ABSTRACT
A comparison of Britain and Germany offers insights into the origins of national offset policies. Both countries are among the larger arms producers and exporters in Europe. They both run a number of large arms procurement programs, including collaborative ones. Some defense companies, like BAE Systems, produce arms in both countries. Additionally, both countries share membership in international organizations, notably the European Union and NATO, that have some bearing on defense industrial policies and are signatories (in 2000) of the six country Framework Agreement on defense industrial restructuring in Europe. Furthermore, on a number of important features of defense production, exports, and procurement, Britain and Germany are similar. For instance, the arms industry is privately owned, and government ownership is minimal and confined to a few research and development facilities. But there are also striking differences, particularly on defense industrial policy, including export policies. Similarly, British and German offset strategies are markedly different in perception if less so in results.
