Conventional Arms Transfers to Developing Nations, 1999-2006

Conventional Arms Transfers to
Developing Nations, 1999-2006
September 26, 2007
Richard F. Grimmett
Specialist in National Defense
Foreign Affairs, Defense, and Trade Division



Conventional Arms Transfers to Developing Nations,
1999-2006
Summary
This report is prepared annually to provide Congress with official, unclassified,
quantitative data on conventional arms transfers to developing nations by the United
States and foreign countries for the preceding eight calendar years for use in its
policy oversight functions. All agreement and delivery data in this report for the
United States are government-to-government Foreign Military Sales transactions.
Some general data are provided on worldwide conventional arms transfers by all
suppliers, but the principal focus is the level of arms transfers by major weapons
suppliers to nations in the developing world.
Developing nations continue to be the primary focus of foreign arms sales
activity by weapons suppliers. During the years 1999-2006, the value of arms
transfer agreements with developing nations comprised 66.4% of all such agreements
worldwide. More recently, arms transfer agreements with developing nations
constituted 65.7% of all such agreements globally from 2003-2006, and 71.5% of
these agreements in 2006.
The value of all arms transfer agreements with developing nations in 2006 was
nearly $28.8 billion. This was a decrease from $31.8 billion in 2005. In 2006, the
value of all arms deliveries to developing nations was $19.9 billion, the lowest total
in these deliveries values for the entire 1999-2006 period (in constant 2006 dollars).
Recently, from 2003-2006, the United States and Russia have dominated the
arms market in the developing world, with the United States ranking first for 3 out
of 4 years in the value of arms transfer agreements, with Russia ranking second for
3 out of these same four years. From 2003-2006, the United States made $34.1
billion in arms transfer agreements with developing nations, in constant 2006 dollars,

32.4% of all such agreements. Russia, the second leading supplier during this period,


made $25.8 billion in arms transfer agreements, or 24.5%. Collectively, the United
States and Russia made 56.9% of all arms transfer agreements with developing
nations during this four year period.
In 2006, the United States ranked first in arms transfer agreements with
developing nations with $10.3 billion or 35.8% of these agreements. Russia was
second with $8.1 billion or 28.1% of such agreements. The United Kingdom was
third with $3.1 billion or 10.8%. In 2006, the United States ranked first in the value
of arms deliveries to developing nations at nearly $8 billion, or 40.2% of all such
deliveries. Russia ranked second at $5.5 billion or 27.7% of such deliveries. The
United Kingdom ranked third at $3.3 billion or 16.6% of such deliveries.
In 2006, Pakistan ranked first in the value of arms transfer agreements among
all developing nations weapons purchasers, concluding $5.1 billion in such
agreements. India ranked second with $3.5 billion in such agreements. Saudi
Arabia ranked third with $3.2 billion.



Contents
Introduction and Overview..........................................1
Major Findings....................................................4
General Trends in Arms Transfers Worldwide.......................4
General Trends in Arms Transfers to Developing Nations..............6
United States.............................................8
Russia ...................................................9
China ..................................................11
Major West European Suppliers.............................12
Regional Arms Transfer Agreements..............................14
Near East...............................................15
Asia ...................................................16
Leading Developing Nations Arms Purchasers......................17
Weapons Types Recently Delivered to Near East Nations.............18
United States............................................18
Russia ..................................................18
China ..................................................18
Major West European Suppliers.............................18
All Other European Suppliers...............................18
All Other Suppliers.......................................19
Summary of Data Trends, 1999-2006.................................21
Total Developing Nations Arms Transfer Agreement Values...........21
Regional Arms Transfer Agreements, 1999-2006....................27
Near East...............................................27
Asia ...................................................29
Latin America...........................................32
Africa ..................................................32
Arms Transfer Agreements With Developing Nations, 1999-2006:
Leading Suppliers Compared................................33
Arms Transfer Agreements With Developing Nations in 2006:
Leading Suppliers Compared................................33
Arms Transfer Agreements With Near East 1999-2006:
Suppliers and Recipients...................................34
Arms Transfers to Developing Nations, 1999-2006:
Agreements With Leading Recipients.........................35
Arms Transfers to Developing Nations in 2006:
Agreements With Leading Recipients.........................36
Developing Nations Arms Delivery Values.........................36
Regional Arms Delivery Values, 1999-2006........................41
Near East...............................................41
Asia ...................................................42
Latin America...........................................42
Africa ..................................................42
Arms Deliveries to Developing Nations, 1999-2006:
Leading Suppliers Compared................................43



Leading Suppliers Compared................................43
Arms Deliveries to Near East, 1999-2006: Suppliers and Recipients.....44
Arms Deliveries to Developing Nations, 1999-2006:
The Leading Recipients....................................45
Arms Transfers to Developing Nations in 2006:
Agreements With Leading Recipients.........................46
Selected Weapons Deliveries toDeveloping Nations, 1999-2006............69
Regional Weapons Deliveries Summary, 2003-2006.................69
Asia ...................................................70
Near East...............................................70
Latin America...........................................71
Africa ..................................................71
Worldwide Arms Transfer Agreements and Deliveries Values, 1999-2006....77
Total Worldwide Arms Transfer Agreements Values, 1999-2006.......77
Total Worldwide Delivery Values 1999-2006.......................78
Description of Items Counted in Weapons Categories, 1999-2006...........90
Regions Identified in Arms Transfer Tables and Charts...................91
List of Tables
Figure 1. Worldwide Arms Transfer Agreements, 1999-2006 and
Suppliers’ Share with Developing World
(in millions of constant 2006 U.S. dollars).........................26
Figure 2. Worldwide Arms Deliveries, 1999-2006 and Suppliers’
Share with Developing World
(in millions of constant 2006 U.S. dollars).........................40
Table 1. Arms Transfer Agreements With Developing Nations, by Supplier,
1999-2006 (in millions of current U.S. dollars)......................47
Table 1A. Arms Transfer Agreements with Developing Nations, by Supplier,
1999-2006 (in millions of constant 2006 U.S. dollars)................48
Table 1B. Arms Transfer Agreements with Developing Nations, by Supplier,
1999-2006(expressed as a percent of total, by year)..................49
Table 1C. Regional Arms Transfer Agreements, by Supplier, 1999-2006
(in millions of current U.S. dollars)...............................50
Table 1D. Percentage of Each Supplier’s Agreements Value by Region,
1999-2006 ..................................................51
Table 1E. Percentage of Total Agreements Value by Supplier to Regions,
1999-2006 ..................................................52
Table 1F. Arms Transfer Agreements with Developing Nations, 1999-2006:
Leading Suppliers Compared (in millions of current U.S. dollars).......53
Table 1G. Arms Transfer Agreements with Developing Nations in 2006:
Leading Suppliers Compared (in millions of current U.S. dollars).......54
Table 1H. Arms Transfer Agreements with Near East, by Supplier
(in millions of current U.S. dollars)...............................55
Table 1I. Arms Transfer Agreements of Developing Nations,
1999-2006: Agreements by the Leading Recipients
(in millions of current U.S. dollars)...............................56



Agreements by Leading Recipients (in millions of current U.S. dollars)..57
Table 2. Arms Deliveries to Developing Nations, by Supplier, 1999-2006
(in millions of current U.S. dollars)...............................58
Table 2A. Arms Deliveries to Developing Nations, by Supplier, 1999-2006
(in millions of constant 2006 U.S. dollars).........................59
Table 2B. Arms Deliveries to Developing Nations, by Supplier, 1999-2006
(expressed as a percent of total, by year)...........................60
Table 2C. Regional Arms Deliveries by Supplier, 1999-2006
(in millions of current U.S. dollars)...............................61
Table 2D. Percentage of Supplier Deliveries Value by Region, 1999-2006....62
Table 2E. Percentage of Total Deliveries Value by Supplier to Regions,
1999-2006 ..................................................63
Table 2F. Arms Deliveries to Developing Nations, 1999-2006
Leading Suppliers Compared
(in millions of current U.S. dollars)...............................64
Table 2G. Arms Deliveries to Developing Nations in 2006:
Leading Suppliers Compared
(in millions of current U.S. dollars)...............................65
Table 2H. Arms Deliveries to Near East, by Supplier
(in millions of current U.S. dollars)...............................66
Table 2I. Arms Deliveries to Developing Nations, 1999-2006:
The Leading Recipients
(in millions of current U.S. dollars)...............................67
Table 2J. Arms Deliveries to Developing Nations in 2006:
The Leading Recipients
(in millions of current U.S. dollars)...............................68
Table 3. Numbers of Weapons Delivered by Suppliers
to Developing Nations........................................72
Table 4. Number of Weapons Delivered by Suppliers
to Asia and the Pacific........................................73
Table 5. Numbers of Weapons Delivered by Suppliers
to Near East.................................................74
Table 6. Numbers of Weapons Delivered by Suppliers
to Latin America.............................................75
Table 7. Number of Weapons Delivered by Suppliers
to Africa...................................................76
Table 8. Arms Transfer Agreements with the World, by Supplier,
1999-2006 (in millions of current U.S. dollars)......................80
Table 8A. Arms Transfer Agreements with the World, by Supplier,
1999-2006 (in millions of constant 2006 U.S. dollars)................81
Table 8B. Arms Transfer Agreements with the World, by Supplier,
1999-2006 (expressed as a percent of total, by year)..................82
Table 8C. Arms Transfer Agreements with the World, 1999-2006:
Leading Suppliers Compared
(in millions of current U.S. dollars)...............................83
Table 8D. Arms Transfer Agreements with the World in 2006:
Leading Suppliers Compared
(in millions of current U.S. dollars)...............................84
Table 9. Arms Deliveries to the World, by Supplier, 1999-2006
(in millions of current U.S. dollars)...............................85



(in millions of constant 2006 U.S. dollars).........................86
Table 9B. Arms Deliveries to the World, by Supplier 1999-2006
(expressed as a percent of total, by year)...........................87
Table 9C. Arms Deliveries to the World, 1999-2006:
Leading Suppliers Compared
(in millions of current U.S. dollars)...............................88
Table 9D. Arms Deliveries to the World in 2006:
Leading Suppliers Compared
(in millions of current U.S. dollars)...............................89



Conventional Arms Transfers to Developing
Nations, 1999-2006
Introduction and Overview
This report provides Congress with official, unclassified, background data from
U.S. government sources on transfers of conventional arms to developing nations by
major suppliers for the period 1999 through 2006. It also includes some data on
worldwide supplier transactions. It updates and revises CRS Report RL33696,
Conventional Arms Transfers to Developing Nations, 1998-2005.
The data in this report provide a means for Congress to identify existing
supplier-purchaser relationships in conventional weapons acquisitions. Use of these
data can assist Congress in its oversight role of assessing whether the current nature
of the international weapons trade affects U.S. national interests. For most of recent
American history, maintaining regional stability, and ensuring the security of U.S.
allies and friendly nations throughout the world, have been important elements of
U.S. foreign policy. Knowing the degree to which individual arms suppliers are
making arms transfers to individual nations or regions provides Congress with a
context for evaluating policy questions it may confront. Such policy questions may
include, for example, whether or not to support specific U.S. arms sales to given
countries or regions or to support or oppose such arms transfers by other nations.
The data in this report may also assist Congress in evaluating whether multilateral
arms control arrangements or other U.S. foreign policy initiatives are being supported
or undermined by the actions of arms suppliers.
The principal focus of this report is the level of arms transfers by major weapons
suppliers to nations in the developing world — where most of the potential for the
outbreak of regional military conflicts currently exists. For decades, during the height
of the Cold War, providing conventional weapons to friendly states was an
instrument of foreign policy utilized by the United States and its allies. This was
equally true for the Soviet Union and its allies. The underlying rationale for U.S.
arms transfer policy then was to help ensure that friendly states were not placed at
risk through a military disadvantage created by arms transfers by the Soviet Union
or its allies.
The data in this report illustrate how global patterns of conventional arms
transfers have changed in the post-Cold War and post-Persian Gulf War years.
Relationships between arms suppliers and recipients continue to evolve in response
to changing political, military, and economic circumstances. Where before the
principal motivation for arms sales by foreign suppliers might have been to support
a foreign policy objective, today that motivation may be based as much on economic
considerations as those of foreign or national security policy.



In this context, the developing world continues to be the primary focus of
foreign arms sales activity by conventional weapons suppliers. During the period of
this report, 1999-2006, conventional arms transfer agreements (which represent
orders for future delivery) to developing nations comprised 66.4% of the value of all
international arms transfer agreements. The portion of agreements with developing
countries constituted 65.7% of all agreements globally from 2003-2006. In 2006,
arms transfer agreements with developing countries accounted for 71.5% of the value
of all such agreements globally. Deliveries of conventional arms to developing
nations, from 2003-2006, constituted 73.3% of all international arms deliveries. In
2006, arms deliveries to developing nations constituted 73.6% of the value of all such
arms deliveries worldwide.
The data in this new report supersede all data published in previous editions.
Since these new data for 1999-2006 reflect potentially significant updates to and
revisions in the underlying databases utilized for this report, only the data in this most
recent edition should be used. The data are expressed in U.S. dollars for the calendar
years indicated, and adjusted for inflation (see box notes on page 3). U.S.
commercially licensed arms export delivery values are excluded (see box note on
page 20). Also excluded are arms transfers by any supplier to subnational groups.
The definition of developing nations, as used in this report, and the specific classes
of items included in its values totals are found in box notes on page 3. The report’s
table of contents provides a detailed listing and description of the various data tables
and summaries which can guide the reader to specific items of interest.



CALENDAR YEAR DATA USED
All arms transfer and arms delivery data in this report are for the calendar
year or calendar year period given. This applies to U.S. and foreign data alike.
United States government departments and agencies publish data on U.S. arms
transfers and deliveries but generally use the United States fiscal year as the
computational time period for these data. As a consequence, there are likely to be
distinct differences noted in those published totals using a fiscal year basis and
those provided in this report which use a calendar year basis. Details on data
used are outlined in footnotes at the bottom of Tables 1, 2, 8 and 9.
ARMS TRANSFER VALUES
The values of arms transfer agreements (or deliveries) in this report refer to the
total values of conventional arms orders (or deliveries as the case may be)
which include all categories of weapons and ammunition, military spare parts,
military construction, military assistance and training programs, and all
associated services.
DEFINITION OF DEVELOPING NATIONS AND REGIONS
As used in this report, the developing nations category includes all countries
except the United States, Russia, European nations, Canada, Japan, Australia, and
New Zealand. A listing of countries located in the regions defined for the purpose
of this analysis — Asia, Near East, Latin America, and Africa — is provided at the
end of the report.
CONSTANT 2006 DOLLARS
Throughout this report values of arms transfer agreements and values of arms
deliveries for all suppliers are expressed in U.S. dollars. Values for any given year
generally reflect the exchange rates that prevailed during that specific year. The
report converts these dollar amounts (current dollars) into constant 2006 dollars.
Although this helps to eliminate the distorting effects of U.S. inflation to permit
a more accurate comparison of various dollar levels over time, the effects of
fluctuating exchange rates are not neutralized. The deflators used for the
constant dollar calculations in this report are those provided by the U.S.
Department of Defense and are set out at the bottom of tables 1A, 2A, 8A, and
9A. Unless otherwise noted in the report, all dollar values are stated in
constant terms. The exceptions to this rule are all regional data tables that are
composed of four-year aggregate dollar totals (1999-2002 and 2003-2006). These
tables are expressed in current dollar terms. And where tables rank leading arms
suppliers to developing nations or leading developing nation recipients using four-
year aggregate dollar totals, these values are expressed in current dollars.



Major Findings
General Trends in Arms Transfers Worldwide
The value of all arms transfer agreements worldwide (to both developed and
developing nations) in 2006 was $40.3 billion. This was a decrease in arms
agreements values over 2005, a decline of nearly 13% (Chart 1)(Table 8A).
In 2006, the United States led in arms transfer agreements worldwide, making
agreements valued at $16.9 billion (41.9% of all such agreements),up from $13.5
billion in 2005. Russia ranked second with $8.7 billion in agreements (21.6% of
these agreements globally), up from $7.5 billion in 2005. The United Kingdom
ranked third, its arms transfer agreements worldwide standing at $3.1 billion in 2006,
up from $2.9 billion in 2005. The United States, Russia, and the United Kingdom
collectively made agreements in 2006 valued at $28.7 billion, 71.2% of all
international arms transfer agreements made by all suppliers (Figure 1)(Tables 8A,

8B, and 8D).


For the period 2003-2006, the total value of all international arms transfer
agreements ($160 billion) was higher than the worldwide value during 1999-2002
($156.7 billion), an increase of 2.1%. During the period 1999-2002, developing
world nations accounted for 67.1% of the value of all arms transfer agreements made
worldwide. During 2003-2006, developing world nations accounted for 65.7% of all
arms transfer agreements made globally. In 2006, developing nations accounted for

71.5% of all arms transfer agreements made worldwide (Figure 1)(Table 8A).


In 2006, the United States ranked first in the value of all arms deliveries
worldwide, making $14 billion in such deliveries or 51.9%. This is the eighth year
in a row that the United States has led in global arms deliveries. Russia ranked
second in worldwide arms deliveries in 2006, making $5.8 billion in such deliveries.
The United Kingdom ranked third in 2006, making $3.3 billion in such deliveries.
These top three suppliers of arms in 2006 collectively delivered nearly $23.1 billion,
85.6% of all arms delivered worldwide by all suppliers in that year (Figure 2)(Tables

9A, 9B, and 9D).


The value of all international arms deliveries in 2006 was $27 billion. This is
a increase in the total value of arms deliveries from the previous year (a rise from
$26.2 billion), but still the second lowest deliveries total for the 1999-2006 period.
Moreover, the total value of such arms deliveries worldwide in 2003-2006 ($120.7
billion) was substantially lower in the value of arms deliveries by all suppliers
worldwide from 1999-2002 ($144.8 billion, a decline of over $24 billion) (Figure

2)(Tables 9A and 9B)(Charts 7 and 8).


Developing nations from 2003-2006 accounted for 73.3% of the value of all
international arms deliveries. In the earlier period, 1999-2002, developing nations
accounted for 71.7% of the value of all arms deliveries worldwide. In 2006,
developing nations collectively accounted for 73.6% of the value of all international
arms deliveries (Figure 2)(Tables 2A, 9A, and 9B).



