§2791 General Provisions

Summary

The law says the United States should buy defense items in the U.S. whenever possible. It does allow coproduction or licensed production of U.S. defense items in other countries if doing so better serves U.S. foreign policy, national security, or the U.S. economy. When a sale is reviewed, officials must weigh whether it harms U.S. licensing deals, how much of the item is U.S.-made, and whether the sale could fuel an arms race, help make weapons of mass destruction, support terrorism, raise the chance of conflict, or hurt arms-control or nonproliferation efforts. Before any credit sale or government guarantee for coproduction or licensed production abroad, the Secretary of State must tell Congress and give the Speaker of the House and the President of the Senate full details, including what will be made, its estimated value, and likely effects on U.S. jobs and production. The President must approve using funds to buy abroad only if that buying will not hurt the U.S. economy or industrial mobilization base more than its advantages. The Secretary of Defense, under the President, has the main role in deciding what military items are needed, buying and fitting them into military programs, supervising training of foreign forces, and moving and delivering equipment. U.S. sales contracts and export licenses can be canceled, suspended, or changed for national-interest reasons, and money may be appropriated to refund buyers or pay damages when cancellations occur. Whenever possible and consistent with the law’s goals, the President should use civilian contractors in other countries to provide these defense services.