Effects of export controls and licenses on the global defense industry

The need for inspections for the transfer process of defense products and technologies, which began with the Cold War, and the physical borders that have disappeared with globalization threaten the effective implementation of these controls in today's world. As a consequence of the competitive market and the diversity of supply sources, Export Controls had devastating effects in the past, while today these effects have relatively decreased. The practice of controlling the removal of Conventional weapons which is conducive to the emergence of export controls, high technology, information, documents, and academic research projects outside the borders of the country, and punishing possible violations through imprisonment and fines is used as a foreign policy tool by developed countries today. In particular, within the scope of the export control strategies carried out by the United States through the International Traffic of Arms (ITAR), Export Administration Regulations (EAR), and the Office of Supervision of Outsourced Assets (OFAC) units, countries such as Russia, China, and India are prevented from supplying US origin products used in the defense industry to maintain its dominance in this sector and to gain this advantage over the sanctioned countries are among the methods followed by USA, as in the case of the CAATSA sanctions against Turkey in the past. In this study, the concept of export controls is explained in detail, country-based control objectives, tools, and jurisdictions are defined, and then, the importance of export controls in this industry is mentioned by processing the expenditures, size, and market characteristics of the defense industry. Within the scope of this research thesis, the effects of the US embargo and sanctions through export controls on financial, commercial, and competitive areas, especially the global trade system, defense industry investments, and supply resources of many countries, especially Turkey, are discussed with historical examples.