Sunday, September 6, 2009

U.S. Share of Worldwide Arms Market Grows

How can anyone say we are an agent of peace and stability in this world? We arm them with sophisticated weaponry, then we call them a threat to world peace, then we bomb them.

    New York Times -

    WASHINGTON — Despite a recession that knocked down global arms sales last year, the United States expanded its role as the world’s leading weapons supplier, increasing its share to more than two-thirds of all foreign armaments deals, according to a new Congressional study.

    The United States signed weapons agreements valued at $37.8 billion in 2008, or 68.4 percent of all business in the global arms bazaar, up significantly from American sales of $25.4 billion the year before.

    Italy was a distant second, with $3.7 billion in worldwide weapons agreements in 2008, while Russia was third with $3.5 billion in arms sales last year — down considerably from the $10.8 billion in weapons deals signed by Moscow in 2007.

    The growth in weapons sales by the United States last year was particularly noticeable against worldwide trends. The value of global arms sales in 2008 was $55.2 billion, a drop of 7.6 percent from 2007 and the lowest total for international weapons agreements since 2005.

    The increase in American weapons sales around the world “was attributable not only to major new orders from clients in the Near East and in Asia, but also to the continuation of significant equipment and support services contracts with a broad-based number of U.S. clients globally,” according to the study, titled “Conventional Arms Transfers to Developing Nations.”

    The annual report was produced by the nonpartisan Congressional Research Service, a division of the Library of Congress. Regarded as the most detailed collection of unclassified global arms sales data available to the general public, it was delivered to the House and Senate on Friday in time for their return from the Labor Day recess.

    The overall decline in weapons sales worldwide in 2008 can be explained by the reluctance of many nations to place new arms orders “in the face of the severe international recession,” wrote Richard F. Grimmett, a specialist in international security at the Congressional Research Service and author of the study.

    Mr. Grimmett’s report stated that the growth of weapons sales by the United States was “extraordinary” in a time of global recession, and was the result of new arms deals as well as the sustained cost of maintenance, upgrades, ammunition and spare parts to nations that purchased American weapons in the past.

    In the highly competitive global arms market, nations vie for both profit and political influence through weapons sales, in particular to developing nations, which remain “the primary focus of foreign arms sales activity by weapons suppliers,” according to the study.

    Weapons sales to developing nations reached $42.2 billion in 2008, only a nominal increase from the $41.1 billion in 2007.

    The United States was the leader not only in arms sales worldwide, but also to the subset of nations in the developing world, signing $29.6 billion in weapons agreements with these nations, or 70.1 percent of all such deals.

    The study found that the larger arms deals concluded by the United States with developing nations last year included a $6.5 billion air defense system for the United Arab Emirates, a $2.1 billion jet fighter deal with Morocco and a $2 billion attack helicopter agreement with Taiwan. Other large weapons agreements were reached between the United States and India, Iraq, Saudi Arabia, Egypt, South Korea and Brazil.