DOS and DOD Officials Brief Reporters on Fiscal 2020 Arms Transfer Figures (excerpt)
(Source: US Department of Defense; issued Dec 04, 2020)
STAFF: Good afternoon, and welcome to our press briefing to discuss the fiscal year 2020 arms transfer figures, as well as the other notable Defense and State Department security assistance and security cooperation accomplishments and statistics. I am Mike Howard. I will be moderating today's event, which we are doing in a COVID-safe environment.

Joining me on stage are the Honorable R. Clark Cooper, Assistant Secretary of State for political military affairs, and Mr. -- I'm sorry -- and Miss Heidi Grant, the director of the Defense Security Cooperation Agency. So to begin, I will give the mic to Mr. Cooper.

ASSISTANT SECRETARY OF STATE R. CLARKE COOPER: Thank you. Appreciate the kind introduction.

First, I'll speak about fiscal year 2020, the arms sales figures and the important role the Department of State plays in overseeing U.S. and defense trade and our advocacy in that space. We're always synched up, closely-coordinated at all levels, from the secretaries of State and Defense on down. I will then yield the floor over to Ms. Grant, who will also discuss the DSCA's Fiscal Year 2020 accomplishments.

FY2020 saw a total of $175.8 billion in U.S. government-authorized arms exports. This is overall a 2.8 percent increase since fiscal year 2019. These sales offer -- they are a continuance of the strong support for the U.S. defense industry and American workers, up to one million of these workers who depend on U.S. defense exports for their job security. These individuals and the companies they work for represent a part of American entrepreneurship and innovation, and they also help maintain the United States as the world leader in the defense and aerospace sectors to ensure our Armed Forces sustain their military edge.

The overall value of State Department-authorized government-to-government FMS (Foreign Military Sales) cases implemented by the Defense Security Cooperation Agency decreased 8.3 percent from $55.39 billion in Fiscal Year 2019 to $50.78 billion in Fiscal Year 2020. However, the three-year rolling average, which is the more accurate measure of trends in defense trade, rose to $54 billion. This is for a 5.8 percent increase in sales volume.

The dollar value of potential FMS sales, formally notified to Congress, also rose by more than 50 percent from $58.33 billion to $87.64 billion. This was driven by the July potential sale of $23.11 billion worth of F-35 aircraft to Japan, which was the second largest single FMS notification ever authorized by the Department of State.

This and other multibillion-dollar sales listed in our fact sheet, if concluded, argue for the continued strong FMS sales well into fiscal year 2021.

Moving on to privately-contracted Direct Commercial Sales, or DCS, the value of Department of State-authorized commercial export licenses totaled $124.3 billion in Fiscal Year 2020, and this was up from $114.7 billion in Fiscal Year 2019. This represented an 8.4 percent increase. This total value covers authorizations of hardware, defense services, and technical data. The total number of licenses issued decreased by 20-percent from 36,111 in Fiscal Year 2019 to 28,800 in Fiscal Year 2020.

The top commercial DCS sales notified to Congress in Fiscal Year 2020 include an $8.39 billion sale to Australia, Canada, Denmark, Italy, Japan, and the United Kingdom for F-35 components. This also included a $3.2 billion sale to Australia for P-8 aircraft parts, and a $2.48 billion sale to United Kingdom and Australia for E-7 airborne early warning and control aircraft. (end of excerpt)

Click here for the full transcript, on the Pentagon website.


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