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The world of this military niche of the offset trade is demanding and less harmless than is generally believed. In 2000, Daniel Pearl wrote an article about the world of offsets: “Could the sale of American weapons in the Persian Gulf help an oil company unload gas stations in Europe? Yes, in the new logic of international arms trafficking. [13] Pearl describes the newly discovered world of indirect offsets: The main difference between a generic offset and against trade, the two common practices in international defence trade, is the participation of money. In counter-negotiation, goods are paid for by barter or other non-exchange mechanisms, while in other generic offsets, money is the main means of exchange. No formal directive on offset. 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. The majority of defence offers are made through the representation of Japanese commercial enterprises, although direct offers are theoretically possible. There is an unspoken policy for Japan`s largest companies, which is understood as a “Japanese” product policy. Two points: Japan, Germany and Italy, despite obvious cultural differences, have similar political attitudes with regard to the “balance” of foreign arms purchases.

But Japan has limited itself to arms exports in the name of political principles, then official laws, and since the 1970s, the Japanese defence industry has been limited to the Japanese domestic market. The Kyoto Protocol was put in place at the three-day Conference on The Parties (COP 3) held in Kyoto, Japan on 11 December 1997. The Kyoto Protocol is an agreement within the framework of the United Nations Framework Convention on Climate Change (UNFCCC) and the aim is to “stabilize greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic disruptions to the climate system.” Basically, you are reducing the greenhouse gas emissions that cause global warming. A U.S.-based organization that deals with offsets is that in the arms trade, defense companies are acutely aware that offsets are powerful marketing tools to motivate purchasing by showing and offering additional benefits to the buying country, in addition to investing in military equipment. [9] The position of the U.S. defence industry appears to be more practical and somewhat inconsistent with the U.S. government`s economic or political assessment of defence compensation. In general, offsets can be considered a widespread sales technique.

As such, they are not limited to the sale of arms, they are part of the trade itself, such as discounts, price-pack agreements or loyalty bonus programs. Understanding “defence compensations,” which are part of a sales technique, helps to limit the justified but excessive emphasis on their mandatory nature. Germany`s official position is that the clearing rules in defence trade are economically counterproductive. However, Germany has an “industrial balances” policy based on 100% of the value of orders. The Federal Ministry of Defence and Public Procurement (BWB) and the Bundesamt for Wehrtechnik und Beschaffung (BWB, i.e. an acquisition agency) [52] are responsible for the acquisition and cooperation. [53] The agency has a branch for the United States and Canada in Reston, Virginia. It should be noted that Germany, although it is the exporter of third world arms, does not have large “defence groups”, i.e. large companies whose main activity is the production of arms, but civilian enterprises that produce weapons in addition to their main activities.

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