Whilst it sounds fairly light weight the reality behind the JSF technology transfer deal is that the UK and US will have no barriers to trade between their respective defence markets. All it has to do is get through the US Foriegn Affairs committee in September. This is very good news for both US and UK firms, especially the smaller US and UK players who faced high market entry costs.
This deal will fundamentally change the UK defence market and will be good for UK Defence Plc. Watch this space.
Joint Statement Between the United States and the United Kingdom (White House Briefing)
President Bush and Prime Minister Blair Sign U.S.-UK Defense Trade Treat
President Bush and Prime Minister Blair have today signed a Defense Trade Cooperation Treaty which will further strengthen and deepen the effort between our respective defense establishments to achieve fully interoperable forces, and to leverage the strength of our defense industries in direct support of our armed forces.
At a time when American and British forces continue to work closely together on operations overseas, the President and the Prime Minister share the view that we need to do all that we can to enhance our ability to cooperate by reducing the barriers to exchange of defense goods, services, and information between the United States and the United Kingdom.
This further cooperation will benefit the operational defense capabilities of the United States and the United Kingdom by improving the interoperability of equipment and systems between our armed forces. Our armed forces must have the most effective means possible to fight not only in traditional battlefield situations, but also when they face asymmetric threats such as IEDs. By removing barriers to communication and collaboration between, and among, our armed forces and our defense industries, we will provide our forces with the most effective means possible to counter these threats.
In addition, these new arrangements will help maintain the strength of our respective defense industries. By enhancing the ability of our defense industries to take advantage of the rich and deep technical experience in the United States and in the United Kingdom, we will continue to develop and field the most effective military capabilities possible.
Together, both governments will also aim to finalize implementing arrangements by the end of the year and to complete steps necessary under their respective domestic laws to implement the treaty.