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Foreign Military Sales

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Foreign Military Sales ( FMS ) is a security assistance program of the United States government to facilitate the purchase of U.S. arms, defense equipment, design and construction services, and military training to foreign governments. FMS is a government-to-government program where the United States Department of Defense through the Defense Security Cooperation Agency (DSCA) acquires defense articles on behalf of the foreign governments, protecting them from contract risks in negotiating with the arms industry and providing the contract benefits and protections that apply to U.S. military acquisitions. The FMS program was established through the 1976 Arms Export Control Act (AECA) and is overseen by the United States Department of State and the United States Congress through the annual Foreign Operations Appropriations Acts and National Defense Authorization Acts .

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34-705: The DSCA describes FMS as "a fundamental tool of U.S. foreign policy." FMS was the primary channel for U.S. arms exports until the 1980s, when the limits on the size of permitted Direct Commercial Sales (DCS) was lifted. DCS was seen by buyers to be faster, more cost-effective and less-transparent than FMS. By 1989, DCS surpassed FMS in value. However, the Gulf War reversed the decline in FMS and by FY 1992–93, DCS had dropped to one-fifth of U.S. arms sales. In FY 2020, U.S. military-industry base sold $ 50.8 billion through FMS and $ 124.3 billion through Direct Commercial Sales. In 2023,

68-697: A Letter of Request (LOR) to a U.S. government Security Cooperation Organization (SCO), typically the Office of Defense Cooperation within the U.S. embassy in that country or directly to the DSCA or to a U.S. military department ( Department of the Army , Department of the Navy or Department of the Air Force ) or another Defense Department agency. There are three types of LORs : LOR for Price and Availability (P&A) for

102-556: A foreign government is typically managed by the same office responsible for the procurement of an article for the U.S. government. According to Defense Department policy, the purchaser is responsible for the transportation and delivery of purchased articles. Purchasers can either use the Defense Transportation System (DTS) on a reimbursable basis or use their own freight forwarder to manage the transportation and delivery. Section 36(b) (22 U.S.C. §2776(b)) of

136-483: A fourth joined in 1982. Since the end of the Cold War , NATO has added 16 more members from 1999 to 2024. Article 5 of the treaty states that if an armed attack occurs against one of the member states, it shall be considered an attack against all members , and other members shall assist the attacked member, with armed forces if necessary. Article 6 of the treaty limits the scope of Article 5 to

170-528: Is assigned to each LOR. For example, U.S. Air Force (USAF) FMS programs are assigned two-word code names beginning with the word PEACE, indicating oversight by USAF headquarters. The FMS case is reviewed by the implementing agency and DSCA to ensure compliance with the requirements of the LOR and U.S. laws and regulations. If approved by the implementing agency and the DSCA, the Letter of Offer and Acceptance (LOA)

204-594: Is constructed from The Military Balance , published annually by the International Institute for Strategic Studies . Military spending of the US compared to 31 other NATO member countries (US$ millions). Total military spending of NATO member countries except the United States, and Sweden (US$ millions). United States and Sweden omitted – see above The defence spending of the United States

238-625: Is founded on a tradition of cooperation between the United States and other sovereign nations with similar values and interests in order to meet common defense goals. It consists of a group of programs authorized by the U.S. Foreign Assistance Act of 1961, as amended, and the Arms Export Control Act of 1976, as amended, and related statutes by which the DoD or commercial contractors provide defense articles and services in furtherance of national policies and objectives. Founded in 1971,

272-739: Is managing “14,000 open foreign military sales cases with 185 countries,” the DSCA director Lieutenant General Charles Hooper explained at the Brookings Institution in June 2019. The State Department, through its Bureau of Political-Military Affairs (PM), is responsible for the administration of FMS while the Defense Department through the DSCA is responsible for its implementation. DSCA coordinates with PM to review and consult with Congress to receive formal agreement with an eligible foreign government. Foreign governments submit

306-407: Is managing “14,000 open foreign military sales cases with 185 countries,” the DSCA director Lt. Gen. Charles Hooper explained at the Brookings Institution in June 2019. FMS is managed and operated by DoD on a no-profit and no-loss basis. Countries participating in the program pay for defense articles and services at prices which recoup costs incurred by the United States. This includes a fee to cover

340-689: Is more than double the defence spending of all other NATO members combined. Criticism of the fact that many member states were not contributing their fair share in accordance with the international agreement by then US president Donald Trump caused various reactions from American and European political figures, ranging from ridicule to panic. While NATO members have committed to spending at least 2% of their Gross Domestic Product (GDP) on defence, most of them did not meet that goal in 2023. Pew Research Center 's 2016 survey among its member states showed that while most countries viewed NATO positively, most NATO members preferred keeping their military spending

