On April 9, 2025, an executive order was issued with the aim of reforming foreign defense sales to enhance speed, transparency, and accountability. This comprehensive order outlines several key policy changes intended to bolster the United States’ defense cooperation with international partners while strengthening the domestic defense industrial base.
The President stated, "To serve the interests of the American people, the United States must maintain the world’s strongest and most technologically advanced military through a dynamic defense industrial base, coupled with a robust network of capable partners and allies." This statement underscores the importance of a reformed defense sales system in achieving national security objectives.
The order seeks to streamline the foreign defense sales process by improving accountability and transparency, which is expected to promote predictable and reliable delivery of American defense products. It also aims to consolidate decision-making processes when determining the provision of military capabilities to partner countries.
One of the significant aspects of the order is the reduction of rules and regulations currently governing the foreign defense sales framework. The administration argues that this will better align these sales with U.S. foreign policy goals. Additionally, the order calls for increased collaboration between government and industry to enhance cost-effectiveness and scheduling within the Foreign Military Sales (FMS) program.
To boost the U.S.'s competitive edge abroad, the order promotes integrating exportability into the design phase of defense technologies, improving financing options for partners, and increasing contract flexibility overall. It mandates the Secretary of State and the Secretary of Defense to implement existing arms transfer policies and to potentially update congressional notification processes for FMS and Direct Commercial Sales (DCS) programs.
The order also contains provisions for regular updates and assessments of the partners and defense items involved in foreign defense sales. The evaluation aims to focus on the U.S.’s most sensitive technologies and ensure that the transfer of defense products does not impair U.S. military readiness.
Defined processes within the order, such as "parallel decision-making" and "exportability," are intended to optimize the defense sales system. Additionally, the development of a unified electronic system to monitor defense export licenses is emphasized for better tracking of defense transactions.
This order is not designed to create enforceable rights or benefits for any external party against the government but is intended to further align defense sales processes with strategic national interests.
THE WHITE HOUSE, April 9, 2025.
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