Conventional Arms Transfers to Developing Nations, 1999-2006

Congressional research reportSep 26, 2007

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Order Code RL34187

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

Arms Deliveries With Developing Nations in 2006:

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

Table 1J. Arms Transfer Agreements of Developing Nations in 2006:

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

Table 9A. Arms Deliveries to the World, by Supplier, 1999-2006

(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.

CRS-2

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.

CRS-3

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 fouryear aggregate dollar totals, these values are expressed in current dollars.

CRS-4

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).

CRS-5

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 lessdeveloped 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

CRS-6

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).

CRS-7

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.

CRS-8

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 MidLife 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.

CRS-9

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

CRS-10

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. policy

objective.1

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 Su30 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 any

threat it may face in any confrontation with China.2 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) airdefense 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.

CRS-11

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. 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.

CRS-12

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.

CRS-13

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.

CRS-14

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.

CRS-15

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.

CRS-16

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 19992006 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).

CRS-17

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.

CRS-18

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

CRS-19

!

!

!

!

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 selfpropelled 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.

CRS-20

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.

CRS-21

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).

CRS-22

Chart 1. Arms Transfer Agreements Worldwide, 1999-2006

Developed and Developing Worlds Compared

In billions of constant

2006 dollars

55

Developed World

50

Developing World

45

40

35

30

25

20

15

10

5

0

1999

2000

Source: U.S. Government

2001

2002

2003

2004

2005

2006

CRS-23

Chart 2. Arms Transfer Agreements Worldwide

(supplier percentage of value)

CRS-24

Chart 3. Arms Transfer Agreements With Developing Nations

(supplier percentage of value)

CRS-25

Chart 4. Arms Transfer Agreements With Developing Nations by Major Supplier, 1999-2006

(billions of constant 2006 dollars)

Russia

United States

16

16

14

14

12

12

10

10

8

8

6

6

4

4

2

2

0

0

1999 2000 2001 2002 2003 2004 2005 2006

1999 2000 2001 2002 2003 2004 2005 2006

Major West European

All Others

16

16

14

14

12

12

10

10

8

8

6

6

4

4

2

2

0

0

1999 2000 2001 2002 2003 2004 2005 2006

Source: U.S. Government

1999 2000 2001 2002 2003 2004 2005 2006

CRS-26

Figure 1. Worldwide Arms Transfer Agreements, 1999-2006 and

Suppliers’ Share with Developing World

(in millions of constant 2006 U.S. dollars)

Supplier

United States

Russia

France

United Kingdom

China

Germany

Italy

All Other European

All Others

TOTAL

Worldwide Agreements

Value 1999-2002

63,401

27,324

12,953

4,065

6,153

8,911

2,839

20,095

11,002

156,743

Percentage of Total with

Developing World

71.60

93.00

42.50

61.70

88.00

38.20

29.80

46.60

67.00

67.10

Supplier

United States

Russia

France

United Kingdom

China

Germany

Italy

All Other European

All Others

TOTAL

Worldwide Agreements

Value 2003-2006

60,143

26,991

13,962

13,563

4,708

7,162

3,667

20,555

9,272

160,023

Percentage of Total with

Developing World

56.70

95.40

65.40

77.70

100.00

38.30

49.00

43.90

79.50

65.70

Supplier

United States

Russia

France

United Kingdom

China

Germany

Italy

All Other European

All Others

TOTAL

Worldwide Agreements

Value 2006

16,905

8,700

500

3,100

800

1,900

900

5,200

2,300

40,305

Percentage of Total with

Developing World

61.00

93.10

60.00

100.00

100.00

94.70

33.30

40.40

87.00

71.50

Source: U.S. Government

CRS-27

!

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 20032006. Among the facts reflected in these tables are the following:

Near East.

11

!

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 20032006, 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

Because these regional data are composed of four-year aggregate dollar totals, they are

expressed in current dollar terms.

CRS-28

($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).

CRS-29

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).

CRS-30

Chart 5. Arms Transfer Agreements With

Near East

(supplier percentage of value)

CRS-31

Chart 6. Arms Transfer Agreements With Developing Nations in Asia

(supplier percentage of value)

(excludes Japan, Australia, and New Zealand)

CRS-32

!

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 19992002 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).

CRS-33

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 19992006. 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.

CRS-34

!

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 20032006. 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.

CRS-35

!

The value of arms transfer agreements by the United States with

Saudi Arabia rose notably from the 1999-2002 period to the 20032006 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,

Agreements With Leading Recipients

1999-2006:

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—19992002, 2003-2006, and 1999-2006. Among the facts reflected in this table are the

following:

!

India was the leading developing world arms purchaser from 19992006, 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).

CRS-36

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).

CRS-37

!

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).

