Page 86 - Five Forces of Americanisation Richard Hooke 04072025 final post SDR1

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

Issues for the UK Government

In the absence of any concerted intervention from government to adjust or divert the forces of
“Americanisation“, the evidence suggests that this will continue to impair the UK’s ability both to act
unilaterally when necessary to protect the nation and also to influence world affairs through forceful
diplomacy. It will certainly damage its potential to create jobs and technology and to “ensure that (it)
1
does not fail to secure its rightful share of this valuable commercial market" . At a time of increased
spending on defence worldwide, the UK should seek to maximise the unique strength of its market
position astride the Atlantic. This is, after all, consistent with a new US defence policy that envisages
an independent European security framework whilst still enabling some level of control and economic
benefit to remain with the USA.
One senses that the new US administration is still considering how best to apply an America First
doctrine in practice. The transatlantic UK defence industry, operating between the EU and the United
States, could provide a necessary “bridge”.
In doing so, the connected nature of defence, trade and diplomacy has become clear. This connection
has been reinforced by the use of Coercive Dealmaking, now seemingly in concert with military force,
as a form of power projection. This suggests that the UK government must act with consistency and
with the right professional or functional specialist support across departments. It seems unlikely,
culture change or not, that the MoD will be able to deliver One Defence alone.
For the UK government, One Defence suggests that three main areas of policy stand out :

1. Controlling Intellectual Property (“IP”)
As Ukraine’s fighters have found, technology is a major factor in winning a war. Much can be
achieved using the stimulus that war brings to a nation’s ability to innovate, to extemporise and to
optimise the use of even well-used weapons systems. Ukrainian warfighters, along with, for many
years, their counterparts in South Korea and Israel (and, indeed, in the US and UK), know that
warfighting fuels ingenuity. Even in supply, as the performance of UK procurement’s response to
Urgent Operational Requirements (“UOR”). The control and use of technology is, however, a major
advantage. This is why the USA is so disciplined in its acquisition and control of defence and security
technologies. While it encourages Europe to stand alone in providing for its self-defence, the US
retains control of much of the technology required fully to achieve this.
For the UK, its status as a European country operating independently of the EU may offer a
distinctive opportunity to project its power with greater freedom.
i. Eliminating the cost and inefficiencies of US International Traffic in Arms Regulations (“ITAR”).

The sheer volume of commercial relationships between UK and US defence contractors
highlights the significance of this impediment to transatlantic defence business: in frustrating
a company’s attempts to integrate defence capabilities across the Atlantic, it inflates margins,
stifles innovation and stunts growth.
A UK ITAR “waiver” has long been discussed between successive US and UK governments but
without conclusion. It has to date focused on the countries’ ability to operate jointly as an
effective coalition force and the conflict in Ukraine had suggested that this remains an
important factor. However, it is now also an important economic issue, especially when a shift
in European procurement policy to limit or curtail buying US equipment has been signalled.
ITAR will then place US defence company revenues at risk at a time when the UK, as well as
Europe, is significantly increasing its defence expenditure. It will also, especially following the
manner of Cobham’s sale and break-up, seem likely to frustrate any future M&A activity
between the US and UK companies.

86
07/07/2025 Richard Hooke 2025