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3rd International Seminar on Offset and Industrial Cooperation

3rd International Seminar on Offset and Industrial Cooperation. 7 th & 8 th May 2007 Jerusalem. Alexander Hubler, Attorney at Law, LL.M. armasuisse Legal & International Affairs. Overview. Armament Policy Offset Policy of Switzerland Industrial Participation.

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3rd International Seminar on Offset and Industrial Cooperation

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  1. 3rd International Seminar on Offset and Industrial Cooperation 7th & 8th May 2007 Jerusalem Alexander Hubler, Attorney at Law, LL.M. armasuisse Legal & International Affairs

  2. Overview • Armament Policy • Offset Policy of Switzerland • Industrial Participation Alexander Hubler

  3. Aspects of Swiss Armament Policy Military Requirement Budget Technology Continuity Armament Policy Industrial Base Competition Co operation WTO / GATT Environment Information Alexander Hubler

  4. Principlesconcerning Armament PolicyPrinciples of the Federal Council regarding the Armament Policy of the DDPS of 29 November 2002 • Economic efficiency • International cooperation • Swiss industrial base Alexander Hubler

  5. Guidelines for Swiss Armament Procurements • Observe cost/benefit considerations in all phases • Focus on off-the-shelf materiel • Minimize Swiss-specific modifications and developments • Seek competitive procurement whenever possible • Mandate Swiss industry participation for foreign defense equipment procurements Alexander Hubler

  6. Expectations • Open or enhance access to export markets for Swiss industry • Swiss products have to be competitive to be successful • The participating industry must make its own sales effort to realize offset transactions • Offset is complementary to and in support of direct participation Alexander Hubler

  7. DIRECT Industrial Participation (Related to the product sold) • Co production • Subcontracting • Final Assembly • Buy-back INDIRECT Industrial Participation (Not related to the product sold) • Not limited to defence • Marketing tool • Competitiveness • Additionality check • Industry effort Industrial Participation -Offset Alexander Hubler

  8. Co production • Switzerland depends on foreign defense materiel • Extended equipment use requires that know-how for maintenance, upgrading and decommissioning be available in-country • In-country expertise reduces dependence on foreign sources • Access to necessary know-how requires industrial participation during the production phase • Defense acquisitions with a large direct participation content enhance the political acceptance of defense expenditures. Alexander Hubler

  9. Agreement Content • Focus of offset effort: Who are beneficiaries? • Amount, duration, milestones etc. • What counts - what not and how much • Work share with SWISSMEM Alexander Hubler

  10. www.armasuisse.ch Alexander Hubler

  11. Thank you for your attention armasuisse Alexander Hubler Legal & International Affairs Kasernenstrasse 19 3003 Bern alexander.hubler@armasuisse.ch Tel +41 31 323 54 32 Fax: +41 31 324 09 98 Alexander Hubler

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