Here's What We Do Better
Connecting with Countertrade offers governments comprehensive solutions to solve economic challenges and transform their economies. Countertrade helps control inflation by targeting a 2% rate, develop infrastructure at zero cost, pay off debts without depleting foreign exchange reserves, and achieve significant economic growth. It enables nations to increase their GDP by up to 25% annually, attract up to $2 trillion in foreign direct investment, enhance export capabilities, and boost export revenues by 500%. Countertrade diversifies trade, accesses hard currency, stimulates domestic production, promotes balanced trade, and facilitates technology transfer. By unlocking investment potential, improving economic capacity, and opening new markets, countertrade drives sustainable development and robust international trade relationships.
- Countertrade Division was established by the President of the United States as an inter-agency group within the U.S. Department of Commerce. Led by the Secretary of Commerce as its chairman, it is tasked with the formulation of Countertrade policies under which it operates throughout the US government.
- Countertrade, specifically through its branch of Offsets, has been the focus of an annual report prepared by the Bureau of Industry and Security (BIS) from the year 1996 to 2023 on its impact in defense trade. To download the reports, click here.
The U.A.E.’s offset program, known as the Tawazun Economic Program (TEP), employs Countertrade to bolster economic development and diversification efforts. This program mandates offset obligations for companies engaging in defense and government procurement contracts over $10 million. This strategic move aims to foster private sector growth, expand domestic industrial capabilities, and further economic diversification through structured countertrade mechanisms.
In Indonesia, countertrade operations are managed by PT PPI (Perusahaan Perdagangan Indonesia), serving as the Implementing Agency / Assignee for the export and import of commodities. This is done in coordination with various entities to streamline countertrade activities. Moreover, the Indonesian Trade Promotion Center (ITPC), under the Ministry of Trade, plays a vital role in bolstering Indonesian exports and fostering trade partnerships, supporting the country’s countertrade practices.
Integral to the Australian government’s approach to international trade and offsets policy, countertrade activities are managed under the guidance of the Australian Trade and Investment Commission (Austrade). Tasked with promoting Australia’s economic growth through international trade and investment, Austrade plays a crucial role in the execution and management of countertrade practices, including the oversight of government-mandated countertrade (G M-C).
The Singapore Trade Development Board has initiated a Countertrade Services Unit aimed at positioning Singapore as a premier hub for countertrade services. This unit is dedicated to bolstering Singapore’s presence in the international trade arena by facilitating countertrade transactions, where goods or services are exchanged directly for other goods or services, bypassing traditional currency-based transactions.
GLOBAL COUNTERTRADE OVERVIEW
Countertrade is employed by 150 countries to facilitate exchanges that bolster domestic industries’ international competitiveness, balance trade, preserve currency reserves, or stimulate economic growth. Given Countertrade’s extensive operations worldwide, many nations have established Countertrade agencies. While the impact, influence, and operations of Countertrade span across 150 countries, detailing each country’s engagement with Countertrade exceeds this page’s space limits.