One of the more remarkable stories in the defence industry has been the success of BAE Systems in breaking into the American market.

The company’s business in the United States generates an annual $11 billion (£5.5 billion), representing 43 per cent of BAE’s sales; and 36,000 people are working for BAE in 36 states across America.

It is an achievement that has been born of necessity. With the defence market in Britain and Europe suffering, there was no alternative but to go for the contracts-rich American market — and to diversify. It is a little-known fact that BAE supplies diesel-electric engines for municipal buses in New York, Toronto and other key cities in the US and Canada.

With such an investment in the North American continent, a lot is at stake. If any form of American judicial process investigates the reasons behind the decision in Britain to end the Serious Fraud Office inquiry into bribery allegations against BAE, it will complicate the relationship between the company and its US partners.

BAE is engaged in some of the biggest defence contracts in America. It is working with Lockheed Martin to develop the Joint Strike Fighter, the combat aircraft that will replace the British Harrier, to be carried by the Royal Navy’s two large aircraft carriers, currently under design.

BAE is also providing the electronic warfare systems for America’s new F22 Raptor stealth fighter and is involved in a number of new US armoured vehicle projects. It builds the combat-proven US Army Bradley armoured fighting vehicle and also carries out ship repairs at the US Naval base at Norfolk, Virginia. In a comparatively short period, BAE has become the fourth-largest defence company in America, after making the initial big breakthrough in 1999, when it acquired Marconi.

BAE executives are not aware of any evidence that their American counterparts are beginning to think twice about doing business with them — there is too much at stake — but the consequences of the scrapped SFO investigation into corruption allegations arising from BAE’s sale of Eurofighter/Typhoons to Saudi Arabia appear to be running on and on.

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