Welcome to Traveling Spear, a weekly update on all things international arms sales, led by International Trade + Transactions Partner, Adam Munitz. This week, we look back at the 2022 United States commercial sales figures, investigate a collaboration between French and Indian institutions, and review Japan’s efforts to support its defense industrial space.
- U.S. direct commercial sales in fiscal 2022 increased from $103.4B to $153.7B. There’s a lot behind these figures, but a rebound from a COVID-rattled 2021, expansion of arms acquisitions by European allies in response to Russia’s invasion of Ukraine, and significant purchases by Pacific allies played an outsized role. Read more here: https://www.defensenews.com/pentagon/2023/01/25/us-arms-export-approvals-soared-in-2022/?utm_campaign=dfn-ebb&utm_medium=email&utm_source=sailthru&SToverlay=2002c2d9-c344-4bbb-8610-e5794efcfa7d
- Interesting collaboration between France’s Naval Group and India’s Naval Materials Research Laboratory on the integration of air-independent propulsion systems into the Indian navy’s Kalvari-class submarines. Learn more: https://www.defensenews.com/industry/techwatch/2023/01/24/indian-lab-teams-up-with-frances-naval-group-on-submarine-tech/?utm_campaign=dfn ebb&utm_medium=email&utm_source=sailthru&SToverlay=2002c2d9-c344-4bbb-8610-e5794efcfa7d
- Japan is taking practical measures to support its defense industrial base, increasing Japanese contractors’ profit margins to 15% (the average profit margin hovers somewhere around 2-3%). This should have the indirect effect of positioning Japanese companies for increased arms exports. Continue reading: https://thediplomat.com/2023/01/japan-ups-profits-for-its-defense-industry/.
About the Author
Author Adam Munitz is a member of Fluet’s International Trade + Transactions practice. Focusing primarily on the defense, security, and intelligence sectors, Adam helps businesses translate their domestic successes into overseas growth and assist foreign entities with sensitive investments in, and acquisitions of, U.S. businesses. Additional information regarding practice capabilities and previous representations can be found on the International Trade + Transactions Practice page.
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