December Defense Trade Newsletter Highlights

U.S. greenlights massive, $11 billion military arms package to Taiwan ‒ The United States approved its largest arms package to Taiwan. The $11 billion deal covers multiple defense systems including HIMARS rocket launchers, howitzers, drones, missiles and other equipment.

Hegseth, counterparts praise AUKUS ‘commitment’ after Pentagon review ‒ U.S., U.K. and Australian defense leaders met to reaffirm strong support for the AUKUS security pact following the Pentagon’s review of the agreement. The meeting highlighted the nations’ renewed commitment and emphasized their determination to advance submarine sales and construction under AUKUS Pillar I amid broader defense collaboration.

UK unveils major undersea plan to counter Russia ‒ The UK Ministry of Defence unveiled its technical blueprint for its “Atlantic Bastion” anti-submarine program as part of its wider £1 billion Digital Targeting Web battlefield network. The blueprint involves connecting ships, submarines, aircraft and uncrewed vessels into a digital targeting web that will be supported by artificial intelligence-supported acoustic detection technology to counter Russian incursions.

19 EU countries submit investment plans for defense loan scheme ‒ The 19 countries selected to participate in the European Commission’s Security Action for Europe (SAFE) defense loan program submitted their national defense plans. EU Defense Commissioner Andrius Kubilius said 15 of the countries included support for Ukraine in their plans.

Spain approves $5.3 billion mega-order of 100 Airbus helicopters ‒ Spain’s Directorate General for Armament and Material (DGAM) procurement agency has formally agreed to purchase 100 Airbus helicopters for its army for roughly $5.3 billion.

Switzerland reduces F-35 buy after $610 million price hike ‒ Switzerland decided to cut its order of 36 Lockheed Martin F-35A fifth-generation fighter jets due to a price increase of roughly $610 million, which is enforced by the U.S. government after a contract dispute between the two countries. The Swiss Federal Department of Defense, Civil Protection and Sport said the order “is not financially viable to maintain,” signaling that a “maximum” quantity of the stealth jets will be procured in line with the approved 6 billion Swiss Franc budget.

Erdogan asks Putin to take back missiles to win U.S. favor ‒Turkey asked Russia to accept the return of the S-400 air defense system as part of the effort to acquire U.S.-made F-35 fighter jets and improve ties with the United States. Turkey also asked for a refund for the billions of dollars it spent to buy the air defense system and will potentially request a deduction of its oil and natural gas imports bill from Russia.

Expanded $6.5 billion Arrow agreement with Germany now largest Israeli defense export deal ‒ The German government has approved an expansion of the Arrow 3 air defense system agreement with Israel, increasing the valuation from $3.5 billion to $6.5 billion. The Arrow is a joint development air defense program between Israel Aerospace Industries (IAI) and the U.S. Missile Defense Agency (MDA), as the new expanded deal represents Israel’s largest export deal in history.

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