Brazil has changed its offset policy, uniting some aspects of the three different guidelines used by the branches of the armed forces. The threshold has been raised from $5m to $50m for cumulative procurements over a twelve-month period. Brazil has introduced ten potential ways to discharge obligations; countertrade options make up three of them...
Turkey’s defence procurement agency, SSB, has bowed to the inevitable. The SSB now accepts that Law 7161 provides obligors with a way out of their offset commitments. The agency has nonetheless informed CTO that it will reject all attempts by contractors to use the law.
The Australian Department of Defence has released its “Defence Policy for Industrial Participation.” The policy document changes the way thresholds are applied and distinguishes between schedules and plans when contractors submit industrial participation proposals. The new policy introduces a range of thresholds for defence procurements above $A4m:
The Polish state-owned holding company Polska Grupa Zbrojeniowa has outlined the offsets expected in the first phase of the Wisła medium-range air defence procurement program. PGZ said it felt obliged to clarify the situation because of inaccurate reporting by the local media. PGZ also criticized reports attacking the preparation for the offset negotiations and claiming a lack of technological capacity in Polish industry for absorbing offsets.
Leonardo and the Algerian Ministry of National Defence have announced the establishment of a joint venture for the local assembly, sale, and support of Leonardo helicopters. Algeria also recently issued an RfP for military radios that included industrial participation of 30 percent of purchase value.