Switzerland’s National Council has lowered the offset quota for its Air2030 fighter jet procurement from 100 percent to 60 percent. The final quota may be somewhere in between. The National Council rejected minority proposals for quotas of 20 percent, 50 percent, or no offsets at all. The latest decision also contests the former allocation for 40 percent of offsets in commercial projects which would have satisfied the regional requirements.
South Korea’s approach to its offset policy changes frequently, remains in flux, and tends to confuse. The country’s Defence Acquisition Program Administration (DAPA) now focuses on job creation and defence industry growth—industrial cooperation, not offsets...
Malaysia’s Technology Depository Agency, the management authority for Industrial Collaboration Programs, is moving away from asking for conventional offsets towards an industrial cooperation policy demanding sustainable business. Also: “Countertrade is more or less like a safety net for us, so we use it when required”...
The Australian Industry & Defence Network, a defence industry trade association, has called for an urgent review of the Australian Industry Capability (AIC) program. The association is concerned about a lack of local workshare. The AIDN also called for the introduction of enforceable commitments with penalties.
Captain Vishal Kanwar, Director Aerospace and Defence at PwC India, predicted that the new Defence Production Policy (DPP) due to be published in 2020 will permit contractors to discharge offsets through investment in specified projects. The projects will be divided into A, B, and C categories. Each category will qualify for different multipliers.