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 The State Department said it would allow exports of lethal U.S.
military drones under strict conditions, including that sales must
be made through government programs and that recipient nations must
agree to certain "end-use assurances."
The policy, the details of which are classified, comes after a
two-year review amid growing demand from U.S. allies for the new
breed of weapons that have played a key role in U.S. military action
in Afghanistan, Iraq and Yemen.
It could help U.S. companies boost sales of military and commercial
drones in an increasingly competitive global market.
Privately held General Atomics, maker of the Predator and Reaper
drones, Northrop Grumman Corp, Textron Inc and other arms makers
have been urging Washington for years to loosen strict export curbs,
which they say have caused them to lose orders to Israel and others
in the growing market.
Ideally, the policy would help industry better understand the
current complex review process for drone exports, said Remy Nathan,
vice president of the Aerospace Industries Association. He said AIA
had asked for a classified briefing on the policy.
 The shift came just days after U.S. aviation regulators proposed
rules that would lift some restrictions on drone use for commercial
purposes, but would still limit activities such as inspections of
pipelines.
The change also follows stern warnings by top U.S. officials about
rapid advances in weapons technology by China, Russia and other
potential foes, including unmanned systems.
China has its own ambitious drone program and has exported drones to
at least nine countries, including Pakistan, Egypt and the United
Arab Emirates, while it is also in talks with Saudi Arabia and
Algeria for sales, according to Chinese state media.
POPULAR FOR SURVEILLANCE
The new policy will make it easier for America's closest allies to
buy armed drones, while maintaining stringent controls on the
overall technology, U.S. officials said.
Britain is the only country now flying armed U.S. drones, but France
and Italy fly Reaper surveillance drones. A State Department
official said previous requests for armed drones from Italy and
Turkey would be reviewed in light of the new policy.
Sales of surveillance drones could also help U.S. allies in the
Middle East fight Islamic State militants. U.S. lawmakers are
currently considering the sale of unarmed Predator drones to the
United Arab Emirates, which has played a key role in air strikes on
Islamic State sites in recent weeks.
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The policy maintains "a strong presumption of denial" of sales of
the biggest drones, so-called Category I aircraft that have a range
of at least 300 km (186 miles) and can carry a payload of at least
500 kg (1,102 pounds), but will allow such exports on "rare
occasions."
The official said there was no formal list of countries that would
be eligible for exports of armed drones, and all requests would be
evaluated on a case-by-case basis, with consideration of human
rights, regional power balance, and other factors.
Even before the new policy was announced, the U.S. government had
granted General Atomics a license to market its Predator XP export
model to India.
The Philippines, which is embroiled in a bitter dispute with China
over South China Sea boundaries, would be interested in drones that
could be used for intelligence and surveillance operations, military
spokesman Colonel Restituto Padilla said.
It did not want armed drones, he added.
Sales of armed drones could boost Lockheed Martin Corp , which
builds Hellfire missiles that are used by Predator and Reaper
drones, but could also help companies like L-3 Communications
Holdings Inc and Raytheon Co, which build sensors and simulators for
the unmanned systems.
"The new policy ensures appropriate participation for U.S. industry
in the emerging commercial UAS market, which will contribute to the
health of the U.S. industrial base, and thus to U.S. national
security, which includes economic security," the State Department
official said.
Under the policy, buyers of military drones will have to agree to
strict conditions, including adherence to international law, and a
ban on using the drones for unlawful surveillance or to crack down
on their domestic populations.
(Additional reporting by Ben Blanchard in Beijing and Manny Mogato
in Manila; Editing by Peter Cooney, Eric Walsh, Christian Plumb,
Bernard Orr and Dean Yates)
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