Trump streamlines arms export: Boost for U.S. defense giants
President Donald Trump signed an executive order on Wednesday aimed at reviewing the regulations governing the export of military equipment. He intends to make it easier for large American defense companies to sell their products abroad, according to media reports.
"We’re unable to provide weapons systems in a reliable, effective way to key allies of ours, and the key driver of that is inefficiencies and inconsistencies with the process by which we approve foreign military sales," explained White House assistant Will Scharf.
Trump wants to facilitate companies' export of military equipment
During the signing ceremony in the Oval Office, Trump added that the order requires the Department of Defense, the State Department, and other government agencies to revise the system of foreign arms sales. This change aims to enable more effective delivery of equipment, create jobs in the USA, and provide income for American arms manufacturers.
Reuters reported that the order is expected to boost sales for large American defense companies, such as Lockheed Martin, RTX, and Boeing. Currently, the Arms Export Control Act gives the US Congress the authority to analyze defense contracts based on how close of an ally the purchasing country is and the size of the planned sale.
Reuters reminds us that during his first term in the White House, Trump expressed dissatisfaction with Congress' stance on delaying arms sales to other countries. Some lawmakers justified these delays by citing the need to defend human rights.
In 2019, Trump caused discontent among many members of Congress, including some Republicans, by declaring a "state of emergency" due to tensions in relations with Iran. This declaration allowed the sale of over $8 billion worth of weaponry to Saudi Arabia, the United Arab Emirates, and Jordan—countries accused of human rights violations.
Also on Wednesday, Trump signed an order initiating a comprehensive review of public procurement programs within the Pentagon. "With this executive order, we’re going to be modernising the procurement structure the Department of Defence uses to allow it to more quickly adapt to changing circumstances around the world," stated Scharf.
