The US State Department said on Monday (Jan 29) that sales of American military equipment to foreign governments rose 16 per cent to a record $238 billion in 2023. A statement released by the US department noted that arms transfers and defence trade are important aspects of the US foreign policy.
Such policies have potential long-term implications for regional and global security, the statement said.
Hence, the US follows a “holistic approach” when it comes to reviewing arms transfer decisions, which is in accordance with the US Conventional Arms Transfer Policy.
The statement noted that the nation also considers political, social, human rights, civilian protection, economic, military, nonproliferation, technology security, and end-use factors to determine the “appropriate provision of military equipment”.
The statistics also support projections of higher sales for companies such as Lockheed Martin, General Dynamics, and Northrop Grumman, whose stock is expected to climb with rising global instability.
In a report by the news agency Reuters, sales approved in the year included $10 billion worth of High Mobility Artillery Rocket Systems (HIMARS) to Poland, $2.9 billion worth of AIM-120C-8 Advanced Medium-Range Air-To-Air Missiles (AMRAAM) to Germany, and National Advanced Surface to Air Missile Systems (NASAMS) to Ukraine.
RTX and Norway’s Kongsberg produce NASAMS, meanwhile, Lockheed makes the HIMARS, and RTX, formerly Raytheon makes AMRAAM.
“In FY2023 the total value of transferred defense articles and services and security cooperation activities conducted under the Foreign Military Sales system was $80.9 billion. This represents a 55.9% increase, up from $51.9 billion in FY2022. This is the highest annual total of sales and assistance provided to our allies and partners,” the statement mentioned.
Lockheed Martin and General Dynamics expect existing orders for hundreds of thousands of artillery rounds, and hundreds of Patriot missile interceptors, the Reuters noted. They will also expect an increase in orders for armoured vehicles to drive their results in the coming quarters.
Foreign governments can buy armaments from US firms in two ways: direct commercial sales negotiated with the company, and foreign military sales.
(With inputs from agencies)
