MAIN HEADLINES FROM THIS ISSUE:

• EC holds its ground in reply to trade associations

  The European Commission has replied to the thirteen European defence trade associations that wrote to protest the EC’s Interpretative Communication on the practice of offsets. The reply is unlikely to make any of them happy……

• Canada: F-35 purchase sparks heated debate on industrial benefits

  Canada’s purchase of the F-35 Joint Strike Fighter has generated a new wave of arguments about the contract’s industrial participation benefits. A Liberal Party motion to open the competition for purchase of the new planes was defeated by a coalition vote of the Bloc Québécois and the Conservatives.

• Pakistan approaches Sri Lanka, Iran and Turkmenistan in barter mission

  Pakistani President Asif Ali Zardari has called for a barter agreement with Sri Lanka to boost trade between the two countries. Pakistan is Sri Lanka’s second largest trading partner in South Asia after India.

• Ukraine and Venezuela look at barter options

  Ukraine and Venezuela are said to be examining a barter exchange of oil-for-production assistance.

• Belarus and Venezuela agree counterpurchase deals

  Belarus, seeking alternative sources of oil to replace Russian imports, will supply Venezuela with milk powder and agricultural machinery in return for crude.