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DEFENSE TRADE: Analysis of Support for Recent Initiatives

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United States General Accounting Office Washington United States

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Last year, the Department of Defense DOD compiled a list of 81 defense cooperation initiatives in an effort to enhance cross-border defense trade and investment. Thirty-four of these initiatives were part of an ongoing effort to reinvent the Foreign Military Sales Program.1 Forty-seven of the initiatives were intended to streamline processes andor change policies in several areas considered important for defense cooperation, including export controls, release of classified information to foreign countries, procurement from domestic and foreign companies, and industrial security. DOD senior officials saw these defense cooperation initiatives as necessary to achieving three desired outcomes to improve interoperability in coalition warfare scenarios, to reduce a gap in military capabilities between the United States and North Atlantic Treaty Organization allies, and to ensure that U.S. defense companies successfully compete abroad. Since the initial compilation of these initiatives, most of DODs attention has been focused on export controls. Because the State Department has primary responsibility for controlling the export of defense articles and services, the State Department and DOD formed a working group to develop proposals to change the export control process. As a result of State Department and DOD discussions, on May 24, 2000, the administration announced 17 proposals, known as the Defense Trade Security Initiative, to adjust the U.S. defense export control system. As with DODs initiatives, these proposals are intended to achieve the three desired outcomes identified above.

Descriptive Note:

Technical Report

Supplementary Note:

01 Jan 0001, 01 Jan 0001, Report to the Chairmen, Committee on International Relations and Committee on Armed Services, House of Representatives.



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Approved For Public Release;

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