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Military Exports: Offset Demands Continue to Grow

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Report Type Reports and Testimonies
Report Date April 12, 1996
Report No. NSIAD-96-65
Subject
Summary:

This report examines offset requirements associated with military exports. Offsets are the range of industrial and commercial compensation packages offered to foreign governments and companies as inducements to purchase military goods. They include coproduction, technology transfer, training, investment, marketing assistance, and commodity trading. Since the mid-1980s, U.S. firms have entered into offset agreements valued at more than $84 billion. GAO discusses the (1) ways in which the offset goals and strategies of major buying countries have changed, (2) offset requirements of these countries and the kinds of activities being undertaken to satisfy their requirements, and (3) effects of offsets and the steps that the U.S. government has taken on this matter. GAO focuses on 10 buying countries from the Middle East, Asia, and Europe.

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