CRS-38

Chart 7. Arms Deliveries Worldwide 1999-2006

Developed and Developing Worlds Compared

In billions of constant

2006 dollars

50

Developed World

Developing World

45

40

35

30

25

20

15

10

5

0

1999

2000

Source: U.S. Government

2001

2002

2003

2004

2005

2006

CRS-39

Chart 8. Arms Deliveries to Developing Countries by Major Supplier, 1999-2006

(in billions of constant 2006 dollars)

United States

Russia

16

16

14

14

12

12

10

10

8

8

6

6

4

4

2

2

0

0

1999 2000 2001 2002 2003 2004 2005 2006

1999 2000 2001 2002 2003 2004 2005 2006

Major West European

All Others

16

16

14

14

12

12

10

10

8

8

6

6

4

4

2

2

0

0

1999 2000 2001 2002 2003 2004 2005 2006

Source: U.S. Government

1999 2000 2001 2002 2003 2004 2005 2006

CRS-40

Figure 2. Worldwide Arms Deliveries, 1999-2006 and Suppliers’

Share with Developing World

(in millions of constant 2006 U.S. dollars)

Supplier

United States

Russia

France

United Kingdom

China

Germany

Italy

All Other European

All Others

TOTAL

Supplier

United States

Russia

France

United Kingdom

China

Germany

Italy

All Other European

All Others

TOTAL

Supplier

United States

Russia

France

United Kingdom

China

Germany

Italy

All Other European

All Others

TOTAL

Source: U.S. Government

Worldwide Deliveries

Value

1999-2002

57,640

19,041

11,744

21,813

3,767

5,969

2,254

14,217

8,377

144,822

Worldwide Deliveries

Value

2003-2006

50,032

19,713

11,053

14,103

3,381

5,780

1,071

9,219

6,303

120,655

Worldwide Deliveries

Value 2006

14,008

5,800

400

3,300

700

1,000

100

1,200

500

27,008

Percentage of Total to

Developing World

65.60

89.30

74.80

85.50

84.30

32.20

53.10

67.60

67.30

71.70

Percentage of Total to

Developing World

61.70

95.80

90.30

91.50

96.80

47.70

30.20

49.60

77.70

73.30

Percentage of Total to

Developing World

57.00

94.80

50.00

100.00

100.00

80.00

0.00

75.00

100.00

73.60

CRS-41

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 are

expressed in current U.S. dollars.12 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.

12

!

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 20032006, 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 20032006, 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

Because these regional data are composed of four-year aggregate dollar totals, they are

expressed in current dollar terms.

CRS-42

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

CRS-43

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 19992006 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

CRS-44

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

CRS-45

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 19992002 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 19992006 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).

CRS-46

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

United States

8,695

12,630

7,638

9,362

6,900

8,992

6,239

10,306

70,762

Russia

4,200

6,600

5,400

5,300

4,400

5,200

6,900

8,100

46,100

France

1,100

2,200

900

400

900

1,100

6,400

300

13,300

United Kingdom

1,200

0

200

700

100

4,100

2,800

3,100

12,200

China

2,300

600

1,200

400

500

700

2,500

800

9,000

Germany

1,600

1,000

100

100

0

100

800

1,800

5,500

Italy

400

100

200

0

300

600

500

300

2,400

All Other European

4,000

1,300

1,100

1,400

1,300

2,200

3,000

2,100

16,400

All Others

1,700

1,900

1,600

1,000

1,200

2,400

1,400

2,000

13,200

TOTAL

25,195

26,330

18,338

18,662

15,600

25,392

30,539

28,806

188,862

Source: U.S. Government

Note: 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

Assistance Program), IMET (International Military Education and Training), and Excess Defense Article data which are included for the particular fiscal year. All amounts given include

the values of all categories of weapons, spare parts, construction, all associated services, military assistance, excess defense articles, and training programs. Statistics for foreign countries

are based 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

agreement 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

TOTAL

1999-2006

United States

10,739

15,158

8,891

10,619

7,658

9,673

6,489

10,306

79,533

Russia

5,187

7,921

6,286

6,012

4,883

5,594

7,176

8,100

51,159

France

1,359

2,640

1,048

454

999

1,183

6,656

300

14,639

United Kingdom

1,482

0

233

794

111

4,410

2,912

3,100

13,042

China

2,841

720

1,397

454

555

753

2,600

800

10,119

Germany

1,976

1,200

116

113

0

108

832

1,800

6,146

494

120

233

0

333

645

520

300

2,645

All Other European

4,940

1,560

1,280

1,588

1,443

2,367

3,120

2,100

18,398

All Others

2,100

2,280

1,862

1,134

1,332

2,582

1,456

2,000

14,746

TOTAL

31,116

31,601

21,346

21,168

17,314

27,315

31,762

28,806

210,428

Dollar inflation

Index:(2006=1.00)*

0.8097

0.8332

0.8591

0.8816

0.9010

0.9296

0.9615

1

Italy

Source: U.S. Government

*Based 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

United States

34.51%

47.97%

41.65%

50.17%

44.23%

35.41%

20.43%

35.78%

Russia

16.67%

25.07%

29.45%

28.40%

28.21%

20.48%

22.59%

28.12%

France

4.37%

8.36%

4.91%

2.14%

5.77%

4.33%

20.96%

1.04%

United Kingdom

4.76%

0.00%

1.09%

3.75%

0.64%

16.15%

9.17%

10.76%

China

9.13%

2.28%

6.54%

2.14%

3.21%

2.76%

8.19%

2.78%

Germany

6.35%

3.80%

0.55%

0.54%

0.00%

0.39%

2.62%

6.25%

Italy

1.59%

0.38%

1.09%

0.00%

1.92%

2.36%

1.64%

1.04%

All Other European

15.88%

4.94%

6.00%

7.50%

8.33%

8.66%

9.82%

7.29%

All Others

6.75%

7.22%

8.73%

5.36%

7.69%

9.45%

4.58%

6.94%

[Major West European*

17.07%

12.53%

7.63%

6.43%

8.33%

23.24%

34.38%

19.09%]

