Proposed U.S. Arms Export Agreements From January 1, 2011 to December 31, 2011 Published on Arms Control Association (

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1 Proposed U.S. Arms Export Agreements From January 1, 2011 to December 31, 2011 Fact Sheets & Briefs Contact: Jeff Abramson, Non-Resident Senior Fellow for Arms Control and Conventional Arms Transfers, Updated: October 20 After a record high of an estimated $102.5 billion in proposed conventional arms sales agreements in 2010, government-to-government arms sales agreements fell to $25 billion in The spike in the value of U.S. arms control agreements in 2010 was largely due to a proposed $61 billion in arms sales by Saudi Arabia. The $25 billion in agreements requested in 2011 was $10 billion below the ten-year average from 2001 to 2010 ($35.9 billion), but was nearly identical to the average once the 2010 outlier is taken out ($25.6 billion). The United States conducts government-to-government transfers through the Defense Department s Foreign Military Sales (FMS) program. Not all notified sales result in final transactions. Under the 1976 Arms Export Control Act, Congress must be notified of proposed sales of major defense equipment, as defined on the U.S. Munitions List, that equals or exceeds $14 million; defense articles and services that are not defined as major defense equipment which total $50 million or more; and construction or design services amounting to or surpassing $200 million.[1] However, if the proposed sale involves NATO members, Australia, Israel, Japan, South Korea, or New Zealand, the notification thresholds are $25 million for major defense equipment, $100 million for other defense articles and services, and $300 million for construction or design services.[2] Once notified, Congress has 30 calendar days (15 in the case of NATO members, Australia, Israel, Japan, South Korea, and New Zealand) to block a sale by passing a joint resolution of disapproval, though it has never stopped a sale once formally notified. Taiwan requested the most expensive package of arms sales agreements in 2011, with $5.8 billion requested. Approximately $5.3 billion of Taiwan's request was for the retrofitting of Taiwan's 145 aging F-16A/B aircraft, along with associated equipment, parts, training and logistical support. The agreement also includes an extension of the Taiwanese pilot training program at Luke Air Force Base, Arizona, as well as provides advanced radar systems and guided bombs. However, Washington continued to deny Taipei the 66 F-16 C/D aircraft that it has been seeking since The proposed sale of F-16C/D to Taiwan has been a contentious issue in U.S.-China relations since its proposal in 2006 and has recently caused domestic political problems for the Obama administration. For instance, in 2011 Senators John Cornyn (R-TX) and Robert Menendez (R-NJ) attempted to pass an amendment to the National Defense Authorization Act for Fiscal Year 20 that would have forced President Obama to approve the F-16C/D deal with Taiwan. Australia also requested $3.4 billion in arms from the United States in 2011, a 36% increase from The Australian government sought 2 C-17 Globemaster III aircraft, 10 C-27J aircraft, and 110 AIM-0C-7 Advanced Medium-Range Air-to-Air Missiles. Additionally, the proposed agreement included 10-years of Through-Life-Support (TLS) for 24 MH-60R Multi-Mission Helicopters. This is the second year in a row that Australia has been among the five countries that sought the highest value of U.S. arms exports. The Middle East once again had three out of five of the nations seeking the highest values of U.S. arms exports in 2011 with Iraq ($3.4 billion), Saudi Arabia ($2.3 billion), and the United Arab Page 1 of 7

2 Emirates ($1.4 billion) each requesting significant amounts of military equipment. In 2011, Iraq requested the second-highest amount of U.S. arms exports at $3.4 billion. Iraq's request included a variety of advanced radar and radio systems, 18 F-16IQ aircraft, 44,608 M mm High Explosive Projectiles and 9,328 M485A2 155mm Illumination Projectiles. Saudi Arabia sought a variety of thermal and night vision equipment, over 100 Light Armored Vehicles, and 450 High Mobility Multipurpose Vehicles of varying models. The United Arab Emirates requested 218 AIM-9X-2 Sidewinder Block II tactical missiles, support for their existing F-16 fleet, 5 UH-60M Blackhawk VIP Helicopters, and over 750 Hellfire and Javelin missiles. Below are the five countries that sought the highest values in U.S. arms exports in 2011 and some of their specific requests. Country Total Value Weapons/Services Taiwan $5.8 billion Iraq $3.4 billion Australia $3.4 billion Saudi Arabia $2.3 billion Spare Parts for F-16A/B, F-5E/F, C-130H, and Indigenous Defense Fighter (IDF) Aircraft Retrofitting of F-16A/B Aircraft Pilot Training Program 6 AN/TPQ-36(V)10 Firefinder Radar Systems 18 AN/TPQ-48 Light Weight Counter-Mortar Radars Watt Vehicular Multiband Handheld Watt Multiband Handlheld Watt Multiband Handheld Base Station Watt High Frequency Base Station Watt Secure Personal Role Handheld Support for TC-208s, Cessna 172s, AC-208s, T-6As, and King Air 350s 44,608 M mm High Explosive Projectiles 9,328 M485A2 155mm Illumination Projectiles 18 F-16IQ aircraft 10-year Through-LifeSupport (TLS) for 24 MH-60R Multi-Mission Helicopters 2 C-17 Globemaster III aircraft 110 AIM-0C-7 Advanced Medium-Range Air-to-Air Missiles 10 C-27J aircraft 200 High-performance InPage 2 of 7

