Infringement procedures against Denmark and the Netherlands remain unresolved. The EC alleges that the two countries imposed unjustified offset requirements on procurements in breach of the defence directive. A senior Dutch official has blamed the intransigence of the European Commission’s director-general for the Internal Market. “The last time we spoke... she was very much still on the attack...”
Malaysia’s prime minister, Dr Mahathir Mohamad, said China is likely to buy more palm oil from his country in exchange for his government’s decision to resume work on a Beijing-backed rail project. Defence minister Mohamad Sabu said discussions concerning countertrade are extending to Pakistan and Russia for defence equipment. The European Parliament is in the process of banning the use of palm oil in biofuels.
Czech firearms manufacturer Česká Zbrojovka Group (ČZG) has announced that it will establish a factory in Little Rock, Arkansas. The plant, known as CZ-USA, will compete for U.S. military contracts. The Buy American Act requirements would otherwise prevent CZG from supplying the market.
Russian Helicopters is opening helicopter service centres in Brazil, Peru, Mexico, and India under offset deals related to the sale of helicopters. India has also approved an additional $1.93bn procurement of 464 Russian-made T-90MS main battle tanks. The tanks will be assembled locally.
Israel’s finance and transport ministries have released a joint “position paper” outlining their opposition to the application of industrial cooperation quotas in public transportation procurements. They cite the increased costs involved. The Ministry of Economy does not agree that the policy should have exemptions.