Worldwide weapons orders declined in 2006. The total of $40.3 billion, fell
from $46.3 billion in 2005, a decline of nearly 13%. Global arms agreement values
for the years other than 2006 ranged from $46.3 billion in 2005 to $31.7 billion in
2003. Of the major arms orders secured in 2006 most were made by the traditional
major suppliers. In some instances these orders represented significant new
acquisitions by the purchasing country. In others they reflected the continuation of
a longer term weapons acquisition program.
A decline in new weapons sales can also be explained, in part, by the practical
need for some purchasing nations to absorb and integrate major weapons systems
they have already purchased into their force structures. The need to do this may, at
the same time, increase the number of arms contracts related to training and support
services, even as it reduces the number of large and costly orders for new military
equipment.
An intensely competitive weapons marketplace continues to lead several
producing countries to focus sales efforts on prospective clients in nations and
regions where individual suppliers have had competitive advantages resulting from
well established military support relationships. Within Europe, arms sales to new
NATO member nations to support their military modernization programs have
created new business for arms suppliers, while allowing these NATO states to sell
some of their older generation military equipment, in refurbished form, to other less-
developed countries. While there are inherent limitations on these European sales
due to the smaller defense budgets of many of the purchasing countries, creative
seller financing options, as well as the use of co-assembly, co-production, and
counter-trade agreements to offset costs to the buyers, have continued to facilitate
new arms agreements. The United States and European countries or consortia seem
likely to compete vigorously for prospective arms contracts within the European
region in the foreseeable future. Such sales seem particularly important to European
suppliers, as they can potentially compensate, in part, for lost weapons deals
elsewhere in the developing world that result from reduced demand for new weapons.
Efforts also continue among developed nations to protect important elements
of their national military industrial bases by limiting arms purchases from other
developed nations. Nevertheless, several key arms suppliers have placed additional
emphasis on joint production of various weapons systems with other developed
nations as a more effective way to preserve a domestic weapons production
capability, while sharing the costs of new weapons development. The consolidation
of certain sectors of the domestic defense industries of key weapons producing
nations continues, in the face of intense foreign competition. At the same time, some
supplying nations have chosen to manufacture items for niche weapons categories
where their specialized production capabilities give them important advantages in the
evolving international arms marketplace.
Some developing nations have reduced their weapons purchases in recent years
primarily due to their limited financial resources to pay for such equipment. Other
prospective arms purchasers in the developing world with significant financial assets
have exercised caution in launching new and costly weapons procurement programs.
Increases in the price of oil, while an advantage for major oil producing states in
funding their arms purchases, has, simultaneously, caused economic difficulties for



many oil consuming states, contributing to their decisions to defer or curtail new
weapons purchases. The state of the world economy has induced a number of
developing nations to choose to upgrade existing weapons systems in their
inventories, while reducing their purchases of new ones. This approach may curtail
sales of new weapons systems for a time, but the weapons upgrade market can be
very lucrative for some arms producers, and partially mitigate the effect of losing
major new sales.
Although, overall, there appear to be fewer large weapons purchases being made
by developing nations in the Near East and in Asia, when contrasted with arms sales
activity over a decade ago, major purchases continue to be made by a select few
developing nations in these regions. These purchases have been made principally by
China and India in Asia, and Saudi Arabia in the Near East. Even though these
tendencies are subject to abrupt change based on the strength of either the regional
or international economies, or the threat assessments of individual states, the strength
of individual economies of a wide range of nations in the developing world continues
to be a significant factor in the timing of many of their arms purchasing decisions.
Latin America, and, to a much lesser extent, Africa, are regions where some
nations continue to express interest in modernizing important sectors of their military
forces. Some large arms orders (by regional standards) have been placed by a few
states in these two regions within the last decade. But in Latin America and Africa,
as with most nations in the developing world, nations are constrained in their
weapons purchases by their existing financial resources. So long as there is limited
availability of seller-supplied credit and financing for weapons purchases, and
national budgets for military purchases remain relatively low, it seems likely that
major arms sales to these two regions of the developing world will remain sporadic
in nature.
General Trends in Arms Transfers to Developing Nations
The value of all arms transfer agreements with developing nations in 2006 was
nearly $28.8 billion, a decrease from the $31.8 billion total in 2005 Chart 1)(Figure
1)(Table 1A). In 2006, the value of all arms deliveries to developing nations ($19.9
billion) was lower than the value of 2005 deliveries (over $20.3 billion), and the
lowest total for the 1999-2006 period (Charts 7 and 8)(Figure 2)(Table 2A).
Recently, from 2003-2006, the United States and Russia have dominated the
arms market in the developing world. The United States ranked first for 3 out of 4
years during this period, while Russia ranked second for 3 out of 4 of these years in
the value of arms transfer agreements. From 2003-2006, the United States made
$34.1 billion in arms transfer agreements with developing nations, 32.4% of all such
agreements. Russia, the second leading supplier during this period, made $25.8
billion in arms transfer agreements or 24.5%. The United Kingdom, the third leading
supplier, from 2003-2006 made $10.5 billion or 10% of all such agreements with
developing nations during these years. In the earlier period (1999-2002) the United
States ranked first with $45.4 billion in arms transfer agreements with developing
nations or 43.1%; Russia made $25.4 billion in arms transfer agreements during this
period or 24.1%. France made $5.5 billion in agreements or 5.2% (Table 1A).



From 1999-2006, most arms transfers to developing nations were made by two
to three major suppliers in any given year. The United States has ranked first among
these suppliers for seven of the last eight years during this period, falling to third
place in 2005. Russia has been a continuing strong competitor for the lead in arms
transfer agreements with developing nations, ranking second every year from 1999
through 2004, and first in 2005. Despite its lack of the larger traditional client base
for armaments held by the United States and the major West European suppliers,
Russia’s recent successes in concluding new arms orders suggests that Russia is
likely to continue to be, for the short term at least, a significant leader in arms
agreements with developing nations. Russia’s most significant high value arms
transfer agreements continue to be with China and India, Russia has had some
success in concluding arms agreements with clients beyond its principal two. Russia
continues to seek to expand its prospects in North Africa, the Middle East, and
Southeast Asia.
Most recently Russia has increased sales efforts in Latin America, despite
having essentially abandoned major arms sales efforts there following the Cold War’s
end. Venezuela has become a significant new arms client gained by Russia in this
region. The Russian government has further stated that it has adopted more flexible
payment arrangements for its prospective customers in the developing world,
including a willingness in specific cases to forgive outstanding debts owed to it by
a prospective client in order to secure new arms purchases. Furthermore, Russia
continues its efforts to enhance the quality of its follow-on support services to make
Russian products more attractive and competitive, and to assure its potential clients
that it can effectively provide timely service for weapons systems it exports.
Major West European arms suppliers, such as France and the United Kingdom,
have concluded large orders with developing countries over the last eight years, based
on either long-term supply relationships or their having specialized weapons systems
they can readily provide. Germany has been a key source of naval systems for
developing nations. Despite increased competition between the United States and the
other major arms suppliers, the U.S. appears likely to hold its position as the
principal supplier to key developing world nations, especially those able to afford
major new weapons. Because the United States has developed such a wide base of
arms equipment clients globally it is able to conclude a notable number of
agreements annually to provide upgrades, ordnance and support services for the large
variety of weapons systems it has sold to its clients for decades. Thus, even when the
U.S. does not conclude major new arms agreements in a given year, it can still
register significant arms agreement values based on transactions in these other
categories.
The wealthier developing countries continue as the focus for new arms sales by
the principal supplying nations. Arms transfers to the less affluent developing
nations also continue to be constrained by the scarcity of funds in their defense
budgets, and the unsettled state of the international economy. The overall decline in
the level of the arms agreements with developing nations that began in 2001 and
continued until 2004, appears to have halted. There was a rise in arms agreements
with the developing world in 2004 and again in 2005. Although there was a decline
in arms agreements with the developing world in 2006, the overall level of arms
agreements with such nations from 2004-2006 has been on the increase.



China, other European, and non-European suppliers, such as Sweden and Israel,
appear to have increased their participation in the arms trade with the developing
world in recent years, albeit at a much lower levels, and with uneven results, than
those of the major suppliers. Nevertheless, these non-major arms suppliers have
proven capable, on occasion, of making arms deals of consequence. Most of their
annual arms transfer agreement values during 1999-2006 have been comparatively
low, although larger when they are aggregated together as a group. In various cases
they have been successful in selling older generation equipment, even while they
procure newer weaponry to update their own military forces. These arms suppliers
also are more likely to be sources of small arms and light weapons, and associated
ordnance, rather than routine sellers of major military equipment. Most of these arms
suppliers are not likely to consistently rank with the traditional major suppliers of
advanced weaponry in the value of their arms agreements and deliveries (Tables 1A,

1F, 1G, 2A, 2F, and 2G).


United States. The total value — in real terms — of United States arms
transfer agreements with developing nations rose from $6.5 billion in 2005 to $10.3
billion in 2006. The U.S. share of the value of all such agreements was 35.8% in
2006, up from a 20.4% share in 2005 (Charts 1, 3 and 4)(Figure 1)(Tables 1A and

1B).


In 2006, the total value of U.S. arms transfer agreements with developing
nations was attributable to a couple of major deals with clients in Asia, particularly
with Pakistan, and in the Near East. A substantial number of smaller valued
purchases by a wide number of traditional U.S. arms clients throughout the Near East
and Asia contributed notably to the overall U.S. agreements total. The arms
agreement total of the United States in 2006 illustrates the continuing U.S. advantage
of having well established defense support arrangements with weapons purchasers
worldwide, based upon the existing variety of U.S. weapons systems their militaries
utilize. U.S. agreements with all of its clients in 2006 include not only sales of major
weapons systems, but also the upgrading of systems previously provided. The U.S.
totals also include agreements for a wide variety of spare parts, ammunition,
ordnance, training, and support services which, in the aggregate, have significant
value.
Among the larger valued arms transfer agreements the United States concluded
in 2006 with developing nations were: with Pakistan for the purchase of 36 F-16C/D
Block 50/52 fighter aircraft for $1.4 billion; a variety of missiles and bombs to be
utilized on the F-16 C/D fighter aircraft for over $640 million; the purchase of Mid-
Life Update Modification Kits to upgrade Pakistan’s F-16A/B aircraft for $890
million; and for 115 M109A5 155mm Self-propelled howitzers for $52 million.
Other U.S. arms agreements in 2006 were with Saudi Arabia for re-manufacturing
and upgrading its AH-64A APACHE helicopters to the AH-64D model, together
with associated equipment for $340 million; for 165 LINK MIDS/LVT
communications terminals and associated equipment for $134 million; with the
United Arab Emirates for Evolved Seasparrow Ship to Air missiles for $106 million;
with Singapore for a variety of missiles, bombs and associated support for its F-15
fighter aircraft for $191 million, as well as for pilot training and support its F-16s for
$104 million; and with South Korea for 58 Harpoon Block II missiles for $114
million.



Russia. The total value of Russia’s arms transfer agreements with developing
nations in 2006 was $8.1 billion, a increase from $7.2 billion in 2005, placing Russia
second in such agreements with the developing world. Russia’s share of all
developing world arms transfer agreements increased, rose from 22.6% in 2005 to

28.1% in 2006 (Charts 1, 3, and 4)(Figure 1)(Tables 1A, 1B, and 1G).


Russian arms transfer agreement totals with developing nations have been
notable during the last four years. During the 2003-2006 period, Russia ranked
second among all suppliers to developing countries, making $25.8 billion in
agreements (in current 2006 dollars) (Table 1F). Russia’s status as a leading
supplier of arms to developing nations stems from an increasingly successful effort
to overcome the significant economic and political problems associated with the
dissolution of the former Soviet Union. The traditional arms clients of the former
Soviet Union were generally less wealthy developing countries valued as much for
their political support in the Cold War, as for their desire for Soviet weaponry. Many
of these Soviet-era client states received substantial military aid grants and significant
discounts on their arms purchases. After 1991 Russia consistently placed a premium
on obtaining hard currency for the weapons it sold. Faced with stiff competition
from Western arms suppliers in the 1990s and the early part of this decade, Russia
gradually adapted its selling practices in an effort to regain and sustain an important
share of the developing world arms market.
Russian leaders, in recent years, have made significant efforts to provide more
creative financing and payment options for prospective arms clients. They have also
agreed to engage in counter-trade, offsets, debt-swapping, and, in key cases, to make
significant licensed production agreements in order to sell its weapons. The
willingness to license production has been a central element in several cases
involving Russia’s principal arms clients, China and India. Russia’s efforts to
expand its arms customer base have met with mixed results. Russia’s arms sales
efforts, beyond those with China and India, have been primarily focused on Southeast
Asia. It has had some success in securing arms agreements with Malaysia, Vietnam
and Indonesia, even though recurring financial problems of some clients in this
region have hampered significant growth in Russian sales there. Most recently it has
concluded major arms deals with Venezuela and with Algeria. Elsewhere in the
developing world Russian military equipment is competitive because it ranges from
the most basic to the highly advanced, and can be less expensive than similar arms
available from other major suppliers.
Sale of military aircraft and missiles continues to be a significant portion of
Russia’s arms exports. Yet the absence of major new research and development
efforts in this and other military equipment areas may jeopardize long-term Russian
foreign arms sales prospects. While military weapons research and development
(R&D) programs exist in Russia, other major arms suppliers in the West are currently
well advanced in the process of developing and producing weaponry that is much
more advanced than that in existing Russian R&D programs.
In spite of these potential difficulties, Russia continues to have important arms
development and sales programs involving China and India, which should provide
it with sustained business throughout this decade. Through agreements concluded



in the mid-1990s, Russia has sold major combat fighter aircraft, and main battle tanks
to India, and has provided other major weapons systems though lease or licenced
production. It continues to provide support services and items for these various
weapons systems. In 2006, Russia largest arms agreement with India was for the
sale of 3 Talwar-class frigates for an estimated $1.3-1.6 billion.
Sales of advanced weaponry in South Asia by Russia have been a matter of
ongoing concern to the United States, because of long-standing tensions between
India and Pakistan. The acquisition of a new weapon system by India has usually led
Pakistan to seek comparable weapons or those with offsetting capabilities. Keeping
a potentially destabilizing arms race in this region within check is a U.S. policy1
objective.
Russia’s other key arms client in Asia has been China, especially for advanced
aircraft and naval systems. Since 1996, Russia has sold China Su-27 fighter aircraft
and agreed to licensed production of them. It has sold the Chinese quantities of Su-
30 multi-role fighter aircraft, Sovremenny-class destroyers equipped with Sunburn
anti-ship missiles, and Kilo-class Project 636 submarines. Russia has also sold the
Chinese a variety of other weapons systems and missiles. In 2005, Russia agreed to
sell China 30 IL-76TD military transport aircraft and 8 IL-78M aerial refueling tanker
aircraft for more than $1 billion. Russia also signed new arms transfer agreements
with China for a number of AL-31F military aircraft engines for $1 billion, and
agreed to sell jet engines for China’s FC-1 fighter aircraft at a cost in excess of $250
million. Chinese arms acquisitions are apparently aimed at enhancing its military
projection capabilities in Asia, and its ability to influence events throughout the
region. These acquisitions continue to be monitored by U.S. policymakers. The U.S.
policy interest is, among other things, ensuring that it provides appropriate military
equipment to U.S. allies and friendly states in Asia to help offset any prospective
threat China may pose to such nations, while keeping the U.S. military aware of any2
threat it may face in any confrontation with China. In 2006 there were no especially
large Chinese arms agreements with Russia, possibly because the Chinese military
is focused on absorbing and integrating previous arms purchases from Russia into its
force structure.
Among the most significant arms transfer deals Russia made in 2006, was with
Algeria. This package of agreements included the sale of 28 Su-30MKA fighter
aircraft, 36 Mig-29SMT fighter aircraft, 16 Yak-130 advanced training aircraft; 8
battalions of S-300 PMU-2 SAM systems, a number of Pantsir-S1 (SA-22) air-
defense missile systems, and a number of T-90S Main Battle Tanks. The total cost
of all of these weapons and associated equipment is estimated at $7.5 billion.


1 For detailed background see CRS Report RL33515, Combat Aircraft Sales to South Asia:
Potential Implications, by Christopher Bolkcom, Richard F. Grimmett, and K. Alan
Kronstadt; CRS Report RL32115, Missile Proliferation and the Strategic Balance in South
Asia, by Andrew Feickert and K. Alan Kronstadt; and CRS Report RL30427, Missile
Survey: Ballistic and Cruise Missiles of Selected Foreign Countries, by Andrew Feickert.
2 For detailed background see CRS Report RL30700, China’s Foreign Conventional Arms
Acquisitions: Background and Analysis, by Shirley Kan, Christopher Bolkcom, and Ronald
O'Rourk; and CRS Report RL33153, China Naval Modernization: Implications for U.S.
Navy Capabilities — Background and Issues for Congress, by Ronald O'Rourke.

However, about $4.7 billion of this total is being paid through forgiveness of
Algerian debt to Russia, thus lowering the overall value of the sales package.
In 2006, Russia also made substantial new arms sales to Venezuela. Venezuela
has major oil reserves. It, therefore, has the means to pay for advanced, and
expensive, military equipment, making it a very attractive customer for Russia.
During 2006 Russia reached a significant agreement with Venezuela for the sale of
a package of military aircraft. Key elements of this agreement included the sale of
24 Su-30MK2V fighter aircraft for an amount in excess of $1 billion, together with
the purchase of a number of attack and transport helicopters, including Mi-17, Mi-26,
and Mi-35 models, collectively costing in excess of $700 million. Russia also sold
Venezuela a substantial number of AK-103 assault rifles, and agreed to establish a
factory in Venezuela for the production of both AK-103 assault rifles and the
production of 7.62mm ammunition at a cost in excess of $500 million. Venezuela’s
populist President, Hugo Chavez, has taken a hostile approach to relations with the
United States in recent years. Thus his decision to seek advanced military equipment
from Russia is a matter of U.S. concern. Chavez appears embarked on a effort to
make Venezuela an important military force in Latin America. And since he has
made clear that he plans to obtain additional advanced weapons systems from Russia,
there is concern that such purchases could stimulate other states in the region to seek
comparable weapons systems as a counterweight to Chavez’s military buildup.3
China. In the 1980s the Iran-Iraq war provided the opportunity for China to
become an important supplier of less expensive weapons to certain developing
nations. During that conflict China demonstrated that it was willing to provide arms
to both combatants in the war, in quantity and without conditions. From 2003-2006,
the value of China’s arms transfer agreements with developing nations averaged
about $1.3 billion annually, a figure skewed by a very large agreements total of $2.6
billion in 2005. During the period of this report, the value of China’s arms transfer
agreements with developing nations peaked in 1999 at $2.8 billion. China’s sales
figures that year, and in 2005, generally resulted from several smaller valued
weapons deals in Asia, Africa, and the Near East, rather than one or two especially
large agreements for major weapons systems. Similar arms deals with small scale
purchasers in these regions are continuing. In 2006, China’s arms transfer
agreements total was $800 million, a figure reflecting a variety of smaller sales to a
range of established customers (Tables 1A, 1G, and 1H)(Chart 3).
Few nations with significant financial resources have sought to purchase
Chinese military equipment during the eight year period of this report, because most
Chinese weapons for export are less advanced and sophisticated than weaponry
available from Western suppliers or Russia. China, consequently, does not appear
likely to be a major supplier of conventional weapons in the international arms
market in the foreseeable future. Its most likely clients are states in Asia and Africa
seeking quantities of small arms and light weapons, rather than major combat
systems. At the same time, China has been an important source of missiles in the
developing world arms market. China supplied Silkworm anti-ship missiles to Iran.


3 For detailed background on Chavez’s policy initiatives in Venezuela, and U.S. concerns
see CRS Report RL32488, Venezuela: Political Conditions and U.S. Policy, by Mark P.
Sullivan and Nelson Olhero.

