Globalism is altering military, economic, and political forces, and their confluence has become out of balance with respect to defense trade policy. This paper asks the question, "Are U.S. defense trade policies achieving an effective balance between technology transfer, security, and economic growth?" A variety documents, articles, speeches, and books are reviewed to gain an appreciation of the arguments surrounding US defense trade policy. Interviews are also conducted with individuals from the US and United Kingdom governments, industry, and academic community. While the current policy protects critical technologies, it also guards technologies obtainable through other sources. Additionally, it also alienates the US military from its allies, prevents industry from developing markets, and stimulates unwanted arms production and proliferation abroad. US resistance to multinational cooperation is further undermining the development of a more effective policy of controlling armament exports. Three areas are recommended for improvement: 1. Reconstruct the export licensing process by overhauling the munitions list, increasing resources, reducing congressional review, and assessing enforcement effectiveness. 2. Stop sheltering industry with protectionist policies and practices, reevaluate international merger frameworks, and encourage a cooperative global industrial base. 3. Support international cooperation through the Defense Trade and Security Initiative, DoD liaisons in the European Union, joint ventures, and an effective conventional arms control regime.
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