Exclusive: Trump aims to sidestep another arms pact to sell more U.S.
drones
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[June 12, 2020]
By Mike Stone
WASHINGTON (Reuters) - The Trump
administration plans to reinterpret a Cold War-era arms agreement
between 34 nations with the goal of allowing U.S. defense contractors to
sell more American-made drones to a wide array of nations, three defense
industry executives and a U.S. official told Reuters.
The policy change, which has not been previously reported, could open up
sales of armed U.S. drones to less stable governments such as Jordan and
the United Arab Emirates that in the past have been forbidden from
buying them under the 33-year-old Missile Technology Control Regime (MTCR),
said the U.S. official, a former U.S. official and one of the
executives. It could also undermine longstanding MTCR compliance from
countries such as Russia, said the U.S. official, who has direct
knowledge of the policy shift.
Reinterpreting the MTCR is part of a broader Trump administration effort
to sell more weapons overseas. It has overhauled https://www.reuters.com/article/us-trump-effect-drones-exclusive/exclusive-game-of-drones-u-s-poised-to-boost-unmanned-aircraft-exports-idUSKBN1CG0F4
a broad range of arms export regulations and removed the U.S. from
international arms treaties including the Intermediate-Range Nuclear
Forces Treaty and the Open Skies Treaty.
![](http://archives.lincolndailynews.com/2020/Jun/12/images/ads/current/jaconcrete_sda_HG_2020.png)
Sidestepping the accord would allow U.S. defense contractors General
Atomics Aeronautical Systems Inc and Northrop Grumman Corp to break into
new markets currently dominated by less sophisticated offerings from
China and Israel, which do not participate in the MTCR.
Heidi Grant, the Pentagon's Director of Defense Technology Security
Administration, declined to comment on the pending MTCR policy change
but said the U.S. military is eager to see drone sales expanded to more
countries. Such sales would bolster the militaries of allies and replace
drones sales from other nations, she said. "If we are unable to meet
this growing demand, we shoot ourselves in the foot," Grant told
Reuters.
She said the drones would help allies fight terrorism, establish border
control and generally help stop threats before they reach the United
States. Grant declined to name specific nations the Pentagon believes
should get more U.S.-made weapons.
The State Department, which makes final decisions on drone sales,
declined to comment on the policy change. The White House also declined
to comment.
U.S. agencies including the departments of Commerce, Energy, Justice and
Homeland Security agreed to the change in May, and the State Department
is expected to approve the first drone sales under the new
interpretation as soon as this summer, said the U.S. official and
industry executives. They said the administration has already notified
Northrop Grumman and General Atomics, the two major U.S. drone makers,
of its plans.
The change is scheduled for a review by the White House National
Security Council at its June 16 meeting, said one of the executives and
a former U.S. official with knowledge of the internal policy
discussions. The council is expected to support the policy change and
discuss a possible White House announcement, they said.
The Trump administration is pressing ahead with its revamp of drone
export policy under pressure from American manufacturers and despite
objections from human rights advocates, who warn of the risk of fueling
instability in hot spots including the Middle East and South Asia.
Expanded sales of armed drones could increase global conflicts, said
Rachel Stohl, a weapons expert at the Stimson Center in Washington, a
think tank focused on security issues that opposes weapons
proliferation.
![](http://archives.lincolndailynews.com/2020/Jun/12/images/ads/current/charrons_bch041713.png)
"Once they leave U.S. control, we lose our ability to influence how and
where they are used," she said.
LOWERING THE BAR
Under the State Department's current interpretation of the MTCR, all
sales of large drones are subject to what is known as a "strong
presumption of denial," which has made approvals rare. But the high bar
to get a deal greenlighted will be removed, signaling to previously
forbidden customers that their orders have much better chance of
approval, according to the official, the former official and one of the
defense executives.
Reuters could not determine what specific criteria the State Department
will use in scrutinizing weapons deals under the new interpretation.
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![](../images/061220pics/news_a3.jpg)
French Defence Minister Florence Parly poses with a General Atomics
MQ-9 Reaper drone as she visits to the French Air Force pilot school
at the BA 709 military air base of Cognac-Chateaubernard in
Chateaubernard, France May 14, 2020. Mehdi Fedouach/Pool via REUTERS
![](../images/ads/current/fitzpatrick_lda_SPONSOR_2017.png)
Until now, only England, France and Australia have been allowed to
buy large, armed drones from U.S. manufacturers, according to data
collected by The Center for the Study of the Drone at Bard College
in New York state.
Jordan, Romania, Saudi Arabia and UAE have shown interest in
purchasing U.S. systems and will be among the first customers in
line when the U.S. policy changes, one of the industry executives
said. Officials from the Washington embassies of those nations did
not respond to requests for comment.
The U.S. official and the former official said any country where U.S
forces are operating drones in the counterterrorism fight, such as
Kuwait, could be a potential customer for lethal drones. The Embassy
of Kuwait in Washington did not return a request for comment.
U.S. drone manufacturers, face growing competition overseas
especially from Chinese and Israeli rivals who have far fewer rules
limiting sales.The defense contractors are vying for a larger share
of the global military drone market, which the Teal Group, a market
research firm, forecast annual sales, research and development will
rise from $15.8 billion in 2020 to nearly $20 billion by 2029.
Bart Roper, Senior Vice President for Strategic Development at
General Atomics, said the firm has been limited under current policy
and that a liberalization of the rules could result in "hundreds" of
new sales. Roper, who did not confirm the policy change, said there
is strong interest from Middle East and Southeast Asian customers
that have been forced to purchase aircraft from the Chinese because
of a lack of U.S. alternatives.
A Northrop Grumman spokesman added that increased drone exports
would lead to closer work on the technology with allies, helping
keep U.S. drones state-of-the-art.
MISSILE PACT
The MTCR agreement - originally signed in 1987 by the United States,
Canada, France, Germany, Italy, Japan, and Britain - focused on
stopping the proliferation of nuclear weapons. The pact has been
credited with slowing or stopping missile programs in countries such
as Egypt, Argentina and Iraq.
![](http://archives.lincolndailynews.com/2020/Jun/12/images/ads/current/contractorsreadymix_sda_HG_2020.png)
The MTCR policy shift has been under consideration by the Trump
administration since 2017, but has been delayed several times as the
United States has grappled with objections within the government and
from other nations in the agreement, two of the executives and the
current and former officials said.
Some state department officials objected to the change for fear that
advanced weaponry would be sold to governments that have abused
human rights, the former official said.
The U.S. plan is to reinterpret its treatment of drones that fly
slower than 800 kilometers per hour, including Reapers and Global
Hawks. Global Hawks, made by Northrop Grumman, are not armed and are
typically used for surveillance. Reapers, made by General Atomics,
are used for both surveillance and air strikes - including the
recent U.S. strike that killed top Iranian General Qassem Soleimani
in January.
The MTCR currently classifies such drones as cruise missiles - and
therefore subject to high export restrictions - because of the
technical specifications for unpiloted aircraft in the 1987 pact.
Under the reinterpretation, the United States will treat these
drones as if they belong in a lower category that falls outside MTCR
jurisdiction.
The Pentagon's Grant said boosted sales of sophisticated weaponry
can strengthen U.S. alliances and help allied militaries safeguard
U.S. interests. It also enables cooperation with allies when they
use the same equipment, and would speed efforts to replace or repair
drones in combat.
Over time, she said, boosting sales of the drones could also lower
their cost to the U.S. government by giving defense contractors
economies of scale.
(Reporting by Mike Stone; Editing by Chris Sanders and Brian
Thevenot)
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