Credible reports persist in various publications that China has sold surface-to-surface
missiles to Pakistan, a long-standing and important client. Iran and North Korea have
also reportedly received Chinese missile technology, which has increased their
capabilities to threaten other countries in their respective neighborhoods. The
continued reporting of such activities by credible sources raise important questions
about China’s stated commitment to the restrictions on missile transfers set out in the
Missile Technology Control Regime (MTCR), including its pledge not to assist
others in building missiles that could deliver nuclear weapons. Since China has some
military products — particularly missiles — that some developing countries would
like to acquire, it can present an obstacle to efforts to stem proliferation of advanced
missile systems to some areas of the developing world where political and military
tensions are significant, and where some nations are seeking to develop asymmetric
military capabilities.4
China, among others, has been a key source of a variety of small arms and light
weapons transferred to African states. Although the prospects for significant revenue
earnings from these arms sales are limited, China views such sales as one means of
enhancing its status as an international political power, and increasing its ability to
obtain access to significant natural resources, especially oil. Controlling the sales
of small arms and light weapons to regions of conflict, in particular to some African
nations, has been a matter of concern to the United States. The United Nations also
has undertaken an examination of this issue in an effort to achieve consensus on a
path to address it.5
Major West European Suppliers. Beyond the United States and Russia,
the four major West European arms suppliers — France, the United Kingdom,
Germany, and Italy — are the nations that can supply a wide variety of more highly
sophisticated weapons to would-be purchasers. They can serve as alternative sources
of armaments that the United States chooses not to supply for policy reasons. The
United Kingdom sold major combat fighter aircraft to Saudi Arabia in the mid-1980s,
when the U.S. chose not to sell a comparable aircraft for policy reasons. These four
NATO nations have been allies of the United States especially during the Cold War.
Yet in the post-Cold War era, their national defense export policies have not been
fully coordinated with the United States as likely would have been the case at the
Cold War’s height.
These European arms supplying states, particularly France, view arms sales
foremost as a matter for national decision. France has also frequently used foreign
military sales as an important means for underwriting development and procurement


4 For detailed background on the MTCR and proliferation control regimes and related policy
issues see CRS Report RL31559, Proliferation Control Regimes: Background and Status,
coordinated by Sharon Squassoni, and CRS Report RL31848, Missile Technology Control
Regime (MTCR) and International Code of Conduct Against Ballistic Missile Proliferation
(ICOC): Background and Issues for Congress, by Andrew Feickert.
5 For background on China’s actions and motivations for increased activities in Africa see
CRS Report RL33055, China and Sub-Saharan Africa, by Raymond W. Copson, Kerry
Dumbaugh, and Michelle Lau. For background on U.S. policy concerns regarding small
arms and light weapons transfers see CRS Report RS20958, International Small Arms and
Light Weapons Transfers: U.S. Policy, by Richard F. Grimmett.

of weapons systems for its own military forces. So the potential exists for policy
differences between the United States and major West European supplying states
over conventional weapons transfers to specific countries. Such a conflict resulted
from an effort led by France and Germany to lift the arms embargo on arms sales to
China currently adhered to by members of the European Union. The United States
viewed this as a misguided effort, and vigorously opposed it. The proposal to lift the
embargo was ultimately not adopted, but it proved to be a source of significant
tension between the U.S. and the European Union. Thus, arms sales activities of
major European suppliers continue to be of interest to U.S. policymakers, given their
capability to make sales of advanced military equipment to countries of concern to
U.S. national security policy.6
The four major West European suppliers (France, the United Kingdom,
Germany, and Italy), as a group, registered a decline in their collective share of all
arms transfer agreements with developing nations between 2005 and 2006. This
group’s share fell from 34.4% in 2005 to 19.1% in 2006. The collective value of this
group’s arms transfer agreements with developing nations in 2006 was $5.5 billion
compared with a total of $10.9 billion in 2005. Of these four nations, the United
Kingdom was the leading supplier with $3.1 billion in agreements in 2006, an
increase from $2.9 billion in agreements in 2005. A substantial portion of the United
Kingdom’s $3.1 billion agreement total in 2006 was attributable to orders placed
under the Al Yamamah military procurement arrangement with Saudi Arabia.
Germany’s $1.8 billion in arms agreements in 2006 resulted from an agreement with
Brazil for licensed production of a Type ILK 214 submarine and the upgrading of
five existing Type 209 submarines, and from an Israeli order for two Type 800
Dolphin class submarines (Charts 3 and 4)(Tables 1A and 1B).
The four major West European suppliers collectively held a 19.1% share of all
arms transfer agreements with developing nations during 2006. For four years after
1999, the major West European suppliers continued to lose their relative share of
arms transfer agreements. In 2004 and 2005 this decline was dramatically halted,
with the 2005 market share of arms agreements with developing nations (34.4%)
being the highest share the four major West European suppliers have held since 1999.
During the 2003-2006 period, they collectively held 23% of all arms transfer
agreements with developing nations ($24.2 billion). Individual suppliers within the
major West European group have had notable years for arms agreements, especially
France in 2000 and 2005 ($2.6 billion and $6.7 billion respectively). The United
Kingdom also had large agreement years in 2004 ($4.4 billion), in 2005 ($2.9
billion), and $3.1 billion in 2006. Germany concluded arms agreements totaling
nearly $2 billion in 1999, and $1.8 billion in 2006. In the case of each of these three
European nations, large agreement totals in one year have usually reflected the


6 For detailed background see CRS Report RL32870, European Union’s Arms Embargo on
China: Implications and Options for U.S. Policy, by Kristin Archick, Richard F. Grimmett,
and Shirley Kan. It should be noted that members of the European Union, and others, have
agreed to a common effort to attempt some degree of control on the transfer of certain
weapons systems, but the principal vehicle for this cooperation — the Wassenaar
Arrangement — lacks a mechanism to enforce its rules. For detailed background see CRS
Report RS20517, Military Technology and Conventional Weapons Exports Controls: The
Wassenaar Arrangement, by Richard F. Grimmett.

conclusion of very large arms contracts with one or more major purchasers in that
particular year (Table 1A and 1B).
Major West European suppliers have had their competitive position in weapons
exports strengthened over the years through strong government marketing support for
their foreign arms sales. As they all can produce both advanced and basic air,
ground, and naval weapons systems, the four major West European suppliers have
competed successfully for arms sales contracts with developing nations against both
the United States, which has tended to sell to several of the same clients, and with
Russia, which has sold to nations not traditional customers of either the West
Europeans or the United States. However, the demand for U.S. weapons in the
global arms marketplace, from a large established client base, has created a more
difficult environment for individual West European suppliers to secure large new
contracts with developing nations on a sustained basis.
Continuing strong demand for U.S. defense equipment as well as concern for
maintaining their market share of the arms trade has led European Union (EU)
member states to adopt a new code of conduct for defense procurement practices.
This code was agreed to on November 21, 2005 at the European Defense Agency’s
(EA) steering board meeting. Currently voluntary, the EU hopes it will become
mandatory, and through its mechanisms foster greater competition within the
European defense equipment sector in the awarding of contracts for defense items.
A larger hope is that by fostering greater intra-European cooperation and
collaboration in defense contracting, and the resulting programs, that the defense
industrial bases of individual EU states will be preserved, and the ability of European
defense firms to compete for arms sales in the international arms marketplace will
be substantially enhanced.
Some European arms suppliers have begun to phase out production of certain
types of weapons systems. Such suppliers have increasingly engaged in joint
production ventures with other key European weapons suppliers or even client
countries in an effort to sustain major sectors of their individual defense industrial
bases — even if a substantial portion of the weapons produced are for their own
armed forces. The Eurofighter project is one example; the Eurocopter is another.
Other European suppliers have also adopted the strategy of cooperating in defense
production ventures with the United States such as the Joint Strike Fighter (JSF),
rather than attempting to compete directly, thereby meeting their own requirements
for advanced combat aircraft, while positioning themselves to share in profits
resulting from future sales of this new fighter aircraft.7
Regional Arms Transfer Agreements
The markets for arms in regions of the developing world have traditionally been
dominated by the Near East and by Asia. Nations in the Latin America and Africa
regions, by contrast, have not been major purchasers of weapons, except on rare


7 For detailed background on issues relating to the Joint Strike Fighter program see CRS
Report RL30563, F-35 Joint Strike Fighter (JSF) Program: Background, Status, and Issues,
by Christopher Bolkcom.

occasions. The regional arms agreement data tables in this report demonstrate this.
United States policymakers have placed emphasis on helping to maintain stability
throughout the regions of the developing world. Thus, the U.S. has made and
supported arms sales and transfers it has believed would advance that goal, while
discouraging significant sales by other suppliers to states and regions where military
threats to nations in the area are minimal. Other arms suppliers do not necessarily
share the U.S. perspective on what constitutes an appropriate arms sale. For in some
instances the financial benefit of the sale to the supplier trumps other considerations.
The regional and country specific arms transfer data in this report provide an
indication of where various arms suppliers are focusing their attention, and who their
principal clients are. By reviewing these data, policymakers can identify potential
developments which may be of concern, and use this information to assist their
review of options they may choose to consider given the circumstances. What
follows below is a review of data on arms transfer agreement activities in the two
regions that lead in arms acquisitions, the Near East and Asia. This is followed, in
turn, by a review of data regarding the leading arms purchasers in the developing
world.
Near East.8 The principal catalyst for new weapons procurements in the Near
East region in the last decade was the Persian Gulf crisis of August 1990-February
1991. This crisis, culminating in a war to expel Iraq from Kuwait, created new
demands by key purchasers such as Saudi Arabia, Kuwait, the United Arab Emirates,
and other members of the Gulf Cooperation Council (GCC), for a variety of
advanced weapons systems. Egypt and Israel continued their modernization and
increased their weapons purchases from the United States. The Gulf states’ arms
purchase demands were not only a response to Iraq’s aggression against Kuwait, but
a reflection of concerns regarding perceived threats from a potentially hostile Iran.
Since the fall of Saddam Hussein, for many, the conventional ground threat from Iraq
has diminished and the perceived threat from Iran has increased. This has led the
GCC states to emphasize acquisition of air and naval defense capabilities over major
ground combat systems.9
Most recently, the position of Saudi Arabia as principal arms purchaser in the
Persian Gulf region has been re-established. In the period from 1999-2002, Saudi
Arabia’s total arms agreements were valued at $4 billion (in current dollars), less
than the levels of the U.A.E., Egypt and Israel. For the period from 2003-2006,
Saudi Arabia’s total arms agreements were $12.4 billion (in current dollars), making
it the leading Near East purchaser once again.
The Near East has generally been the largest arms market in the developing
world. However, in 1999-2002, it accounted for 36.5% of the total value of all
developing nations arms transfer agreements ($29.7 billion in current dollars),


8 In this report the Near East region includes the following nations: Algeria, Bahrain, Egypt,
Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia,
Syria, Tunisia, United Arab Emirates, and Yemen. The countries included in the other
geographic regions are listed at the end of the report.
9 For detailed background see CRS Report RL31533, The Persian Gulf States: Issues for
U.S. Policy, 2006, by Kenneth Katzman.

ranking it second behind Asia which was first with 47.6% of these agreements. But,
during 2003-2006, the Near East region accounted for 46.6% of all such agreements
($46.7 billion in current dollars), again placing it first in arms agreements with the
developing world. The Asia region ranked second in 2003-2006 with $38.8 billion
in agreements or 38.7% (Tables 1C and 1D).
The United States dominated arms transfer agreements with the Near East
during the 1999-2002 period with 68.4% of their total value ($20.3 billion in current
dollars). Russia was second during these years with 8.1% ($2.4 billion in current
dollars). Recently, from 2003-2006, the United States accounted for 48.9% of arms
agreements with this region ($22.8 billion in current dollars), while the United
Kingdom accounted for 16.5% of the region’s agreements ($7.7 billion in current
dollars). Russia accounted for 13.7% of the region’s agreements in the most recent
period ($6.4 billion in current dollars) (Chart 5)(Tables 1C and 1E).
Asia. Efforts in several developing nations in Asia have been focused on
upgrading and modernizing defense forces, and this has led to new conventional
weapons sales in that region. Since the mid-1990s, Russia has become the principal
supplier of advanced conventional weaponry to China — selling fighters,
submarines, destroyers, and missiles — while maintaining its position as principal
arms supplier to India. Russian arms sales to these two countries have been primarily
responsible for the increase in Asia’s overall share of the arms market in the
developing world. Russia has expanded its client base in Asia, receiving aircraft
orders from Malaysia, Vietnam, and Indonesia. India has also expanded its weapons
supplier base, purchasing the Phalcon early warning defense system aircraft in 2004
from Israel for $1.1 billion, and numerous items from France in 2005, in particular
6 Scorpene diesel attack submarines for $3.5 billion. A multi-billion dollar sale in
2006 by the United States to Pakistan of new F-16 fighter aircraft, weapons, and
aircraft upgrades, together with Sweden’s sale to it of a SAAB-2000 based AWACS
airborne radar system for over a billion dollars has placed Pakistan in the forefront
of recent Asian buyers. The data on regional arms transfer agreements from 1999-
2006 continue to reflect that Near East and Asian nations are the primary sources of
orders for conventional weaponry in the developing world.
Asia has traditionally been the second largest developing world arms market.
In 2003-2006, Asia ranked second, accounting for 38.7% of the total value of all
arms transfer agreements with developing nations ($38.8 billion in current dollars).
Yet in the earlier period, 1999-2002, the region ranked first, accounting for 47.6%
of all such agreements ($38.8 billion in current dollars) (Tables 1C and 1D).
In the earlier period (1999-2002), Russia ranked first in the value of arms
transfer agreements with Asia with 45.4% ($17.6 billion in current dollars). The
United States ranked second with 24.4% ($9.5 billion in current dollars). The major
West European suppliers, as a group, made 12.6% of this region’s agreements in
1999-2002. In the later period (2003-2006), Russia ranked first in Asian agreements
with 37.1% ($14.4 billion in current dollars), primarily due to major combat aircraft,
and naval system sales to India and China. The United States ranked second with
18.6% ($7.2 billion in current dollars). The major West European suppliers, as a
group, made 19.3% of this region’s agreements in 2003-2006. (Chart 6)(Table 1E).



Leading Developing Nations Arms Purchasers
India was the leading developing world arms purchaser from 1999-2006,
making arms transfer agreements totaling $22.4 billion during these years (in current
dollars). In the 1999-2002 period, China ranked first in arms transfer agreements at
$11 billion (in current dollars). In 2003-2006 India ranked first in arms transfer
agreements, with a large increase to $14.9 billion from $7.5 billion in the earlier
1999-2002 period (in current dollars). This increase reflects the continuation of a
military modernization effort by India, underway since the 1990s, based primarily on
major arms agreements with Russia. The total value of all arms transfer agreements
with developing nations from 1999-2006 was $188.9 billion in current dollars. Thus
India alone accounted for 11.9% of all developing world arms transfer agreements
during these eight years. In the most recent period, 2003-2006, India made $14.9
billion in arms transfer agreements (in current dollars). This total constituted 14.4%
of all arm transfer agreements with developing nations during these four years
($100.3 billion in current dollars). China ranked second in arms transfer agreements
during 2003-2006 with $12.4 billion (in current dollars), or 12.4% of the value of all
developing world arms transfer agreements (Tables 1, 1I, and 1J).
During 1999-2002, the top ten recipients collectively accounted for 69.8% of
all developing world arms transfer agreements. During 2003-2006, the top ten
recipients collectively accounted for 64.4% of all such agreements. Arms transfer
agreements with the top ten developing world recipients, as a group, totaled $22.2
billion in 2006 or 77.1% of all arms transfer agreements with developing nations in
that year. These percentages reflect the continued concentration of major arms
purchases by developing nations among a few countries (Tables 1, 1I, and 1J).
Pakistan ranked first among all developing world recipients in the value of arms
transfer agreements in 2006, concluding $5.1 billion in such agreements. India
ranked second in agreements at $3.5 billion. Saudi Arabia ranked third with $3.2
billion in agreements. Four of the top ten recipients were in the Near East region;
four were in the Asian region; two were in the Latin American region (Table 1J).10
Saudi Arabia was the leading recipient of arms deliveries among developing
world recipients in 2006, receiving $4.1 billion in such deliveries. China ranked
second in arms deliveries in 2006 with $2.9 billion. Israel ranked third with $1.5
billion (Table 2J).
Arms deliveries to the top ten developing nation recipients, as a group, were
valued at $14.3 billion, or 71.9% of all arms deliveries to developing nations in 2006.
Six of these top ten recipients were in Asia; three were in the Near East; one was in
Latin America (Tables 2 and 2J).


10 For countries included in the Asia region and the Latin American region see the listings
of nations by regions given at the end of this report.

Weapons Types Recently Delivered to Near East Nations
Regional weapons delivery data reflect the diverse sources of supply and type
of conventional weaponry actually transferred to developing nations. Even though
the United States, Russia, and the four major West European suppliers dominate in
the delivery of the fourteen classes of weapons examined, it is also evident that the
other European suppliers and some non-European suppliers, including China, are
capable of being leading suppliers of selected types of conventional armaments to
developing nations (Tables 3-7) (pages 72-76).
Weapons deliveries to the Near East, historically the largest purchasing region
in the developing world, reflect the quantities and types delivered by both major and
lesser suppliers. The following is an illustrative summary of weapons deliveries to
this region for the period 2003-2006 from Table 5:
United States.
!349 tanks and self-propelled guns
!715 APCs and armored cars
!2 major surface combatants
!5 minor surface combatants
!71 supersonic combat aircraft
!66 helicopters
!465 surface-to-air missiles
!87 anti-ship missiles
Russia.
!120 APCs and armored cars
!20 supersonic combat aircraft
!30 helicopters
!1,240 surface-to-air missiles
China.
!20 artillery pieces
!50 anti-ship missiles
Major West European Suppliers.
!120 tanks and self-propelled guns
!60 APCs and armored cars
!4 major surface combatants
!46 minor surface combatants
!10 guided missile boats
!30 supersonic combat aircraft
!20 helicopters
!40 anti-ship missiles
All Other European Suppliers.
!300 tanks and self-propelled guns
!1,250 APCs and armored cars
!20 minor surface combatants
!2 guided missile boats



!10 supersonic combat aircraft
!10 helicopters
!320 surface-to-air missiles
!10 anti-ship missiles
All Other Suppliers.
!640 APCs and armored cars
!98 minor surface combatants
!30 helicopters
!40 surface-to-surface missiles
!10 anti-ship missiles
Large numbers of major combat systems were delivered to the Near East region
from 2003-2006, specifically, tanks and self-propelled guns, armored vehicles, major
and minor surface combatants, supersonic combat aircraft, helicopters, air defense
and anti-ship missiles. The United States and Russia made deliveries of supersonic
combat aircraft to the region. The United States, China, and the European suppliers
delivered many anti-ship missiles. The United States, Russia, and European
suppliers in general were principal suppliers of tanks and self-propelled guns, APCs
and armored cars, surface-to-air missiles, as well as helicopters. Three of these
weapons categories — supersonic combat aircraft, helicopters, and tanks and self-
propelled guns — are especially costly and are a large portion of the dollar values of
arms deliveries by the United States, Russia, and European suppliers to the Near East
region during the 2003-2006 period.
The cost of naval combatants is also generally high, and the suppliers of such
systems during this period had their delivery value totals notably increased due to
these transfers. Some of the less expensive weapons systems delivered to the Near
East are, nonetheless, deadly and can create important security threats within the
region. In particular, from 2003-2006, the United States delivered 87 anti-ship
missiles to the Near East region, China delivered 50, and the four major West
European suppliers delivered 40. The United States delivered two major surface
combatants and five minor surface combatants to the Near East, while the major
West European suppliers collectively delivered four major surface combatants, 46
minor surface combatants and 10 guided missile boats. The non-major West
European suppliers collectively delivered 10 anti-ship missiles. Other non-European
suppliers collectively delivered 640 APCs and armored cars, 98 minor surface
combatants, as well as 40 surface-to-surface missiles, a weapons category not
delivered by any of the other major weapons suppliers during this period to any
region.



UNITED STATES COMMERCIAL ARMS EXPORTS
United States commercially licensed arms deliveries data are not included in
this report. The United States is the only major arms supplier that has two distinct
systems for the export of weapons: the government-to-government Foreign
Military Sales (FMS) system, and the licensed commercial export system. It should
be noted that data maintained on U.S. commercial sales agreements and deliveries
are incomplete, and are not collected or revised on an on-going basis, making them
significantly less precise than those for the U.S. FMS program — which accounts
for the overwhelming portion of U.S. conventional arms transfer agreements and
deliveries involving weapons systems. There are no official compilations of
commercial agreement data comparable to that for the FMS program maintained
on an annual basis. Once an exporter receives from the State Department a
commercial license authorization to sell — valid for four years — there is no
current requirement that the exporter provide to the State Department, on a
systematic and on-going basis, comprehensive details regarding any sales contract
that results from the license authorization, including if any such contract is reduced
in scope or cancelled. Nor is the exporter required to report that no contract with
the prospective buyer resulted.
Annual commercially licensed arms deliveries data are obtained from
shipper’s export documents and completed licenses from ports of exit by the U.S.
Customs and Border Protection Agency which are then provided to the U.S.
Census Bureau. The Census Bureau takes these arms export data, and, following
a minimal review of them, submits them to the Directorate of Defense Trade
Controls in the Political-Military Bureau (PM/DDTC) of the State Department,
which makes the final compilation of such data — details of which are not
publicly available. Once compiled by the Directorate of Defense Trade Controls
at the State Department, these commercially licensed arms deliveries data are not
revised. By contrast, the U.S. Foreign Military Sales (FMS) program data, for both
agreements and deliveries, maintained by the Defense Department, are
systematically collected, reviewed for accuracy on an on-going basis, and are
revised from year-to-year as needed to reflect any changes or to correct any errors
in the information. This report includes all FMS deliveries data. By excluding
U.S. commercial licensed arms deliveries data, the U.S. arms delivery totals will
be understated.
Some have suggested that a systematic data collection and reporting system
for commercial licensed exports, comparable to the one which exists now in the
Department of Defense, should be established by the Department of State. Having
current and comprehensive agreement and delivery data on commercially licensed
exports would provide a more complete picture of the U.S. arms export trade, in
this view, and thus facilitate Congressional oversight of this sector of U.S. exports.



