CONFERENCE: THE EFFECT OF OFFSETS ON THE U.S. SUBCONTRACTOR BASE The U.S. Department of Commerce, Bureau of Export Administration (BXA) will sponsor a one-day conference, "The Effect of Offsets on the U.S. Subcontractor Base: An Industry Government Forum," on April 1, 1998, at the University of Texas-Austin's Frank Erwin Center, Austin, TX. The event is being cosponsored by the National Defense Industrial Association and the State of Texas Department of Economic Development. The Forum will provide an opportunity for open and frank discussion of defense and commercial offsets and their impact on small- and medium-sized businesses. Offsets are industrial compensation practices mandated by foreign governments when purchasing products from U.S. companies. In order to participate in international contracts, U.S. firms may be required to engage in countertrade or transfer component production or technologies offshore to the potential detriment of the U.S. industrial base. BXA and other federal agencies are working to create a strategy for the initiation of international consultations to lessen the impact of offsets (employment, trade, manufacturing) on the United States. As part of this policy process, we are seeking to develop a domestic consensus on the issue. Individual sessions have been held with defense prime contractors and labor union representatives to obtain their perspectives. It is critical that you attend so that we receive your input to support this important process! Information on the specific impacts of offsets is difficult to gather at the subcontractor level; therefore, participants will be asked to complete a short survey as part of the session, describing the impact of offsets on their business. A number of firms will be selected to participate in a future informal advisory group, with prime contractor and labor representatives, to support the proposed international consultations. For additional information about the conference, please contact Brad Botwin [202-482-4060; bbotwin@bxa.doc.gov] or Margaret Cahill [202-482-8226; mcahill@bxa.doc.gov] at the U.S. Department of Commerce. To register, contact the National Defense Industrial Association at (703) 522-1820 or by fax at (703) 522-1885. E-MAIL: Click here to e-mail for more information, mcahill@bxa.doc.gov.

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