MAIN HEADLINES FROM THIS ISSUE:

• Countertrade overtakes offset for military and commercial purchases as Indonesia deals with Russia and pressures Africa

  Indonesia will purchase eleven Sukhoi 35 fighter jets from Russia under a financial arrangement that includes a significant amount of countertrade. The agreement is structured to promote additionality…. The government has also embarked on a co-ordinated approach to foreign governments to promote commercial bilateral countertrade agreements.

• “Priority Industry Capabilities were a product of their time” – Australia’s new approach will maximise industry involvement

  Christopher Pyne has said that his government will require international partners and contractors to work more closely with local industry. Suppliers, he said, must look harder across their business groups for innovation and export opportunities for Australian SMEs. “We seek to maximise Australian industry involvement across the acquisition.”

• Pakistan looks for foreign partners to build defence industry at Kamra Aviation City

  Pakistan’s Chief of Air Staff has announced that the country could seek partnerships with Turkish, South African, Brazilian and Ukrainian companies, among others, to build at the newly inaugurated Kamra Aviation City. Air Chief Marshal Sohail Aman declared that there would be a “blanket initiative” to develop next-generation weapon systems.

• Trump “planning to punish China for forcing technology transfers”

  The Trump administration is weighing plans to punish China for forcing U.S. and foreign companies to share their technology in return for access to the vast Chinese market.

• Sri Lanka overrides Indian objections to defence technology from China

  China and Sri Lanka are now in the process of overhauling Chinese-built F7 jets in accordance with an agreement finalised last year. The agreement covers the launch of a technology transfer programme, an uncommon requirement in Sri Lankan defence procurements, and is being implemented despite objections from India.