On April 9, 2025, President Trump signed and released an Executive Order (EO) to "improve speed and accountability" in the U.S. defense trade system and published an accompanying fact sheet. The EO identifies specific actions for executive branch agencies to take including: (i) reverting back to the Conventional Arms Transfer Policy that President Trump implemented in 2018 (which was amended under the Biden Administration); (ii) reevaluating restrictions imposed by the Missile Technology Control Regime on Category I items; (iii) requesting Congress to update statutory congressional notification thresholds; and (iv) updating the Foreign Military Sales (FMS)-Only List.
The EO also sets a 60-day deadline for the Secretaries of State and Defense to: (i) develop a list of priority partners for conventional arms transfers; (ii) develop a list of priority end-items for potential transfer to priority partners; and (iii) ensure the transfer of priority end-items advance the administration's goal of strengthening allied burden-sharing. It further mandates that the Secretaries of State and Defense review, update, and reissue the lists of priority partners and military end-items on an annual basis.
The EO sets a 90-day deadline for the Secretaries of State, Defense, and Commerce to submit a plan to the President to improve the transparency of defense sales to foreign partners by: (i) developing metrics for accountability; (ii) including exportability as a requirement in the early parts of the acquisition process; and (iii) consolidating technology security and foreign disclosure approvals.
Finally, the EO sets a 120-day deadline for the Secretaries of State, Defense, and Commerce to submit a plan to the Assistant to the President for National Security Affairs to develop a single electronic system to track all direct commercial sale license requests and ongoing FMS efforts throughout the FMS case life cycle.
Crowell & Moring, LLP continues to monitor export control developments and their potential impact on customers and businesses going forward.
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