Argument: The right of Western businesses to sell their services abroad can be curtailed when their actions stand counter to the interests of their home governments

Corporations are private entities that have the right to sell their services and to deal with agents foreign and domestic, including governments. However, this right can be limited when those actions are oppositional to the aims of the home state in which they are incorporated. The sale of surveillance technology to undemocratic regimes stands against the avowed aims of democracies and against their strategic interests in bolstering democracy abroad and maintaining a reputation for fair dealing. For this reason it is perfectly legitimate for governments to ban the corporations within their borders from selling dangerous technologies to foreign governments. Such is already the case with many kinds of strategic technology, especially weapons technology. [1] The EU, for example, bans a range of arms sales to various oppressive states on these grounds, [2] China in particular is an example where it would potentially be very lucrative to overturn the ban. [3] Corporations benefit from the protection of democratic states, as they provide bases of operations that shield their right to property and ensure stability and the rule of law. If corporations wish to benefit from these provisions they must be willing to accept the instructions of the states that house them regarding what can and cannot be sold to foreign powers.

[1] Elgin, B. “House Bill May Ban US Surveillance Gear Sales”. Bloomberg. 9 December 2012. http://www.bloomberg.com/news/2011-12-09/house-bill-would-ban-surveillan...

[2] Banks, M. “Senior MEP Calls for Freeze on Arms Sale to North Africa”. The Parliament.com. 7 July 2011. http://www.theparliament.com/latest-news/article/newsarticle/senior-mep-calls-for-freeze-on-arms-sale-to-north-africa/

[3] See the debatabase debate ‘This House believes the European Union should lift its ban on member states selling arms to China’ http://idebate.org/debatabase/debates/international-affairs/european-union/house-believes-lift-arms-sales-ban-china

Candidate 1: "Security services have managed to watch over and infiltrate the efforts of dissidents all through history. The visibility and tactics is all that has changed. The internet was never going to just be an arena that helps dissidents in authoritarian regimes but as with other technological advances, such as the telephone both increases communication and provides methods of monitoring that communication. If non-democratic states were to lose access to Western technology, they would either procure comparable replacements from other non-democracies, or they would pursue more traditional forms of surveillance, ones that tend to be more invasive and physically threatening."
Candidate 2: "A democracy, like any state, owes its first duty to its citizens, and its national interest is therefore in selling this equipment to help business at home. While it is convenient, perhaps even morally right at times, to stand publicly for the universality of democratic principles, such stands should not be taken at the expense of national security or influence. It should certainly not be considered an obligation. Sweeping policies like this will alienate valuable allies and make it more difficult for democracies to deal with the undemocratic world. With regard to domestic freedoms, states have long held different standards of action when dealing with their own citizens than those of other states, and that has never served to erode domestic freedoms."
Candidate 3: "Is a minor ban really a good signal? The chances are the government will ignore it and those who it is meant to encourage will never hear about it. In the event that the regimes it is aimed at do take not far from weakening them, this policy serves only to alienate them. The lack of respect the policy is clearly aimed to show will galvanize the leaderships in undemocratic regimes to cut off various ties with democratic states, limiting the flow of ideas and democratic principles that natural adhere to activities like international trade. The result is non-democracies will be less willing to talk about reform in the international community because they see their very form of government as under threat by foreign agents seeking to discredit them. Ultimately, a boost in Western moral does little to promote democracy and human rights while a negative signal will result in regimes being more suspicious and obstinate."
Candidate 4: "Corporations are bound to obey the laws of the societies in which they are based, but they are not so constrained in their foreign dealings, in which they are bound instead by foreign laws that are often much more lax. The nature of the international landscape, with its many incompatible and overlapping forms of government and regulatory frameworks, demands that corporations be flexible in order to survive. The constraints put upon the manufacturers of surveillance equipment put forward by this policy will make them less competitive in the international market, which is often the primary market for these businesses. Furthermore, if they feel constrained they may pull up stakes and move their operations abroad to a more accommodating jurisdiction. This would serve to harm domestic jobs and undermine the ability of democratic states to maintain their edge over others in essential surveillance technology development."

Corporations are bound to obey the laws of the societies in which they are based, but they are not so constrained in their foreign dealings, in which they are bound instead by foreign laws that are often much more lax. The nature of the international landscape, with its many incompatible and overlapping forms of government and regulatory frameworks, demands that corporations be flexible in order to survive. The constraints put upon the manufacturers of surveillance equipment put forward by this policy will make them less competitive in the international market, which is often the primary market for these businesses. Furthermore, if they feel constrained they may pull up stakes and move their operations abroad to a more accommodating jurisdiction. This would serve to harm domestic jobs and undermine the ability of democratic states to maintain their edge over others in essential surveillance technology development.
