Sweden becomes the first country to set a “democracy clause” on its €1bn arms exports industry.

The government and the opposition have reached consensus over a law to prohibit arms sales to dictatorships with a substandard human rights record, Swedish Radio reported on Monday.

The "democracy clause" is expected to pass on Thursday, following an agreement between the government and the center-right opposition Alliance. The clause would outlaw sales to regimes such as Saudi Arabia, Oman, and the...