THAAD Foreign Military Sales (FMS)
The Terminal High Altitude Area Defense (THAAD) system, developed by Lockheed Martin, has been a key component of U.S. missile defense and is also sold to allied countries. The system is designed to intercept short, medium, and intermediate-range ballistic missiles during their terminal phase of flight. The Foreign Military Sales (FMS) program was part of Security Assistance (SA) authorized by the Arms Export Control Act (AECA) and was a fundamental tool of United States (US) foreign policy.
The FMS process begins when the customer conducts a threat analysis in conjunction with its national security objectives. During this assessment, the customer typically looks at material and non-material solutions to address mission deficiencies. Non-material solutions may involve areas such as military doctrine, force structure, and training philosophy. For potential material solutions to defense requirements, the customer may explore options by seeking information from the USG about specific systems. An important element of this analysis was for the customer to quantify system life cycle costs to determine if the potential capability was a viable cost alternative.
As of December 7, 2011, all requirements identified in the tripartite Memorandum of Understanding (MOU) between the Army, MDA, and Defense Security Cooperation Agency (DSCA) had been satisfied. MDA was hereby officially recognized as the IA for the Foreign Military Sales (FMS) Terminal High Altitude Area Defense (THAAD) program to include the AN/TPY-2 Radar System. MDA was responsible for all Letter of Offer and Acceptance (LOA) development, implementation, execution, and closure for the THAAD FMS program to include the AN/TPY-2 Radar System. The development, implementation, execution, and closure of all FMS LOAs for non-contractor provided training related to the THAAD program, to include training for the AN/TPY-2 Radar System, will be executed by the appropriate military departments. DSCA will revisit the roles and responsibilities related to non-contractor training once the MDA has the capability to conduct such training.
In mid-2008 the recently-elected government in Warsaw announced that Poland would no longer consent to be a site for ten of the U.S. ballistic missile defense system interceptors unless Washington agreed at the same time to provide them with a number of short- and medium-range air defense systems, such as the Raytheon Patriot PAC-3 and Lockheed Martin Terminal High-Altitude Air Defense (THAAD). Polish officials said the interceptor sites make their country a bigger, high-value target and they want their air defenses bolstered accordingly. The rotation of a Patriot battery for training was agreed on by the two countries in the August 2008 Declaration of Strategic Cooperation. The training was designed to provide mutual benefits for improving Polish defense capabilities while also helping develop the U.S. patriot crew members’ proficiency.
South Korea has been one of the most high-profile customers of THAAD. In 2016, the U.S. deployed THAAD to South Korea in response to North Korean missile threats. This move was controversial, as it caused diplomatic friction with China, which opposed the deployment. Despite the political challenges, South Korea's deployment of THAAD remains a cornerstone of its missile defense against North Korea.
The United Arab Emirates (UAE) became the first foreign customer to purchase THAAD. In 2011, the UAE signed a contract worth around $1.135 billion to acquire two THAAD batteries. The sale included radars, interceptors, and launchers. This marked a significant milestone for the export of U.S. missile defense systems to the Middle East.
In 2017, Saudi Arabia signed a $15 billion deal to purchase THAAD. The sale was part of a larger arms package negotiated during then-President Donald Trump’s visit to Saudi Arabia. This purchase was seen as a way for Saudi Arabia to bolster its defense against missile threats from Iran and the wider region.
Japan, which faces missile threats from North Korea and concerns about China's growing military power, considerded THAAD as part of its defense strategy. While Japan has not yet finalized a purchase of THAAD, discussions and assessments regarding its acquisition have been ongoing as part of its multi-layered missile defense system, which already includes Aegis and Patriot systems. But by 2017 Japan was leaning toward choosing the Aegis Ashore missile-defense system over the other advanced system Terminal High Altitude Area Defense (THAAD),
Countries like Taiwan and India have been mentioned in discussions surrounding THAAD, though no formal agreements have been reached. These countries face significant missile threats in their respective regions, and THAAD is considered a possible solution to enhance their defense capabilities.
THAAD sales to foreign countries are often driven by geopolitical tensions, especially in regions where missile threats are significant. The sale of THAAD is also seen as a way for the U.S. to strengthen its alliances and extend its influence through defense cooperation.
THAAD deployments and sales can lead to regional tensions. For example, South Korea's decision to deploy THAAD led to significant economic retaliation from China, as Beijing views the system as a threat to its security due to the radar's range. Foreign sales of THAAD have been concentrated among U.S. allies in regions with significant missile threats, particularly in the Middle East and Asia. The system continues to play a key role in missile defense strategies for these countries.
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