Two Coproduction Programs: F-5E Aircraft in Taiwan and M-16 Rifle in the Philippines (Unclassified Digest)

Coproduction is a program wherein the United States enables an eligible country or international organization to acquire the expertise to manufacture, assemble, repair, and maintain a specific weapon, support system, or individual military item. It might be limited to the assembly of a few end items, with small input of local country parts, or it might be extended to a major manufacturing effort requiring the buildup of capital industries. The long-run economic impact of coproduction is that it establishes or expands a production base and increases management and technical skills that will enable the buying country to become less dependent on foreign sellers.