As you Wish

Offtake Agreement Magyarul

The Ministry of Economy – Office of the Commissioner for Military Production (CMP) is responsible for the policy of lag and implementation (according to a memorandum of understanding with the Ministry of Defence). The compensation threshold is 5 million euros. 100% offset minimum. Multipliers range from 1 to 5. The focus is on supporting innovation and marketing and is led by the Ministry of Economy. Guidelines are available for a commercial benefits and compensation programme in the Netherlands. Offsets are of a different duration. They can be planned for 1 or 2 years, but 8-10 year plans are very common; An exceptional lag is the Al Yamamah programme, a BAE-UK offset in Saudi Arabia, in force since 1987. Clients (sovereign countries) have mechanisms in place to monitor their implementations and certify milestones in their offset programmes. An offset supervisory authority certifies the evolution of offset financial statements in percentage terms and issues offset certificates.

[22] These certificates may be issued to principal contractors who fulfil their compensation contract, but also to enforcement executives who have awarded the employment of principal contractors and who, as such, are registered abroad. If there are multipliers, these certificates spend the completion percentage in “credit value” (“value” X-multiplier). Offset contractors contract offset certificates through contracts or sub-contracts with the main contractor. More recently, given the importance and growth of offset practices around the world, offset measures can “sell” their certificates to other major contractors than their original contractors, as long as they have national offset commissions. In this profitable niche of the defence industry, manufactured by offset specialists, lawyers and companies – there is also a “currency” and a “trade” of offset certificates. No official policy. The Ministry of Defence is competent, but compensation goes through UKTI, UK Trade and Investment, under the direction of the Minister of State for Trade, Investment and Business. In 2007, the Prime Minister announced an amendment that transfers responsibility for defence trade from the Defence Export Services Organisation (DESO) to UK Trade and Investment (UKTI). Since April 2008, UKTI DSO (Defence – Security Organization) has been responsible for supporting defence and security exports. The general threshold is 10 million pounds, but it has been set at 50 million gbp by bilateral agreements with Germany and France.

The offset is usually about 100%, no multipliers. This offset story in the United States has highlighted the impact of confidential agreements by defence firms on U.S. non-military activities, in some cases with devastating effects. The discovery of Feingold is also revealing for the EU common market, where interference and negative effects on EU businesses are allowed by an unjustified national attitude towards confidentiality or secrecy in indirect, non-military, balanced cases. Article 346 of the Lisbon Treaty, written more than 50 years ago, is there to wisely avoid the disruptive effects caused by unjustified military secrets in civil compensation in the European common market. In the EU defence market, which is worth around $250 billion, with 27 sovereign public authorities that can claim state secrets – from Germany to Cyprus and Luxembourg – there is a potential for non-military indirect compensation of $60 billion, more than 1,000 times the distortion problem caused by Northrop (and the Finnish Ministry of Defence) to Beloit.