Summary of Data Trends, 1999-2006
Tables 1 through 1J (pages 47-57) present data on arms transfer agreements
with developing nations by major suppliers from 1999-2006. These data show the
most recent trends in arms contract activity by major suppliers. Delivery data, which
reflect implementation of sales decisions taken earlier, are shown in Tables 2
through 2J (pages 58-68). Tables 8, 8A, 8B, 8C, and 8D (pages 80-84) provide
data on worldwide arms transfer agreements from 1999-2006, while Tables 9, 9A,
9B, 9C, and 9D (pages 85-89) provide data on worldwide arms deliveries during this
period. To use these data regarding agreements for purposes other than assessing
general trends in seller/buyer activity is to risk drawing conclusions that can be
readily invalidated by future events — precise values and comparisons, for example,
may change due to cancellations or modifications of major arms transfer agreements.
These data sets reflect the comparative magnitude of arms transactions by arms
suppliers with recipient nations expressed in constant dollar terms, unless otherwise
noted.
What follows is a detailed summary of data trends from the tables in the report.
The summary statements also reference tables and/or charts pertinent to the point(s)
noted. Where graphic representations of some major points are made in individual
charts, their underlying data are taken from the pertinent tables of this report.
Total Developing Nations Arms Transfer Agreement Values
Table 1 shows the annual current dollar values of arms transfer agreements with
developing nations. Since these figures do not allow for the effects of inflation, they
are, by themselves, of limited use. They provide, however, the data from which
Table 1A (constant dollars) and Table 1B (supplier percentages) are derived. Some
of the facts reflected by these data are summarized below.
!The value of all arms transfer agreements with developing nations
in 2006 was $28.8 billion, a decrease from the $31.8 billion total in

2005 (Tables 1 and 1A)(Chart 1).


!The total value of United States agreements with developing nations
rose from $6.5 billion in 2005 to $ 10.3 billion in 2006. The United
States’ share of all developing world arms transfer agreements in
2006 was 35.8%, up from 20.4% in 2005 (Tables 1A and

1B)(Chart 3).


!In 2006, the total value, in real terms, of Russian arms transfer
agreements with developing nations increased from the previous
year, rising from $7.2 billion in 2005 to $8.1 billion in 2006. The
Russian share of all such agreements increased from 22.6% in 2005
to 28.1% in 2006 (Charts 3 and 4)(Tables 1A and 1B).



Chart 1. Arms Transfer Agreements Worldwide, 1999-2006
Developed and Developing Worlds Compared


In billions of constant
2006 dollars
55
Developed World
50Developing World
45
40
35
30
25
20
15
10
5
0
1999 2000 2001 2002 2003 2004 20 05 2006
Source: U.S. Government

Chart 2. Arms Transfer Agreements Worldwide
(supplier percentage of value)



Chart 3. Arms Transfer Agreements With Developing Nations
(supplier percentage of value)



art 4. Arms Transfer Agreements With Developing Nations by Major Supplier, 1999-2006
(billions of constant 2006 dollars)
Source: U.S. Government


RussiaUnited States
16
14
12
10
88
66
44
22
00
1999 2000 2001 2002 2003 2004 2005 20061999 2000 20 01 2002 2003 2004 2005 2006
Major West EuropeanAll Others
16
14
12
10
88
66
44
22
00
1999 2000 2001 2002 2003 2004 2005 2006 1999 2000 2001 2002 2003 2004 2005 2006

Figure 1. Worldwide Arms Transfer Agreements, 1999-2006 and
Suppliers’ Share with Developing World
(in millions of constant 2006 U.S. dollars)
Worldwide AgreementsPercentage of Total with
SupplierValue 1999-2002Developing World
United States63,40171.60
Russia 27,324 93.00
France 12,953 42.50
United Kingdom4,06561.70
China6,15388.00
Germany 8,911 38.20
Italy2,83929.80
All Other European20,09546.60
All Others11,00267.00
TOTAL 156,743 67.10
Worldwide AgreementsPercentage of Total with
SupplierValue 2003-2006Developing World
United States60,14356.70
Russia 26,991 95.40
France 13,962 65.40
United Kingdom13,56377.70
China 4,708 100.00
Germany 7,162 38.30
Italy3,66749.00
All Other European20,55543.90
All Others9,27279.50
TOTAL 160,023 65.70
Worldwide AgreementsPercentage of Total with
SupplierValue 2006Developing World
United States16,90561.00
Russia 8,700 93.10
France50060.00
United Kingdom3,100100.00
China800100.00
Germany 1,900 94.70
Italy90033.30
All Other European5,20040.40
All Others2,30087.00
TOTAL 40,305 71.50
Source: U.S. Government



!The four major West European suppliers, as a group (France, United
Kingdom, Germany, Italy), registered a decline in their collective
share of all arms transfer agreements with developing nations
between 2005 and 2006. This group’s share fell from 34.4% in 2005
to 19.1% in 2006. The collective value of this group’s arms transfer
agreements with developing nations in 2006 was $5.5 billion
compared with a total of $10.9 billion in 2005 (Tables 1A and

1B)(Charts 3 and 4).


!The United Kingdom was the European leader in arms transfer
agreements with developing nations in 2006, its share rising from
9.2% in 2005 to 10.8% in 2006. The value of its agreements with
developing nations increased from $2.8 billion in 2005 to $3.1
billion in 2006 (Tables 1A and 1B).
!In 2006, the United States ranked first in arms transfer agreements
with developing nations at $10.3 billion. Russia ranked second at
$8.1 billion. The United Kingdom ranked third with $3.1 billion
(Charts 3 and 4)(Tables 1A, 1B and 1G).
Regional Arms Transfer Agreements, 1999-2006
Table 1C gives the values of arms transfer agreements between suppliers and
individual regions of the developing world for the periods 1999-2002 and 2003-2006.
These values are expressed in current U.S. dollars.11 Table 1D, derived from Table
1C, gives the percentage distribution of each supplier’s agreement values within the
regions for the two time periods. Table 1E, also derived from Table 1C, illustrates
what percentage share of each developing world region’s total arms transfer
agreements was held by specific suppliers during the years 1999-2002 and 2003-

2006. Among the facts reflected in these tables are the following:


Near East.
!The Near East has generally been the largest arms market in the
developing world. However, in 1999-2002, it accounted for 36.5%
of the total value of all developing nations arms transfer agreements
($29.7 billion in current dollars), ranking it second behind Asia
which was first with 47.6% of these agreements. But, during 2003-
2006, the Near East region accounted for 46.6% of all such
agreements ($46.7 billion in current dollars), placing it first again in
arms agreements with the developing world. The Asia region ranked
second in 2003-2006 with $38.8 billion in agreements or 38.7%
(Tables 1C and 1D).
!The United States dominated arms transfer agreements with the Near
East during the 1999-2002 period with 68.4% of their total value


11 Because these regional data are composed of four-year aggregate dollar totals, they are
expressed in current dollar terms.

($20.3 billion in current dollars). Russia was second during these
years with 8.1% ($2.4 billion). Recently, from 2003-2006, the
United States accounted for 48.9% of the value of arms agreements
with this region ($22.8 billion), while the United Kingdom
accounted for 16.5% of the value of the region’s agreements ($7.7)
billion. Russia accounted for 13.7% of the value of the region’s
arms agreements from 2003-2006 ($6.4 billion)(Chart 5)(Tables 1C
and 1E).
!For the period 1999-2002, the United States maintained 64.3% of
the value of its developing world arms transfer agreements with the
Near East. In 2003-2006, the U.S. had 70.4% of the value of its
agreements with this region (Table 1D).
!For the period 1999-2002, the four major West European suppliers
collectively made 16.8% of the value of their developing world arms
transfer agreements with the Near East. In 2003-2006, the major
West Europeans made 55% of their arms agreements with the Near
East (Table 1D).
!For the period 1999-2002, France concluded 17.4% of the value of
its developing world arms transfer agreements with the Near East.
In 2003-2006, France made 31.4% of its agreements with the Near
East (Table 1D).
!For the period 1999-2002, the United Kingdom concluded 35% of
the value of its developing world arms transfer agreements with the
Near East. In 2003-2006, the United Kingdom made 76.2% of its
agreements with the Near East (Table 1D).
!For the period 1999-2002, China concluded 20% of the value of its
developing world arms transfer agreements with the Near East. In
2003-2006, China made 28.9% of its agreements with the Near East
(Table 1D).
!For the period 1999-2002, Russia concluded 11.2% of the value of
its developing world arms transfer agreements with the Near East.
In 2003-2006, Russia made 26% of its agreements with the Near
East (Table 1D).
!In the earlier period (1999-2002), by value, the United States ranked
first in arms transfer agreements with the Near East with 68.4%.
Russia ranked second with 8.1%. The major West European
suppliers, as a group, made 5.7% of this region’s agreements in
1999-2002. In the later period (2003-2006), by value, the United
States again ranked first in Near East agreements with 48.9%. The
United Kingdom ranked second with 16.5%. Russia ranked third
with 13.7%. The major West European suppliers, as a group, made
27.2% of this region’s agreements in 2003-2006 (Table 1E)(Chart

5).



Asia.
!Asia has traditionally been the second largest developing world arms
market. In 2003-2006, Asia ranked second, with 38.7% of the total
value of all arms transfer agreements with developing nations ($38.8
billion in current dollars). In the earlier period, 1999-2002, the
region accounted for 47.6% of all such agreements ($38.8 billion in
current dollars), ranking first (Tables 1C and 1D).



Chart 5. Arms Transfer Agreements With
Near East
(supplier percentage of value)



Chart 6. Arms Transfer Agreements With Developing Nations in Asia
(supplier percentage of value)
(excludes Japan, Australia, and New Zealand)



!In the earlier period (1999-2002), Russia ranked first in the value of
arms transfer agreements with Asia with 45.4% ($17.6 billion). The
United States ranked second with 24.4% ($9.5 billion). The major
West European suppliers, as a group, made 12.6% of this region’s
agreements in 1999-2002. In the later period (2003-2006), Russia
ranked first in Asian agreements with 37.1% ($14.4 billion),
primarily due to major combat aircraft and naval craft sales to India
and China. The United States ranked second with 18.6% ($7.2
billion). The major West European suppliers, as a group, made
19.3% of this region’s agreements in 2003-2006 (Chart 6)(Table

1E).


Latin America.
!In the earlier period, 1999-2002, the United States ranked first in
arms transfer agreements with Latin America with 50.3%. Russia
and Germany tied for second with 5.8% each. The major West
European suppliers, as a group, made 8.8% of this region’s
agreements in 1999-2002. In the later period, 2003-2006, Russia
ranked first with 30.6%. The United States ranked second with
19.8%. Germany ranked third with 9%. All other non-major
European suppliers collectively made 24.3% of the region’s
agreements in 2003-2006. Latin America registered a substantial
increase in the total value of its arms transfer agreements from 1999-
2002 to 2003-2006 rising from $3.4 billion in the earlier period to
$11.1 billion in the later, trebling the value of their arms agreements,
led by major sales by Russia to Venezuela (Tables 1C and 1E).
Africa.
!In the earlier period, 1999-2002, Germany ranked first in agreements
with Africa with 16.7% ($1.6 billion). Russia was second with
12.5% ($1.2 billion). China was third with 8.3%. The non-major
European suppliers, as a group, made 35.4% of the region’s
agreements in 1999-2002. The four major West European suppliers
collectively made 33.4%. The United States made 1%. In the later
period, 2003-2006, France and China were tied for first in
agreements with 25.1% each ($900 million each). Russia was
second with 11.1% ($400 million). The major West European
suppliers, as a group, made 30.7% of this region’s agreements in
2003-2006 ($1.1 billion). All other European suppliers collectively
made 13.9% ($500 million). The United States made 5.2% ($186
million). Africa registered a substantial decline in the total value of
its arms transfer agreements from 1999-2002 to 2003-2006, falling
from $9.6 billion in the earlier period to about $3.6 billion in the
later period. This decline is attributable to the completion of large
arms orders of South Africa during 1999-2002, as part of its defense
modernization program (Tables 1C and 1E).



Arms Transfer Agreements With Developing Nations,
1999-2006: Leading Suppliers Compared
Table 1F gives the values of arms transfer agreements with the developing
nations from 1999-2006 by the top eleven suppliers. The table ranks these suppliers
on the basis of the total current dollar values of their respective agreements with the
developing world for each of three periods — 1999-2002, 2003-2006, and 1999-

2006. Among the facts reflected in this table are the following:


!The United States ranked first among all suppliers to developing
nations in the value of arms transfer agreements from 2003-2006
($32.4 billion), and first for the entire period from 1999-2006 ($70.8
billion).
!Russia ranked second among all suppliers to developing nations in
the value of arms transfer agreements from 2003-2006 ($24.6
billion), and second from 1999-2006 ($46.1 billion).
!The United Kingdom ranked third among all suppliers to developing
nations in the value of arms transfer agreements from 2003-2006
($10.1 billion), and fourth from 1999-2006 ($12.2 billion).
!France ranked fourth among all suppliers to developing nations in
the value of arms transfer agreements from 2003-2006 ($8.7 billion),
and third from 1999-2006 ($13.3 billion).
!China ranked fifth among all suppliers to developing nations in the
value of arms transfer agreements from 2003-2006 ($4.5 million),
and fifth from 1999-2006 ($9 billion).
Arms Transfer Agreements With Developing Nations in 2006:
Leading Suppliers Compared
Table 1G ranks and gives for 2006 the values of arms transfer agreements with
developing nations of the top eleven suppliers in current U.S. dollars. Among the
facts reflected in this table are the following:
!The United States, Russia, and the United Kingdom, the top three
arms suppliers—ranked by the value of their arms transfer
agreements—in 2006 collectively made agreements valued at nearly
$21.5 billion, 74.7% of all arms transfer agreements made with
developing nations by all suppliers in that year ($28.8 billion).
!In 2006, the United States ranked first in arms transfer agreements
with developing nations, making $10.3 billion in such agreements,
or 35.8% of them.



!Russia ranked second and the United Kingdom third in arms transfer
agreements with developing nations in 2006, making $8.1 billion
and $3.1 billion in such agreements respectively.
!Germany ranked fourth in arms transfer agreements with developing
nations in 2006, making $1.8 billion in such agreements, while Israel
ranked fifth with $1.3 billion.
Arms Transfer Agreements With Near East 1999-2006:
Suppliers and Recipients
Table 1H gives the values of arms transfer agreements with the Near East
nations by suppliers or categories of suppliers for the periods 1999-2002 and 2003-
2006. These values are expressed in current U.S. dollars. They are a subset of the
data contained in Table 1 and Table 1C. Among the facts reflected by this table are
the following:
!For the most recent period, 2003-2006, the principal purchasers of
U.S. arms in the Near East region, based on the value of agreements
were: Saudi Arabia ($4.5 billion), Egypt ($4.3 billion), and Israel ($3
billion). The principal purchasers of Russian arms were: Algeria
($2.3 billion), Iran ($1.5 billion), Syria ($700 million), Egypt and
Yemen ($500 million each). The principal purchasers of arms from
China were Egypt and Iran ($400 million each), and Saudi Arabia
($200 million). The principal purchasers of arms from the four
major West European suppliers, as a group, were: Saudi Arabia
($7.6 billion); the U.A.E. ($2 billion), and Oman ($1 billion). The
principal purchasers of arms from all other European suppliers
collectively were Iraq ($500 million) Egypt ($400 million), and
Jordan ($300 million). The principal purchasers of arms from all
other suppliers combined were Syria ($500 million), Iraq and the
U.A.E. ($300 million each).
!For the period from 2003-2006, Saudi Arabia made $12.4 billion in
arms transfer agreements. Its major suppliers were the four major
West European suppliers collectively ($7.6 billion), and the United
States ($4.5 billion). Egypt made $5.7 billion in arms transfer
agreements. Its principal supplier was the United States ($4.3
billion). Israel made $4.2 billion in arms agreements. Its principal
supplier was the United States ($3 billion). The U.A.E. made $3.7
billion in arms transfer agreements. Its principal suppliers were: the
four major West European suppliers collectively ($2 billion) and the
United States ($1.2 billion).
!The total value of arms transfer agreements by Russia with Iran
increased substantially from $100 million in 1999-2002 to $1.5
billion in 2003-2006. The value of China’s arms transfer
agreements with Iran rose from $100 million in 1999-2002 to $400
million in the 2003-2006 period.



!The value of arms transfer agreements by the United States with
Saudi Arabia rose notably from the 1999-2002 period to the 2003-
2006 period, rising from $2.7 billion in the earlier period to $4.5
billion in the later period. Saudi Arabia made 36.3% of all its arms
transfer agreements with the United States during 2003-2006.
Meanwhile, arms transfer agreements by the United Arab Emirates
(U.A.E.) with all suppliers collectively decreased by a significant
degree from 1999-2002 to 2003-2006, falling from $8.8 billion to
$3.7 billion.
Arms Transfers to Developing Nations, 1999-2006:
Agreements With Leading Recipients
Table 1I gives the values of arms transfer agreements made by the top ten
recipients of arms in the developing world from 1999-2006 with all suppliers
collectively. The table ranks recipients on the basis of the total current dollar values
of their respective agreements with all suppliers for each of three periods—1999-
2002, 2003-2006, and 1999-2006. Among the facts reflected in this table are the
following:
!India was the leading developing world arms purchaser from 1999-
2006, making arms transfer agreements totaling $22.4 billion during
these years (in current dollars). In the earlier 1999-2002 period,
China ranked first in arms transfer agreements at $11 billion (in
current dollars). In 2003-2006, India ranked first in arms transfer
agreements, with a substantial increase to $14.9 billion from $7.5
billion in the earlier period (in current dollars). This increase
reflects the continuation of a military modernization effort of India,
beginning in the 1990s, and based primarily on major arms
agreements with Russia. The total value of all arms transfer
agreements with developing nations from 1999-2006 was $188.9
billion in current dollars. Thus India alone accounted for 11.9% of
all developing world arms transfer agreements during these eight
years. In the most recent period, 2003-2006, India made $14.9
billion in arms transfer agreements (in current dollars). This total
constituted 14.8% of all arm transfer agreements with developing
nations during 2003-2006, which totaled $100.3 billion. Saudi
Arabia ranked second in arms transfer agreements during 2003-2006
with $12.4 billion (in current dollars), or 12.4% of the value of all
developing world arms transfer agreements (Tables 1, 1H, 1I, and

1J).


!During 1999-2002, the top ten recipients collectively accounted for
69.8% of all developing world arms transfer agreements. During

2003-2006, the top ten recipients collectively accounted for 64.4%


of all such agreements (Tables 1 and 1I).



Arms Transfers to Developing Nations in 2006: Agreements
With Leading Recipients
Table 1J names the top ten developing world recipients of arms transfer
agreements in 2006. The table ranks these recipients on the basis of the total current
dollar values of their respective agreements with all suppliers in 2006. Among the
facts reflected in this table are the following:
!Pakistan ranked first among all developing nations recipients in the
value of arms transfer agreements in 2006, concluding $5.1 billion
in such agreements. India ranked second with $3.5 billion. Saudi
Arabia ranked third with $3.2 billion.
!Four of the top ten developing world recipients of arms transfer
agreements in 2006 were in the Near East. Four were in Asia. Two
were in Latin America.
!Arms transfer agreements with the top ten developing world
recipients, as a group, in 2006 totaled $22.2 billion or 77.1% of all
such agreements with the developing world,. These percentages
reflect the continuing concentration of arms purchases by developing
world states in a few such states (Tables 1 and 1J).
Developing Nations Arms Delivery Values
Table 2 shows the annual current dollar values of arms deliveries (items
actually transferred) to developing nations by major suppliers from 1999-2006. The
utility of these particular data is that they reflect transfers that have occurred. They
provide the data from which Tables 2A (constant dollars) and Table 2B (supplier
percentages) are derived. Some of the facts illustrated by these data are summarized
below.
!In 2006 the value of all arms deliveries to developing nations ($19.9
billion) was a decrease in deliveries values from the previous year,
($20.3 billion), and the lowest annual deliveries total for the entire
period from 1999-2006 (Charts 7 and 8)(Table 2A).
!The U.S. share of all deliveries to developing nations in 2006 was

40.2%, a decrease from 42.3% in 2005. In 2006, the United States,


for the eighth year in a row, ranked first in the value of arms
deliveries to developing nations (nearly $8 billion). The second
leading supplier in 2006 was Russia at $5.5 billion. Russia’s share
of all deliveries to developing nations in 2006 was 27.7%, an
increase from 14.8% in 2005. The United Kingdom, the third
leading supplier in 2006, made $3.3 billion in deliveries. The
United Kingdom’s share of all arms deliveries to developing nations
in 2006 was 16.6%, up from 13.8% in 2005. The share of major
West European suppliers’ deliveries to developing nations in 2006
was 21.6%, down from 25.6% in 2005 (Tables 2A and 2B).



