U.S. Arms Sales: Agreements with and Deliveries to Major Clients, 1997-2004

CRS Report for Congress
U.S. Arms Sales: Agreements with and
Deliveries to Major Clients, 1997-2004
December 29, 2005
Richard F. Grimmett
Specialist in National Defense
Foreign Affairs, Defense, and Trade Division

Congressional Research Service ˜ The Library of Congress

U.S. Arms Sales: Agreements with and Deliveries to
Major Clients, 1997-2004
Summary
This report provides background data on United States arms sales agreements
with and deliveries to its major purchasers during calendar years 1997-2004. In a
series of data tables, it lists the total dollar values of U.S. arms sales agreements with
its top five purchasers in five specific regions of the world for three specific periods:
1997-2000, 2001-2004, and 2004 alone, and the total dollar values of U.S. arms
deliveries to its top five purchasers in those same regions for the periods 1997-2000,
2001-2004, and for 2004 alone. In addition, the report provides data tables listing the
total dollar values of U.S. arms agreements with and deliveries to its top 10
purchasers worldwide for the periods 1997-2000, 2001-2004, and for 2004 alone.
This report is prepared in conjunction with the annual CRS report for Congress
entitled: Conventional Arms Transfers to Developing Nations, 1997-2004 (CRS
Report RL33051), by Richard Grimmett. That report details both U.S. and foreign
arms transfer activities globally, and provides analysis of arms trade trends. The
intent here is to complement that elaborate worldwide treatment of the international
arms trade by providing only the dollar values of United States arms sales agreements
with and delivery values to its leading customers, by geographic region, for the
calendar years 1997-2000, 2001-2004, and 2004. Unlike CRS Report RL33051, this
report focuses exclusively on U.S. arms sales, provides the specific names of the
major U.S. arms customers, by region, together with the total dollar values of their
arms purchases or deliveries. This report will not be updated.

Contents
U.S. Agreements with Leading Purchasers,1997-2004.................1
U.S. Deliveries to Leading Purchasers, 1997-2004....................4

U.S. Arms Sales: Agreements with and
Deliveries to Major Clients, 1997-2004
This report provides background data on United States arms sales agreements
with and deliveries to its major purchasers during calendar years 1997-2004. It
provides the total dollar values of U.S. arms agreements with its top five purchasers
in five specific regions of the world for the periods 1997-2000, 2001-2004, and for
2004, and the total dollar values of U.S. arms deliveries to its top five purchasers in
five specific regions for those same years. In addition, the report provides a listing
of the total dollar values of U.S. arms agreements with and deliveries to its top ten
purchasers for the periods 1997-2000, 2001-2004, and for 2004. The data are
official, unclassified, United States Defense Department figures compiled by the
Defense Security Cooperation Agency (DSCA), unless otherwise indicated. The data
have been restructured for this report by DSCA from a fiscal year format to a
calendar year format. Thus a year in this report covers the period from January 1-
December 31, and not the fiscal year period from October 1-September 30.¹
U.S. Agreements with Leading Purchasers,1997-2004
The following five regional tables provide the total dollar values of all U.S.
defense articles and defense services sold to the top five purchasers in each region
indicated for the calendar year(s) noted. These values represent the total value of all
government-to-government agreements actually concluded between the United States
and the foreign purchaser under the Foreign Military Sales (FMS) program during the²
calendar year(s) indicated. In a separate table, the total dollar values of all U.S.
defense articles and defense services sold to the top ten purchasers worldwide is
provided for calendar year period noted. All totals are expressed as current U.S.
dollars.

¹ The Defense Security Cooperation Agency (DSCA) publishes an annual volume providing
these data in a fiscal year format. This publication is titled Foreign Military Sales, Foreign
Military Construction Sales, and Military Assistance Facts. It provides detailed U.S. annual
transactions with countries and international organizations for the most recent ten fiscal
years, as of the date of publication, as well as aggregate data for these transactions since
FY1950. See DSCA website for this data under DSCA Facts Book at
[http://www.dsca.osd.mil/]. For detailed worldwide arms transfer data for U.S. and foreign
suppliers and recipients, see CRS Report RL33051, Conventional Arms Transfers to
Developing Nations, 1997-2004, by Richard F. Grimmett.
² Current U.S. law and regulations do not require U.S. companies to provide, routinely and
systematically, data on arms sales agreements actually concluded with foreign purchasers
resulting from commercial licenses authorized by the U.S. State Department. Thus, with one
very notable exception relating to the United Arab Emirates (U.A.E.) in 2000, the agreement
data in the following tables do not include the values of U.S. licensed commercial sales.