TOTAL

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

Source: U.S. Government

*Major 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)

Asia

Near East

Latin America

Africa

1999-2002

2003-2006

1999-2002

2003-2006

1999-2002

2003-2006

1999-2002

2003-2006

United States

9,472

7,203

20,341

22,847

1,723

2,201

94

186

Russia

17,600

14,400

2,400

6,400

200

3,400

1,200

400

France

3,100

4,700

800

2,700

100

300

600

900

600

2,000

700

7,700

0

400

700

0

China

2,700

2,200

900

1,300

100

100

800

900

Germany

1,100

400

100

1,400

0

1,000

1,600

0

100

400

100

900

200

100

300

200

All Other European

1,600

3,400

2,200

1,800

400

2,700

3,400

500

All Others

2,500

4,100

2,200

1,700

700

900

900

500

[Major West European*

4,900

7,500

1,700

12,700

300

1,800

3,200

1,100]

TOTAL

38,772

38,803

29,741

46,747

3,423

11,101

9,594

3,586

United Kingdom

Italy

Source: U.S. Government

Note: 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

United Arab Emirates in 2000 for 80 F-16 aircraft.

*Major West European category included France, United Kingdom, Germany, Italy.

CRS-51

Table 1D. Percentage of Each Supplier’s Agreements Value by Region, 1999-2006

Asia

Near East

Latin America

Africa

TOTAL

1999-2002

2003-2006

1999-2002

2003-2006

1999-2002

2003-2006

1999-2002

2003-2006

1999-2002

2003-2006

United States

29.95%

22.21%

64.31%

70.43%

5.45%

6.79%

0.30%

0.57%

100.00%

100.00%

Russia

82.24%

58.54%

11.21%

26.02%

0.93%

13.82%

5.61%

1.63%

100.00%

100.00%

France

67.39%

54.65%

17.39%

31.40%

2.17%

3.49%

13.04%

10.47%

100.00%

100.00%

United Kingdom

30.00%

19.80%

35.00%

76.24%

0.00%

3.96%

35.00%

0.00%

100.00%

100.00%

China

60.00%

48.89%

20.00%

28.89%

2.22%

2.22%

17.78%

20.00%

100.00%

100.00%

Germany

39.29%

14.29%

3.57%

50.00%

0.00%

35.71%

57.14%

0.00%

100.00%

100.00%

Italy

14.29%

25.00%

14.29%

56.25%

28.57%

6.25%

42.86%

12.50%

100.00%

100.00%

All Other

European

21.05%

40.48%

28.95%

21.43%

5.26%

32.14%

44.74%

5.95%

100.00%

100.00%

All Others

39.68%

56.94%

34.92%

23.61%

11.11%

12.50%

14.29%

6.94%

100.00%

100.00%

[Major West

European*

48.51%

32.47%

16.83%

54.98%

2.97%

7.79%

31.68%

4.76%

100.00%

100.00%]

TOTAL

47.56%

38.71%

36.48%

46.64%

4.20%

11.07%

11.77%

3.58%

100.00%

100.00%

Source: U.S. Government

*Major West European category included France, United Kingdom, Germany, Italy.

CRS-52

Table 1E. Percentage of Total Agreements Value by Supplier to Regions, 1999-2006

Asia

Near East

Latin America

Africa

1999-2002

2003-2006

1999-2002

2003-2006

1999-2002

2003-2006

1999-2002

2003-2006

United States

24.43%

18.56%

68.39%

48.87%

50.34%

19.83%

0.98%

5.19%

Russia

45.39%

37.11%

8.07%

13.69%

5.84%

30.63%

12.51%

11.15%

France

8.00%

12.11%

2.69%

5.78%

2.92%

2.70%

6.25%

25.10%

United Kingdom

1.55%

5.15%

2.35%

16.47%

0.00%

3.60%

7.30%

0.00%

China

6.96%

5.67%

3.03%

2.78%

2.92%

0.90%

8.34%

25.10%

Germany

2.84%

1.03%

0.34%

2.99%

0.00%

9.01%

16.68%

0.00%

Italy

0.26%

1.03%

0.34%

1.93%

5.84%

0.90%

3.13%

5.58%

All Other European

4.13%

8.76%

7.40%

3.85%

11.69%

24.32%

35.44%

13.94%

All Others

6.45%

10.57%

7.40%

3.64%

20.45%

8.11%

9.38%

13.94%

[Major West European*

12.64%

19.33%

5.72%

27.17%

8.76%

16.21%

33.35%

30.67%]

TOTAL

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

Source: U.S. Government

*Major West European category includes France, United Kingdom, Germany, Italy.

CRS-53

Table 1F. Arms Transfer Agreements with Developing Nations,

1999-2006: Leading Suppliers Compared

(in millions of current U.S. dollars)

Rank

1

2

3

4

5

6

7

8

9

10

11

Supplier

United States*

Russia

France

China

Germany

United Kingdom

Sweden

Israel

Ukraine

North Korea

Italy

Agreements Value 1999-2002

38,325

21,500

4,600

4,500

2,800

2,100

2,100

1,900

1,800

1,200

700

Rank

1

2

3

4

5

6

7

8

9

10

11

Supplier

United States

Russia

United Kingdom

France

China

Israel

Germany

Spain

Italy

Netherlands

Sweden

Agreements Value 2003-2006

32,437

24,600

10,100

8,700

4,500

3,500

2,700

2,000

1,700

1,400

1,200

Rank

1

2

3

4

5

6

7

8

9

10

11

Supplier

United States*

Russia

France

United Kingdom

China

Germany

Israel

Sweden

Ukraine

Italy

Spain

Agreements Value 1999-2006

70,762

46,100

13,300

12,200

9,000

5,500

5,400

3,300

2,700

2,400

2,300

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.

