September 2005-September 2006: US Arms Sales to Foreign Countries Double

The United States signs more than $21 billion in arms sales agreements with foreign countries—twice as much as the previous year. Between September 2001 and and September 2005, annual foreign military sales was typically between $10 billion and $13 billion. The 100 percent increase in sales in attributed to several factors, including the Bush administration’s practice of rewarding loyal allies and client-states with arms; the increased purchasing power of Middle Eastern countries flush with oil revenue; and the decision to drop bans against selling weapons to countries like India, Pakistan, Indonesia, Tajikistan, Serbia and Montenegro, Armenia, and Azerbaijan. In 2005 Pakistan placed a $5 billion order for Lockheed Martin’s advanced F-16 jets. Next year’s arms sales is expected to be high also. Lt. Gen. Jeffrey B. Kohler, director of the Defense Security Cooperation Agency, tells the New York Times, “We’ve got a good start on 2007.” India is hoping to purchase as many as 126 new fighter jets, while Saudi Arabia has plans to spend $5.8 billion on US weapons for its National Guard and an additional $3 billion for Black Hawk helicopters, Abrams and Bradley armored land vehicles, new radio systems, and other weapons. Christopher E. Kubasik, chief financial officer of Lockheed, tells the Times its foreign buyers are “valued customers,” adding that the company plans “to continue to grow in that area.” [New York Times, 11/1/2006]