vi. Foster international collaboration

Foster international collaboration

Key recommendations

➢ Weigh the pros and cons of multilateral, regional and bilateral frameworks. ➢ Prioritize transparent competition processes, the free use of space data, and the exchange of knowledge and best practices. ➢ Consider the strategic use of offsets in the space sector.

International space cooperation is essential to most space programs. Cooperation can take various forms, ranging from multilateral cooperation at the international or regional levels, to bilateral cooperation with individual countries. Countries may formalize relationships by issuing joint declarations or statements, or by signing agreements to cooperate on space programs or share data. 346

Multilateral space cooperation provides the opportunity to spread the costs and risks of large-scale projects across a wide range of parties, enabling the participation of countries that would otherwise be unable to undertake such initiatives. However, the more parties involved in a project, the higher the cost of the overall project, as the complexities and inefficiencies increase. Nonetheless, the individual cost for each country is likely to reduce.

346 Secure World Foundation (2017). 347 Secure World Foundation (2017). The benefit of multilateral programs is that it is difficult for governments to unilaterally cancel them in times of economic downturn. When there are several parties involved in space programs, governments may choose to maintain their commitments to avoid tarnishing their international reputation. A space partner nation cancelling its funding commitment to a multilateral program could have longer term diplomatic and economic implications. Similarly, on bilateral programs where there are only two partners, if one country withdraws, the other is also forced to heavily adapt, or forego the program.

Although more partners offer more access to skills and resources, there is added complexity in large multilateral programs. Partners from around the world are likely to have disparate requirements, time zones and languages, which can complicate cooperation. If multiple countries are involved in designing specifications, development, manufacturing, launch and operating, it is hard for the program to remain flexible, particularly if there is a need to pivot technologically. Moreover, decision making is bound to be slower the more partners are involved in a project.

It can be easier to build close relationships with a smaller group of like-minded countries. Countries with similar interests or experiencing common regional threats may be natural space partners, choosing to pool resources for specific space capabilities, such as maritime surveillance. Countries in the Latin America and Caribbean region prioritize bilateral and regional cooperation to extend limited resources, and support strategic and political goals. 347

Though there is no single optimum approach, it is generally recommended that in multilateral cooperation workshare is awarded based on the companies best able to deliver. While it can be tempting for countries to demand a certain number of contracts in exchange for their support of a multilateral program, this has the potential to hinder future cooperation if their companies are unable to deliver to the required standard. Instead, countries should insist on transparency in competition processes, the free use of space data, sharing best practices, and exchanging knowledge.348 In bilateral arrangements, countries may seek to leverage access to their markets in exchange for wider benefits to spur economic development. In defense trade, “offsets” involve a range of industrial compensation arrangements required by governments as a condition of the acquisition of foreign goods and services.349 Such compensation may take the form of investments, co-production, sub-contracting, purchases, technology transfer or training to benefit local companies and the national economy, and to generate long-term outcomes in terms of workforce, education and industry.350 The strategic use of offsets in the space sector could deliver significant benefits to emerging space markets, but there is a need for clear regulation to prevent corruption, and ensure that offsets are directed to areas that will prove the most beneficial in the long term.

348 Kommel et al. (2020). 349 US Bureau of Industry and Security (2022) Offsets in Defense Trade. US Department of Commerce. https://www.bis.doc.gov/index.php/other-areas/strategic-industries-and-economic-security-sies/offsets-in-defense-trade 350 US Bureau of Industry and Security (2020) Code of Federal Regulations Title 16, Vol. 2. Part 701. https://www.govinfo.gov/content/pkg/CFR-2020-title15-vol2/pdf/CFR-2020-title15-vol2-part701.pdf