August 24, 2022 | International, Aerospace
April 30, 2018 | International, Aerospace, Naval, Land, C4ISR
US makes it cheaper for foreign nations to buy American weapons
By: Aaron Mehta
WASHINGTON ― The Defense Security Cooperation Agency announced this week that it is reducing a surcharge on American defense goods sold abroad from 3.5 percent to 3.2 percent, effectively dropping the price foreign nations have to pay when buying weapons through the Foreign Military Sales system.
The change will go into effect June 1. The funding from the surcharge is used to support the FMS process, by which the U.S. government acts as the go-between for industry and a foreign customer, using the American acquisition system.
The announcement comes days after the Trump administration rolled out a new set of guidelinesfor conventional arms transfers and unmanned systems as part of a broader push to increase American weapon sales abroad.
The U.S. sold $41.9 billion in arms through the FMS process in fiscal 2017, per a DSCA statement. Based on that figure, the U.S. took in roughly $1.46 billion through the 3.5 percent surcharge. Reducing it to 3.2 percent would drop that number to around $1.34 billion.
DSCA head Lt. Gen. Charles Hooper tied the surcharge cut directly to that broader goal, saying in the announcement that the change “will immediately reduce the cost of doing business for our international partners.”
“It demonstrates the Department of Defense's commitment to charge only what is needed in order to support the administration of the FMS program which includes the sale of defense articles, defense services, and military training,” Hooper added.
On the same subject
-
-
February 7, 2024 | International, C4ISR
Hand-held navigation tool for US Army deemed effective against jamming
The U.S. Army last year tapped TRX Systems to produce DAPS GEN II in a deal worth as much as $402 million.
-
October 13, 2020 | International, Security, Other Defence
NATO chief seeks technology gains in alliance reform push
Sebastian Sprenger COLOGNE, Germany — As NATO officials hash out reform proposals aimed at reinvigorating the alliance, there will be a dedicated push to enhance military technology development among member states, Secretary General Jens Stoltenberg announced this week. “As part of NATO 2030, I intend to put further proposals on the table to maintain our technological edge, to develop common principles and standards for new technologies, and to enhance cooperation between allies in areas like joint research and development,” Stoltenberg said during a speech at the Globsec think tank's Bratislava Forum event. The NATO 2030 drill encompasses various strands of analyses by experts inside and outside the alliance command structure. The reform push goes back to a resolution from the 2019 London summit, which tasked the Norwegian prime minister at the time to lead a “reflection process” that would incorporate new threats like cyberwar, the rise of China, Russian saber-rattling, climate change and terrorism. Over the summer, Stoltenberg unveiled a new political tack emanating from the NATO 2030 study, postulating that the alliance would strive to increase its global reach, including in the Indo-Pacific. “Military strength is only part of the answer,” Stoltenberg said in a June speech. “We also need to use NATO more politically.” He reiterated that objective this week, saying the alliance would seek deeper ties with “like-minded” nations outside of NATO. Resilience is another key prong of the reform agenda, and Stoltenberg previewed a new push for member states to shore up their defenses against potentially hostile forces seeking to undermine the alliance through the back door. Such measures could come in the form of a common monitoring regime for keeping foreign investors from snapping up “critical infrastructure, companies and technologies,” Stoltenberg said. “And we should agree common principles and whether to export technologies that we rely on for our security,” he added. Also on the docket in the course of the reform process is a new strategic concept that would replace the existing version dating from 2010, Stoltenberg announced. https://www.defensenews.com/global/europe/2020/10/09/nato-chief-seeks-technology-gains-in-alliance-reform-push/