Course Details
Course Summary
Global Trade Offset Programs are agreements between countries and foreign suppliers in which the supplier agrees to reinvest a portion of the contract's value back into the purchasing country, often to enhance its aerospace and defense capabilities, where large government contracts are common. Offsets can be direct, where the supplier undertakes activities directly related to the contracted goods or services, or indirect, involving unrelated sectors. The processes usually include negotiations, compliance with local regulations, performance monitoring, and evaluation of the economic benefits brought to the purchasing country. Effective management and transparent reporting are crucial to ensure the offsets achieve their intended goals and foster long-term partnerships. This course aims to provide participants with a comprehensive understanding of the strategic importance and operational mechanisms of offsets in international trade. Objectives include equipping attendees with knowledge of negotiation strategies, compliance requirements, and best practices for managing and monitoring offset agreements. This course benefits participants by enhancing their ability to maximize economic and industrial benefits for their countries or organizations, fostering effective international partnerships, and ensuring adherence to regulatory standards. Additionally, it offers insights into case studies and real-world applications, enabling participants to apply learned concepts to their professional roles, thereby improving decision-making and strategic planning in global trade contexts.
Course Materials
Who Should Attend
This course is ideal for a diverse audience involved in international trade and defense procurement. Potential attendees include government officials and policymakers responsible for negotiating and managing offset agreements, procurement and contract managers from defense and aerospace industries, and representatives from international corporations seeking to understand and leverage offset opportunities. Additionally, legal and compliance professionals who need to navigate the regulatory landscape, economic development officers focused on maximizing national benefits, and consultants or advisors providing strategic guidance in global trade would greatly benefit. The course is also valuable for academics and researchers specializing in international trade, defense economics, or industrial policy.
What You Will Learn
You will gain a comprehensive understanding of the strategic and economic importance of offset agreements in international trade. And, you will learn the fundamentals of negotiating and structuring offset agreements, including direct and indirect offsets, and the compliance requirements specific to different countries. Best practices for managing and monitoring these agreements to ensure they meet economic and industrial goalsare included. Case studies to understand real-world applications and outcomes, are a focus on the lectures. You will also gain insights into leveraging offsets for national and organizational benefits. Finally, the course provides tools and techniques for effective performance evaluation and reporting, enhancing participants' ability to foster successful international partnerships and drive economic development.
Course Outline
1. Introduction and summary of course content
Course outline and objectives
Developing a team of individuals seeking a common goal
Overview of the global trade program
Opportunities to engage with the different businesses
Prerequisites for this field
2. Legal compliance
A culture of compliance and understanding regulations
Implementation of policies and procedures to ensure authorizations in a timely manner
Writing a Company Offset Manual for decision makers and executive leaders
3. Foreign Military Sales (FMS) versus Direct Commercial Sales (DCS)
Strategic planning for multiple programs and projects
Ensuring adherence to scope, schedules and budgets
Estimating an offset schedule and cost
Identifying and resolving offset program problems
Building strong and extensive working relationships with subcontractors
Organizational structure of a Global Trade Management team
Working with U.S. Regulations: FCPA, EAR and ITAR
Strategic analysis and tactical plan development
Risk Management
4. Case studies related to becoming a GT team leader
A typical Global Trade Offset team-leading situation
Examples of program and project management skills and experience:
Understanding and working with the US Department of State Directorate of Defense Trade Control (DDTC) and the Bureau of Industry and Security (BIS) authorizations
Adhering to scope, schedules and budgets
Earned Value Management System (EVMS)
Example of presenting reports to senior executive leaders
Case study of problem detection and resolution
Examples involving U.S. Regulations: FCPA, EAR and ITAR
Instructor
Dr. Henry Tong is a Global Trade and Offset Subject Matter Expert with over 25 years of experience in connection with military, civil and commercial services and systems. His global trade experience includes Foreign Military Sales (FMS) and Direct Commercial Sales (DCS). International activities include Canada, Brazil, Israel, Kingdom of Saudi Arabia, UAE, Egypt, India, Pakistan, China, Malaysia, Singapore, South Korea, Taiwan, Russia, and related NATO entities. He has discharged a significant level of offset obligations related to global trade in the areas of legal and contract negotiations, finance structuring, engineering, and program management. Significant achievements include the acquisition of multiple aerospace facilities in Europe, Asia, and the Middle East. Dr. Tong has worked with Airbus, Boeing, Lockheed Martin, United Technologies, Raytheon, GE, MTU, Rolls-Royce and multipleministries of defense.