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Current Trade Deficit:    
A Super-storm in Counterfeit Defense Electronics Products
Alan Tonelson
Monday, November 05, 2012
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# of “high risk”* suppliers of electronics products to Defense Department & other U.S. government customers, 2002:  5,849

# of “high risk” suppliers of electronics products to Defense Department & other U.S. government customers, 2011:  9,539

Increase in # of such “high risk”* suppliers, 2002-2011:  63%

Total # of “high risk”* suppliers of electronics products to Defense Department & other U.S. government customers reported, 2002-2011:  78,217

*Suppliers “reported either for known involvement in high-risk, fraudulent and suspect counterfeit-part transactions, or for conduct identified by the government as grounds to debar, suspend or otherwise exclude from contract participation.”


(Source: “Number of High Risk Suppliers, Including Counterfeiters, Surges by More than 60 Percent from 2002 to 2011,” Press Release, Semiconductor Value Chain, IHS iSuppli, Oct. 29, 2012, http://www.isuppli.com/Semiconductor-Value-Chain/News/Pages/Number-of-High-Risk-Suppliers-Including-Counterfeiters-Surges-by-More-than-60-Percent-from-2002-to-2011.aspx)

Alan Tonelson is a Research Fellow at the U.S. Business & Industry Educational Foundation and the author of The Race to the Bottom: Why a Worldwide Worker Surplus and Uncontrolled Free Trade are Sinking American Living Standards (Westview Press).