Federal Policy Armament Procurements Abroad An evaluation of compensation transactions

Key facts

When the Swiss Army procures armaments abroad, the foreign manufacturer is generally required to compensate 100% of the contracted amount through direct and indirect participation of the Swiss industry (industry participation, compensation transactions). Direct participation means that Swiss companies participate directly in the production of the armament to be procured. In the case of indirect participation, also called “offset”, the foreign manufacturer must place orders from Swiss industry arising from its own sphere of influence or arrange access to such orders for Swiss industry.