Offset [Last Updated by: admin on 2012-01-01]
A type of countertrade transaction. In an offset contract, which may be required by importers' governments as a condition for approval of major sales agreements, the exporter makes an additional agreement to buy goods and services from the importer's country. In a "direct offset" transaction, an exporter may be required to establish manufacturing facilities in the importing country or to use a specified percentage of the components in the product sold from the importer's country. In an indirect offset, an exporter may be obliged to buy goods or services from the importing country without any link to the product sold. See countertrade.