US arms exports hit record high

A report recently released by the US State Department shows that the country's arms sales and defense trade to foreign governments in 2023 increased by 16%, to a record high of 238 billion USD, in the context of continuing conflicts in many regions of the world.

There are two ways for foreign governments to purchase weapons from US companies. The first is direct trade through negotiations with a US government-authorized arms export company; the second is either through negotiations with the US Department of Defense under the Foreign Military Sales (FMS) model. Both require US government approval.

Military equipment sales through direct trade with US arms exporting companies in fiscal 2023 increased 2.5% to $157.5 billion, from $153.6 billion in fiscal 2022.

Meanwhile, revenue from FMS arms and defense services exports increased 55.9% in fiscal 2023 to $80.9 billion, up from $51.9 billion the previous year. Of the $80.9 billion in FMS arms exports, $62.25 billion was for arms sales to U.S. allies and partners, while $14.68 billion was financed through State Department programs. The remaining $3.97 billion was transferred through the Article 22 Foreign Military Financing program.

LAM DIEN

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