''Offsets,'' Standardization, and Trade Liberalization in NATO

by Charles Wolf, Jr.

Download

Download eBook for Free

FormatFile SizeNotes
PDF file 1.5 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.

Purchase

Purchase Print Copy

 FormatList Price Price
Add to Cart Paperback47 pages $23.00 $18.40 20% Web Discount

Efforts to standardize NATO weapon systems encounter resistance because of NATO concerns for domestic defense industries, employment, dependence on U.S. equipment, and balance of payments difficulties that might result from standardized procurement from U.S. suppliers. The result is a demand by NATO members that the United States subcontract part of the production abroad or buy other military items from Europe as an offset. The author suggests such offsets have reverse consequences. He proposes to avoid or reduce the need for offsets by trade liberalization measures to lower barriers to nonmilitary exports to the United States by NATO members. Commodity categories are identified in which NATO has a cost advantage and current exports are impeded by tariff and nontariff barriers. A proposal is outlined that links trade liberalization to standardization of NATO forces. The proposal also includes encouragement for joint bidding by European and U.S. firms in defense contracts, and reduction or elimination of "Buy America" restrictions in U.S. procurement.

This report is part of the RAND Corporation paper series. The paper was a product of the RAND Corporation from 1948 to 2003 that captured speeches, memorials, and derivative research, usually prepared on authors' own time and meant to be the scholarly or scientific contribution of individual authors to their professional fields. Papers were less formal than reports and did not require rigorous peer review.

Permission is given to duplicate this electronic document for personal use only, as long as it is unaltered and complete. Copies may not be duplicated for commercial purposes. Unauthorized posting of RAND PDFs to a non-RAND Web site is prohibited. RAND PDFs are protected under copyright law. For information on reprint and linking permissions, please visit the RAND Permissions page.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.