Page 79 - Five Forces of Americanisation Richard Hooke 04072025 final post SDR1

The UK Defence Industry in the 21 Century
st
The Five Forces of Americanisation

industrial participation in some form, often through direct offset work, on the Apache helicopter
programme for example. In 2021, the UK’s DSIS revised its industrial participation policy, adopting a
posture that now appears somewhat relaxed in 2025’s highly charged world trade environment: “to
encourage and support defence suppliers, whether headquartered here (in the UK) or overseas, to
consider carefully what can be sourced from within the UK.”

One could expect offsets and countertrade to become a more prevalent form of trade in future,
provoked by an America First trade policy. If so, it would reinforce international interdependence and
reconfigure the associations that constitute the world’s shifting security and economic framework.
This may well influence the future direction of associations like AUKUS and even the F-35. Lockheed,
having lost to Boeing in its bid to lead the development of its successor, NGAD, plans a “supercharged”,
enhanced F-35 export version, incorporating some of the advanced features Lockheed had developed
for NGAD. At the time of this paper’s publication, both Portugal and Canada have indicated their desire
to withdraw from the current F-35 programme. In today’s transactional world, it may be that a US
offer of workshare or offsets might be persuasive in bringing both countries back to the network but
the technology transfer this implies – plus the transfer that F-35’s further development also implies -
will be subject to the US government’s approval, not Lockheed’s. To some observers, this has
explained why Lockheed has not (as is usually expected in such high stakes decisions) launched an
appeal against Boeing’s selection. It does not want openly to challenge the new government and risk
disapproval and possible sanction.
The wider significance of the DIB, beyond keeping the nation safe and, in particular, its relevance to
trade, foreign diplomacy and influence in world affairs, was reflected in the Defence & Security
Industrial Strategy (“DSIS”) published by the Johnson government in 2021. This constituted a step
change in the government’s thinking. It set out a series of significant actions regarding both policy and
practice informed by the guiding principle of Industry as a Strategic Capability. Business and
economics guru Michael Porter would approve.
“International trade can allow even small economies to realize economies of scale and enjoy the
benefits of competition and diversity in producers. The theory of comparative advantage, a
fundamental concept in international trade, shows that countries can gain from trade if they
specialize in producing goods for which they have a lower opportunity cost compared to other
countries.”
(Michael E Porter, “The Competitive Advantage of Nations” 1989)
Rishi Sunak endorsed this principle and its influence both at home and overseas in a 2023 DSIS
“Refresh”: “…as threats and volatility increase, we recognise the growing importance of deterrence
and defence to keep the British people safe and our alliances strong.” He also took an important step
in developing a co-ordinated approach to trade, security and diplomacy; “We will take forward work
to maximise the benefits of the merger of diplomacy and development in one department. The
Minister for International Development will have a permanent place on the National Security Council”.

This would also seem to meet approval from the UK military.
“It’s about strategic literacy. It’s about sharper statecraft. It’s about trade and technology. It’s
about the strength and resilience of our industrial base and winning the war for talent. It’s about
the re-imagining of alliances, the need for new security architectures, and for modern institutions
that are configured for the challenges of our time”
(Chief of the Defence Staff Admiral Sir Tony Radakin, Annual Royal United Services Institute
Lecture; December 2023)
If now taken further by One Defence, and if, more important, its resultant policies and actions
connected the appropriate responsibilities and duties across departments (notably Cabinet Office,
Treasury, Export Finance, MoD, FCDO, Business & Trade, Science & Technology, Justice and Home
Office), it could dramatically enhance the UK’s indigenous defence capabilities and, as important, its
ability to project the authority this engenders internationally through trade, diplomacy and security.

79
07/07/2025 Richard Hooke 2025