CRS-54

Table 1G. Arms Transfer Agreements with Developing Nations

in 2006: Leading Suppliers Compared

(in millions of current U.S. dollars)

Rank

Supplier

Agreements Value 2006

1

United States

10,306

2

Russia

8,100

3

United Kingdom

3,100

4

Germany

1,800

5

Israel

1,300

6

Sweden

1,100

7

China

800

8

Spain

300

9

Italy

300

10

France

300

11

Poland

200

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-55

Table 1H. Arms Transfer Agreements with Near East, by

Supplier

(in millions of current U.S. dollars)

Recipient

Country

1999-2002

Algeria

Bahrain

Egypt

Iran

Iraq

Israel

Jordan

Kuwait

Lebanon

Libya

Morocco

Oman

Qatar

Saudi

Arabia

Syria

Tunisia

U.A.E.

Yemen

2003-2006

Algeria

Bahrain

Egypt

Iran

Iraq

Israel

Jordan

Kuwait

Lebanon

Libya

Morocco

Oman

Qatar

Saudi

Arabia

Syria

Tunisia

U.A.E.**

Yemen

Russia

China

Major West

European*

0

500

6,500

0

0

6,700

300

1,600

0

0

0

800

0

2,700

300

0

400

100

100

0

0

100

0

200

0

0

0

0

0

0

500

100

0

0

0

200

0

0

0

0

0

0

0

0

100

0

0

0

300

0

0

0

0

400

0

500

100

0

100

0

300

0

0

0

0

200

0

100

0

800

100

0

0

600

0

0

100

200

0

600

100

0

0

0

500

500

7,600

800

400

6,700

700

2,100

0

1,000

100

1,300

0

4,000

0

0

7,100

0

200

0

800

200

0

0

0

100

100

0

400

0

0

0

400

200

200

0

100

0

500

0

8,800

500

0

200

4,300

0

1,000

3,000

1,000

1,300

0

0

100

200

0

4,500

2,300

0

500

1,500

0

300

100

0

0

200

200

0

0

0

100

0

400

400

0

0

0

0

0

0

0

0

0

200

0

100

0

0

300

800

0

0

0

200

400

1,000

0

7,600

0

0

400

100

500

100

300

0

0

100

0

0

0

0

0

0

100

200

300

0

100

100

0

100

200

0

100

100

2,400

300

5,700

2,200

2,100

4,200

1,500

1,400

0

600

900

1,200

100

12,400

0

0

1,200

0

700

0

0

500

0

0

0

0

0

0

2,000

0

0

0

200

200

500

0

300

100

1,200

0

3,700

800

U.S.

All Other

All

European Others

Total

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.

CRS-56

Table 1I. Arms Transfer Agreements of Developing Nations,

1999-2006: Agreements by the Leading Recipients

(in millions of current U.S. dollars)

Rank

Recipient

Agreements Value 1999-2002

1

2

3

4

5

6

7

8

9

10

China

U.A.E.*

Egypt

India

Israel

South Africa

South Korea

Saudi Arabia

Singapore

Pakistan

11,000

8,800

7,600

7,500

6,700

5,100

5,000

4,000

3,300

2,800

Rank

Recipient

Agreements Value 2003-2006

1

2

3

4

5

6

7

8

9

10

India

Saudi Arabia

Pakistan

China

Egypt

Venezuela

Israel

U.A.E.

Algeria

Malaysia

14,900

12,400

8,100

6,400

5,700

4,400

4,200

3,700

2,400

2,400

Rank

Recipient

Agreements Value 1999-2006

1

2

3

4

5

6

7

8

9

10

India

China

Saudi Arabia

Egypt

U.A.E.*

Israel

Pakistan

South Korea

South Africa

Singapore

22,400

17,400

16,400

13,300

12,500

10,900

10,900

6,700

6,100

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.

CRS-57

Table 1J. Arms Transfer Agreements of Developing Nations in

2006: Agreements by Leading Recipients

(in millions of current U.S. dollars)

Rank

Recipient

Agreements Value

2006

1

Pakistan

5,100

2

India

3,500

3

Saudi Arabia

3,200

4

Venezuela

3,100

5

Algeria

2,100

6

Israel

2,100

7

Brazil

1,100

8

Iraq

900

9

Indonesia

600

10

South Korea

500

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

TOTAL

1999-2006

United States

11,611

8,054

5,457

6,594

5,879

7,224

8,266

7,987

61,072

Russia

3,000

3,600

4,300

3,500

4,200

5,300

2,900

5,500

32,300

France

3,500

1,900

1,000

900

1,900

5,200

2,000

200

16,600

United Kingdom

4,600

4,300

3,400

3,400

3,900

2,300

2,700

3,300

27,900

China

400

800

700

800

700

800

900

700

5,800

Germany

700

500

100

300

800

800

200

800

4,200

Italy

500

100

200

200

100

100

100

0

1,300

All Other European

2,300

2,100

1,800

1,900

1,500

800

1,100

900

12,400

All Others

800

1,100

1,400

1,500

1,000

1,700

1,400

500

9,400

TOTAL

27,411

22,454

18,357

19,094

19,979

24,224

19,566

19,887

170,972

Source: U.S. Government

Note: 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.

