More and more jobs will be sacrificed to satisfy offset demands by other countries. In addition, studies have concluded that offsets have contributed to the ability of other countries to establish their own industries which compete with companies in the U.S. and that this trend will become even more problematic in the future. Finally, in addition to employment issues, offsets also raise serious concerns about our national security. This statement discusses these offset issues. Offsets Are Significant And Growing .
Offsets can be directly or indirectly related to the goods purchased by foreign countries.
Direct offsets involve transfers of technology or production directly related to the purchased product. For example, the production of part of the airframe of a fighter is transferred to a company in a foreign country in return for that country purchasing the fighter. Indirect offsets involve transfers of technology, production, or other innovative schemes unrelated to the product being purchased. Offsets in the aerospace industry are extensive. The Bureau of Export Administration reports that more than half of all U.S. offsets involve aerospace products.