!The total value of all arms deliveries by all suppliers to developing
nations from 2003-2006 ($88.5 billion in constant 2006 dollars) was
significantly lower than the value of arms deliveries by all suppliers
to developing nations from 1999-2002 ($103.8 billion in constant

2006 dollars)(Table 2A).


!During the years 1999-2006, arms deliveries to developing nations
comprised 72.4% of all arms deliveries worldwide. In 2006, the
percentage of arms deliveries to developing nations was 73.6% of all
arms deliveries worldwide (Tables 2A and 9A)(Figure 2).



Chart 7. Arms Deliveries Worldwide 1999-2006
Developed and Developing Worlds Compared


In billions of constant
2006 dollars
50
Developed World
45Developing World
40
35
30
25
20
15
10
5
0
1999 2000 2001 2002 2003 2004 2005 2006
Source: U.S. Government

Chart 8. Arms Deliveries to Developing Countries by Major Supplier, 1999-2006
(in billions of constant 2006 dollars)
United StatesRussia
16
14
12
10
8
6
4
2
0
1999 2000 2001 2002 2003 2004 2005 2006 1999 2000 2001 2002 2003 200 4 2005 2006
All OthersMajor West European
16
14
12
10
8
6
4
2
0
1999 2000 2001 2002 2003 2004 20 05 20061999 2000 2001 2002 2003 2004 2005 2006
U.S. Government



Figure 2. Worldwide Arms Deliveries, 1999-2006 and Suppliers’
Share with Developing World
(in millions of constant 2006 U.S. dollars)
Worldwide DeliveriesPercentage of Total to
SupplierValue Developing World
1999-2002
United States57,64065.60
Russia 19,041 89.30
France 11,744 74.80
United Kingdom21,81385.50
China3,76784.30
Germany 5,969 32.20
Italy2,25453.10
All Other European14,21767.60
All Others8,37767.30
TOTAL 144,822 71.70
Worldwide DeliveriesPercentage of Total to
SupplierValue Developing World
2003-2006
United States50,03261.70
Russia 19,713 95.80
France 11,053 90.30
United Kingdom14,10391.50
China3,38196.80
Germany 5,780 47.70
Italy1,07130.20
All Other European9,21949.60
All Others6,30377.70
TOTAL 120,655 73.30
SupplierWorldwide DeliveriesValue 2006Percentage of Total toDeveloping World
United States14,00857.00
Russia 5,800 94.80
France40050.00
United Kingdom3,300100.00
China700100.00
Germany 1,000 80.00
Italy1000.00
All Other European1,20075.00
All Others500100.00
TOTAL 27,008 73.60
Source: U.S. Government



Regional Arms Delivery Values, 1999-2006
Table 2C gives the values of arms deliveries by suppliers to individual regions
of the developing world for the periods 1999-2002 and 2003-2006. These values are12
expressed in current U.S. dollars. Table 2D, derived from Table 2C, gives the
percentage distribution of each supplier’s deliveries values within the regions for the
two time periods. Table 2E, also derived from Table 2C, illustrates what percentage
share of each developing world region’s total arms delivery values was held by
specific suppliers during the years 1999-2002 and 2003-2006. Among the facts
reflected in these tables are the following:
Near East.
!The Near East has generally led in the value of arms deliveries
received by the developing world. In 1999-2002, it accounted for
55.1% of the total value of all developing nations deliveries (nearly
$48 billion in current dollars). During 2003-2006 the region
accounted for 53.7% of all such deliveries ($44.9 billion in current
dollars) (Tables 2C and 2D).
!For the period 1999-2002, the United States made 60.5% of its
developing world arms deliveries to the Near East region. In 2003-
2006, the United States made 65.8% of its developing world arms
deliveries to the Near East region (Table 2D).
!For the period 1999-2002, the United Kingdom made 87.9% of its
developing world arms deliveries to the Near East region. In 2003-
2006, the United Kingdom made 95.9% of its developing world
arms deliveries to the Near East region (Table 2D).
!For the period 1999-2002, 73% of France’s arms deliveries to the
developing world were to the Near East region. In the more recent
period, 2003-2006, 83% of France’s developing world deliveries
were to nations of the Near East region (Table 2D).
!For the period 1999-2002, Russia made 13.3% of its developing
world arms deliveries to the Near East region. In 2003-2006, Russia
made 12.3% of such deliveries to the Near East (Table 2D).
!In the earlier period, 1999-2002, the United States ranked first in the
value of arms deliveries to the Near East with 40% ($19.2 billion).
The United Kingdom ranked second with 28.8% ($13.8 billion).
France ranked third with 11.3% ($5.4 billion). The major West
European suppliers, as a group, held 42.3% of this region’s delivery
values in 1999-2002. In the later period (2003-2006), the United
States ranked first in Near East delivery values with 43% ($19.3


12 Because these regional data are composed of four-year aggregate dollar totals, they are
expressed in current dollar terms.

billion). The United Kingdom ranked second with 25.8% ($11.6
billion). France ranked third with 17.4% ($7.8 billion). The major
West European suppliers, as a group, held 43.9% of this region’s
delivery values in 2003-2006 (Tables 2C and 2E).
Asia.
!The Asia region has historically ranked second in the value of arms
deliveries. In the earlier period, 1999-2002, 37.4% of all arms
deliveries to developing nations were to those in Asia ($32.6
billion). In the later period, 2003-2006, Asia accounted for 36.2%
of such arms deliveries ($30.3 billion). For the period 2003-2006,
Russia made 79.3% of its developing world arms deliveries to Asia.
Germany made 53.9% of its developing world arms deliveries to
Asia. China made 50% of its developing world deliveries to Asia,
while the United States made nearly 28% (Tables 2C and 2D).
!In the period from 1999-2002, Russia ranked first in the value of
arms deliveries to Asia with 35.3% ($11.5 billion). The United
States ranked second with 34.7% ($11.3 billion in current dollars).
The United Kingdom ranked third with 5.8% ($1.9 billion in current
dollars). The major West European suppliers, as a group, held 14.1%
of this region’s delivery values in 1999-2002 ($4.6 billion). In the
period from 2003-2006, Russia ranked first in Asian delivery values
with 46.8% ($14.2 billion). The United States ranked second with

27.1% ($8.2 billion) (Tables 2C and 2E).


Latin America.
!In the earlier period, 1999-2002, the value of all arms deliveries to
Latin America was $2.7 billion. The United States ranked first in
the value of arms deliveries to Latin America with 41.8% ($1.1
billion). France and Italy tied for second with 7.3% ($300 million
each). The major West European suppliers, as a group, held 18.2%
of this region’s delivery values in 1999-2002. The other non-major
European suppliers collectively held 29.1%. In the later period,
2003-2006, the United States ranked first in Latin American delivery
values with 32.4% ($1.7 billion). Russia was second with 17.4%
($900 million). The major West European suppliers, as a group,
held 13.5% of this region’s delivery values in 2003-2006. All other
non-European suppliers combined held 17.4% ($900 million), as did
all other non-major European suppliers collectively ($900 million).
During 2003-2006, the value of all arms deliveries to Latin America
was $5.2 billion, a substantial increase over the $2.7 billion
deliveries total for 1999-2002 (Tables 2C and 2E).
Africa.
!In the earlier period, 1999-2002, the value of all arms deliveries to
Africa was nearly $3.8 billion. Russia ranked first in the value of



arms deliveries to Africa with 21.1% ($800 million). China ranked
second with 13.2% ($500 million). The non-major West European
suppliers, as a group, held 37% of this region’s delivery values in
1999-2002 ($1.4 billion). The United States held 2.3%. In the later
period, 2003-2006, Germany ranked first in African delivery values
with 27.7% ($900 million). Russia ranked second with 18.4%
($600 million). China ranked third with 15.4% ($500 million). The
United States held 4.7% in this later period. The major West
European suppliers collectively held 40% ($1.3 billion). All other
European suppliers collectively held 12.3% ($400 million). During
the 2003-2006 period, the value of all arms deliveries to Africa
decreased from $3.8 billion in 1999-2002 to $3.3 billion (Tables 2C
and 2E).
Arms Deliveries to Developing Nations, 1999-2006: Leading
Suppliers Compared
Table 2F gives the values of arms deliveries to developing nations from 1999-
2006 by the top eleven suppliers. The table ranks these suppliers on the basis of the
total current dollar values of their respective deliveries to the developing world for
each of three periods — 1999-2002, 2003-2006, and 1999-2006. Among the facts
reflected in this table are the following:
!The United States ranked first among all suppliers to developing
nations in the value of arms deliveries from 2003-2006 ($29.4
billion), and first for the entire period from 1999-2006 ($61.1
billion).
!Russia ranked second among all suppliers to developing nations in
the value of arms deliveries from 2003-2006 ($17.9 billion), and
second for the entire period from 1999-2003 ($32.3 billion).
!The United Kingdom ranked third among all suppliers to developing
nations in the value of arms deliveries from 2003-2006 ($12.2
billion), and third for the entire period from 1999-2006 ($27.9
billion).
Arms Deliveries With Developing Nations in 2006: Leading
Suppliers Compared
Table 2G ranks and gives for 2006 the values of arms deliveries to developing
nations of the top ten suppliers in current U.S. dollars. Among the facts reflected in
this table are the following:
!The United States, Russia, and the United Kingdom—2006’s top
three arms suppliers to the developing world—ranked by the value
of their arms deliveries—collectively made deliveries in 2006 valued



at nearly $16.8 billion, 84.4% of all arms deliveries made to
developing nations by all suppliers.
!In 2006, the United States ranked first in the value of arms deliveries
to developing nations, making about $8 billion in such deliveries, or

40.2% of them.


!Russia ranked second and the United Kingdom third in deliveries to
developing nations in 2006, making $5.5 billion and $3.3 billion in
such deliveries respectively.
! Germany ranked fourth in arms deliveries to developing nations in
2006, making $800 million in such deliveries, while China ranked
fifth with $700 million in deliveries.
Arms Deliveries to Near East, 1999-2006: Suppliers and
Recipients
Table 2H gives the values of arms delivered to Near East nations by suppliers
or categories of suppliers for the periods 1999-2002 and 2003-2006. These values
are expressed in current U.S. dollars. They are a subset of the data contained in
Table 2 and Table 2C. Among the facts reflected by this table are the following:
!For the most recent period, 2003-2006, the principal arms recipients
of the United States in the Near East region, based on the value of
their arms deliveries were Israel ($5.2 billion) Egypt ($5.1 billion),
Saudi Arabia ($4.4 billion), and Kuwait ($900 million). The
principal arms recipients of Russia were Algeria ($500), Yemen
($400 million), Iran and Syria ($300 million each). The principal
arms recipients of China were Egypt ($300 million) Iran and Kuwait
($200 million each). The principal arms recipients of the four major
West European suppliers, as a group, were Saudi Arabia ($13.5
billion) and the U.A.E. ($5.4 billion). The principal arms recipient
of all other European suppliers collectively was Saudi Arabia ($700
million). The principal arms recipients of all other suppliers, as a
group, were Iraq, Syria, and the U.A.E. ($200 million each).
!For the period 2003-2006, Saudi Arabia received $18.7 billion in
arms deliveries. Its principal suppliers were the four major West
Europeans, as a group ($13.5 billion), and the United States ($4.4
billion). The U.A.E. received $6.6 billion in arms deliveries. Its
principal suppliers were the four major West Europeans, as a group
($5.4 billion), and the United States ($600 million). Egypt received
$5.8 billion in arms deliveries. Its principal supplier was the United
States ($5.1 billion). Israel received $5.4 billion in arms deliveries.
Its principal supplier was the United States ($5.2 billion). Kuwait
received $1.1 billion in arms deliveries. Its principal supplier was
the United States ($900 million). Oman received $900 million in
arms deliveries. Its principal suppliers were the United States ($600



million), and the four major European suppliers collectively ($300
million).
!Iran received $700 million in arms deliveries. Russia and China
were its principal suppliers, delivering $300 million and $200
million respectively.
!The value of United States arms deliveries to Saudi Arabia declined
from $8.9 billion in 1999-2002 to $4.4 billion in 2003-2006, as
implementation of major orders placed during the Persian Gulf war
era were essentially concluded.
!The value of Russian arms deliveries to Iran declined from the 1999-
2002 period to the 2003-2006 period. Russian arms deliveries fell
from $400 million to $300 million.
Arms Deliveries to Developing Nations, 1999-2006: The
Leading Recipients
Table 2I gives the values of arms deliveries made to the top ten recipients of
arms in the developing world from 1999-2006 by all suppliers collectively. The table
ranks recipients on the basis of the total current dollar values of their respective
deliveries from all suppliers for each of three periods — 1999-2002, 2003-2006, and

1999-2006. Among the facts reflected in this table are the following:


!Saudi Arabia and China were the top two developing world
recipients of arms from 1999-2006, receiving deliveries valued at
$45.8 billion and $17.1 billion, respectively, during these years. The
total value of all arms deliveries to developing nations from 1999-
2006 was $171 billion in current dollars (see Table 2). Thus, Saudi
Arabia and China accounted for 26.8% and 10%, respectively, of all
developing world deliveries during these eight years—together
36.8% of the total. In the most recent period—2003-2006—Saudi
Arabia and China ranked first and second in the value of arms
received by developing nations ($18.7 billion and $8.9 billion,
respectively, in current dollars). Together, Saudi Arabia and China
accounted for 33% of all developing world arms deliveries ($27.6
billion out of $83.7 billion—the value of all deliveries to developing
nations in 2003-2006 (in current dollars).
!For the 2003-2006 period, Saudi Arabia alone received $18.7 billion
in arms deliveries (in current dollars), or 22.4% of all deliveries to
developing nations during this period.
!During 1999-2002, the top ten recipients collectively accounted for

76.8% of all developing world arms deliveries. During 2003-2006,


the top ten recipients collectively accounted for 75.4% of all such
deliveries (Tables 2 and 2I).



Arms Transfers to Developing Nations in 2006: Agreements
With Leading Recipients
Table 2J names the top ten developing world recipients of arms transfer
agreements in 2006. The table ranks these recipients on the basis of the total current
dollar values of their respective agreements with all suppliers in 2006. Among the
facts reflected in this table are the following:
!Saudi Arabia was the leading recipient of arms deliveries in 2006
among developing nations, receiving $4.1 billion in such deliveries.
China ranked second with $2.9 billion. Israel ranked third with $1.5
billion (Tables 2 and 2J).
!Arms deliveries in 2006 to the top ten developing nation recipients,
collectively, constituted $14.3 billion, or 71.9% of all developing
nations deliveries. Five of the top ten arms recipients in the
developing world in 2006 were in the Asia region; three were in the
Near East region; two were in the Latin America region (Tables 2
and 2J).



CRS-47
Table 1. Arms Transfer Agreements With Developing Nations, by Supplier, 1999-2006
(in millions of current U.S. dollars)
1999 2000 2001 2002 2003 2004 2005 2006 1999-2006
8,695 12,630 7,638 9,362 6,900 8,992 6,239 10,306 70,762
4,200 6,600 5,400 5,300 4,400 5,200 6,900 8,100 46,100
1,100 2,200 900 400 900 1,100 6,400 300 13,300
i ngdom 1,200 0 200 700 100 4,100 2,800 3,100 12,200
iki/CRS-RL341872,300 600 1,200 400 500 700 2,500 800 9,000
g/wany 1,600 1,000 100 100 0 100 800 1,800 5,500
s.or
leak400 100 200 0 300 600 500 300 2,400
://wiki4,000 1,300 1,100 1,400 1,300 2,200 3,000 2,100 16,400
http1,700 1,900 1,600 1,000 1,200 2,400 1,400 2,000 13,200
25,195 26,330 18,338 18,662 15,600 25,392 30,539 28,806 188,862
U.S. Government
Developing nations category excludes the U.S., Europe, Canada, Japan, Australia and New Zealand. All data are for the calendar year given except for U. S. MAP (Military
ce Program), IMET (International Military Education and Training), and Excess Defense Article data which are included for the particular fiscal year. All amounts given include
alues of all categories of weapons, spare parts, construction, all associated services, military assistance, excess defense articles, and training programs. Statistics for foreign countries
ed upon estimated selling prices. All foreign data are rounded to the nearest $100 million. The United States total in 2000 includes a $6.432 billion licensed commercial
ent with the United Arab Emirates for 80 F-16 aircraft.



CRS-48
Table 1A. Arms Transfer Agreements with Developing Nations, by Supplier, 1999-2006
(in millions of constant 2006 U.S. dollars)
1999 2000 2001 2002 2003 2004 2005 2006 TO TAL1999-2006
10,739 15,158 8,891 10,619 7,658 9,673 6,489 10,306 79,533
5,187 7,921 6,286 6,012 4,883 5,594 7,176 8,100 51,159
1,359 2,640 1,048 454 999 1,183 6,656 300 14,639
i ngdom 1,482 0 233 794 111 4,410 2,912 3,100 13,042
iki/CRS-RL34187
g/w2,841 720 1,397 454 555 753 2,600 800 10,119
s.orany 1,976 1,200 116 113 0 108 832 1,800 6,146
leak
494 120 233 0 333 645 520 300 2,645
://wiki
http4,940 1,560 1,280 1,588 1,443 2,367 3,120 2,100 18,398
2,100 2,280 1,862 1,134 1,332 2,582 1,456 2,000 14,746
31,116 31,601 21,346 21,168 17,314 27,315 31,762 28,806 210,428
llar inflation
0.8097 0.8332 0.8591 0.8816 0.9010 0.9296 0.9615 1
U.S. Government
ed on Department of Defense Price Deflator.



CRS-49
Table 1B. Arms Transfer Agreements with Developing Nations, by Supplier, 1999-2006
(expressed as a percent of total, by year)
1999 2000 2001 2002 2003 2004 2005 2006

34.51% 47.97% 41.65% 50.17% 44.23% 35.41% 20.43% 35.78%


16.67% 25.07% 29.45% 28.40% 28.21% 20.48% 22.59% 28.12%


4.37% 8.36% 4.91% 2.14% 5.77% 4.33% 20.96% 1.04%


i ngdom 4.76% 0.00% 1.09% 3.75% 0.64% 16.15% 9.17% 10.76%
iki/CRS-RL341879.13% 2.28% 6.54% 2.14% 3.21% 2.76% 8.19% 2.78%
g/wany 6.35% 3.80% 0.55% 0.54% 0.00% 0.39% 2.62% 6.25%
s.or
leak1.59% 0.38% 1.09% 0.00% 1.92% 2.36% 1.64% 1.04%
://wiki15.88% 4.94% 6.00% 7.50% 8.33% 8.66% 9.82% 7.29%
http6.75% 7.22% 8.73% 5.36% 7.69% 9.45% 4.58% 6.94%
ajor West European*17.07%12.53%7.63%6.43%8.33%23.24%34.38%19.09%]

100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%


U.S. Government
or West European category includes France, United Kingdom, Germany, Italy.



