On December 4, 2020, the defense Security Cooperation Agency (DSCA) of the United States Department of defense released consolidated official data on American defense exports in fiscal year 2020 (ended September 30, 2020).
The next Lockheed Martin f - 35I Lightning II fighters delivered to Israel through the American program of intergovernmental foreign military sales (FMS) and on account of American military assistance. Nevatim (Israel), 04.08.2020 (C) Israeli air force
According to a press release from DSCA, the volume of agreements concluded by it in fiscal year 2020 and permits received through the us program of intergovernmental foreign military sales (Foreign Military Sales - FMS) amounted to $ 50.78 billion. This amount includes $ 44.79 billion. in the form of direct intergovernmental agreements with foreign countries through the FMS, $ 3.3 billion agreements on direct financing of foreign armies in the form of military assistance (Foreign Military Financing - FMF) and $ 2.69 billion agreements on strengthening the military capabilities of partners (Building Partner Capacity - BMC).
At the same time, it was reported that in fiscal year 2020, the US State Department issued licenses for the export of defense equipment directly to American manufacturing companies through Direct commercial Sales (DCS) for a total of $ 124.3 billion.
Thus, the total potential volume of us defense exports in fiscal year 2020 as the sum of FMS notifications and DCS licenses is stated to be $ 175.08 billion, which is 2.8% more than in fiscal year 2019 when this declared amount was $ 170.09 billion.
According to the attached DSCA statistics, by country, the largest volume of FMS agreements and notifications in fiscal year 2020 was:
Taiwan - $ 11.777 billion
Poland - $ 4.71 billion
Morocco - $ 4.539 billion
UAE - $ 3.568 billion
India - $ 3.364 billion
South Korea - $ 2.124 billion
Japan - $ 1.983 billion
Australia - $ 1.718 billion
Singapore - $ 1.292 billion
Saudi Arabia - $ 1.175 billion
Afghanistan - $ 1.071 billion
Israel - $ 1.058 billion
You can also point out that agreements and notifications were signed with Ukraine under the FMS in fiscal year 2020 for a record amount of $ 510.599 million for this country.
From the bmpd side, we pointout that these figures should not be taken as the actual volume of American defense exports, either for actual deliveries or for new contracts.
Summary data on the volume of DCS licenses issued by the US Department of State is an aggregated volume of licenses issued by a company that is designed for long-term deliveries, or does not necessarily implement contracts and deliveries.
As for the FMS summary of DSCA data, it is mainly obtained by summing up official notifications issued by DSCA for the fiscal year on planned agreements for this line. The dsca notices themselves are not contracts and do not mean that a contract will be concluded. In fact, DSCA in its annual reports does not correctly calculate the volume of agreements concluded under the FMS based on prepared preliminary agreements (Letters of Offer and Acceptance, LOA), and not directly signed contracts, which systematically leads to serious overstatements of total amounts. In addition, in some cases, the DSCA indicates in its reporting deliveries that are subsequently implemented through the DCS line (as was the case with the acquisition of f-15K fighters by South Korea from the Boeing Corporation). It is characteristic that data on FMS deliveries vary from source to source even in official us publications and tend to be corrected in later official publications of the DSCA itself.
So, as a typical picture, in fiscal year 2016, DSCA reported the conclusion of agreements on the FMS (and military construction FMCS) in the amount of $ 27.618 billion, and licenses on the DCS (and technology transfers DCSS) in the amount of $ 49.845 billion - a total of $ 77.463 billion. Actual deliveries of military equipment from the United States abroad in fiscal year 2016 amounted, according to the DSCA itself, to the amount of $ 30.598 billion (excluding the distribution of surplus military equipment through the EDA) - including $ 17.264 billion through FMS (and FMCS), and $ 9.636 billion through various commercial sales lines, and another $ 3.698 billion - deliveries under other programs (mainly special programs for military supplies to Afghanistan and Iraq, as well as deliveries to other States under programs to help combat terrorism and drug trafficking).
According to our estimates, the total volume of actual deliveries of US military equipment abroad in fiscal year 2020 was in the region of 45-50 billion dollars, which, however, demonstrates the leading position of the United States in the global defense market.
The data published by DSCA on the cost parameters of special properties and services that are the subject of licenses issued and agreements and contracts concluded for the supply of US military products abroad under the FMS, FMCS and DCS programs should be considered rather as an aggregated portfolio of contracts for US military-technical cooperation with foreign countries.
