US says its arms exports boomed this year
Jim WolfWASHINGTON (Reuters) - U.S. government-brokeredoverseas arms sales are expected to total about $34 billion inthe current fiscal year, up more than 45 percent from the yearbefore, the Pentagon agency in charge said Wednesday.
"Our program is growing by leaps and bounds," Jeanne Farmerof the Defense Security Cooperation Agency told aninternational defense industry conference.
Among the biggest government-to-government buyers in fiscal2008, which wraps up at the end of this month, wereAfghanistan, Saudi Arabia, Morocco, Egypt and Iraq, Farmersaid.
Overseas arms sales are a key instrument of U.S. foreignpolicy as well as a boon to defense contractors such asLockheed Martin Corp , Boeing Co , NorthropGrumman Corp , General Dynamics Corp andRaytheon Co .
In fiscal 2007, such sales totaled $23.3 billion, up from$21 billion in fiscal 2006, according to the security agency'sfigures.
Farmer, at the conference known as ComDef 2008, said her agency was playing a growing role in the U.S.-declared globalwar on terrorism and national security.
The security agency was currently working with 207countries and had 12,262 "open cases" totaling $274.3 billionas of last month, she said. Open cases include those in whichorders have been filled but which could still involve exerciseof options among other things.
"In the current environment, everybody needs everythingright now," Farmer said. "We do expect to continue to havelarge, large sales."
The United States carries out government-to-governmentconventional arms transfers through the Defense Department'sForeign Military Sales program, which operates on a no-profit,no-loss basis.
In 2007, the Pentagon notified Congress of more than $39billion in such potential sales to 23 countries andChinese-claimed Taiwan, including some funded by grant aid.
This year's notifications are expected to be a record high,led by Iraq. Not all notifications result in final sales suchas those now being reported for this year. Buyers pay a fee,currently 3.8 percent of the cost of the purchase, to cover thecost of administering the program.
The U.S. government says arms sales strengthen U.S.national security by tightening bilateral defense ties,supporting coalitions and enhancing U.S. ability to operatewith foreign militaries.
Critics say booming sales reflect a failure of U.S.diplomacy and show a need for the United States to rethink howit handles foreign policy.
"Instead of spending millions or billions of dollars onweaponry, many U.S. arms customers should be funding education,health, and infrastructure programs that would go much furtherin improving the long-term stability of their countries," saidWade Boese, research director of the Arms Control Association,a nonpartisan group aimed at curbing the spread of weapons. (Reporting by Jim Wolf; editing by Carol Bishopric)