MAP (Military Assistance Program), IMET (International Military Education and Training), excess defense articles, which 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 spare parts, military construction, 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.

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

TOTAL

1999-2006

United States

14,340

9,666

6,352

7,480

6,525

7,771

8,597

7,987

68,718

Russia

3,705

4,321

5,005

3,970

4,661

5,701

3,016

5,500

35,880

France

4,323

2,280

1,164

1,021

2,109

5,594

2,080

200

18,770

United Kingdom

5,681

5,161

3,958

3,857

4,329

2,474

2,808

3,300

31,567

China

494

960

815

907

777

861

936

700

6,450

Germany

865

600

116

340

888

861

208

800

4,678

Italy

618

120

233

227

111

108

104

0

1,520

2,841

2,520

2,095

2,155

1,665

861

1,144

900

14,181

All Others

988

1,320

1,630

1,701

1,110

1,829

1,456

500

10,534

TOTAL

33,853

26,949

21,368

21,658

22,174

26,059

20,349

19,887

192,298

Dollar inflation index:

(2006=1.00)*

0.8097

0.8332

0.8591

0.8816

0.9010

0.9296

0.9615

1

All Other European

Source: U.S. Government

*Based 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

United States

42.36%

35.87%

29.73%

34.53%

29.43%

29.82%

42.25%

40.16%

Russia

10.94%

16.03%

23.42%

18.33%

21.02%

21.88%

14.82%

27.66%

France

12.77%

8.46%

5.45%

4.71%

9.51%

21.47%

10.22%

1.01%

United Kingdom

16.78%

19.15%

18.52%

17.81%

19.52%

9.49%

13.80%

16.59%

China

1.46%

3.56%

3.81%

4.19%

3.50%

3.30%

4.60%

3.52%

Germany

2.55%

2.23%

0.54%

1.57%

4.00%

3.30%

1.02%

4.02%

Italy

1.82%

0.45%

1.09%

1.05%

0.50%

0.41%

0.51%

0.00%

All Other European

8.39%

9.35%

9.81%

9.95%

7.51%

3.30%

5.62%

4.53%

All Others

2.92%

4.90%

7.63%

7.86%

5.01%

7.02%

7.16%

2.51%

[Major West European*

33.93%

30.28%

25.60%

25.14%

33.54%

34.68%

25.55%

21.62%]

TOTAL

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

Source: U.S. Government

*Major 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)

Asia

Near East

Latin America

Africa

1999-2002

2003-2006

1999-2002

2003-2006

1999-2002

2003-2006

1999-2002

2003-2006

United States

11,293

8,213

19,190

19,312

1,147

1,679

86

152

Russia

11,500

14,200

1,900

2,200

100

900

800

600

France

1,700

1,000

5,400

7,800

200

500

100

100

United Kingdom

1,900

200

13,800

11,600

0

0

0

300

China

1,500

1,500

700

900

0

100

500

500

Germany

500

1,400

1,000

300

100

0

0

900

Italy

500

100

100

0

200

200

100

0

All Other European

1,200

1,200

4,600

1,900

800

900

1,400

400

All Others

2,500

2,500

1,300

900

200

900

800

300

[Major West European*

4,600

2,700

20,300

19,700

500

700

200

1,300]

TOTAL

32,593

30,313

47,990

44,912

2,747

5,179

3,786

3,252

Source: U.S. Government

Note: All foreign data are rounded to the nearest $100 million.

*Major West European category includes France, United Kingdom, Germany, Italy.

CRS-62

Table 2D. Percentage of Supplier Deliveries Value by Region, 1999-2006

Asia

Near East

Latin America

Africa

TOTAL

1999-2002

TOTAL

2003-2006

1999-2002

2003-2006

1999-2002

2003-2006

1999-2002

2003-2006

1999-2002

2003-2006

United States

35.61%

27.98%

60.51%

65.79%

3.62%

5.72%

0.27%

0.52%

100.00%

100.00%

Russia

80.42%

79.33%

13.29%

12.29%

0.70%

5.03%

5.59%

3.35%

100.00%

100.00%

France

22.97%

10.64%

72.97%

82.98%

2.70%

5.32%

1.35%

1.06%

100.00%

100.00%

United Kingdom

12.10%

1.65%

87.90%

95.87%

0.00%

0.00%

0.00%

2.48%

100.00%

100.00%

China

55.56%

50.00%

25.93%

30.00%

0.00%

3.33%

18.52%

16.67%

100.00%

100.00%

Germany

31.25%

53.85%

62.50%

11.54%

6.25%

0.00%

0.00%

34.62%

100.00%

100.00%

Italy

55.56%

33.33%

11.11%

0.00%

22.22%

66.67%

11.11%

0.00%

100.00%

100.00%

All Other European

15.00%

27.27%

57.50%

43.18%

10.00%

20.45%

17.50%

9.09%

100.00%

100.00%

All Others

52.08%

54.35%

27.08%

19.57%

4.17%

19.57%

16.67%

6.52%

100.00%

100.00%

[Major West

European*

17.97%

11.07%

79.30%

80.74%

1.95%

2.87%

0.78%

5.33%

100.00%

100.00%]

TOTAL

37.41%

36.24%

55.09%

53.69%

3.15%

6.19%

4.35%

3.89%

100.00%

100.00%

Source: U.S. Government

*Major West European category includes France, United Kingdom, Germany, Italy.

