Main headlines from this issue

Switzerland: “Tax returns outweigh offset costs”

Dr Thomas Friedli, a professor of Production Management at the University of St. Gallen, has delivered some good news. A study he had conducted found that in Switzerland the tax returns generated by increased economic activity balance out the offset costs. Offsets in the country, he argued, can yield a measurable profit.

ECCO submits model offset law for peer review

The European Club for Countertrade and Offset has completed a “concluding version” of its Model Offset Law and submitted it for peer review by United Nations Commission on International Trade Law (UNCITRAL). The amended document is similar to previous versions but the final four articles (Articles 31-34) have been removed...

Lawyer warns contractors to beware answering Transparency International questionnaire

Transparency International has released the final version of its questionnaire on which the Defence Companies Anti-Corruption Index 2019 will be based. The organisation is sending the questionnaire to 139 leading defence companies in 39 countries. The document contains four offset-related questions. A lawyer warns that in addition to potential competitive harm, making this information public could result in potential legal, contractual or commercial exposure.

Poland: Leonardo signs pre-offset agreement that Airbus declined

Leonardo’s UK subsidiary has entered a $100m offset agreement with the Polish Ministry of National Defence in advance of the anticipated sale of four AW101 naval helicopters. Airbus Helicopters withdrew from the tender to supply helicopters last December, citing unfavourable offset requirements.

Chinese decree changes technology transfer rules

China has passed a decree, No.709, which updates 49 pieces of legislation and includes notable changes to the way technology transfer is conducted within the country. The legislative changes are meant to show China’s willingness to address U.S. concerns regarding forced technology transfers.