CRS-50
Table 1C. Regional Arms Transfer Agreements, by Supplier, 1999-2006
(in millions of current U.S. dollars)
AsiaNear EastLatin AmericaAfrica
1999-2002 2003-2006 1999-2002 2003-2006 1999-2002 2003-2006 1999-2002 2003-2006
9,472 7,203 20,341 22,847 1,723 2,201 94 186
17,600 14,400 2,400 6,400 200 3,400 1,200 400
3,100 4,700 800 2,700 100 300 600 900
iki/CRS-RL34187i ngdom 600 2,000 700 7,700 0 400 700 0
g/w 2,700 2,200 900 1,300 100 100 800 900
s.or
leakany 1,100 400 100 1,400 0 1,000 1,600 0
://wiki 100 400 100 900 200 100 300 200
http 1,600 3,400 2,200 1,800 400 2,700 3,400 500
2,500 4,100 2,200 1,700 700 900 900 500
ajor West European*4,9007,5001,70012,7003001,8003,2001,100]
TAL 38,772 38,803 29,741 46,747 3,423 11,101 9,594 3,586
U.S. Government
All foreign data are rounded to the nearest $100 million. The United States total for Near East in 1999-2002 includes a $6.432 billion licensed commercial agreement with the
ted Arab Emirates in 2000 for 80 F-16 aircraft.
or West European category included France, United Kingdom, Germany, Italy.



CRS-51
Table 1D. Percentage of Each Supplier’s Agreements Value by Region, 1999-2006
AsiaNear EastLatin AmericaAfricaTOTAL
1999-2002 2003-2006 1999-2002 2003-2006 1999-2002 2003-2006 1999-2002 2003-2006 1999-2002 2003-2006

29.95% 22.21% 64.31% 70.43% 5.45% 6.79% 0.30% 0.57% 100.00% 100.00%


82.24% 58.54% 11.21% 26.02% 0.93% 13.82% 5.61% 1.63% 100.00% 100.00%


67.39% 54.65% 17.39% 31.40% 2.17% 3.49% 13.04% 10.47% 100.00% 100.00%


i ngdom 30.00% 19.80% 35.00% 76.24% 0.00% 3.96% 35.00% 0.00% 100.00% 100.00%
iki/CRS-RL3418760.00% 48.89% 20.00% 28.89% 2.22% 2.22% 17.78% 20.00% 100.00% 100.00%
g/w
s.orany 39.29% 14.29% 3.57% 50.00% 0.00% 35.71% 57.14% 0.00% 100.00% 100.00%
leak14.29% 25.00% 14.29% 56.25% 28.57% 6.25% 42.86% 12.50% 100.00% 100.00%
://wikit her
http21.05% 40.48% 28.95% 21.43% 5.26% 32.14% 44.74% 5.95% 100.00% 100.00%

39.68% 56.94% 34.92% 23.61% 11.11% 12.50% 14.29% 6.94% 100.00% 100.00%


ajor West

48.51% 32.47% 16.83% 54.98% 2.97% 7.79% 31.68% 4.76% 100.00% 100.00%]


TAL 47.56% 38.71% 36.48% 46.64% 4.20% 11.07% 11.77% 3.58% 100.00% 100.00%
U.S. Government
or West European category included France, United Kingdom, Germany, Italy.



CRS-52
Table 1E. Percentage of Total Agreements Value by Supplier to Regions, 1999-2006
AsiaNear EastLatin AmericaAfrica
1999-2002 2003-2006 1999-2002 2003-2006 1999-2002 2003-2006 1999-2002 2003-2006

24.43% 18.56% 68.39% 48.87% 50.34% 19.83% 0.98% 5.19%


45.39% 37.11% 8.07% 13.69% 5.84% 30.63% 12.51% 11.15%


8.00% 12.11% 2.69% 5.78% 2.92% 2.70% 6.25% 25.10%


i ngdom 1.55% 5.15% 2.35% 16.47% 0.00% 3.60% 7.30% 0.00%
iki/CRS-RL34187 6.96% 5.67% 3.03% 2.78% 2.92% 0.90% 8.34% 25.10%
g/wany 2.84% 1.03% 0.34% 2.99% 0.00% 9.01% 16.68% 0.00%
s.or
leak 0.26% 1.03% 0.34% 1.93% 5.84% 0.90% 3.13% 5.58%
://wiki 4.13% 8.76% 7.40% 3.85% 11.69% 24.32% 35.44% 13.94%
http 6.45% 10.57% 7.40% 3.64% 20.45% 8.11% 9.38% 13.94%
ajor West European*12.64%19.33%5.72%27.17%8.76%16.21%33.35%30.67%]

100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%


U.S. Government
or West European category includes France, United Kingdom, Germany, Italy.



Table 1F. Arms Transfer Agreements with Developing Nations,
1999-2006: Leading Suppliers Compared
(in millions of current U.S. dollars)
RankSupplierAgreements Value 1999-2002
1United States*38,325
2Russia21,500
3France4,600
4China4,500
5Germany2,800
6United Kingdom2,100
7Sweden2,100
8Israel1,900
9Ukraine1,800
10North Korea1,200
11Italy700
RankSupplierAgreements Value 2003-2006
1United States32,437
2Russia24,600
3United Kingdom10,100
4France8,700
5China4,500
6Israel3,500
7Germany2,700
8Spain2,000
9Italy1,700
10 Netherlands 1,400
11Sweden1,200
RankSupplierAgreements Value 1999-2006
1United States*70,762
2Russia46,100
3France13,300
4United Kingdom12,200
5China9,000
6Germany5,500
7Israel5,400
8Sweden3,300
9Ukraine2,700
10Italy2,400
11Spain2,300
Source: U.S. Government
Note: All foreign data are rounded to the nearest $100 million. Where rounded data totals are the
same, the rank order is maintained. *The United States total includes a $6.432 billion licensed
commercial agreement with the United Arab Emirates in 2000 for 80 F-16 aircraft.



Table 1G. Arms Transfer Agreements with Developing Nations
in 2006: Leading Suppliers Compared
(in millions of current U.S. dollars)
RankSupplierAgreements Value 2006
1United States10,306
2Russia8,100
3United Kingdom3,100
4Germany1,800
5Israel1,300
6Sweden1,100
7China800
8Spain300
9Italy300
10France300
11Poland200
Source: U.S. Government
Note: All foreign data are rounded to the nearest $100 million.
Where rounded data totals are the same, the rank order is maintained.



Table 1H. Arms Transfer Agreements with Near East, by
Supplier
(in millions of current U.S. dollars)
RecipientU.S.RussiaChinaMajor WestAll OtherAllTotal
Count ry European* Eur o pe an Others
1999-2002
Alge ria 0 300 0 0 100 100 500
Bahrain 500 0 0 0 0 0 500
Egyp t 6,500 400 500 100 100 0 7,600
Ir an 0 100 100 0 0 600 800
Ir aq 0 100 0 0 300 0 400
Is rael 6,700 0 0 0 0 0 6,700
J ordan 300 0 0 300 0 100 700
K uwait 1,600 100 200 0 0 200 2,100
Lebanon0000000
Libya 0 200 0 0 200 600 1,000
Morocco 0 0 0 0 0 100 100
Oman 800 0 0 400 100 0 1,300
Qatar0000000
Saudi 2,700 0 0 500 800 0 4,000
Arabia
Syria 0 200 0 100 0 200 500
Tunisia0000000
U.A.E. 7,100 800 0 400 400 100 8,800
Yeme n 0 200 100 0 200 0 500
2003-2006
Alge ria 0 2,300 100 0 0 0 2,400
Bahrain 200 0 0 100 0 0 300
Egyp t 4,300 500 400 0 400 100 5,700
Ir an 0 1,500 400 0 100 200 2,200
Ir aq 1,000 0 0 300 500 300 2,100
Is rael 3,000 300 0 800 100 0 4,200
J ordan 1,000 100 0 0 300 100 1,500
K uwait 1,300 0 0 0 0 100 1,400
Lebanon0000000
Libya 0 200 0 200 100 100 600
Morocco 100 200 0 400 0 200 900
Oman 200 0 0 1,000 0 0 1,200
Qatar 0 0 0 0 0 100 100
Saudi 4,500 0 200 7,600 0 100 12,400
Arabia
Syria 0 700 0 0 0 500 1,200
Tunisia0000000
U.A.E.** 1,200 0 0 2,000 200 300 3,700
Yeme n 0 500 0 0 200 100 800
Source: U.S. Government
Note: 0=data less than $50 million or nil. All data are rounded to nearest $100 million.
*Major West European includes France, United Kingdom, Germany, and Italy totals as an aggregate
figure.
**The United States total for 1999-2002 includes a $6.432 billion licensed commercial agreement
with the United Arab Emirates in 2000 for 80 F-16 aircraft.



Table 1I. Arms Transfer Agreements of Developing Nations,
1999-2006: Agreements by the Leading Recipients
(in millions of current U.S. dollars)
RankRecipientAgreements Value 1999-2002
1China11,000
2U.A.E.*8,800
3Egypt7,600
4India7,500
5Israel6,700
6South Africa5,100
7South Korea5,000
8Saudi Arabia4,000
9Singapore3,300
10Pakistan2,800
RankRecipientAgreements Value 2003-2006
1India14,900
2Saudi Arabia12,400
3Pakistan8,100
4China6,400
5Egypt5,700
6Venezuela4,400
7Israel4,200
8U.A.E.3,700
9Algeria2,400
10Malaysia2,400
RankRecipientAgreements Value 1999-2006
1India22,400
2China17,400
3Saudi Arabia16,400
4Egypt13,300
5U.A.E.*12,500
6Israel10,900
7Pakistan10,900
8South Korea6,700
9South Africa6,100
10 Singapore 4,000
Source: U.S. Government
Note: All foreign data are rounded to the nearest $100 million. Where rounded data totals are the
same, the rank order is maintained. *The U.A.E. total includes a $6.432 billion licensed commercial
agreement with the United States in 2000 for 80 F-16 aircraft.



Table 1J. Arms Transfer Agreements of Developing Nations in
2006: Agreements by Leading Recipients
(in millions of current U.S. dollars)
RankRecipientAgreements Value2006
1Pakistan5,100
2India3,500
3Saudi Arabia3,200
4Venezuela3,100
5Algeria2,100
6Israel2,100
7Brazil1,100
8Iraq900
9Indonesia600
10South Korea500
Source: U.S. Government
Note: All foreign data are rounded to the nearest $100 million. Where rounded data totals are the
same, the rank order is maintained.



CRS-58
Table 2. Arms Deliveries to Developing Nations, by Supplier, 1999-2006
(in millions of current U.S. dollars)
1999 2000 2001 2002 2003 2004 2005 2006 TO TAL1999-2006
11,611 8,054 5,457 6,594 5,879 7,224 8,266 7,987 61,072
3,000 3,600 4,300 3,500 4,200 5,300 2,900 5,500 32,300
3,500 1,900 1,000 900 1,900 5,200 2,000 200 16,600
i ngdom 4,600 4,300 3,400 3,400 3,900 2,300 2,700 3,300 27,900
iki/CRS-RL34187
g/w 400 800 700 800 700 800 900 700 5,800
s.orany 700 500 100 300 800 800 200 800 4,200
leak
500 100 200 200 100 100 100 0 1,300
://wiki
http 2,300 2,100 1,800 1,900 1,500 800 1,100 900 12,400
800 1,100 1,400 1,500 1,000 1,700 1,400 500 9,400
TAL 27,411 22,454 18,357 19,094 19,979 24,224 19,566 19,887 170,972
U.S. Government
Developing nations category excludes the United States, Russia, Europe, Canada, Japan, Australia, and New Zealand. All data are for the calendar year given, except for U.S.
P (Military Assistance Program), IMET (International Military Education and Training), excess defense articles, which are included for the particular fiscal year. Licensed
mercial exports are excluded. All amounts given include the values of all categories of weapons and ammunition, military spare parts, military construction, military assistance
ing programs, and all associated services. Statistics for foreign countries are based upon estimated selling prices. All foreign data are rounded to the nearest $100 million.



CRS-59
Table 2A. Arms Deliveries to Developing Nations, by Supplier, 1999-2006
(in millions of constant 2006 U.S. dollars)
1999 2000 2001 2002 2003 2004 2005 2006 TO TAL1999-2006
ited States14,3409,6666,3527,4806,5257,7718,5977,98768,718
3,705 4,321 5,005 3,970 4,661 5,701 3,016 5,500 35,880
4,323 2,280 1,164 1,021 2,109 5,594 2,080 200 18,770
i ngdom 5,681 5,161 3,958 3,857 4,329 2,474 2,808 3,300 31,567
iki/CRS-RL34187
g/w 494 960 815 907 777 861 936 700 6,450
s.orany 865 600 116 340 888 861 208 800 4,678
leak
618 120 233 227 111 108 104 0 1,520
://wiki
http 2,841 2,520 2,095 2,155 1,665 861 1,144 900 14,181
988 1,320 1,630 1,701 1,110 1,829 1,456 500 10,534
33,853 26,949 21,368 21,658 22,174 26,059 20,349 19,887 192,298
llar inflation index:
0.8097 0.8332 0.8591 0.8816 0.9010 0.9296 0.9615 1
U.S. Government
ed on Department of Defense Price Deflator.



CRS-60
Table 2B. Arms Deliveries to Developing Nations, by Supplier, 1999-2006
(expressed as a percent of total, by year)
1999 2000 2001 2002 2003 2004 2005 2006

42.36% 35.87% 29.73% 34.53% 29.43% 29.82% 42.25% 40.16%


10.94% 16.03% 23.42% 18.33% 21.02% 21.88% 14.82% 27.66%


12.77% 8.46% 5.45% 4.71% 9.51% 21.47% 10.22% 1.01%


i ngdom 16.78% 19.15% 18.52% 17.81% 19.52% 9.49% 13.80% 16.59%
iki/CRS-RL341871.46% 3.56% 3.81% 4.19% 3.50% 3.30% 4.60% 3.52%
g/wany 2.55% 2.23% 0.54% 1.57% 4.00% 3.30% 1.02% 4.02%
s.or
leak1.82% 0.45% 1.09% 1.05% 0.50% 0.41% 0.51% 0.00%
://wiki8.39% 9.35% 9.81% 9.95% 7.51% 3.30% 5.62% 4.53%
http2.92% 4.90% 7.63% 7.86% 5.01% 7.02% 7.16% 2.51%
ajor West European*33.93%30.28%25.60%25.14%33.54%34.68%25.55%21.62%]

100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%


U.S. Government
or West European category includes France, United Kingdom, Germany, Italy.



CRS-61
Table 2C. Regional Arms Deliveries by Supplier, 1999-2006
(in millions of current U.S. dollars)
AsiaNear EastLatin AmericaAfrica
1999-2002 2003-2006 1999-2002 2003-2006 1999-2002 2003-2006 1999-2002 2003-2006
11,293 8,213 19,190 19,312 1,147 1,679 86 152
11,500 14,200 1,900 2,200 100 900 800 600
1,700 1,000 5,400 7,800 200 500 100 100
iki/CRS-RL34187i ngdom 1,900 200 13,800 11,600 0 0 0 300
g/w 1,500 1,500 700 900 0 100 500 500
s.or
leakany 500 1,400 1,000 300 100 0 0 900
://wiki 500 100 100 0 200 200 100 0
http 1,200 1,200 4,600 1,900 800 900 1,400 400
2,500 2,500 1,300 900 200 900 800 300
ajor West European* 4,6002,70020,30019,7005007002001,300]
32,593 30,313 47,990 44,912 2,747 5,179 3,786 3,252
U.S. Government
All foreign data are rounded to the nearest $100 million.
or West European category includes France, United Kingdom, Germany, Italy.



CRS-62
Table 2D. Percentage of Supplier Deliveries Value by Region, 1999-2006
AsiaNear EastLatin AmericaAfricaTOTALTOTAL
1999-2002 2003-20061999-2002 2003-2006 1999-2002 2003-2006 1999-2002 2003-2006 1999-2002 2003-2006

35.61% 27.98% 60.51% 65.79% 3.62% 5.72% 0.27% 0.52% 100.00% 100.00%


80.42% 79.33% 13.29% 12.29% 0.70% 5.03% 5.59% 3.35% 100.00% 100.00%


22.97% 10.64% 72.97% 82.98% 2.70% 5.32% 1.35% 1.06% 100.00% 100.00%


i ngdom 12.10% 1.65% 87.90% 95.87% 0.00% 0.00% 0.00% 2.48% 100.00% 100.00%
iki/CRS-RL3418755.56% 50.00% 25.93% 30.00% 0.00% 3.33% 18.52% 16.67% 100.00% 100.00%
g/w
s.orany 31.25% 53.85% 62.50% 11.54% 6.25% 0.00% 0.00% 34.62% 100.00% 100.00%
leak55.56% 33.33% 11.11% 0.00% 22.22% 66.67% 11.11% 0.00% 100.00% 100.00%
://wiki15.00% 27.27% 57.50% 43.18% 10.00% 20.45% 17.50% 9.09% 100.00% 100.00%
http52.08% 54.35% 27.08% 19.57% 4.17% 19.57% 16.67% 6.52% 100.00% 100.00%
ajor West17.97%11.07%79.30%80.74%1.95%2.87%0.78%5.33%100.00%100.00%]
TAL 37.41% 36.24% 55.09% 53.69% 3.15% 6.19% 4.35% 3.89% 100.00% 100.00%
U.S. Government
or West European category includes France, United Kingdom, Germany, Italy.



CRS-63
Table 2E. Percentage of Total Deliveries Value by Supplier to Regions, 1999-2006
AsiaNear EastLatin AmericaAfrica
1999-2002 2003-2006 1999-2002 2003-2006 1999-2002 2003-2006 1999-2002 2003-2006

34.65% 27.09% 39.99% 43.00% 41.75% 32.42% 2.27% 4.67%


35.28% 46.84% 3.96% 4.90% 3.64% 17.38% 21.13% 18.45%


5.22% 3.30% 11.25% 17.37% 7.28% 9.65% 2.64% 3.08%


iki/CRS-RL34187i ngdom 5.83% 0.66% 28.76% 25.83% 0.00% 0.00% 0.00% 9.23%
g/w
s.or 4.60% 4.95% 1.46% 2.00% 0.00% 1.93% 13.21% 15.38%
leakany 1.53% 4.62% 2.08% 0.67% 3.64% 0.00% 0.00% 27.68%
://wiki 1.53% 0.33% 0.21% 0.00% 7.28% 3.86% 2.64% 0.00%
http

3.68% 3.96% 9.59% 4.23% 29.12% 17.38% 36.98% 12.30%


7.67% 8.25% 2.71% 2.00% 7.28% 17.38% 21.13% 9.23%


ajor West European* 14.11%8.91%42.30%43.86%18.20%13.52%5.28%39.98%]

100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%


U.S. Government
or West European category includes France, United Kingdom, Germany, Italy.



Table 2F. Arms Deliveries to Developing Nations, 1999-2006
Leading Suppliers Compared
(in millions of current U.S. dollars)
RankSupplierDeliveries Value 1999-2002
1United States31,716
2United Kingdom15,700
3Russia14,400
4France7,300
5Sweden2,800
6China2,700
7Germany1,600
8Ukraine1,500
9Israel1,400
10Belarus1,000
11Italy1,000
RankSupplierDeliveries Value 2003-2006
1United States29,356
2Russia17,900
3United Kingdom12,200
4France9,300
5China3,100
6Germany2,600
7Israel1,600
8Sweden800
9Ukraine800
10Brazil500
11 Netherlands 400
RankSupplierDeliveries Value 1999-2006
1United States61,072
2Russia32,300
3United Kingdom27,900
4France16,600
5China5,800
6Germany4,200
7Sweden3,600
8Israel3,000
9Ukraine2,300
10Italy1,300
11Belarus1,100
Source: U.S. Government
Note: All foreign data are rounded to the nearest $100 million. Where rounded data totals are the
same, the rank order is maintained.



Table 2G. Arms Deliveries to Developing Nations in 2006:
Leading Suppliers Compared
(in millions of current U.S. dollars)
RankSupplierDeliveries Value2006
1United States7,987
2Russia5,500
3United Kingdom3,300
4Germany800
5China700
6Netherlands300
7France200
8Israel200
9Spain200
10Brazil100
Source: U.S. Government
Note: All foreign data are rounded to the nearest $100 million. Where rounded data totals are the
same, the rank order is maintained.