CRS-63

Table 2E. Percentage of Total Deliveries Value by Supplier to Regions, 1999-2006

Asia

Near East

Latin America

Africa

1999-2002

2003-2006

1999-2002

2003-2006

1999-2002

2003-2006

1999-2002

2003-2006

United States

34.65%

27.09%

39.99%

43.00%

41.75%

32.42%

2.27%

4.67%

Russia

35.28%

46.84%

3.96%

4.90%

3.64%

17.38%

21.13%

18.45%

France

5.22%

3.30%

11.25%

17.37%

7.28%

9.65%

2.64%

3.08%

United Kingdom

5.83%

0.66%

28.76%

25.83%

0.00%

0.00%

0.00%

9.23%

China

4.60%

4.95%

1.46%

2.00%

0.00%

1.93%

13.21%

15.38%

Germany

1.53%

4.62%

2.08%

0.67%

3.64%

0.00%

0.00%

27.68%

Italy

1.53%

0.33%

0.21%

0.00%

7.28%

3.86%

2.64%

0.00%

All Other European

3.68%

3.96%

9.59%

4.23%

29.12%

17.38%

36.98%

12.30%

All Others

7.67%

8.25%

2.71%

2.00%

7.28%

17.38%

21.13%

9.23%

[Major West European*

14.11%

8.91%

42.30%

43.86%

18.20%

13.52%

5.28%

39.98%]

TOTAL

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

Source: U.S. Government

*Major West European category includes France, United Kingdom, Germany, Italy.

CRS-64

Table 2F. Arms Deliveries to Developing Nations, 1999-2006

Leading Suppliers Compared

(in millions of current U.S. dollars)

Rank

1

2

3

4

5

6

7

8

9

10

11

Supplier

United States

United Kingdom

Russia

France

Sweden

China

Germany

Ukraine

Israel

Belarus

Italy

Deliveries Value 1999-2002

31,716

15,700

14,400

7,300

2,800

2,700

1,600

1,500

1,400

1,000

1,000

Rank

1

2

3

4

5

6

7

8

9

10

11

Supplier

United States

Russia

United Kingdom

France

China

Germany

Israel

Sweden

Ukraine

Brazil

Netherlands

Deliveries Value 2003-2006

29,356

17,900

12,200

9,300

3,100

2,600

1,600

800

800

500

400

Rank

1

2

3

4

5

6

7

8

9

10

11

Supplier

United States

Russia

United Kingdom

France

China

Germany

Sweden

Israel

Ukraine

Italy

Belarus

Deliveries Value 1999-2006

61,072

32,300

27,900

16,600

5,800

4,200

3,600

3,000

2,300

1,300

1,100

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.

CRS-65

Table 2G. Arms Deliveries to Developing Nations in 2006:

Leading Suppliers Compared

(in millions of current U.S. dollars)

Rank

Supplier

Deliveries Value

2006

1

United States

7,987

2

Russia

5,500

3

United Kingdom

3,300

4

Germany

800

5

China

700

6

Netherlands

300

7

France

200

8

Israel

200

9

Spain

200

10

Brazil

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.

CRS-66

Table 2H. Arms Deliveries to Near East, by Supplier

(in millions of current U.S. dollars)

Recipient

Country

1999-2002

Algeria

Bahrain

Egypt

Iran

Iraq

Israel

Jordan

Kuwait

Lebanon

Libya

Morocco

Oman

Qatar

Saudi Arabia

Syria

Tunisia

U.A.E.

Yemen

2003-2006

Algeria

Bahrain

Egypt

Iran

Iraq

Israel

Jordan

Kuwait

Lebanon

Libya

Morocco

Oman

Qatar

Saudi Arabia

Syria

Tunisia

U.A.E.

Yemen

U.S.

Russia

China

Major West

European*

All Other

European

All

Others

Total

0

500

4,500

0

0

3,300

200

1,300

0

0

0

0

0

8,900

0

0

200

0

400

0

200

400

0

0

0

100

0

100

0

0

0

0

200

0

300

200

200

0

200

100

0

0

0

200

0

0

0

0

0

0

0

0

0

100

0

0

100

0

0

900

100

600

0

0

100

0

200

15,200

100

0

2,700

100

400

0

100

0

100

0

0

0

0

200

200

100

0

2,900

100

0

400

100

100

0

0

400

100

100

100

200

0

100

0

0

0

100

0

0

100

200

1,100

500

5,100

900

200

4,300

400

2,400

0

400

300

100

200

27,100

400

0

3,700

700

0

300

5,100

0

0

5,200

400

900

0

0

100

600

0

4,400

0

0

600

0

500

0

100

300

0

100

0

0

0

100

100

0

0

0

300

0

200

400

100

0

300

200

0

0

0

200

0

0

0

0

0

0

0

0

0

0

0

100

0

0

0

0

0

0

0

0

100

300

0

13,500

0

0

5,400

0

0

0

200

100

200

100

100

0

0

100

0

0

0

700

0

0

200

100

0

0

100

100

200

0

100

0

0

0

100

0

0

100

200

0

200

100

600

400

5,800

700

400

5,400

600

1,100

0

200

400

900

0

18,700

500

0

6,600

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.