LEADING PURCHASERS OF U.S. DEFENSE ARTICLES & SERVICES
TOTAL VALUES OF AGREEMENTS CONCLUDED
(In current U.S. dollars, rounded to nearest million)
AFRICA AGREEMENTSAFRICAAGREEMENTSAFRICAAGREEMENTS
1997-2000 2001-2004 2004
1 Ethiopia $10 million1 Kenya $32 million1 Djibouti $10 million
2 Ghana $5 million2 Nigeria $29 million2 Kenya $6 million
3 Kenya $4 million3 South Africa $14 million3 Nigeria $6 million
4 Nigeria $3 million4 Djibouti $13 million4 Uganda $5 million
5 Senegal $3 million5 Uganda $6 million5 Ethiopia $3 million
AMERICAN AMERICAN AMERICAN
REPUBLICS REPUBLICS REPUBLICS
AGREEMENTS AGREEMENTS AGREEMENTS
1997-2000 2001-2004 2004
1 Canada $380 million1 Canada $689 million1 Brazil $205 million
2 Colombia $279 million*2 Chile $552 million2 Canada $160 million

3 Brazil $124 million3 Brazil $257 million3 Colombia $114 million*

4 Venezuela $81 million4 Columbia $236 million*4 Venezuela $8 million
5 Argentina $50 million5 Venezuela $51 million5 El Salvador $7 million
* Includes FMS sales related to international narcotics interdiction programs.
LEADING PURCHASERS OF U.S. DEFENSE ARTICLES & SERVICES
TOTAL VALUES OF AGREEMENTS CONCLUDED ^th
(In current U.S. dollars, rounded to nearest 10 million or 10 of a billion)
ASIA ASIAASIA
AGREEM ENTS AGREEM ENTS AGREEM ENTS
1997-2000 2001-2004 2004
1 South Korea $2.6 billion1 South Korea $3 billion1 Japan $850 million
2 Taiwan $1.9 billion2 Japan $3 billion2 Taiwan $590 million
3 Australia $1.3 billion3 Australia $1.2 billion 3 Australia $460 million
4 Japan $1.3 billion4 Taiwan $1.2 billion4 South Korea $340 million

5 Singapore $1.1 billion5 Singapore $1.1 billion5 Singapore $170 million

LEADING PURCHASERS OF U.S. DEFENSE ARTICLES & SERVICES
TOTAL VALUES OF AGREEMENTS CONCLUDED
(In current U.S. dollars, rounded to nearest 10 million or 10^th of a billion)
NEAR EAST NEAR EASTNEAR EAST
AGREEM ENTS AGREEM ENTS AGREEM ENTS
1997-2000 2001-2004 2004
1 U.A.E. $6.8 billion*1 Egypt $5.7 billion1 Saudi Arabia 1.6 billion
2 Egypt $5.5 billion2 Israel $4.4 billion2 Egypt $1.4 billion
3 Israel $4.9 billion3 Saudi Arabia $3.8 billion3 Israel $600 million
4 Saudi Arabia $4.1 billion4 Kuwait $1.8 billion4 Afghanistan $500 million
5 Bahrain $640 million5 Oman $960 million5 Jordan $400 million
* Includes a $6.432 billion licensed commercial agreement concluded in 2000 for 80 F-16
fighter aircraft.
EUROPE EUROPEEUROPE
AGREEM ENTS AGREEM ENTS AGREEM ENTS
1997-2000 2001-2004 2004
1 Greece $3 billion1 Poland $3.8 billion1 U.K. $440 million
2 Spain $1.3 billion2 U.K. $2 billion2 Netherlands $340 million
3 Germany $1.2 billion3 Greece $1.4 billion3 Greece $170 million
4 Turkey $1.2 billion4 Italy $1.2 billion4 Poland $160 million

