chapter  3
26 Pages

The Defence Offsets Policy in Australia

For the past two decades, compensatory contracting arrangements have been applied by most nations in the procurement of defence materiel. In principle, these arrangements are "designed to 'offset' the cost of procuring expensive weapons on the part of the buyer through the recovery of hard currency, employment creation in the buyer country, support of the buyer's industrial base and, significantly, technology transfer from seller to buyer". 1 This paper is concerned with the Australian Defence Offsets Programs (ADOP). The overall aim of the ADOP has been "to provide access for Australian industry to advanced technology, skills and overseas markets to as to help establish internationally competitive industries within Australia".2