US top arms trader

Wednesday, July 28, 1993 - 10:00

US top arms trader

By Wendy Robertson

The United States remained the biggest arms supplier to the third world in 1992, increasing its share of the market to 56.8% from 48.9% in 1991, according to a US Congressional study.

The study, reported in the July 22 Financial Review, said that Russia's share of the market continued to fall sharply to 5.4%, with arms deals in 1992 of US$1.3 billion, compared to US$5.9 billion in 1991.

About 86% of the US arms sales to the third world consisted of major new orders from Taiwan (A$9.6 billion), Saudi Arabia (A$6.3 billion) and Kuwait (A$1.65 billion).

France, the second largest arms supplier in 1992, made third world agreements totalling US$3.8 billion (A$5.6 billion).

The other top eight suppliers were: Britain (US$2.4 billion), Russia (US$1.3 billion), Germany (US$700 million), Spain (US$600 million), Italy (US$400 million), Israel (US$300 million), Iran (US$200 million) and China (US$100 million).

While Australia did not make the top 10 arms trading nations its arms export industry is growing fast. According to an Australian Senate Estimates Committee document, A$31.1 million of defence export applications were approved in 1991-1992, and 79% of these were to third world countries. Australia sells gunboats, frigates, small arms, second-hand helicopters and planes, military radar and telecommunications systems.

The Keating government is encouraging and subsidising arms export in a bid to share the profits of an unprecedented rise in arms spending by South-East Asian governments. In the future it hopes to sell some of the sophisticated Collins submarines being built in Adelaide to Asian countries.

The US Congressional report said that, continuing a general post-Cold War trend, the value of all arms transfer agreements to the third world in 1992 fell to US$23.9 billion, the lowest total for any of the years during the 1985-92 period.

The total value of US arms deals to all countries fell slightly from 1991 to 1992, from US$14 billion to US$13.6 billion.