offset agreement
Type
term
Definition
One of various industrial and commercial compensation practices required of defense contractors by foreign governments as a condition for the purchase of defense articles/services in either government-to-government (foreign military sales) or direct commercial sales. The responsibility for negotiating offset arrangements resides with the U.S. firm involved. Offset - A benefit or obligation agreed to by a contractor and a foreign government or international organization as an inducement or condition to purchase supplies or services pursuant to a foreign military sale (FMS).
Source