Global industry key to defense preparedness.

• Author: Farrell, Lawrence P., Jr.
• Position: President's Perspective - Editorial

At a time of heightened tension around the world and ongoing challenges to our national security, it is important to reinforce the need for increased industrial cooperation between the United States and its allies. Despite calls for trade barriers and more protectionism in the arms industry, the overwhelming reality is that defense is more globalized than ever.

Not only do U.S. firms depend on foreign exports for their financial health, but the Pentagon also benefits in many cases from non-U.S, developed technology. Furthermore, many foreign firms seeking to do more business with the Pentagon are setting up U.S.-based subsidiaries, creating jobs and fueling economic growth in the United States.

Selling to foreign customers keeps U.S. firms competitive. According the most updated data available from the Commerce Department's Bureau of Industry and Security, U.S. defense exports increased from $7 billion in 2001 to $7.4 billion in 2002.

Although most of U.S. defense sales are to the Pentagon, our nation's defense spending--about to reach nearly $500 billion-will inevitably come down. When U.S. sales decline, the defense industry will seek to increase exports to keep its production lines warm.

Potential foreign customers, however, are finding that it's not getting any easier to do business with American suppliers. Obstacles currently standing in the way include complex export licensing procedures and restrictions in the ability to share information, even with close allies such as the United Kingdom. During a recent international cooperation conference in London hosted by NDIA, several government and industry leaders expressed frustration with what they see as trade-unfriendly policies in the United States.

Those who oppose defense industry cooperation and trade partnerships argue that the United States cannot afford to let sensitive technologies proliferate around the world and potentially fall into the wrong hands.

Concerns about proliferation of technology are legitimate and must be taken into account in international industrial arrangements. That has become the motivating force behind recent initiatives to find ways to protect information and guarantee the security of data.

A case in point is the "Transatlantic Secure Collaboration Program," sponsored jointly by the U.S. Defense Department and the U.K. Ministry of Defense.

The TSCP was created in an effort to tackle the technical complexity, cost and risks in delivering defense programs...