National Defense:

Agreements on Inter-NATO Defense Trade

ID-82-30: Published: May 5, 1982. Publicly Released: May 5, 1982.

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GAO reviewed the general Memorandums of Understanding between the Department of Defense (DOD) and 11 allies of the North Atlantic Treaty Organization to determine whether these agreements had provided increased reciprocal opportunities for firms of one country to compete for defense procurements by another country.

GAO was unable to review the agreements because DOD has not established an adequate data system to provide a base for determining the impact of the agreements on defense trade. However, DOD has recognized this need and is seeking approval from the Office of Management and Budget to establish a data collection system. GAO concurred with the DOD assessment as to the need for such data. The collection of these data involves only small incremental costs to the government and a minor work burden for defense contractors.

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