"The major political transitions wrought by the end of the Cold War continued in 1991, resulting in a significant impact on the Third World arms marketplace. The disintegration of the Soviet Union contributed to a sharp fall in Soviet arms agreements, while the United States remained the leader in arms sales to the Third World. The U.N. embargo against Iraq dropped Baghdad from being one of the largest Third World arms purchasers, leading to intense competition among former suppliers for new arms deals elsewhere. Reductions in domestic defense spending in many nations became a matter of acute concern to their weapons exporting industries. Further, in the aftermath of the Persian Gulf war, a number of initiatives were launched to control destabilizing conventional arms transfers, especially to the Near East region. The value of all arms transfer agreements with the Third World in 1991 was $24.7 billion. This was by far the lowest yearly total, calculated in either nominal or real terms, for any of the years during the 1984-1991 period. The general decline in the value of new arms transfer agreements with the Third World seen in recent years was dramatically reversed in 1990 as the result of major new arms agreements related to the Gulf War. However, in 1991, the pattern of overall decline in the value of arms transfer agreements with the Third World resumed in an equally dramatic fashion."
CRS Report for Congress, 92-577