What issues does the Czech Republic face concerning offsets in the context of military purchases

Abstract

The word "offset" in the broad sense represents reciprocal trade advantages that result from economic agreements. However, as a result of increasing competition among suppliers due to the reduced global defense market, declining military budgets, and other aspects, buyers are able to influence the conditions under which major defense programs are obtained. Not only unions, defense industries, trade associations, and public, but also EU is involved. The Czech Republic as a member of these organizations has to follow their rules as well, and their views and policies regarding offsets might be different. The objective of this project is to examine what issues, if any, the Czech Republic faces concerning offsets implementation in international trade. This study will discuss briefly the history of the Czech Republic's participation in offsets, and its current policy, if any, towards using offset practices. The Czech Republic's goals in offset practices, and government support for them, would be another area of research. The Czech Republic is an EU member and therefore is obliged to follow policies implemented by these institutions. Whether there is any connection between the Czech government policy and EU policies will also be examined. Specifically, the project will focus on what should be done in future offsets implementation, and what to be aware of.