The principal focus of this report is the level of arms transfers by major weapons suppliers to nations in the developing world—where most of the potential for the outbreak of regional military conflicts currently exists, and where the greatest proportion of the conventional arms trade is conducted. Nations in the developing world continue to be the primary focus of foreign arms sales activity by conventional weapons suppliers. During the period of this report, 2003-2010, conventional arms transfer agreements (which represent orders for future delivery) to developing nations comprised 69.6% of the value of all international arms transfer agreements . The portion of agreements with developing countries constituted 78.9% of all agreements globally from 2007-2010. In 2010 arms transfer agreements with developing countries accounted for 76.2% of the value of all such agreements globally. Major Findings

		General Trends in Arms Transfers Worldwide

The value of all arms transfer agreements worldwide (to both developed and developing nations) in 2010 was $40.4 billion. This was a substantial decrease in arms agreements values over 2009 of 38.1%, and the lowest worldwide arms agreements total since 2003 ( Figure 1 ) ( Table 31 ). In 2010, the United States led in arms transfer agreements worldwide, making agreements valued at $21.3 billion (52.7% of all such agreements), a decline from $22.6 billion in 2009. In 2010, the United States ranked first in the value of all arms deliveries worldwide, making nearly $12.2 billion in such deliveries or 34.8%. Russia ranked second in worldwide arms deliveries in 2010, making $5.2 billion in such deliveries. General Trends in Arms Transfers to Developing Nations

The value of all arms transfer agreements with developing nations in 2010 was $30.7 billion, a substantial decrease from the $49.8 billion total in 2009 ( Figure 1 ) ( Table 1 ) ( Table 3 ) ( Table 4 ). In 2010, the value of all arms deliveries to developing nations ($21.9 billion) was an increase over the value of 2009 deliveries (nearly $19.2 billion), and the highest delivery total since 2006 ( Figure 7 and Figure 8 ) ( Table 2 ) ( Table 15 ). Recently, from 2007 to 2010, the United States and Russia have dominated the arms market in the developing world, with both nations either ranking first or second for all four years in terms of the value of arms transfer agreements. From 2007 to 2010, the United States made nearly $72 billion of these agreements, or 38%. During this same period, Russia made $37.1 billion, 19.6% of all such agreements, expressed in constant 2010 dollars. Collectively, the United States and Russia made 57.6% of all arms transfer agreements with developing nations during this four-year period. In the earlier period (2003-2006) Russia ranked first with $41.5 billion in arms transfer agreements with developing nations or 32.2%; the United States made $30.5 billion in arms transfer agreements during this period or 23.7%. Individual suppliers within the major West European group have had notable years for arms agreements during this period: France in 2009 ($7.9 billion) and in 2005 ($5.7 billion); the United Kingdom in 2007 ($10.1 billion) and 2004 ($4.8 billion); Germany (over $4.8 billion) in 2008, and in 2006 ($2.6 billion); and Italy in 2009 ($.2.7 billion). The United States ranked second with 17% ($9.4 billion in current dollars). India ranked first among all developing world recipients in the value of arms transfer agreements in 2010, concluding $5.8 billion in such agreements. Taiwan ranked second in agreements with $2.7 billion. Saudi Arabia ranked third with $2.2 billion in agreements.
This report is prepared annually to provide Congress with official, unclassified, quantitative data on conventional arms transfers to developing nations by the United States and foreign countries for the preceding eight calendar years for use in its policy oversight functions. All agreement and delivery data in this report for the United States are government-to-government Foreign Military Sales (FMS) transactions. Similar data are provided on worldwide conventional arms transfers by all suppliers, but the principal focus is the level of arms transfers by major weapons suppliers to nations in the developing world.
Developing nations continue to be the primary focus of foreign arms sales activity by weapons suppliers. During the years 2003-2010, the value of arms transfer agreements with developing nations comprised 72.9% of all such agreements worldwide. More recently, arms transfer agreements with developing nations constituted 78.9% of all such agreements globally from 2007-2010, and 76.2% of these agreements in 2010.
The value of all arms transfer agreements with developing nations in 2010 was over $30.7 billion. This was a decline from $49.8 billion in 2009. In 2010, the value of all arms deliveries to developing nations was nearly $21.9 billion, the highest total in these deliveries values since 2006 (in constant 2010 dollars).
Recently, from 2007 to 2010, the United States and Russia have dominated the arms market in the developing world, with both nations either ranking first or second for each of these four years in the value of arms transfer agreements. From 2007 to 2010, the United States made nearly $72 billion in such agreements, 40.1% all these agreements expressed in constant 2010 dollars. Russia made $37.1 billion, 20.7% of these agreements. During this same period, collectively, the United States and Russia made 60.8% of all arms transfer agreements with developing nations, ($109.1 billion [in constant 2010 dollars]) during this four-year period.
In 2010, the United States ranked first in arms transfer agreements with developing nations with over $14.9 billion or 48.6% of these agreements, a significant increase in market share from 2009, when the United States held a 30.3% market share. In second place was Russia with $7.6 billion or 24.7% of such agreements.
In 2010, the United States ranked first in the value of arms deliveries to developing nations at $8.6 billion, or 39.2% of all such deliveries. Russia ranked second in these deliveries at $4.8 billion or 21.4%.
In worldwide arms transfer agreements in 2010—to both developed and developing nations—the United States dominated, ranking first with $21.3 billion in such agreements or 52.7% of all such agreements. Ranking second in worldwide arms transfer agreements in 2010 was Russia with $7.8 billion in such global agreements or 19.3%. The value of all arms transfer agreements worldwide in 2010 was $40.4 billion. This was a substantial decrease in arms agreements values over 2009 of 38.1%, and the lowest worldwide arms agreements total since 2003.
In 2010, India ranked first in the value of arms transfer agreements among all developing nations weapons purchasers, concluding $5.8 billion in such agreements. Taiwan ranked second with $2.7 billion in such agreements. Saudi Arabia ranked third with $2.2 billion.