Weapons Procurement: Domestic Production versus Imports

The contrast in Britain between the import share for defence equipment and for other traded manufactured goods is very striking. Overall 31 per cent of domestic demand for manufactures was met from imports in 1983, up from only 16 per cent in 1970, ¹ and in some sectors of the British market, indigenous production has ceased entirely, leaving UK demand to be met completely by imports. In defence only 5 per cent of equipment expenditure goes to imports; 15 per cent goes to the British share of collaborative projects; and 80 per cent goes to national contracts placed with domestic industry. ² These shares might be expected to change in the future as the Tornado programme runs down and the projected Trident programme comes on stream; however, the Ministry of Defence (MOD) does not expect the proportion of the equipment budget which is spent in the UK to change dramatically. ³