Trends and Challenges in Aerospace Offsets (1999) / Chapter Skim
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Panel I: Offsets in Commercial and Military Aerospace: An Overview
Panel I: Offsets in Commercial and Military Aerospace: An Overview
Pages 19-28
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From page 19... ...
Such a requirement may be a coproduction arrangement under a government-to-government agreement, licensed production offshore negotiated between the company and a foreign government, or purchase of components by the company for inclusion in the weapons system. Indirect offsets include the purchase of components, technology transfer, technical assistance, or other forms of assistance provided to the purchaser.
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From page 20... ...
There is a clearer trend, however, in the increase in the proportion of indirect to direct offsets. Only half of these indirect offsets involve aerospace; thus, an increasing number of military offsets affects companies outside the aerospace industry.
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From page 21... ...
This type of analysis requires a complex set of distinctions between the wages and the relative labor content of the nonaerospace industries affected by indirect offsets versus the aerospace industry affected by direct offsets and the export sale. Impact of Technology Transfer Concerning the impact of technology transfer, Dr.
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From page 22... ...
Nonetheless, there remains a legitimate basis for developing a policy response to displacement and employment loss in this industry because of increased internationalization as there is to respond to trade-related displacement in any industry. Any response to offsets and broader trends of aerospace restructuring needs to deal with the trade-distorting policies of other governments, combined with ways of dealing with the adjustment issue domestically.
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From page 23... ...
parts exports are increasing. Dealing with this emerging threat will require concentrated negotiations and discussions with our European aerospace colleagues.
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From page 24... ...
interest in this issue is both from the standpoint of a union that directly represents workers in the industry and from a concern over broader trade policy, especially given the previous internationalization of the auto industry. Although the experience of internationalization in the auto industry is no way identical to that of the aerospace industry, there are some common themes.
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From page 25... ...
The U.S. government is able to negotiate agreements reducing trade barriers; yet the ability of those agreements to actually accomplish anything in the marketplace is not very well demonstrated.
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From page 26... ...
GENERAL DISCUSSION Alan Wm. Wolff; Dewey Ballantine and STEP Board: Ambassador Wolff opened the general discussion by commenting on the lack of information with respect to foreign governments' industrial policy plans.
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From page 27... ...
Dorothy Robyn, White House National Economic Council: Dr. Robyn clarified that she was simply referring to the fact that Boeing and Airbus are now competing directly for market share.
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From page 28... ...
Mowery offered that he has always believed that adjustment assistance should be made available, regardless of the cause of the displacement. Creation of separate programs based on the cause of displacement is poor policy design and needlessly adds administrative costs.
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