America cashes in on arms sales to developing world

The United States has consolidated its position as the world’s leading arms dealer to the developing world, followed by Russia and Britain, according to a new congressional report published in Washington yesterday.

The report, produced by the nonpartisan Congressional Research Service (CRS), found the arms trade cooled slightly in 2006, shrinking from nearly $46bn in 2005 to nearer $40bn. Sales to developing countries accounted for 80% of the market.

The CRS suggested that some buyers – squeezed by higher fuel prices – opted to upgrade weapons they already had rather than buy new gear. Furthermore, Russia appears to have held back some sales to Iran, one of its biggest customers, while sanctions on the Tehran government were debated in the UN security council.

Article continues American weapons sales accounted for 42% of the global market, a total of nearly $17bn in sales, up $3.4bn from the previous year. The boom in US sales appears to have been partly fuelled by the wars in Iraq and Afghanistan, which have made neighbouring countries nervous. Pakistan, India and Saudi Arabia were the biggest buyers.

Russia is the world’s second biggest dealer with sales of $8.7bn in 2006, nearly 22% of the market. Britain is third on list, with $3.1bn in sales. Those sales figures are almost certain to be boosted this year with Saudi Arabia’s confirmation of a purchase of 72 Eurofighter Typhoon jet fighters, worth