For example, of the three fighter aircraft under production in this country, two are largely dependent on foreign customers. The same is true for the manufacturer of the M-1A1 tank, which must compete with several foreign tank companies. Repeal will not only benefit the large manufacturers of military hardware, but also the smaller munitions manufacturers, whose products are particularly sensitive to price fluctuations. One of Northrop Grumman's main product lines is ground radars. In this market we compete against companies from France, Germany, Italy and Great Britain, and these companies are often government subsidized.
Price is frequently a key factor as to who wins the sale.
The restoration of the full FSC benefit has the potential to improve the defense industrial base and our ability to compete on a more level playing field with foreign firms. The recent conflict in Kosovo demonstrated the importance of interoperability of equipment among NATO allies. Unfortunately, when our foreign competitors win a sale, not only does a U.S. business lose a contract, the U.S. military must then conduct operations with a military using different equipment. It also could result in a decrease in the cost of defense products to the Department of Defense. Section 303 implements the DoD recommendation and calls for the repeal of this outdated tax provision.