CRS-67

Table 2I. Arms Deliveries to Developing Nations, 1999-2006:

The Leading Recipients

(in millions of current U.S. dollars)

Rank

Recipient

1

2

3

4

5

6

7

8

9

10

Saudi Arabia

China

Taiwan

Egypt

South Korea

Israel

U.A.E.

India

Pakistan

Kuwait

Rank

Recipient

1

2

3

4

5

6

7

8

9

10

Saudi Arabia

China

India

U.A.E.

Egypt

Israel

Taiwan

South Korea

Pakistan

Malaysia

Rank

Recipient

1

2

3

4

5

6

7

8

9

10

Saudi Arabia

China

Egypt

U.A.E.

India

Taiwan

Israel

South Korea

Pakistan

Malaysia

Deliveries Value

1999-2002

27,100

8,200

5,900

5,100

5,000

4,300

3,700

2,900

2,500

2,400

Deliveries Value

2003-2006

18,700

8,900

7,200

6,600

5,800

5,400

4,100

2,800

2,100

1,500

Deliveries Value

1999-2006

45,800

17,100

10,900

10,300

10,100

10,000

9,700

7,800

4,600

3,700

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.

CRS-68

Table 2J. Arms Deliveries to Developing Nations in 2006:

The Leading Recipients

(in millions of current U.S. dollars)

Rank

Recipient

Deliveries Value

2006

1

Saudi Arabia

4,100

2

China

2,900

3

Israel

1,500

4

Egypt

1,400

5

Taiwan

1,000

6

India

800

7

Chile

800

8

Venezuela

700

9

South Korea

600

10

Malaysia

500

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-69

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

CRS-70

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 antiship 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.

CRS-71

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.

CRS-72

Table 3. Numbers of Weapons Delivered by Suppliers

to Developing Nations

Weapons Category

1999-2002

Tanks and Self-Propelled

Guns

Artillery

APCs and Armored Cars

Major Surface Combatants

Minor Surface Combatants

Guided Missile Boats

Submarines

Supersonic Combat Aircraft

Subsonic Combat Aircraft

Other Aircraft

Helicopters

Surface-to-Air Missiles

Surface-to-Surface Missiles

Anti-Ship Missiles

2003-2006

Tanks and Self-Propelled

Guns

Artillery

APCs and Armored Cars

Major Surface Combatants

Minor Surface Combatants

Guided Missile Boats

Submarines

Supersonic Combat Aircraft

Subsonic Combat Aircraft

Other Aircraft

Helicopters

Surface-to-Air Missiles

Surface-to-Surface Missiles

Anti-Ship Missiles

U.S.

Russia

China

Major

West

European*

All Other

European

All

Others

462

264

109

8

2

0

0

244

17

51

144

2,884

0

423

290

500

680

3

4

0

2

250

10

40

390

1,740

0

180

100

570

350

0

17

1

0

50

0

70

10

550

0

130

390

80

110

6

35

9

7

30

50

170

80

1,200

0

290

1,230

710

1,170

10

120

0

2

100

10

120

120

900

0

0

140

730

580

3

91

0

0

100

0

140

40

1,040

40

20

375

228

769

8

20

0

0

88

2

71

91

1,055

0

289

200

0

320

5

3

0

8

140

0

10

200

1,970

0

300

200

430

290

0

54

0

0

20

0

100

0

600

0

50

120

50

110

13

75

10

4

50

20

10

60

0

0

70

490

1,290

2,040

2

57

2

4

30

0

100

30

560

0

20

40

110

900

2

125

1

0

20

10

120

50

380

40

40

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.

CRS-73

Table 4. Number of Weapons Delivered by Suppliers

to Asia and the Pacific

Weapons Category

1999-2002

Tanks and Self-Propelled Guns

Artillery

APCs and Armored Cars

Major Surface Combatants

Minor Surface Combatants

Guided Missile Boats

Submarines

Supersonic Combat Aircraft

Subsonic Combat Aircraft

Other Aircraft

Helicopters

Surface-to-Air Missiles

Surface-to-Surface Missiles

Anti-Ship Missiles

2003-2006

Tanks and Self-Propelled Guns

Artillery

APCs and Armored Cars

Major Surface Combatants

Minor Surface Combatants

Guided Missile Boats

Submarines

Supersonic Combat Aircraft

Subsonic Combat Aircraft

Other Aircraft

Helicopters

Surface-to-Air Missiles

Surface-to-Surface Missiles

Anti-Ship Missiles

U.S.

Russia

China

Major

West

European*

All Other

European

All

Others

200

173

24

6

0

0

0

149

15

4

104

2552

0

287

180

10

320

3

2

0

2

200

0

20

250

1310

0

150

30

330

300

0

2

0

0

50

0

30

0

460

0

20

0

10

20

3

2

0

3

30

50

10

20

1110

0

130

170

90

140

1

15

0

2

10

0

40

10

160

0

0

20

170

170

3

30

0

0

70

0

50

10

270

0

10

0

108

54

6

6

0

0

7

2

20

22

556

0

181

200

0

200

5

3

0

8

100

0

0

100

700

0

300

200

200

100

0

11

0

0

0

0

0

0

600

0

0

0

10

0

1

15

0

1

20

0

10

20

0

0

10

50

90

570

0

18

0

2

10

0

20

10

90

0

0

0

20

60

1

19

0

0

10

0

40

0

340

0

0

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

definitive.

CRS-74

Table 5. Numbers of Weapons Delivered by Suppliers

to Near East

Weapons Category

U.S.

