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The United States ranked first in arms deliveries to developing nations in 2011 at $10.5 billion, outflanking second-place Russia at $7.5 billion, according to an Aug. 24 Congressional Research Service report obtained by Secrecy News.
The United States also ranked first in 2011 arms transfer agreements with over $56.3 billion, or 78.7 percent of these agreements worldwide, an increase of 35.1 percent in market share over 2010 when the U.S. tallied 43.6 percent of worldwide arms transfer agreements. Russia ranked second in arms transfer agreements with $4.1 billion or 5.7 percent of such agreements.
Saudi Arabia ranked first in the value of arms transfer agreements among all developing nation purchasers, raking in $33.7 billion in such agreements. The Saudis concluded $33.4 billion in business with the United States at 99 percent market share. India ranked second at $6.9 billion and the United Arab Emirates (UAE) third at $4.5 billion.
The value of all international arms deliveries in 2011 was $44.3 billion, an increase of $3.1 billion from 2010’s total. The value of all arms transfer agreements worldwide in 2011, to both developed and developing nations, was $85.3 billion, an increase of 91.7 percent over 2010’s total of $44.5 billion. The 2011 total is the highest since 2004.
The United States led worldwide arms transfer agreements to both developed and developing nations in 2011 at $66.3 billion, or 77.7 percent of total agreements. For 2004-2011, the United States led all nations in arms delivery value at $108.2 billion with second place Russia at $48.5 billion.
CRS found the international arms market is “not likely” growing overall due, in particular, to the weakened state of the global economy, which has forced nations to limit purchasing to upgrades of existing weapons systems and to training and support services. As the overall arms market has stagnated, arms-supplying nations have faced the challenge of providing weapons in a type and price that can provide them with a competitive edge. Suppliers are utilizing flexible financing options and guarantees of counter-trade, co-production, licensed production and co-assembly elements in their contracts to secure new orders.
CRS found China does not appear likely to be a key supplier of conventional weapons in the world arms market. This could change, though, as China has stated its intention to improve its stature in this field and has increased promotion of its more advanced aircraft in an effort to secure contracts from developing countries. CRS found China’s future client base will likely be nations in Asia and Africa seeking quantities of small arms and light weapons, rather than major combat systems. CRS said China already is an important provider of missiles to some developing nations, specifically surface-to-surface missiles to Pakistan and battlefield and cruise missiles to Iran.
For categorical purposes, CRS listed all countries as developing nations except for the United States, Russia, European countries, Canada, Japan, Australia and New Zealand. The values of arms transfer agreements (or deliveries) refer to the total values of conventional arms orders (or deliveries), which include all categories of weapons and ammunition, military spare parts, military construction, military assistance and training programs and associated services.
CRS only used government-to-government Foreign Military Sales (FMS) in its report. FMS is one of two ways, along with the licensed commercial export system, the United States exports weapons to other nations.
View the CRS report here: http://bit.ly/QKbUWj