by Frida Berrigan, Senior Research Associate, Arms Trade Resource Center



There are two major channels through which American arms manufacturers sell weaponry to foreign countries. Foreign Military Sales (FMS) are government-to-government agreements negotiated by the Pentagon and the purchasing country. Direct Commercial Sales (DCS) are agreements negotiated between the manufacturing company and the purchasing country and then licensed by the State Department.



Congressional approval must be sought for weapons sales of $14 million or more, and defense services and technical assistance valued at $50 million or more. In recent years, these requirements have changed for NATO allies, Australia, Japan and New Zealand, and now these countries can bypass the Congressional approval process for weaponry valued less than $25 million or technical assistance valued at less than $100 million.



Within the State Department, the Office of Defense Trade Controls maintains the International Traffic in Arms Regulations (ITAR), a list of all the categories of goods that are considered munitions. ITAR also names those states ineligible to receive U.S. armaments.



The U.S. government transfers weapons from its stocks for free or at greatly reduced prices through the Excess Defense Articles (EDA) program. Through the Emergency Drawdown program, allied governments can receive fast-track grants of weapons to address crisis situations. Both programs are managed through the Defense Department.



The 1976 Arms Export Control Act stipulates that arms transfers can only be used by the recipient nation for self-defense, internal security and in United Nations sanctioned operations. The Foreign Assistance Act of 1961 bars military aid and arms sales to countries that demonstrate “gross and consistent” patterns of human rights abuses. And the Export Administration Act, passed in 1979, regulates the sale of “dual-use” items that could have civilian or military application.



However, research from the Arm Trade Resource Center’s Weapons at War report reveals that in the last decade, the U.S. has transferred some $8.7 billion in arms and military services to war zones throughout the world, $970.5 million in 2003 alone. During that year (the last year for which full data is available) the United States transferred weapons and military hardware into 18 of 25 conflict zones.