Surge Seen in US Arms Exports

June 8, 2012 defense-aerospace.com

(Source: Bloomberg news; published June 7, 2012)

U.S. Arms Exports Surge on Sales Push to India, Brazil (excerpt)

The State Department approved a record number of export licenses last year for weapons and military parts and services sold overseas by U.S. companies, according to a report to Congress.

The estimated value of licenses issued by the department’s Directorate of Defense Trade Controls was $44.3 billion, an increase of more than $10 billion from the previous year, according to the annual military assistance report delivered to lawmakers today.

Companies need licenses before they can export goods and services that are on the U.S. Munitions List, which limits exports with military uses. License approvals increased to 83,685 in fiscal 2011 from 83,158 in fiscal 2010 and 81,900 the year before that, according to State Department data.

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The licenses are required for so-called Direct Commercial Sales between a company and a country. The State Department report doesn’t include the Foreign Military Sales program between governments, which is managed by the Pentagon.

Some items licensed in a particular year ship later, Andrew Shapiro, assistant secretary of state for political-military affairs, said today in a statement.

“Despite the global economic strains, this report shows the demand for U.S. defense products and services has remained strong,” Shapiro said. “This administration has worked hard to support the defense industry abroad because it supports our national security and jobs here.” (ends)


Click here for the ful story, on the Bloomberg website.