3 United Arab Emirates $1.4 billion Line Sniper Sight Thermal Weapon Sights 200 MilCAM Recon III LocatIR Thermal Binoculars 7,000 Dual Beam Aiming Lasers (DBAL A2) 6000 AN/PVS-21 Low Profile Night Vision Goggles (LPNVG) 48 LAV-25mm Light Armored Vehicles (LAV), 17 LAV Personnel Carriers, 5 LAV Recovery Vehicles, 27 LAV Command and Control Vehicles, 28 LAV AntiTank (TOW) Vehicles 404 CBU-105D/B Sensor Fuzed Weapons AN/VRC-92E Export Single Channel Ground and Airborne Radio Systems (SINCGARS) 36 M777A2 Howitzers, 54 M119A2 Howitzers 24 Advanced Field Artillery Tactical Data Systems (AFATDS) 17,136 Rounds M mm High Explosive (HE) Ammunition 2,304 Rounds M mm Rocket Assisted Projectiles 60 M1165A1 High Mobility Multipurpose Vehicles (HMMWVs) 0 M1151A1 HMMWVs 252 M1152A1 HMMWVs 4 M1152A1-B2 UpArmored HMMWVs Continuation of Services for Patriot Systems Engineering Services Program (ESP) 218 AIM-9X-2 Sidewinder Block II Tactical Missiles Support and Maintenance of F-16 Aircraft 5 UH-60M Blackhawk VIP Helicopters 107 MIDS/LVT Link 16 Terminals 500 AGM-114R3 Hellfire Missiles 4,900 JDAM Kits 260 Javelin Anti-Tank Guided Missiles Page 3 of 7

4 Below are all 28 countries that sought U.S. arms exports in 2011 according to FMS notifications and the total value of their identified requests (in billions of U.S. dollars): Country Total Value ($ Billions) Taiwan 5.84 Iraq 3.42 Australia 3.35 Saudi Arabia 2.34 U.A.E Egypt 1.33 India 1.29 Oman 1.25 Indonesia.750 Qatar.750 Finland.585 U.K..427 Hungary.426 Germany.300 Greece.260 Poland.200 France.180 Argentina.166 Canada.5 Malaysia.4 Peru.4 Morocco.117 Turkey.111 Kuwait.100 Norway.095 Pakistan.062 Ecuador.060 Page 4 of 7

5 Bahrain.053 Below are the total values of all notified requests each yearfrom 1997 to 2011 in billions of U.S. dollars as compiled each year, in current dollars (unadjusted for inflation): Total Value ($ Billions, current dollars) Page 5 of 7

6 Written by Marcus Taylor ENDNOTES 1. The Department of State is also required to report to Congress any commercial sales it approves of major defense equipment that amount to $14 million or more, defense articles and services that equal or exceed $50 million, and any items defined as significant military equipment. As in the case of FMS sales, Congress can block the sale with a joint resolution of disapproval within 30 calendar days of notification (15 in the case of NATO members, Australia, Israel, Japan, New Zealand, and South Korea). There are no official compilations of commercial agreement data comparable to the FMS notifications and what exists is often incomplete and less precise than data on governmentto-government transactions (Grimmett, Richard F., Conventional Arms Transfers to Developing Nations, , Washington, D.C., Congressional Research Service, September 10, 2010, p. 23). The annual Section 655 report, prepared by the State and Defense Departments for Congress, details commercial licenses approved, but states have four years to act under the licenses. The State Department s Directorate of Defense Trade Controls has final responsibility for license applications for commercial defense trade exports and all issues related to defense trade compliance, enforcement, and reporting. 2. Congress approved the higher notification thresholds for NATO members, Australia, Japan, and New Zealand in legislation passed in September South Korea was added to this list in 2008, and Israel was added in Sources: Congressional Research Service, Defense Security Cooperation Agency, and Department of State. Page 6 of 7

7 Posted: October 4, 20 Source URL: Page 7 of 7