Qatar does not have an official offset policy, but foreign defence companies that must work with Qatar`s Ministry of Defence are encouraged to invest and establish partnerships in research and development and education in Qatar. The Ministry of Industry, Trade and Labour is responsible for offset policy and implementation. The threshold is $100,000. The minimum offset requirement is 35%, the multipliers are either 1 or 2. The main point about Israel and its offset policy is that Israel has long been the largest recipient of international military funding from the United States and receives more than 50% of the total budget of the US FMF. [61] This condition limits the Israeli claim for compensation to the United States[62] The Defense Security Agency Cooperation acts on behalf of the prime contractor with a foreign government and even refuses mere knowledge of offsets, but under the FMS program, the principal contractors can account for all their balancing costs in the final price. [34] The most common types of direct/indirect offsets are: The U.S. government is generally more concerned about the impact of offsets on national security. Because of exposure to technology transfer and product reference, foreign co-production has an impact on U.S. industrial employment and future technological capabilities, hampering the domestic industry`s competitive advantage. The real situation in the EU is described in detail in a study on defence compensation in EU countries, commissioned by the European Defence Agency and published in 2007. [80] In 2006, the volume of EU compensation agreements exceeded EUR 4-5 billion. [81] The distribution of these offsets is illustrated in the diagram: Direct Offsets, Military Indirect Offset, Civil Indirect Offset.
The costs of offset are not even broken down in the FMS offer, and if the customer wants to discuss or simply know the costs of the offset, the customer should speak directly with the contractor and not with DSCA. In other words, the U.S. government cannot handle compensation; U.S. Defense Prime Contractors can and do. DSCA provided in its full manual details and analytical explanations for U.S. defense companies, such as offset to get different costs in their contracts and invoices. [35] Thus, even under FMS, the principal contractors can recover all costs “from all compensation related to these contracts.” Of course, “government agencies do not have the right to compel or compel U.S. companies to enter into an offset agreement.” In fact, during the Cold War, compensation had different functions and often U.S. government agencies were directly involved. With the end of the Cold War, President Bush also ended the responsibility of the American authorities for sensitive practices such as offsets (1990), because they lost the primary political value they had during the Cold War.
[36] No formal compensation policy. The Japan Defense Agency (JDA) was directly dependent on the Prime Minister and was responsible for the procurement of defence equipment, the Office of Equipment and the Office of Finance. However, since 2007, the Japan Defense Agency (JDA) has been transformed into a comprehensive ministry of defence, with a minister in ministerial decisions. Most of Japan`s defence import comes from the United States and is governed by bilateral agreements.