Military Offsets Hearing Before the Subcommittee On Commerce Consumer Protect

Cover Military Offsets Hearing Before the Subcommittee On Commerce Consumer Protect
Military Offsets Hearing Before the Subcommittee On Commerce Consumer Protect
Consumer Protection United States Congress House Committee On Energ
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Weapon system and may not be appropriate when the purchasing country is using FMF funding. According to DOD officials, the FMF grant aid program is unique in the world. No other arms supplier has a program that provides a combination of grant aid and allows offsets. In sales financed with FMF funding, especially FMF grant aid, foreign competition is not a factor because these funds are generally intended to purchase U. S. Military goods and services. Instead, U. S. Companies are competing again...st each other for FMF grant-funded purchases.
15 In discussing the possibility of prohibiting FMF recipients from using FMF funds to require offsets, both DOD officials and the U. S. Contractors we contacted voiced concerns about a prohibition on obtaining offsets using FMF loans because the recipients repay these loans with their national funds. We agree that FMF recipient countries intend to repay FMF loans with their national funds. However, some loans have been provided at concessional rates or have been forgiven at a later date.


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