|dc.description.abstract||The report focuses on the development towards a European defence equipment market and the implications for offset
practices. Defence procurement falls within the scope of European Community law and is subject to public procurement
regulations. However, article 296 of the EC treaty allows for exempting production and trade in arms. Following the
EEA agreement corresponding regulations apply to Norway.
It is important to map and analyse the developments at European level. The report examines the green paper on defence
procurement published by the European Commission in 2004, the succeeding consultation and recent relevant
developments. It presents the newly established European Defence Agency (EDA) and the implications, of both the
Commission initiatives and EDA, on offset practices are discussed. A final chapter analyses the potential impact on
Norway and the Norwegian offset practices.
The findings suggest that defence procurements are expected to be addressed further at European level. It is indicated
that the scope of article 296 allowing for exemptions of defence procurement will be limited. The possibility for
using offset practices is limited accordingly. EDA aims at harmonising, and in the end abolishing offset. Norway is not
a member of the EU and thus not part of EDA. Still, the findings show that the work undertaken by EDA is likely to
have implications for Norwegian offset practices.||en_GB