Foreign Offset Demands in Defense and Civil Aerospace Transactions

Publication

Foreign Offset Demands in Defense and Civil Aerospace Transactions

Abstract

The Committee on Government Reform and Oversight reviewed offset practices in defense and civil aerospace trade. The report investigated US policy offset statements, the adequacy of information on offsets collected by the Department of Commerce, opportunities to address offsets in international agreements, and opportunities to address negative impacts caused by offsets. The committee found that current US offset policy is weak and recommended enacting legislation to establish a high-level commission to review and create new offset policy. Moreover, they found that information collected by the Bureau of Expert Administration is too generalized, so they recommended enacting legislation to strengthen reporting requirements for aerospace contractors. Lastly, the committee found that international agreements were insufficient in preventing the use of offsets, so they recommended legislation to encourage the negotiation of international agreements that prevent the use of offsets.