Table 2H. Arms Deliveries to Near East, by Supplier
(in millions of current U.S. dollars)
RecipientU.S.RussiaChinaMajor West All OtherAllTotal
Count ry European* Eur o pe an Others
1999-2002
Alge ria 0 400 200 0 400 100 1,100
Bahrain 500 0 0 0 0 0 500
Egyp t 4,500 200 200 100 100 0 5,100
Ir an 0 400 100 0 0 400 900
Ir aq 0 0 0 0 100 100 200
Is rael 3,300 0 0 900 0 100 4,300
J ordan 200 0 0 100 0 100 400
K uwait 1,300 100 200 600 0 200 2,400
Lebanon0000000
Libya 0 100 0 0 200 100 400
Morocco 0 0 0 100 200 0 300
Oman00001000100
Qatar 0 0 0 200 0 0 200
Saudi Arabia8,9000015,2002,90010027,100
Syria 0 200 0 100 100 0 400
Tunisia0000000
U.A.E. 200 300 0 2,700 400 100 3,700
Yeme n 0 200 100 100 100 200 700
2003-2006
Alge ria 0 500 100 0 0 0 600
Bahrain 300 0 0 100 0 0 400
Egyp t 5,100 100 300 0 200 100 5,800
Ir an 0 300 200 0 100 100 700
Ir aq 0 0 0 0 200 200 400
Is rael 5,200 100 0 0 100 0 5,400
J ordan 400 0 0 0 100 100 600
K uwait 900 0 200 0 0 0 1,100
Lebanon0000000
Libya 0 100 0 0 100 0 200
Morocco 100 100 0 100 0 100 400
Oman 600 0 0 300 0 0 900
Qatar0000000
Saudi Arabia4,4000013,50070010018,700
Syria 0 300 0 0 0 200 500
Tunisia0000000
U.A.E. 600 200 0 5,400 200 200 6,600
Yeme n 0 400 0 0 100 100 600
Source: U.S. Government
Note: 0=data less than $50 million or nil. All data are rounded to nearest $100 million.
*Major West European includes France, United Kingdom, Germany, and Italy totals as an aggregate figure.



Table 2I. Arms Deliveries to Developing Nations, 1999-2006:
The Leading Recipients
(in millions of current U.S. dollars)
RankRecipientDeliveries Value1999-2002
1Saudi Arabia27,100
2China8,200
3Taiwan5,900
4Egypt5,100
5South Korea5,000
6Israel4,300
7U.A.E.3,700
8India2,900
9Pakistan2,500
10Kuwait2,400
RankRecipientDeliveries Value2003-2006
1Saudi Arabia18,700
2China8,900
3India7,200
4U.A.E.6,600
5Egypt5,800
6Israel5,400
7Taiwan4,100
8South Korea2,800
9Pakistan2,100
10Malaysia1,500
RankRecipientDeliveries Value1999-2006
1Saudi Arabia45,800
2China17,100
3Egypt10,900
4U.A.E.10,300
5India10,100
6Taiwan10,000
7Israel9,700
8South Korea7,800
9Pakistan4,600
10Malaysia3,700
Source: U.S. Government
Note: All foreign data are rounded to the nearest $100 million. Where rounded data totals are the
same, the rank order is maintained.



Table 2J. Arms Deliveries to Developing Nations in 2006:
The Leading Recipients
(in millions of current U.S. dollars)
RankRecipientDeliveries Value2006
1Saudi Arabia4,100
2China2,900
3Israel1,500
4Egypt1,400
5Taiwan1,000
6India800
7Chile800
8Venezuela700
9South Korea600
10Malaysia500
Source: U.S. Government
Note: All foreign data are rounded to the nearest $100 million. Where rounded data totals are the
same, the rank order is maintained.



Selected Weapons Deliveries to
Developing Nations, 1999-2006
Other useful data for assessing arms transfers are those that indicate who has
actually delivered specific numbers of specific classes of military items to a region.
These data are relatively “hard” in that they reflect actual transfers of military
equipment. They have the limitation of not giving detailed information regarding
either the sophistication or the specific name of the equipment delivered. However,
these data show relative trends in the delivery of important classes of military
equipment and indicate who the leading suppliers are from region to region over
time. Data in the following tables set out actual deliveries of fourteen categories of
weaponry to developing nations from 1999-2006 by the United States, Russia, China,
the four major West European suppliers as a group, all other European suppliers as
a group, and all other suppliers as a group (Tables 3-7).
Care should be taken in using the quantitative data within these specific tables.
Aggregate data on weapons categories delivered by suppliers do not provide precise
indices of the quality and/or quantity of the weaponry delivered. The history of
recent conventional conflicts suggests that quality and/or sophistication of weapons
can offset quantitative advantage. Further, these data do not provide an indication
of the relative capabilities of the recipient nations to use effectively the weapons
delivered to them. Superior training — coupled with good equipment, tactical and
operational proficiency, and sound logistics — may, in the last analysis, be a more
important factor in a nation’s ability to engage successfully in conventional warfare
than the size of its weapons inventory.
Regional Weapons Deliveries Summary, 2003-2006
!The regional weapons delivery data collectively show that the
United States was a leading supplier of several major classes of
conventional weaponry from 2003-2006. Russia also transferred
large quantities of certain weapons classes during these years.
!The major West European suppliers were serious competitors in
weapons deliveries from 2003-2006 making deliveries of certain
categories of armaments to every region of the developing
world—most particularly to the Near East, Asia, and to Latin
America. In Africa, all European suppliers, Russia, China and all
other non-European suppliers were sources of weapons delivered.
!Regional weapons delivery data reflect the diverse sources of supply
of conventional weaponry available to developing nations. Even
though the United States, Russia, and the four major West European
suppliers tend to dominate the delivery of the fourteen classes of
weapons examined, it is also evident that the other European
suppliers, and non-European suppliers, including China, are capable
of providing specific classes of conventional armaments, such as
tanks, missiles, armored vehicles, aircraft, artillery pieces, and the
various missile categories, surface-to-surface, surface-to-air, and



anti-ship, to developing nations, should their systems prove
attractive to prospective purchasers.
Deliveries of specific categories of weapons to regions of the developing world by
specific suppliers from 2003-2006 included the following:
Asia.
Russia delivered 200 tanks and self-propelled guns, 200 APCs and armored
cars, 5 major surface combatants, 3 minor surface combatants, 8 submarines, 100
supersonic combat aircraft, 100 helicopters, 700 surface-to-air missiles, and 300 anti-
ship missiles. The United States delivered 108 artillery pieces, 6 major surface
combatants, 6 minor surface combatants; 7 supersonic combat aircraft, 22
helicopters, 556 surface-to-air missiles, and 181 anti-ship missiles. China delivered

200 tanks and self-propelled guns, 200 artillery pieces, 100 APCs and armored cars,


11 minor surface combatants, and 600 surface-to-air missiles. The four major West
European suppliers as a group delivered 1 major surface combatant, 15 minor
surface combatants, 1 submarine, 20 supersonic combat aircraft, and 20 helicopters.
All other European suppliers collectively delivered 50 tanks and self-propelled
guns, 570 APCs and armored cars, 90 artillery pieces, 18 minor surface combatants,
2 submarines, 10 supersonic combat aircraft, 10 helicopters, and 90 surface-to-air
missiles. All other non-European suppliers collectively delivered 60 APCs and
armored cars, 1 major surface combatant, 19 minor surface combatants, 10
supersonic combat aircraft, and 340 surface-to-air missiles.
Near East.
Russia delivered 120 APCs and armored cars, 20 supersonic combat aircraft,
30 helicopters, and 1,240 surface-to-air missiles. The United States delivered 349
tanks and self-propelled guns, 715 APCs and armored cars, 2 major surface
combatants, 5 minor surface combatants, 71 supersonic combat aircraft, 66
helicopters, 465 surface-to-air missiles, and 87 anti-ship missiles. China delivered
20 artillery pieces, 50 APCs and armored cars, and 50 anti-ship missiles. The four
major West European suppliers collectively delivered 120 tanks and self-propelled
guns, 60 APCs and armored cars; 4 major surface combatants, 46 minor surface
combatants, 10 guided missile boats, 30 supersonic combat aircraft, 20 helicopters,
and 40 anti-ship missiles. All other European suppliers as a group delivered 300
tanks and self-propelled guns, 1,250 APCs and armored cars, 20 minor surface
combatants, 2 guided missile boats, 10 supersonic combat aircraft, 10 helicopters,
and 320 surface-to-air missiles. All other suppliers collectively delivered 640 APCs
and armored cars, 98 minor surface combatants, 30 helicopters, 40 surface-to-surface
missiles, and 10 anti-ship missiles.



Latin America.
Russia delivered 20 helicopters, and 30 surface-to-air missiles. The United
States delivered 79 artillery pieces, 9 minor surface combatants; 10 supersonic
combat aircraft, 34 surface-to-air missiles, and 21 anti-ship missiles. China
delivered 10 minor surface combatants. The four major West European suppliers
collectively delivered 4 major surface combatants, 1 minor surface combatant, 2
submarines, 10 helicopters, and 10 anti-ship missiles. All other European suppliers
collectively delivered 2 major surface combatants, 2 minor surface combatants, 2
submarines, and 10 anti-ship missiles. All other non-European suppliers as a
group delivered 2 minor surface combatants, 10 supersonic combat aircraft, 10
helicopters, 40 surface-to-air missiles, and 30 anti-ship missiles.
Africa.
Russia delivered 20 supersonic combat aircraft and 50 helicopters. China
delivered 200 artillery pieces, 190 APCs and armored cars, 33 minor surface
combatants, and 20 supersonic aircraft. The four major West European suppliers
collectively delivered 50 APCs and armored cars; 4 major surface combatants, 13
minor surface combatants, 1 submarine, 10 helicopters, and 10 anti-ship missiles. All
other European suppliers collectively delivered 140 tanks and self-propelled guns,
1,150 artillery pieces, 220 APCs and armored cars, 17 minor surface combatants, 10
helicopters, and 150 surface-to-air missiles. All other non-European suppliers as
a group delivered 40 tanks and self-propelled guns, 50 artillery pieces, 200 APCs and
armored cars, 1 major surface combatant; 6 minor surface combatants, 1 guided
missile boat, and 10 helicopters.



Table 3. Numbers of Weapons Delivered by Suppliers
to Developing Nations
MajorAll OtherAll
Weapons CategoryU.S.RussiaChinaWestEuropeanOthers
European*
1999-2002
Tanks and Self-Propelled
Guns 462 290 100 390 1,230 140
Ar tillery 264 500 570 80 710 730
APCs and Armored Cars1096803501101,170580
Major Surface Combatants8306103
Minor Surface Combatants24173512091
Guided Missile Boats001900
Submarines 0 2 0 7 2 0
Supersonic Combat Aircraft2442505030100100
Subsonic Combat Aircraft1710050100
Other Aircraft514070170120140
Helicopters 144 390 10 80 120 40
Surface-to-Air Missiles2,8841,7405501,2009001,040
Surface-to-Surface Missiles0000040
Anti-Ship Missiles423180130290020
2003-2006
Tanks and Self-Propelled
Guns 375 200 200 120 490 40
Ar tillery 228 0 430 50 1,290 110
APCs and Armored Cars7693202901102,040900
Major Surface Combatants8501322
Minor Surface Combatants203547557125
Guided Missile Boats0001021
Submarines 080 4 40
Supersonic Combat Aircraft8814020503020
Subsonic Combat Aircraft20020010
Other Aircraft711010010100120
Helicopters 91 200 0 60 30 50
Surface-to-Air Missiles1,0551,9706000560380
Surface-to-Surface Missiles0000040
Anti-Ship Missiles28930050702040
Source: U.S. Government
Note: Developing nations category excludes the U.S., Russia, Europe, Canada, Japan, Australia and New Zealand. All
data are for calendar years given. *Major West European includes France, United Kingdom, Germany, and Italy totals
as an aggregate figure. Data relating to surface-to-surface and anti-ship missiles by foreign suppliers are estimates based
on a variety of sources having a wide range of accuracy. As such, individual data entries in these two weapons delivery
categories are not necessarily definitive.



Table 4. Number of Weapons Delivered by Suppliers
to Asia and the Pacific
MajorAll OtherAll
Weapons CategoryU.S.RussiaChinaWestEuropeanOthers
European*
1999-2002
Tanks and Self-Propelled Guns20018030017020
Ar tillery 173 10 330 10 90 170
APCs and Armored Cars2432030020140170
Major Surface Combatants630313
Minor Surface Combatants02221530
Guided Missile Boats000000
Submarines 0 2 0 3 2 0
Supersonic Combat Aircraft14920050301070
Subsonic Combat Aircraft15005000
Other Aircraft42030104050
Helicopters 104 250 0 20 10 10
Surface-to-Air Missiles255213104601110160270
Surface-to-Surface Missiles000000
Anti-Ship Missiles28715020130010
2003-2006
Tanks and Self-Propelled Guns02002000500
Ar tillery 108 0 200 10 90 20
APCs and Armored Cars54200100057060
Major Surface Combatants650101
Minor Surface Combatants6311151819
Guided Missile Boats000000
Submarines 0 8 0 1 2 0
Supersonic Combat Aircraft71000201010
Subsonic Combat Aircraft200000
Other Aircraft2000102040
Helicopters 22 100 0 20 10 0
Surface-to-Air Missiles556700600090340
Surface-to-Surface Missiles000000
Anti-Ship Missiles18130001000
Source: U.S. Government
Note: Asia and Pacific category excludes Japan, Australia and New Zealand. All data are for calendar years given.
*Major West European includes France, United Kingdom, Germany, and Italy totals as an aggregate figure. Data relating
to surface-to-surface and anti-ship missiles by foreign suppliers are estimates based on a variety of sources having a wide
range of accuracy. As such, individual data entries in these two weapons delivery categories are not necessarily
d e finitive.



Table 5. Numbers of Weapons Delivered by Suppliers
to Near East
Weapons CategoryU.S.RussiaChinaMajor WestEuropean*All OtherEuropeanAllOthers
1999-2002
Tanks and Self-Propelled
Guns 157 70 0 330 300 30
Ar tillery 65 20 80 50 0 0
APCs and Armored Cars70200503036020
Major Surface Combatants000110
Minor Surface Combatants200162131
Guided Missile Boats001900
Submarines 0 0 0 3 0 0
Supersonic Combat Aircraft914000400
Subsonic Combat Aircraft000000
Other Aircraft221020904040
Helicopters 4 40 0 40 0 10
Surface-to-Air Missiles3323905005400
Surface-to-Surface Missiles0000040
Anti-Ship Missiles12430110160010
2003-2006
Tanks and Self-Propelled
Guns 349 0 0 120 300 0
Ar tillery 41 0 20 20 50 40
APCs and Armored Cars7151200601250640
Major Surface Combatants200400
Minor Surface Combatants500462098
Guided Missile Boats0001020
Submarines 0 0 0 0 0 0
Supersonic Combat Aircraft7120030100
Subsonic Combat Aircraft0001000
Other Aircraft3106005040
Helicopters 66 30 0 20 10 30
Surface-to-Air Missiles4651240003200
Surface-to-Surface Missiles0000040
Anti-Ship Missiles87050401010
Source: U.S. Government
Note: All data for calendar years given. *Major West European includes France, United Kingdom, Germany, and Italy
totals as an aggregate figure. Data relating to surface-to-surface and anti-ship missiles by foreign suppliers are estimates
based on a variety of sources having a wide range of accuracy. As such, individual data entries in theses two weapons
delivery categories are not necessarily definitive.



Table 6. Numbers of Weapons Delivered by Suppliers
to Latin America
MajorAll OtherAll
Weapons CategoryU.S.RussiaChinaWestEuropeanOthers
European*
1999-2002
Tanks and Self-Propelled Guns0006034020
Ar tillery 26 0 0 20 90 20
APCs and Armored Cars150040400
Major Surface Combatants200280
Minor Surface Combatants0063620
Guided Missile Boats000000
Submarines 0 0 0 1 0 0
Supersonic Combat Aircraft400000
Subsonic Combat Aircraft200000
Other Aircraft17100602030
Helicopters 36 30 0 10 50 0
Surface-to-Air Missiles004090400
Surface-to-Surface Missiles000000
Anti-Ship Missiles1200000
2003-2006
Tanks and Self-Propelled Guns000000
Ar tillery 79 0 10 0 0 0
APCs and Armored Cars000000
Major Surface Combatants000420
Minor Surface Combatants9010122
Guided Missile Boats000000
Submarines 0 0 0 2 2 0
Supersonic Combat Aircraft100001010
Subsonic Combat Aircraft0000010
Other Aircraft2010002030
Helicopters 3 20 0 10 0 10
Surface-to-Air Missiles343000040
Surface-to-Surface Missiles000000
Anti-Ship Missiles2100101030
Source: U.S. Government
Note: All data for calendar years given. *Major West European includes France, United Kingdom, Germany, and Italy
totals as an aggregate figure. Data relating to surface-to-surface and anti-ship missiles by foreign suppliers are estimates
based on a variety of sources having a wide range of accuracy. As such, individual data entries in theses two weapons
delivery categories are not necessarily definitive.



Table 7. Number of Weapons Delivered by Suppliers
to Africa
Weapons CategoryU.S.RussiaChinaMajor WestEuropean*All OtherEuropeanAllOthers
1999-2002
Tanks and Self-Propelled04070042070
Guns
Ar tillery 0 470 160 0 530 540
APCs and Armored Cars0160020630390
Major Surface Combatants000000
Minor Surface Combatants029142230
Guided Missile Boats000000
Submarines 0 0 0 0 0 0
Supersonic Combat Aircraft010005030
Subsonic Combat Aircraft01000100
Other Aircraft8020102020
Helicopters 0 70 10 10 60 20
Surface-to-Air Missiles04000160770
Surface-to-Surface Missiles000000
Anti-Ship Missiles000000
2003-2006
Tanks and Self-Propelled000014040
Guns
Ar tillery 0 0 200 20 1150 50
APCs and Armored Cars0019050220200
Major Surface Combatants000401
Minor Surface Combatants003313176
Guided Missile Boats000001
Submarines 0 0 0 1 0 0
Supersonic Combat Aircraft02020000
Subsonic Combat Aircraft0001000
Other Aircraft004001010
Helicopters 0 50 0 10 10 10
Surface-to-Air Missiles00001500
Surface-to-Surface Missiles000000
Anti-Ship Missiles0001000
Source: U.S. Government
Note: All data are for calendar years given. *Major West European includes France, United Kingdom, Germany, and
Italy totals as an aggregate figure. Data relating to surface-to-surface and anti-ship missiles by foreign suppliers are
estimates based on a variety of sources having a wide range of accuracy. As such, individual data entries in these two
weapons delivery categories are not necessarily definitive.



Worldwide Arms Transfer Agreements and Deliveries Values,
1999-2006
Ten tables follow. Tables 8, 8A, and 8B and Tables 9, 9A, and 9B, provide the total dollar
values for arms transfer agreements and arms deliveries worldwide for the years 1999-2006 in the
same format and detail as do Tables 1, 1A, and 1B and Tables 2, 2A, and 2B for arms transfer
agreements with and arms deliveries to developing nations. Tables 8C, 8D, 9C, and 9D provide a
list of the top eleven arms suppliers to the world based on the total values (in current dollars) of their
arms transfer agreements and arms deliveries worldwide during calendar years 1999-2002, 2003-
2006, and 2006. These tables are set out in the same format and detail as Tables 1F and 1G for
arms transfer agreements with, and Tables 2F and 2G for arms deliveries to developing nations,
respectively.
Total Worldwide Arms Transfer Agreements Values, 1999-2006
Table 8 shows the annual current dollar values of arms transfer agreements worldwide. Since
these figures do not allow for the effects of inflation, they are, by themselves, of limited use. They
provide, however, the data from which Tables 8A (constant dollars) and 8B (supplier percentages)
are derived. Some of the more facts reflected by these data are summarized below. Unless
otherwise noted, dollar values are expressed in constant 2006 U.S. dollars.
!The United States ranked first among all suppliers to the world in the value of arms
transfer agreements from 2003-2006, and first for the entire period from 1999-2006
(Figure 1)(Table 8C).
!Russia ranked second among all suppliers to the world in the value of arms transfer
agreements from 2003-2006, and second from 1999-2006.
!The United Kingdom ranked third among all suppliers to the world in the value of
arms transfer agreements from 2003-2006, and third from 1999-2006.
!In 2006, the value of all arms transfer agreements worldwide was nearly $40.3
billion. This is a decrease in arms agreement values over 2005, a decline of nearly

13%.


