ABSTRACT

For multiple reasons, and for several decades, the United States has entered into a variety of offset agreements with allied nations.1 The reasons include alliance building, promotion of equipment interoperability, market access, cost reduction, and development of extended production lines. Japan, Taiwan, and the Republic of Korea all have figured prominently in these offsets. For an equally varied set of reasons, all three have sought increased independence in defense production. Technology transfers and production offsets have been important elements in domestic strategies to build local defense industries.