374-472: Is submitted to the State Department for its review and approval. The LOA is also transmitted to the foreign government for its review and approval. FMS sales are required to be cost-neutral to the U.S. government. To cover the costs incurred by the government to process an FMS, administrative surcharges, Contract Administration Services (CAS), Non-recurring costs (NC) and other fees are included in

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408-406: Is the core activity of DSCA, and yearly sales are between US$ 30-50 billion. In fiscal year 2020, US corporations sold $ 50.8 billion through FMS, and $ 124.3 billion through direct commercial sales. FMS is a U.S. government to foreign government agreement, and DSCA acts as agent for procurement mostly for American defense company and aerospace companies or for DoD stocks. On any given day, DSCA

442-735: The Defense Finance and Accounting Service (DFAS) in the United States dollar through check or wire transfer. After the acceptance of the LOA by the foreign government, the implementing agency is authorised by the Defense Finance and Accounting Service (DFAS) to obligate funds to execute the FMS and begin the procurement of the defense articles and/or services. Major FMS cases can include the procurement of items from existing U.S. government stocks and new production. Procurement for

476-716: The Defense Security Assistance Agency was renamed the Defense Security Cooperation Agency effective October 1, 1998. Foreign military sales (FMS) and International Military Education and Training (IMET) are two key programs included within Security Cooperation. IMET is conducted solely on a grant basis. FMS can be conducted through direct payments of foreign states or United States Foreign Military Financing (FMF). Foreign Military Sales division

510-799: The Partnership for Peace , the Mediterranean Dialogue initiative, and the Euro-Atlantic Partnership Council . All members have militaries, except for Iceland , which does not have a typical army (but it does have a coast guard and a small unit of civilian specialists for NATO operations). Three of NATO's members are nuclear weapons states : France , the United Kingdom , and the United States . NATO has 12 original founding member states. Three more members joined between 1952 and 1955, and

544-620: The Paveway IV bomb). On July 29, a Senate vote failed to override the vetoes. On 24 April 2022, the DSCA notified Congress that Secretary of State Antony Blinken had determined that "an emergency exists requiring the sale of non-standard ammunition" to Ukraine "in the national security interest of the United States" to invoke the AECA Section 36 emergency waiver provision. On 8 December 2023, DSCA notified Congress that Secretary Blinken had determined "an emergency exists which requires

578-610: The United Arab Emirates (UAE) to "deter Iranian aggression". On 24 July, President Donald Trump vetoed the S.J.Res. 36 (prohibiting co-production of Paveway bombs), S.J.Res. 37 (prohibiting transfer of maintenance services for the AGM-65 Maverick missile and Paveway systems) and S.J.Res. 38 (prohibiting transfer of technical data to support the manufacturing of the Aurora Fuzing System for

612-523: The AECA specifies that Congress must be notified about arms sales 30 days before the issuance of a Letter of Offer and Acceptance (LOA) for defense equipment valued at $ 14 million of more, defense articles or services valued at $ 50 million or more, or design and construction services valued at $ 200 million or more. Congress must also be notified 15 days before the issuance of an LOA to NATO members , Japan , Australia , South Korea , Israel or New Zealand for

646-604: The Alliance. Current membership consists of 32 countries. In addition to the 12 founding countries, four new members joined during the Cold War: Greece and Turkey (1952), West Germany (1955) and Spain (1982). Additionally, NATO experienced territorial expansion during this period without adding new member states when Zone A of the Free Territory of Trieste was annexed by Italy in 1954, and

680-477: The U.S. recorded the highest annual sales of U.S. military equipment to foreign governments, carried out under the FMS system, valued at $ 80.9 billion. This marked a 55.9% increase compared to the $ 51.9 billion recorded in 2022. FMS is carried out with countries that are authorized to participate and is subject to approval based on the mechanism to procure services, a deposit in a U.S. trust fund or appropriate credit, and approval to fund services. On any given day, DSCA

714-539: The U.S. to maintain an existing base, Thule Air Base (now Pituffik Space Base) , in Greenland. From the mid-1960s to the mid-1990s, France pursued a military strategy of independence from NATO under a policy dubbed "Gaullo-Mitterrandism". Nicolas Sarkozy negotiated the return of France to the integrated military command and the Defence Planning Committee in 2009, the latter being disbanded

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748-428: The accession of Sweden on 7 March 2024. The current members and their dates of admission are listed below. The three Nordic countries which joined NATO as founding members, Denmark, Iceland and Norway, chose to limit their participation in three areas: there would be no permanent peacetime bases, no nuclear warheads and no Allied military activity (unless invited) permitted on their territory. However, Denmark allowed

