Main headlines from this issue

Kuwait gives obligors three enigmatic choices

An official document circulating among Kuwaiti ministries details new procedures for the follow-through and execution of offset projects. Civil and defence contractors with obligations are now being summoned to the Kuwait Direct Investment Promotion Authority to discuss how they will discharge commitments made under contracts with the National Offset Company before the NOC was shut down. Any option selected will receive a multiplier of.....

Israel threatens 28 delinquent obligors with blacklisting

Israel’s (Industrial Cooperation Authority has sent warning letters to 28 foreign companies asking them to explain why they have not undertaken all of their reciprocal purchases. The companies have been told they face blacklisting. They are said to collectively owe more than $1bn of purchasing commitments.

OECD publishes paper on offsets, sees bribery as commonplace

A paper published by the Organisation for Economic Co-operation and Development (OECD) says that indirect offsets requiring longer-term commitments are becoming more prevalent in developing countries. Many countries, it says, require joint ventures or the transfer of actual design and production capabilities instead of foreign direct investment in a wholly-owned subsidiary. The paper also takes the customary swipe at offsets for being a potential avenue for corruption.

Canada: Leadership contender on the stump offers offset credits

Canada’s leadership hopeful for the opposition Conservative Party, Erin O’Toole, has offered to give offset credits for water infrastructure projects whose systems need repair through Public Private Partnerships. The projects would be a top priority in his plan to improve the relationship between the government and indigenous communities, he said.

Australia’s Submarine Programme: committee calls for report on securing intellectual property ownership

The independent Australian technology developer Defence Materials Technology Centre and the French shipbuilder DCNS have announced the signing of an Australian industry participation agreement……A joint standing committee report into Australia’s Future Submarine Programme with France has raised concerns about intellectual property ownership. The committee requests that the Department of Defence provides a report to the committee during the 2018 winter sittings of parliament.