Military Exports. Offset Demands Continue to Grow.
Abstract
This report reviews the nature and extent of offset requirements associated with military exports. It also defines offsets as the entire range of industrial and commercial compensation practices provided to foreign governments and firms as inducements or conditions for the purchase of military goods and services. They include coproduction, technology transfer, training, investment, marketing assistance, and commodity trading. Since the mid-1980s, government figures show that U.S. companies have entered into offset agreements valued at over $84 billion. The objectives were to (1) determine how the offset goals and strategies of major buying countries have changed; (2) identify the offset requirements of these countries and the types of activities being undertaken to satisfy their requirements; and (3) identify the impacts of offsets and what actions, if any, the U.S. government has taken on this issue. Our review focused on 10 buying countries from the Middle East, Asia, and Europe. We obtained data from nine major defense contractors on their experiences in these countries over the past 10 years.
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 12, 1996
- Accession Number
- ADA309999
Entities
Organizations
- United States Government Accountability Office