cricket World Cup:
Insportz, Dubai, September 16-23
UAE fixtures:
Men
Saturday, September 16 – 1.45pm, v New Zealand
Sunday, September 17 – 10.30am, v Australia; 3.45pm, v South Africa
Monday, September 18 – 2pm, v England; 7.15pm, v India
Tuesday, September 19 – 12.15pm, v Singapore; 5.30pm, v Sri Lanka
Thursday, September 21 – 2pm v Malaysia
Friday, September 22 – 3.30pm, semi-final
Saturday, September 23 – 3pm, grand final
Women
Saturday, September 16 – 5.15pm, v Australia
Sunday, September 17 – 2pm, v South Africa; 7.15pm, v New Zealand
Monday, September 18 – 5.30pm, v England
Tuesday, September 19 – 10.30am, v New Zealand; 3.45pm, v South Africa
Thursday, September 21 – 12.15pm, v Australia
Friday, September 22 – 1.30pm, semi-final
Saturday, September 23 – 1pm, grand final
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FFP EXPLAINED
What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.
What the rules dictate?
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.
What are the penalties?
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.
Mohammed bin Zayed Majlis
SCORES IN BRIEF
New Zealand 153 and 56 for 1 in 22.4 overs at close
Pakistan 227
(Babar 62, Asad 43, Boult 4-54, De Grandhomme 2-30, Patel 2-64)
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
GIANT REVIEW
Starring: Amir El-Masry, Pierce Brosnan
Director: Athale
Rating: 4/5
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%3Cp%3E%3Cstrong%3ECreator%3A%3C%2Fstrong%3E%20Ramez%20Galal%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Ramez%20Galal%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStreaming%20on%3A%20%3C%2Fstrong%3EMBC%20Shahid%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E2.5%2F5%3C%2Fp%3E%0A
'Peninsula'
Stars: Gang Dong-won, Lee Jung-hyun, Lee Ra
Director: Yeon Sang-ho
Rating: 2/5
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
Killing of Qassem Suleimani
Superpower%20
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The Bio
Hometown: Bogota, Colombia
Favourite place to relax in UAE: the desert around Al Mleiha in Sharjah or the eastern mangroves in Abu Dhabi
The one book everyone should read: 100 Years of Solitude by Gabriel Garcia Marquez. It will make your mind fly
Favourite documentary: Chasing Coral by Jeff Orlowski. It's a good reality check about one of the most valued ecosystems for humanity
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%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3EDual%20synchronous%20electric%20motors%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E1%2C108hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E1%2C340Nm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ESingle-speed%20automatic%20(front%20axle)%3B%20two-speed%20transmission%20(rear%20axle)%0D%3Cbr%3E%3Cstrong%3ETouring%20range%3A%20%3C%2Fstrong%3E488-560km%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh928%2C400%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3EOrders%20open%3C%2Fp%3E%0A
Our legal advisor
Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.
Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation.
Education: Sagesse University, Beirut, Lebanon, in 2005.
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The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E3.0%20twin-turbo%20inline%20six-cylinder%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3Eeight-speed%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E503hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E600Nm%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3Efrom%20Dh400%2C000%20(estimate)%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3Enow%3C%2Fp%3E%0A
MATCH INFO
Uefa Champions League semi-final, first leg
Barcelona v Liverpool, Wednesday, 11pm (UAE).
Second leg
Liverpool v Barcelona, Tuesday, May 7, 11pm
Games on BeIN Sports
Results
6.30pm: Mazrat Al Ruwayah Group Two (PA) US$55,000 (Dirt) 1,600m; Winner: Rasi, Harry Bentley (jockey), Sulaiman Al Ghunaimi (trainer).
7.05pm: Meydan Trophy (TB) $100,000 (Turf) 1,900m; Winner: Ya Hayati, William Buick, Charlie Appleby.
7.40pm: Handicap (TB) $135,000 (D) 1,200m; Winner: Bochart, Richard Mullen, Satish Seemar.
8.15pm: Balanchine Group Two (TB) $250,000 (T) 1,800m; Winner: Magic Lily, William Buick, Charlie Appleby.
8.50pm: Handicap (TB) $135,000 (T) 1,000m; Winner: Waady, Jim Crowley, Doug Watson.
9.25pm: Firebreak Stakes Group Three (TB) $200,000 (D) 1,600m; Winner: Capezzano, Mickael Barzalona, Salem bin Ghadayer.
10pm: Handicap (TB) $175,000 (T) 2,410m; Winner: Eynhallow, Mickael Barzalona, Charlie Appleby.
Racecard
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