Croatian F-16 Deal Cancellation Pulled Down 2018 Israeli Defence Exports

Cancellation of a $500 million deal to sell F-16 jets to Croatia led to a fall in Israeli defence exports from $9.2 billion in 2017 to $7.5 billion in 2018.

Israel was forced to cancel the F-16s deal with Croatia after all contract negotiations had been completed because of pressure from the United States.

The country wanted to get the used jets upgraded by Israel Aerospace Industries (IAI) and Elbit Systems before selling them off to Croatia. The US was against the deal since the jets were manufactured in their country and Israel failed to request permission to sell them to Croatia.

The $2.5 billion sale of Barak 8 missiles to India in 2017 pushed the defence export sales to a record $9 billion in that year, according to a report by Globes.

Figures from the Ministry of Defense International Defense Cooperation Directorate (SIBAT) suggest that 25 percent of the $7.5 billion of the defense products exported last year were missile systems and defense systems against missiles. Unmanned aerial vehicles (UAVs) accounted for 15% of defense exports, radar and electronic warfare systems 14%, upgrades and avionics 14%, and weapons stations 12%. Other exports were in optronic systems, satellite and space systems, and cyber products.

46% of Israeli defense exports were to the Asian Pacific region, 26% to Europe, 20% to North America, 6% to Latin America, and 2% to Africa.