782-738: The cost of administering the program. DSCA has five regional centers. They are: Member states of NATO The North Atlantic Treaty Organization (NATO) is an international military alliance consisting of 32 member states from Europe and North America . It was established at the signing of the North Atlantic Treaty on 4 April 1949. Of the 32 member countries, 30 are in Europe and two are in North America . Between 1994 and 1997, wider forums for regional cooperation between NATO and its neighbours were set up, including

816-673: The following year. France remains the only NATO member outside the Nuclear Planning Group and unlike the United States and the United Kingdom, will not commit its nuclear-armed submarines to the alliance. As of March 2024 , three additional states have formally informed NATO of their membership aspirations: Bosnia and Herzegovina , Georgia , and Ukraine . No state has evern withdrawn from NATO , but some dependencies of member states have not requested membership after becoming independent: The following list

850-548: The foreign country. This United States military article is a stub . You can help Misplaced Pages by expanding it . Defense Security Cooperation Agency The Defense Security Cooperation Agency ( DSCA ) is an agency within the United States Department of Defense (DoD) which provides financial and technical assistance, transfer of defense materiel , training and services to allies, and promotes military-to-military contacts. Security Cooperation (SC)

884-429: The foreign government to obtain basic information for further planning; LOR for a Letter of Offer and Acceptance (LOA), an official expression of interest by a foreign country; and LOR for a change to an already existing LOA for making amendments to existing LORs. An FMS case identifier that consists of a country, the code of an implementing agency (Army, Navy or Air Force) and a unique three-position FMS case designator

918-489: The immediate sale" of 155 mm artillery rounds and "related equipment" and 120 mm tank shells to Israel to invoke the AECA Section 36(b) emergency waiver. Foreign governments must agree to U.S.-provided defense articles, training and services only for their intended purpose. End-use monitoring (EUM) is typically performed by U.S. government personnel assigned to the Security Cooperation Office in

952-698: The islands north of the Tropic of Cancer , the North American and European mainlands, the entirety of Turkey , and French Algeria , the last of which has been moot since July 1962. Thus, an attack on Hawaii , Puerto Rico , French Guiana , the Falkland Islands , Ceuta or Melilla , among other places, would not trigger an Article 5 response. NATO currently recognizes Bosnia and Herzegovina , Georgia , and Ukraine as aspiring members as part of their Open Doors enlargement policy . NATO

986-425: The payment schedule described in the LOA. The LOA includes an estimated payment schedule for the foreign government that typically consists of an initial deposit and future quarterly payments. Methods of payment typically consist of Foreign Military Financing , the foreign government's funds or an existing Memorandum of Agreement (MOA) or Memorandum of Understanding (MOU) with the United States. Payments are made to

1020-441: The sale, enhancement, or upgrading of major defense equipment valued at $ 25 million or more, defense articles or services at $ 100 million or more, or design and construction services of $ 300 million or more. Congress has the authority to block a sale. On 24 May 2019, Secretary of state Mike Pompeo invoked AECA Section 36 emergency provisions to complete "22 pending arms transfers" worth $ 8.1 billion to Jordan , Saudi Arabia and

1054-525: The same. The response to whether their country should militarily aid another NATO country if it were to get into a serious military conflict with Russia was also mixed. Roughly half or fewer in six of the eight countries surveyed say their country should use military force if Russia attacks a neighboring country that is a NATO ally. And at least half in three of the eight NATO countries say that their government should not use military force in such circumstances. The strongest opposition to responding with armed force

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1088-565: The territories and members added between 1990 and 2024, all except for Finland and Sweden were either formerly part of the Warsaw Pact (including the formerly Soviet Baltic states ) or territories of the former Yugoslavia . No countries have left NATO since its founding. Currently, the North Atlantic Treaty Organization now covers a total area of 27,580,492 km (10,648,887 sq mi), since

1122-533: The territory of the former East Germany was added with the reunification of Germany in 1990. NATO further expanded after the Cold War, adding the Czech Republic , Hungary , and Poland (1999); Bulgaria , Estonia , Latvia , Lithuania , Romania , Slovakia , and Slovenia (2004); Albania and Croatia (2009); Montenegro (2017); North Macedonia (2020); Finland (2023); and Sweden (2024). Of

1156-561: Was established on 4 April 1949 via the signing of the North Atlantic Treaty (Washington Treaty). The 12 founding members of the Alliance were: Belgium , Canada , Denmark , France , Iceland , Italy , Luxembourg , the Netherlands , Norway , Portugal , the United Kingdom , and the United States . The various allies all sign the Ottawa Agreement, which is a 1951 document that acts to embody civilian oversight of

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