5 Netherlands $930 million5 Netherlands $1 billion 5 Finland $130 million

^L^E^ADING^PURCHASE^R^{S OF U.S. DE}^FE^NSE^ART^ICL^E^S^{& SE}^RVICE^S
^T^O^T^A^L^VAL^UE^{S OF AG}^RE^E^M^E^N^T^S^CONCL^UDE^D^th
^{(In current U.S. do}^lla^{rs, ro}^{unded to}^nea^{rest 1}⁰^m^illio^{n o}^r¹⁰^o^f^a^billioⁿ⁾
^WORL^DWIDE^WORL^DWIDE^WORL^DWIDE
^AG^RE^E^M^E^N^T^S^A^G^R^EEM^EN^TS^A^G^R^EEM^EN^TS
^1997-2000^2001-2004²⁰⁰⁴
¹^U.A^.^{E. $}⁶^.⁸^b^illioⁿ^*¹^Eg^y^p^{t $}⁵^.⁷^b^illioⁿ¹^Sau^d^{i A}^r^ab^{ia $}¹^.⁶^b^illioⁿ
²^Eg^y^p^{t $}⁵^.⁵^b^illioⁿ²^I^s^r^{ael $}⁴^.⁴^b^illioⁿ²^Eg^y^p^{t $}¹^.⁴^b^illioⁿ
³^I^s^r^{ael $}⁴^.⁹^b^illioⁿ³^Sau^d^{i A}^r^ab^{ia $}³^.⁸^b^il.³^J^a^pan^{$850 m}^illion
⁴^Sau^d^{i A}^r^ab^{ia $}⁴^.¹^b^illioⁿ⁴^P^o^lan^d^$³^.⁸^b^illioⁿ⁴^Is^{rael $600 m}^illion
⁵^{Greece $}³^b^illioⁿ⁵^So^ut^{h K}^o^r^e^a^$³^bⁱ^l^.⁵^T^a^iw^an^{$590 m}^illion
⁶^So^u^t^h^Ko^r^{ea $}²^.⁶^b^illioⁿ⁶^J^a^p^aⁿ^$³^b^illioⁿ⁶^A^f^g^h^aⁿⁱ^s^t^an^{$500 m}^illion
⁷^T^a^iw^an^$¹^.⁹^b^illioⁿ⁷^{U.K. $}²^b^illioⁿ⁷^A^u^s^t^{ralia $460 m}^illion
⁸^Sp^ain^$¹^.³^b^illioⁿ⁸^Ku^w^a^{it $}¹^.⁸^b^illioⁿ⁸^{U.K. $440 m}^illion
⁹^A^u^str^a^{lia $}¹^.³^b^illioⁿ⁹^{Greece $}¹^.⁴^b^illioⁿ⁹^J^o^rdan^{$400 m}^illion
¹⁰^J^a^p^aⁿ^$¹^.³^b^illioⁿ¹⁰^A^u^str^a^{lia $}¹^.²^b^illioⁿ¹⁰^Sou^t^h^{Korea $340 m}^illion
^*^In^clu^d^es^{a $6.432 billion}^licen^s^e^{d com}^m^e^{rcial ag}^reem^en^{t in}^{2000 f}^o^{r 80 F-}^{16 f}ⁱ^g^h^t^{er aircraf}^t^.
U.S. Deliveries to Leading Purchasers, 1997-2004
The following five regional tables provide the total dollar values of all U.S.
defense articles and defense services delivered to the top five purchasers in each
region indicated for the calendar year(s) noted for all deliveries under the U.S.
Foreign Military Sales (FMS) program. These values represent the total value of all
government-to-government deliveries actually concluded between the United States
and the foreign purchaser under the FMS program during the calendar year(s)
indicated. Also included in these U.S. delivery totals are the total values of all
commercially licensed deliveries of defense articles and services actually made
during the fiscal year(s) noted.³
In a separate table (below), the total dollar values of all U.S. defense articles and
defense services actually delivered to the top ten purchasers worldwide is provided.
The delivery totals combine FMS deliveries concluded for the calendar year(s) noted,
and commercially licensed deliveries concluded for the pertinent fiscal year(s).

³ Current U.S. law and regulations require U.S. companies to provide detailed data to the
U.S. government on deliveries actually made to foreign purchasers based on licensed
commercial export authorizations previously given by the U.S. State Department. The
following delivery tables add the values of all commercially licensed deliveries of defense
articles and defense services actually made to the values of all Foreign Military Sales
(FMS) deliveries actually made. The U.S. FMS delivery data are for the calendar year(s)
noted, the commercially licensed delivery values included are for the pertinent fiscal years.
Commercial licensed delivery data are not currently available on a calendar year basis.

LEADING PURCHASERS OF U.S. DEFENSE ARTICLES & SERVICES
TOTAL VALUES OF DELIVERIES CONCLUDED
(In current U.S. dollars, rounded to nearest million)
AF RI CA AF RI CA AF RI CA
DELI VERI ES DELI VERI ES DELI VERI ES
1997-2000 2001-2004 2004
1 Kenya $10 million1 Nigeria $17 million1 South Africa $11 million
2 Ethiopia $9 million2 South Africa $16 mil.2 Nigeria $9 million
3 Senegal $6 million3 Kenya $11million3 Kenya $7 million
4 Uganda $4 million4 Ethiopia $5 million4 Ethiopia $3 million
5 Eritrea $3 million5 Benin $3 million5 Benin $2 million
AMERICANAMERICANAMERICAN REPUBLICS
REP UB L I CS REP UB L I CS DELI VERI ES
DELI VERI ES DELI VERI ES 2004
1997-2000 2001-2004
1 Canada $428 million1 Canada $765 million1 Canada $242 million
2 Colombia $253 million*2 Fr. Guiana $325 million2 Fr. Guiana $214 million
3 Brazil $205 million3 Colombia $273 million*3 Mexico $97 million
4 Venezuela $152 million4 Brazil $165 million4 Brazil $68 million

5 Argentina $54 million5 Mexico $115 million5 Colombia $62 million*

* Includes deliveries of defense articles and services previously sold that are related to
international narcotics programs.

