August 31, 2004, 05:00
Global arms sales fell for a third consecutive year in 2003, dropping to $25.6 billion from a peak of $41 billion in 2000 and Asia has overtaken the Middle East as the biggest customer, according to a study released yesterday.
The United States and Russia continued to dominate the global arms market, with Washington maintaining its lead in weapons sales with deals valued at more than $14.5 billion, up from $13.6 billion in 2002, the Congressional Research Service found.
Russia ranked second with deals worth $4.3 billion, according to the annual unclassified report on conventional arms sales. Germany ranked as third, signing deals worth $1.4 billion, it said.
The report said arms sales had declined globally due to economic factors, dampening demand for pricey new weapons systems and prompting even wealthy countries to focus on upgrades and modernization rather than replacement of arms.
For years, the Middle East has been the largest arms market in the developing world, but in the period from 2000-2003 China led Asia into the top position with the region signing deals worth $33.8 billion or 50.8 percent of all arms deals, the report found.
During that three-year period China concluded arms agreements valued at $9.3 billion, followed by the United Arab Emirates with deals valued at $8.1 billion. In 2003, Egypt ranked first with deals valued at $1.8 billion, followed by China with $1.6 billion and Malaysia with $1.5 billion.
Russia, which became the top supplier of weapons to Asia in the mid-1990s, increased its grip on that market from 2000 to 2003, signing agreements worth $16.5 billion or 48.8 percent, helped by big combat aircraft sales to India and China.
It has also increased its customer base with aircraft orders from Malaysia, Vietnam and Indonesia. - Reuters
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