Trends and Challenges in Aerospace Offsets (1999) / Chapter Skim
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Panel VII: The Role of the U.S. Government in Setting Offset Policy
Panel VII: The Role of the U.S. Government in Setting Offset Policy
Pages 73-82
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From page 73... ...
Herrnstadt International Association of Machinists and Aerospace Workers Mr. Herrnstadt noted that participants, as was the case during the June 1997 workshop, were grappling with the definition of offsets and the difference between direct offsets, indirect offsets, and voluntary marketing schemes.
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From page 74... ...
No Governmental Coordination In addition to conflicts between private sector entities, there is a lack of coordination between public entities. For example, the FAA developed a proposed regulation concerning fees on the production of "complex parts and subassemblies outside of the United States." One of the purposes stated for the proposed
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From page 75... ...
Reminding the participants that the stakes are growing and that the pieces to the offset puzzle are becoming more difficult to identify, he argued that the United States can no longer sit back and let other nations, and the hundreds of private parties involved in offsets, determine our future. It is time for the U.S.
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From page 76... ...
taxpayers, defense companies, and labor unions would all be crying for strong offsets. The United States does have an offset program in the form of the "Buy America Act," which requires that at least 50 percent and typically a much larger percent of any defense products purchased offshore be manufactured in America.
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From page 77... ...
government action. You cannot counter a nationalistic industrial policy with a laissez faire approach.
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From page 78... ...
However, without more energy behind the push for multilateral rules, there will be little incentive to undertake such negotiations. And in the absence of such multilateral rules, the United States should be willing to adopt the second-best policy of taking defensive unilateral action.
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From page 79... ...
The data provided foreign governments give the specific details of the offset contract and how well the company is doing in meeting those requirements. This is proprietary data that companies are reluctant to have revealed to their competitors.
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From page 80... ...
The defense industry slammed a congressional proposal to require a "good faith estimate" from defense contractors as to how much work would be kept in the United States.
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From page 81... ...
There has been a long and fruitful effort on protecting intellectual property. The trade-related problems such as offsets deserve a similar level of attention not only in aerospace but in other industries as well.
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