Non-Subscriber Extract
EDA agrees defence offsets code
By Keri Wagstaff-Smith
28 October 2008
The Steering Board of the European Defence Agency (EDA) has agreed a voluntary code of conduct on offsets in order to move towards "more transparent use of offsets", while "reducing reliance" on them.
The agency stated on 24 October that the key principles underlying the code "acknowledge that in a perfectly functioning market offset would not exist", but also that today's defence market "is not perfect and strongly influenced by political considerations". In addition, the EDA described offsets as a "global phenomenon that is unlikely to abate in the foreseeable future".
The code of conduct, which is not legally binding, sets out guidelines in order to encourage progression "towards closer convergence of offset policies and practices, and to gradually reduce the use of offsets", said the EDA.
In order to increase transparency in the use of offsets, under the code of conduct each subscribing member state will "regularly review the information it has provided to ensure it remains current" and provide the EDA with "information on all offset commitments" with effect from implementation on 1 July 2009.