LEADING PURCHASERS OF U.S. DEFENSE ARTICLES & SERVICES
TOTAL VALUES OF DELIVERIES CONCLUDED
(In current U.S. dollars, rounded to nearest 10 million or 10^th of a billion)
ASIA ASIAASIA
DELI VERI ES DELI VERI ES DELI VERI ES
1997-2000 2001-2004 2004
1 Taiwan $7.7 billion1 Japan $4.2 billion1 Japan $2 billion
2 South Korea $3.5 billion2 Taiwan $4 billion2 Taiwan $1.1 billion
3 Japan $2.6 billion 3 South Korea $2.6 billion 3 South Korea $830 million
4 Australia $1.3 billion4 Singapore $1.3 billion4 Singapore $590 million
5 Singapore $1.2 billion5 Australia $1.1 billion5 Australia $450 million
NEAR EAST NEAR EASTNEAR EAST
DELI VERI ES DELI VERI ES DELI VERI ES
1997-2000 2001-2004 2004
1 Saudi Arabia $16 billion1 Egypt $5.3 billion1 Egypt $1.7 billion
2 Israel $3.8 billion2 Saudi Arabia $4.7 billion2 Israel $1.5 billion
3 Egypt $3.2 billion3 Israel $3.6 billion3 Saudi Arabia $1.2 billion
4 Kuwait $1.4 billion 4 Kuwait $1 billion4 U.A.E. $370 million
5 Bahrain $480 million5 Jordan $300 million5 Afghanistan $270 million
^E^UROPE^E^UROPE^E^UROPE
^DE^L^I^VE^RIE^S^DE^L^I^VE^RIE^S^DE^L^I^VE^RIE^S
^1997-2000^2001-2004²⁰⁰⁴
¹^T^u^r^k^ey^$³^.⁴^b^illioⁿ¹^{Greece $}³^.⁴^b^illioⁿ¹^{U.K. $}¹^b^illioⁿ
²^Fin^l^an^d^$²^.⁵^b^illioⁿ²^{U.K. $}²^.⁴^b^illioⁿ²^{Greece $990 m}^illion
³^{Greece $}²^.¹^b^illioⁿ³^I^t^aly^$¹^.⁶^b^illioⁿ³^Italy^{$690 m}^illion
⁴^{U.K. $}¹^.⁸^b^illioⁿ⁴^T^u^r^k^ey^$¹^.⁶^b^illioⁿ⁴^Germ^an^y^{$500 m}^illion
⁵^Sw^itzer^lan^d^$¹^.³^b^illioⁿ⁵^Ger^m^an^y^$¹^.³^b^illioⁿ⁵^T^u^rk^ey^{$450 m}^illion

LEADING PURCHASERS OF U.S. DEFENSE ARTICLES & SERVICES
TOTAL VALUES OF DELIVERIES CONCLUDED
(In current U.S. dollars, rounded to nearest 10 million or 10^th of a billion)
WO RLDWI DE WO RLDWI DE WO RLDWI DE
DELI VERI ES DELI VERI ES DELI VERI ES
1997-2000 2001-2004 2004
1 Saudi Arabia $16 billion1 Egypt $5.3 billion 1 Japan $2 billion
2 Taiwan $7.7 billion2 Saudi Arabia $4.7 billion2 Egypt $1.7 billion
3 Israel $3.8 billion3 Japan $4.2 billion3 Israel $1.5 billion
4 South Korea $3.5 billion4 Taiwan $4 billion4 Saudi Arabia $1.2 billion
5 Turkey $3.4 billion5 Israel $3.6 billion5 Taiwan $1.1 billion
6 Egypt $3.2 billion6 Greece $3.4 billion6 U.K. $1 billion
7 Japan $2.6 billion7 South Korea $2.6 billion7 Greece $990 million
8 Finland $2.5 billion8 U.K. $2.4 billion8 South Korea $830 million
9 Greece $2.1billion9 Italy $1.6 billion9 Italy $690 million

10 U.K. $1.8 billion10 Turkey $1.6 billion10 Singapore $590 million