Rather, the key question is what the U.S. should do given the foreign government`s mandatory compensation requirements and a global marketplace where U.S. companies find it easier to make sales when they offer « voluntary » offsets. In terms of transparency, the entrepreneur and the purchasing government (or company) should have a monitoring system in place to ensure that the company complies with its clearing obligations as set out in the clearing agreement. Follow-up should also be done with clearing partners, with renewal running out during the due diligence partnership. Brazil`s remuneration policy was officially implemented in 1990, but this practice has been applied continuously since 1975. The current compensation policy set out in Resolution 764, 2002, is dictated by the Ministry of Defense, which requests compensation for purchases related to thresholds above $5 million per year. Derived from the MD Directive, the Air Force, Navy and Army have separate specific compensation guidelines. The total demand for compensation is 100% as far as possible. Multipliers are usually between 1 and 4, exceptionally 5.

Brazil`s remuneration policy focuses on the technological development of its defence industry, in particular aerospace, through technology transfer and training. [49] In order to increase transparency within offsetting agreements, the recommendations are as follows: An industry panelist referred to Mr. Barber`s assertion that there was a lack of information. He pointed out that there have been many studies on compensations. .