Russia

China

Major West

European*

All Other

European

All

Others

1999-2002

Tanks and Self-Propelled

Guns

Artillery

157

65

70

20

0

80

330

50

300

0

30

0

APCs and Armored Cars

Major Surface Combatants

70

0

200

0

50

0

30

1

360

1

20

0

Minor Surface Combatants

Guided Missile Boats

2

0

0

0

0

1

16

9

21

0

31

0

Submarines

Supersonic Combat Aircraft

Subsonic Combat Aircraft

Other Aircraft

Helicopters

Surface-to-Air Missiles

Surface-to-Surface Missiles

Anti-Ship Missiles

0

91

0

22

4

332

0

124

0

40

0

10

40

390

0

30

0

0

0

20

0

50

0

110

3

0

0

90

40

0

0

160

0

40

0

40

0

540

0

0

0

0

0

40

10

0

40

10

2003-2006

Tanks and Self-Propelled

Guns

Artillery

APCs and Armored Cars

349

41

715

0

0

120

0

20

0

120

20

60

300

50

1250

0

40

640

Major Surface Combatants

Minor Surface Combatants

Guided Missile Boats

Submarines

Supersonic Combat Aircraft

2

5

0

0

71

0

0

0

0

20

0

0

0

0

0

4

46

10

0

30

0

20

2

0

10

0

98

0

0

0

Subsonic Combat Aircraft

0

0

0

10

0

0

Other Aircraft

Helicopters

Surface-to-Air Missiles

31

66

465

0

30

1240

60

0

0

0

20

0

50

10

320

40

30

0

Surface-to-Surface Missiles

0

0

0

0

0

40

Anti-Ship Missiles

87

0

50

40

10

10

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.

CRS-75

Table 6. Numbers of Weapons Delivered by Suppliers

to Latin America

U.S.

Russia

China

Major

West

European*

All Other

European

All

Others

1999-2002

Tanks and Self-Propelled Guns

Artillery

0

26

0

0

0

0

60

20

340

90

20

20

APCs and Armored Cars

Major Surface Combatants

Minor Surface Combatants

15

2

0

0

0

0

0

0

6

40

2

3

40

8

62

0

0

0

Guided Missile Boats

0

0

0

0

0

0

Submarines

Supersonic Combat Aircraft

Subsonic Combat Aircraft

0

4

2

0

0

0

0

0

0

1

0

0

0

0

0

0

0

0

Other Aircraft

Helicopters

17

36

10

30

0

0

60

10

20

50

30

0

Surface-to-Air Missiles

Surface-to-Surface Missiles

Anti-Ship Missiles

0

0

12

0

0

0

40

0

0

90

0

0

40

0

0

0

0

0

2003-2006

Tanks and Self-Propelled Guns

Artillery

APCs and Armored Cars

Major Surface Combatants

0

79

0

0

0

0

0

0

0

10

0

0

0

0

0

4

0

0

0

2

0

0

0

0

Minor Surface Combatants

Guided Missile Boats

Submarines

Supersonic Combat Aircraft

9

0

0

10

0

0

0

0

10

0

0

0

1

0

2

0

2

0

2

10

2

0

0

10

Subsonic Combat Aircraft

Other Aircraft

Helicopters

0

20

3

0

10

20

0

0

0

0

0

10

0

20

0

10

30

10

Surface-to-Air Missiles

34

30

0

0

0

40

Surface-to-Surface Missiles

Anti-Ship Missiles

0

21

0

0

0

0

0

10

0

10

0

30

Weapons Category

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.

CRS-76

Table 7. Number of Weapons Delivered by Suppliers

to Africa

Weapons Category

U.S.

Russia

China

Major West

European*

All Other

European

All

Others

1999-2002

Tanks and Self-Propelled

Guns

Artillery

0

40

70

0

420

70

0

470

160

0

530

540

APCs and Armored Cars

Major Surface Combatants

0

0

160

0

0

0

20

0

630

0

390

0

Minor Surface Combatants

Guided Missile Boats

0

0

2

0

9

0

14

0

22

0

30

0

Submarines

Supersonic Combat Aircraft

Subsonic Combat Aircraft

Other Aircraft

Helicopters

Surface-to-Air Missiles

Surface-to-Surface Missiles

Anti-Ship Missiles

0

0

0

8

0

0

0

0

0

10

10

0

70

40

0

0

0

0

0

20

10

0

0

0

0

0

0

10

10

0

0

0

0

50

10

20

60

160

0

0

0

30

0

20

20

770

0

0

2003-2006

Tanks and Self-Propelled

Guns

Artillery

APCs and Armored Cars

0

0

0

0

140

40

0

0

0

0

200

190

20

50

1150

220

50

200

Major Surface Combatants

Minor Surface Combatants

Guided Missile Boats

Submarines

Supersonic Combat Aircraft

0

0

0

0

0

0

0

0

0

20

0

33

0

0

20

4

13

0

1

0

0

17

0

0

0

1

6

1

0

0

Subsonic Combat Aircraft

0

0

0

10

0

0

Other Aircraft

Helicopters

Surface-to-Air Missiles

0

0

0

0

50

0

40

0

0

0

10

0

10

10

150

10

10

0

Surface-to-Surface Missiles

0

0

0

0

0

0

Anti-Ship Missiles

0

0

0

10

0

0

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.

CRS-77

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, 20032006, 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

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