Main headlines from this issue

Biggest collapse in offset values since 2005

The 16th Annual Report to Congress on the Impact of Offsets in Defence Trade reveals a titanic decline in both the number and value of offset contracts with U.S. contractors during 2010. The fall in direct offset transactions has continued but the number of indirect transactions is......

As the EU hates offsets, the U.S. no longer cares

The most notable aspect of the 16th Annual Report to Congress, says Joel Johnson, the Teal Group’s Executive Director International, is what’s missing: an American politician out to attack the practice……As for the EU: “There is no such thing as an independent defence industrial base.”

South Africa to launch new NIPP programme

South Africa’s Department of Trade and Industry is undertaking a major review of its National Industrial Participation Programme (NIPP). The government wants to amend the scheme to ensure obligations are discharged in the same sector as the contract.

European Court of Justice rules out dual use under Article 346

The Advocate General at the European Union Court of Justice has found that derogation from the public procurement rules based on national defence cannot apply to items which, although they are to be used for a specific military purpose, are no different from similar items used in the civilian sector.

Transparency International finds the industry less than willing to talk

Transparency International (UK) has produced a report reviewing the corruption risk associated with defence offset programmes…. TI calls on industry associations to be more proactive.