Missile Treaty Change to Lead to Billions in New Sales

President Donald Trump intends to unilaterally reinterpret the 35-nation Missile Technology Control Regime (MTCR) agreement it signed in 1987 by designating drones as aircraft rather than missile systems. This will allow them to sidestep the agreement and sell the best US unmanned aerial vehicle weapons to Middle East nations such as Saudi Arabia and the UAE and Eastern European nations. In May 2025, Saudi Arabia requested 100 MQ-9 drones as part of a $142 billion arms deal. Firms such as General Atomics (private), Kratos (KTOS), Anduril (private), and Anduril (among others) could see their products treated as “Foreign Military Sales” by the State Department, allowing them to be easily sold internationally. More here on Reuters. While this change will add billions to US foreign defense sales in an area it has stiff competition in from other nations–like Turkey, China, and Israel–it will undoubtably add a new element of risk if America’s top offensive weapons are sold to nations outside of NATO and top allies.