U.S. foreign military sales increased by 56% in fiscal year 2023 for a record-breaking total of $81 billion, a significant boost above the $52 billion reported in FY-22 and coming at a time when NATO is bolstering its defenses against Russia, according to new data from the State Department.
"This is the highest annual total of sales and assistance provided to our allies and partners,” the State Department said in a new fact sheet released today.
The largest government-to-government FMS deals can be traced to Washington’s focus on strengthening NATO nations alarmed by Russia’s ongoing invasion of Ukraine, with Poland accounting for about $30 billion in sales covering AH-64E Apache helicopters ($12 billion), High Mobility Artillery Rocket Systems ($10 billion), an Integrated Air and Missile Defense Battle Command System ($4 billion) and M1A1 Abrams tanks ($3.75 billion).
“Arms transfers and defense trade are important U.S. foreign policy tools with potential long-term implications for regional and global security,” according to State.
Other large NATO nation deals include Germany with $8.5 billion for CH-47F Chinook helicopters and $2.9 billion for AIM-120C-8 Advanced Medium-Range Air-To-Air Missiles; Canada with $5.9 billion for P-8A aircraft; the Czech Republic with $5.6 billion for the F-35 Joint Strike Fighter and munitions; Bulgaria with $1.5 billion for Stryker vehicles; and Norway with $1 billion for defense articles and services for the MH-60R Multi-Mission helicopter.
Australia also booked a $6.35 billion deal for C-130J-30 aircraft.
Meanwhile, the Pentagon continues to view China as its long-term pacing challenge. Key FMS deals in Asia include South Korea with $5 billion for F-35 aircraft and $1.5 billion for CH-47F Chinook helicopters, and Japan with nearly $1.4 billion for E-2D Advanced Hawkeye Airborne Early Warning and Control aircraft.
The Pentagon and State, however, continue to face criticism from lawmakers on the $19 billion FMS backlog with Taiwan. The Pentagon has convened a special “tiger team” and State is also working to help accelerate the FMS process.
In the Middle East, Kuwait inked a $3 billion order for the National Advanced Surface-To-Air Missile System Medium Range Air Defense System and a $1.8 billion deal for follow-on technical support. Qatar, meanwhile, signed a $1 billion deal for the Fixed Site-Low, Slow, Small Unmanned Aircraft System Integrated Defeat System.
“Each proposed transfer is carefully assessed on a case-by-case basis, in accordance with the Arms Export Control Act and related legislation, policy, and guidance,” State said. “Major defense transfers and sales are also subject to Congressional notification and review.”
Meanwhile, State authorized $157.5 billion in privately contracted direct commercial sales, or a 2.5% increase from FY-22, “which includes the value of hardware, services and technical data authorized from exports, temporary imports, re-exports, re-transfers and brokering.”
Examples of large DCS deals include Italy with $2.8 billion for the manufacturing of F-35 wing assemblies, India with $1.8 billion for the manufacturing of GE F414-INS6 engine hardware and Singapore with $1.2 billion for the F100 propulsion system and spare parts, and Saudi Arabia with $1 billion for the Patriot missile system.