!In 2006, the United States was the leader in arms transfer agreements with the
world, making $16.9 billion in such agreements, or 41.9% of all arms transfer
agreements. Russia ranked second with $8.7 billion in arms transfer agreements,
or 21.6% of all arms transfer agreements. The United Kingdom ranked third with
$3.1 billion. United States arms transfer agreements rose from $13.5 billion in 2005
to $16.9 billion in 2006. The U.S. share of agreements rose from 29.1% to 41.9%.
Russia’s worldwide arms transfer agreements rose from $7.5 billion in 2005 to $8.7
billion in 2006 (Table 8A)(Table 8B)(Table 8D).
!The United States, Russia, and the United Kingdom—the top three arms suppliers
to the world in 2006—respectively (ranked by the value of their arms transfer
agreements) collectively made agreements in 2006 valued at $28.7 billion, 71.2%
of all arms transfer agreements made with the world by all suppliers (Table 8D).



!The total value of all arms transfer agreements worldwide from 2003-2006 ($160
billion) was higher than the value of arms transfer agreements by all suppliers
worldwide for the period 1999-2002 ($156.7 billion), a nominal increase of 2.1%
(Figure 1).
!During the period from 1999-2002, developing world nations accounted for 67.1%
of all arms transfer agreements made worldwide. During 2003-2006, developing
world nations accounted for 65.7% of all agreements made worldwide (Figure 1).
!In 2006, developing nations were recipients of 71.5% of all arms transfer
agreements made worldwide (Figure 1).
Total Worldwide Delivery Values 1999-2006
Table 9 shows the annual current dollar values of arms deliveries (items actually transferred)
worldwide by major suppliers from 1999-2006. The utility of these data is that they reflect transfers
that have occurred. They provide the data from which Tables 9A (constant dollars) and 9B
(supplier percentages) are derived. Some of the facts illustrated by these data are summarized below.
Unless otherwise noted the dollar values are expressed in constant 2006 U.S. dollars.
!In 2006, the United States ranked first in the value of arms deliveries worldwide,
making $14 billion in such deliveries. This is the eighth year in a row that United
States has led in such deliveries (Figure 2)(Table 9A)(Table 9D).
!Russia ranked second in arms deliveries worldwide in 2006, making $5.8 billion in
such deliveries.
!The United Kingdom ranked third in arms deliveries worldwide in 2006, making
$3.3 billion in such deliveries.
!In 2006, the top three suppliers of arms to the world, the United States, Russia, and
the United Kingdom collectively delivered $23.1 billion, 85.6% of all arms
deliveries made worldwide by all suppliers (Table 9D).
!The U.S. share of all arms deliveries worldwide in 2006 was 51.9%, up from its
45.6% share in 2005, and the largest percentage share of global arms deliveries for
the entire period from 1999-2006. Russia’s share in 2006 was 21.5%, up from
12.3% in 2005. The United Kingdom’s share of world arms deliveries in 2006 was

12.2%, up from 11.5% in 2005 (Table 9B).


!In 2006, the value of all arms deliveries worldwide was $27 billion, an increase in
the total value of deliveries from 2005 ($26.2 billion in constant 2006 dollars), but
still the second lowest total for the entire 1999-2006 period (Chart 7)(Table 9A).
!During the period from 1999-2002, developing world nations accounted for 71.7%
of all arms deliveries received worldwide. During 2003-2006, developing world
nations accounted for 73.3% of all deliveries worldwide (Figure 2).
!In 2006, developing nations as recipients of arms accounted for 73.6% of all arms
deliveries received worldwide (Figure 2).



!The total value of all arms deliveries by all suppliers worldwide from 2003-2006
($120.7 billion) was a notable decrease from the value of arms deliveries by all
suppliers worldwide from 1999-2002 ($144.8 billion in constant 2006 dollars), a
decline of 16.7% (Figure 2)(Table 9A).



Table 8. Arms Transfer Agreements with the World, by Supplier, 1999-2006
(in millions of current U.S. dollars)
TOTAL

1999 2000 2001 2002 2003 2004 2005 2006 1999-


2006
United States11,51817,48311,48713,06714,54812,67412,93916,905110,621
Russia 5,100 6,700 5,600 5,700 4,500 5,400 7,200 8,700 48,900
France 1,600 4,600 4,200 500 2,500 2,200 8,000 500 24,100
United Kingdom1,5006006007006006,4002,8003,10016,300
China 2,900 600 1,200 400 500 700 2,500 800 9,600
Germany 4,000 1,200 1,200 1,000 1,500 1,700 1,700 1,900 14,200
It aly 700 200 1,100 400 600 600 1,400 900 5,900
All Other
European 5,700 4,100 2,700 4,400 2,100 6,500 5,800 5,200 36,500
All Others2,1002,5002,6002,1001,7002,6002,2002,30018,100
TOTAL 35,118 37,983 30,687 28,267 28,548 38,774 44,539 40,305 284,221
Source: U.S. Government
Note: All data are for the calendar year given, except for U.S. MAP (Military Assistance Program) and IMET
(International Military Education and Training), excess defense articles, which are included for the particular fiscal year.
All amounts given include the values of all categories of weapons and ammunition, military spare parts, military
construction, excess defense articles, military assistance and training programs, and all associated services. Statistics
for foreign countries are based upon estimated selling prices. All foreign data are rounded to the nearest $100 million.
The U.S. total in 2000 includes a $6.432 billion licensed commercial agreement with the United Arab Emirates for 80
F-16 aircraft.



Table 8A. Arms Transfer Agreements with the World, by Supplier,
1999-2006
(in millions of constant 2006 U.S. dollars)
TOTAL

1999 2000 2001 2002 2003 2004 2005 2006 1999-


2006
United States14,22520,98313,37114,82216,14713,63413,45716,905123,543
Russia 6,299 8,041 6,518 6,466 4,994 5,809 7,488 8,700 54,316
France 1,976 5,521 4,889 567 2,775 2,367 8,320 500 26,915
United Kingdom1,8537206987946666,8852,9123,10017,628
China 3,582 720 1,397 454 555 753 2,600 800 10,860
Germany 4,940 1,440 1,397 1,134 1,665 1,829 1,768 1,900 16,073
It aly 865 240 1,280 454 666 645 1,456 900 6,506
All Other
European 7,040 4,921 3,143 4,991 2,331 6,992 6,032 5,200 40,649
All Others2,5943,0003,0262,3821,8872,7972,2882,30020,274
TOTAL 43,372 45,587 35,720 32,063 31,685 41,710 46,322 40,305 316,764
Dollar inflation
index:
(2006=1.00)* 0.8097 0.8332 0.8591 0.8816 0.9010 0.9296 0.9615 1
Source: U.S. Government
*Based on Department of Defense Price Deflator.



CRS-82
Table 8B. Arms Transfer Agreements with the World, by Supplier, 1999-2006
(expressed as a percent of total, by year)
1999 2000 2001 2002 2003 2004 2005 2006

32.80% 46.03% 37.43% 46.23% 50.96% 32.69% 29.05% 41.94%


14.52% 17.64% 18.25% 20.16% 15.76% 13.93% 16.17% 21.59%


4.56% 12.11% 13.69% 1.77% 8.76% 5.67% 17.96% 1.24%


iki/CRS-RL34187i ngdom 4.27% 1.58% 1.96% 2.48% 2.10% 16.51% 6.29% 7.69%
g/w 8.26% 1.58% 3.91% 1.42% 1.75% 1.81% 5.61% 1.98%
s.or
leakany 11.39% 3.16% 3.91% 3.54% 5.25% 4.38% 3.82% 4.71%
://wiki 1.99% 0.53% 3.58% 1.42% 2.10% 1.55% 3.14% 2.23%
http 16.23% 10.79% 8.80% 15.57% 7.36% 16.76% 13.02% 12.90%

5.98% 6.58% 8.47% 7.43% 5.95% 6.71% 4.94% 5.71%


ajor West European*22.21%17.38%23.14%9.20%18.21%28.11%31.21%15.88%]

100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%


U.S. Government
Columns may not total due to rounding.
or West European category includes France, United Kingdom, Germany, Italy.



Table 8C. Arms Transfer Agreements with the World,
1999-2006: Leading Suppliers Compared
(in millions of current U.S. dollars)
RankSupplierAgreements Value 1999-2002
1United States*53,555
2Russia23,100
3France10,900
4Germany7,400
5China5,100
6Sweden4,000
7Ukraine3,800
8United Kingdom3,400
9Israel3,400
10Italy2,400
11Spain2,100
RankSupplierAgreements Value 2003-2006
1United States57,066
2Russia25,800
3France13,200
4United Kingdom12,900
5Germany6,800
6Israel5,200
7China4,500
8Austria4,000
9Sweden3,900
10Spain3,600
11Italy3,500
RankSupplierAgreements Value 1999-2006
1United States*110,621
2Russia48,900
3France24,100
4United Kingdom16,300
5Germany14,200
6China9,600
7Israel8,500
8Sweden7,900
9Italy5,900
10Spain5,600
11Ukraine5,100
Source: U.S. Government
Note: All foreign data are rounded to the nearest $100 million. Where rounded data totals are the
same, the rank order is maintained. *The U.S. total includes a $6.432 billion licensed commercial
agreement with the United Arab Emirates in 2000 for 80 F-16 aircraft.



Table 8D. Arms Transfer Agreements with the World in 2006:
Leading Suppliers Compared
(in millions of current U.S. dollars)
RankSupplierAgreements Value 2006
1United States16,905
2Russia8,700
3United Kingdom3,100
4Germany1,900
5Israel1,700
6Austria1,500
7Sweden1,100
8Italy900
9China800
10Spain700
11 Netherlands 600
Source: U.S. Government
Note: All foreign data are rounded to the nearest $100 million.
Where rounded data totals are the same, the rank order is maintained.



CRS-85
Table 9. Arms Deliveries to the World, by Supplier, 1999-2006
(in millions of current U.S. dollars)
1999 2000 2001 2002 2003 2004 2005 2006 TO TAL1999-2006
16,743 12,650 9,024 9,941 10,571 11,468 11,495 14,008 95,900
3,600 4,200 4,700 3,600 4,300 5,500 3,100 5,800 34,800
4,100 2,400 1,900 1,400 2,400 5,300 2,200 400 20,100
iki/CRS-RL34187
g/wi ngdom 4,700 5,400 3,800 4,500 4,400 2,700 2,900 3,300 31,700
s.or 500 900 900 900 700 900 900 700 6,400
leak
any 2,000 1,200 600 1,200 2,000 1,800 600 1,000 10,400
://wiki
httpt aly 700 200 500 500 400 200 300 100 2,900
3,200 2,900 3,100 2,800 3,800 1,600 2,000 1,200 20,600
1,600 1,600 1,900 2,000 1,600 2,100 1,700 500 13,000
37,143 31,450 26,424 26,841 30,171 31,568 25,195 27,008 235,800
U.S. Government
All data are for the calendar year given, except for U.S. MAP (Military Assistance Program), IMET (International Military Education and Training), excess defense articles,
are included for the particular fiscal year. Licensed commercial exports are excluded. All amounts given include the values of all categories of weapons and ammunition, military
e parts, military construction, excess defense articles, military assistance and training programs, and all associated services. Statistics for foreign countries are based upon estimated
g prices. All foreign data are rounded to the nearest $100 million.



CRS-86
Table 9A. Arms Deliveries to the World, by Supplier, 1999-2006
(in millions of constant 2006 U.S. dollars)
19992000200120022003200420052006TOTAL1999- 2006
20,678 15,182 10,504 11,276 11,733 12,336 11,955 14,008 107,672
4,446 5,041 5,471 4,083 4,772 5,917 3,224 5,800 38,754
5,064 2,880 2,212 1,588 2,664 5,701 2,288 400 22,797
i ngdom 5,805 6,481 4,423 5,104 4,883 2,904 3,016 3,300 35,916
iki/CRS-RL34187
g/w 618 1,080 1,048 1,021 777 968 936 700 7,148
s.orany 2,470 1,440 698 1,361 2,220 1,936 624 1,000 11,749
leak
865 240 582 567 444 215 312 100 3,325
://wiki
http 3,952 3,481 3,608 3,176 4,218 1,721 2,080 1,200 23,436
1,976 1,920 2,212 2,269 1,776 2,259 1,768 500 14,680
45,873 37,746 30,758 30,446 33,486 33,959 26,204 27,008 265,477
llar inflation index:
0.8097 0.8332 0.8591 0.8816 0.9010 0.9296 0.9615 1
U.S. Government
ed on Department of Defense Price Deflator.



CRS-87
Table 9B. Arms Deliveries to the World, by Supplier 1999-2006
(expressed as a percent of total, by year)
1999 2000 2001 2002 2003 2004 2005 2006

45.08% 40.22% 34.15% 37.04% 35.04% 36.33% 45.62% 51.87%


9.69% 13.35% 17.79% 13.41% 14.25% 17.42% 12.30% 21.48%


11.04% 7.63% 7.19% 5.22% 7.95% 16.79% 8.73% 1.48%


i ngdom 12.65% 17.17% 14.38% 16.77% 14.58% 8.55% 11.51% 12.22%
iki/CRS-RL34187 1.35% 2.86% 3.41% 3.35% 2.32% 2.85% 3.57% 2.59%
g/wany 5.38% 3.82% 2.27% 4.47% 6.63% 5.70% 2.38% 3.70%
s.or
leak 1.88% 0.64% 1.89% 1.86% 1.33% 0.63% 1.19% 0.37%
://wiki 8.62% 9.22% 11.73% 10.43% 12.59% 5.07% 7.94% 4.44%
http 4.31% 5.09% 7.19% 7.45% 5.30% 6.65% 6.75% 1.85%
ajor West European*30.96%29.25%25.73%28.31%30.49%31.68%23.81%17.77%]

100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%


U.S. Government
or West European category includes France, United Kingdom, Germany, Italy.



Table 9C. Arms Deliveries to the World, 1999-2006:
Leading Suppliers Compared
(in millions of current U.S. dollars)
RankSupplierDeliveries Value 1999-2002
1United States48,358
2United Kingdom18,400
3Russia16,100
4France9,800
5Germany5,000
6Sweden4,300
7China3,200
8Ukraine2,300
9Canada2,200
10Italy1,900
11Belarus1,000
RankSupplierDeliveries Value 2003-2006
1United States47,542
2Russia18,600
3United Kingdom13,300
4France10,300
5Germany5,400
6China3,200
7Canada3,000
8Israel2,300
9Ukraine2,200
10Sweden1,900
11Italy1,000
RankSupplierDeliveries Value 1999-2006
1United States95,900
2Russia34,800
3United Kingdom31,700
4France20,100
5Germany10,400
6China 6,400
7Sweden6,200
8Canada5,200
9Israel4,900
10Ukraine4,500
11Italy2,900
Source: U.S. Government
Note: All foreign data are rounded to the nearest $100 million. Where rounded data totals are the
same, the rank order is maintained.



Table 9D. Arms Deliveries to the World in 2006:
Leading Suppliers Compared
(in millions of current U.S. dollars)
RankSupplierDeliveries Value2006
1United States14,008
2Russia5,800
3United Kingdom3,300
4Germany1,000
5China700
6Canada600
7France400
8Netherlands300
9Israel200
10Spain200
11Sweden200
Source: U.S. Government
Note: All foreign data are rounded to the nearest $100 million. Where rounded data totals are the
same, the rank order is maintained.



Description of Items Counted in
Weapons Categories, 1999-2006
Tanks and Self-propelled Guns: This category includes light, medium, and heavy
tanks; self-propelled artillery; self-propelled assault guns.
Artillery: This category includes field and air defense artillery, mortars, rocket
launchers and recoilless rifles — 100 mm and over; FROG launchers — 100mm and
over.
Armored Personnel Carriers (APCs) and Armored Cars: This category includes
personnel carriers, armored and amphibious; armored infantry fighting vehicles;
armored reconnaissance and command vehicles.
Major Surface Combatants: This category includes aircraft carriers, cruisers,
destroyers, frigates.
Minor Surface Combatants: This category includes minesweepers, subchasers,
motor torpedo boats, patrol craft, motor gunboats.
Submarines: This category includes all submarines, including midget submarines.
Guided Missile Patrol Boats: This category includes all boats in this class.
Supersonic Combat Aircraft: This category includes all fighter and bomber aircraft
designed to function operationally at speeds above Mach 1.
Subsonic Combat Aircraft: This category includes all fighter and bomber aircraft
designed to function operationally at speeds below Mach 1.
Other Aircraft: This category includes all other fixed-wing aircraft, including
trainers, transports, reconnaissance aircraft, and communications/utility aircraft.
Helicopters: This category includes all helicopters, including combat and transport.
Surface-to-air Missiles: This category includes all ground-based air defense
missiles.
Surface-to-surface Missiles: This category includes all surface-surface missiles
without regard to range, such as Scuds and CSS-2s. It excludes all anti-tank missiles.
It also excludes all anti-ship missiles, which are counted in a separate listing.
Anti-ship Missiles: This category includes all missiles in this class such as the
Harpoon, Silkworm, Styx and Exocet.



Regions Identified in Arms Transfer Tables and
Charts
ASIANEAR EASTEUROPE
Af ghanistan Al ge r i a Albania
Australia Bahrain Arme nia
Bangladesh E gyp t Aus t r i a
Brunei Ir a n Azerbaij an
Burma (Myanmar)IraqBelarus
Chi n a Is r a e l Bosnia/Herzegovi na
Fi j i Jordan Bulgaria
India Kuwait Belgium
Indonesia Lebanon Canada
J a pan Libya Cr oatia
Cambodia Morocco C z e c h o s l o va ki a /
KazakhstanOmanCzech Republic
K yr gyzs t a n Qa t a r Cyprus
LaosSaudi ArabiaDenmark
Malaysia Syr i a Estonia
Nepal T unisia Finland
New ZealandUnited Arab EmiratesFrance
North KoreaYemenFYR/Macedonia
PakistanGeorgia
Papua New GuineaGermany
Philippines Gr eece
PitcairnHungary
Singapore Iceland
South KoreaIreland
Sri LankaItaly
TaiwanLatvia
Taj ikistan Li echtenstein
Thailand Lithuania
Turkmenistan Luxembourg
UzbekistanMalta
VietnamMoldova
Netherlands
Norway
Poland
Portugal
Romania
Russia
Slovak Republic
Slovenia
Spain
Sweden
Switzerland
Turkey
Ukraine
United Kingdom
Yugoslavia/Federal
Republic(Ser b i a/
Montenegro)



AFRICALATIN AMERICA
AngolaAntigua
BeninArgentina
BotswanaBahamas
Burkina FasoBarbados
BurundiBelize
CameroonBermuda
Cape VerdeBolivia
Central African RepublicBrazil
ChadBritish Virgin Islands
CongoCayman Islands
Côte d’IvoireChile
Dj ibouti Colombia
Equatorial GuineaCosta Rica
EthiopiaCuba
GabonDominica
GambiaDominican Republic
GhanaEcuador
GuineaEl Salvador
Guinea-BissauFrench Guiana
KenyaGrenada
Lesot ho Guadeloupe
Liberia Guatemala
Madaga scar Guya na
MalawiHaiti
MaliHonduras
Mauritania Jamaica
Mauritius Martinique
Moza mbique Mexico
Nami bia Montserrat
NigerNetherlands Antilles
Ni ge r i a Ni c a r a gu a
Réunion Panama
RwandaParaguay
SenegalPeru
SeychellesSt. Kitts & Nevis
Sierra LeoneSt. Lucia
SomaliaSt. Pierre & Miquelon
South AfricaSt. Vincent
SudanSuriname
Swaziland Trinidad
TanzaniaTurks & Caicos
Togo V enezuela


Uganda
Zaire
Zambia
Zimbabwe