Latest updates on US government and International export or Foreign Military Sales (FMS)

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December 29, 2019

The United States imports and exports annually. It is the third-highest exporter in the world after European Union and China. The country is the second highest after the European Union. A third of the products exported are capital products at $562 billion. Commercial aircrafts make up for up to $130 billion of exports. Exports of capital products like semiconductors and industrial machines are at $48 billion and $60 billion . Telecommunication product exports are at $37 billion while medical equipment are at $37 billion. Electric apparatus are at $46 billion. A third of goods exported are industrial supplies at $39 billion. The largest part of exports is chemicals at $62 billion. Plastic exports are at $38 billion, fuel oil at $42 billion and petroleum product are at $11 billion. 12% of goods exported by the country are consumer goods at $206 billion. The largest group of exports are cell phones at $27 billion, and gem diamonds at $22 billion. Cars make up for 9% of goods exported and consists of beverages, feeds and foods at $133 billion. The largest three are corn at $14 billion, poultry and meat at $20 billion and soybeans at $18 billion. There was a decrease in American food exports which was the major reason preventing the Transatlantic Trade and Investment Partnership. American services make up for up to a third of their imports at $828 billion. The largest single component consists of travel services at $307 billion. Business services and computer exports are at $206 billion. Licence fees and royalty exports are at $132 billion. Private services like financial services are up to $132 billion. Military and government contracts exports are $20 billion.

Foreign Military Sales

The United States trades military equipment with countries like Japan. Japan is increasing their spending in defense. Their defense budget shows the government is increasing their spending.  Japan spent up to 428 billion Japanese yen in 2019. It is common to limit spending of the first budget by promoting spending in the supplementary budget of the fiscal year. Japan wants to buy weapons from the US using the program of the Foreign Military Sales. The Prime Minister of Japan, Shinzo Abe confirmed this. The country’s supplementary budget is applicable to sudden and natural disasters. Japan’s defense spending with supplementary budgets are up to 5.7 trillion yen which is more than 1% of the nation’s GDP. Defense spending will exceed and creep up without enough debate. There was much pressure from the American government encouraging Japan to buy weapons from the US. The United States have a large stock of marketable weapons. Japan’s budget for contracts on Foreign Military Sales (FMS) are up to 701.3 billion yen in 2019 and the country is targeting above that next year. Japan buys a lot of land-based missile defense batteries from the US and the country went ahead with the contract. The United States delivered 3 Osprey military aircraft to Japan even though Japan is yet to deploy them. Training takes place for the Japanese military on American military bases. Japan bought a lot of F-35 fighter jets consisting of military equipment. The country have not said exactly how they will use those American military equipment. Japan wants to support a systematic defense and strategic capability  with American collaboration.  Nuclear weapons development by North Korea and the Chinese nuclear capabilities are pushing Japan to assess their military.

US Foreign Military Sales In 2019

American sales of foreign equipment  was $55.6 billion a year earlier but was $55.4 billion this year. However restrictions on foreign military sales increased by 33% between 2017 and 2018.  Donald Trump’s government brought a new policy that decreased restrictions on military sales. 2 main ways exist for buying arms from American companies. One is through  direct commercial sales in which a company and a government negotiates. Another way is to contact an official of the Department of Defense through the US embassy. The US government will have to approve them. The major American arms contractors are Northdrop Grumman Corp, Boeing Co, General Dynamics Corp, Raytheon Co and Lockheed Martin.

Amendment to Arm sales with Cyprus

The Trump’ administration endorsed a bill that will make the Eastern Mediterranean Security and Energy Partners Act of the year 2019 that will increase defense and energy coöperation between nations like Israel, Cyprus, Greece and the United States. Trump had objections to various bill articles consisting of the East Med Act with regards to authority of Congress on international participation and military assistant. The EastMed Act ends the arms sales prohibition to Cyprus, opening trade unions between Cyprus and the United States. The US Eastern Mediterranean Energy Centre was a body of the American government for promoting foreign military trade. Cyprus will become a trade partner with the US for the first time. This will make the American government to bring to Congress an initiative for energy coöperation and enhance security in the Eastern Mediterranean with reports about Russia and other nations.

Foreign Military Trade With Africa

The United States trades with African nations like Nigeria, Kenya, Ethiopia, Zaire and Morocco. Zaire, Ethiopia and Morocco are among the largest buyers of American military service and equipment. Nigeria buys less than Kenya in terms of military equipment. The Federal Military Sales program is the instrument for this trade and most of these trades are through American trade policies.

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