Boeing will collaborate with Israeli industries for at least 35 percent of the value of any transaction it signs with the Israeli government. Israel will be buying about $10 billion worth of jet fighters, helicopters and other military gear. The reciprocal procurement means $3.5 billion of the new business will be in Israel.
Under a defense aid deal signed in 2016 by Israeli Prime Minister Benjamin Netanyahu and then U.S. President Barack Obama, the United States agreed to provide Israel with $38 billion in military assistance over 10 years.
However, one component of the deal was to phase out a special arrangement that had allowed Israel to use 26.3 percent of the U.S. aid on its own defense industry instead of on American-made weapons. All the aid will now have to be spent on U.S. equipment by 2026.
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They’re known as “offsets” and is entirely normal with foreign military sales. Countries often want some kind of technology transfer for their big bucks, so companies offer some manufacturing or overhaul or other technical knowledge/capability to snag the deal. 65% is a lot better than 0%…and even then Boeing may have a wholly owned subsidiary in country to do the work and get the pass-through $$ as well.
They’re known as “offsets” and is entirely normal with foreign military sales. Countries often want some kind of technology transfer for their big bucks, so companies offer some manufacturing or overhaul or other technical knowledge/capability to snag the deal. 65% is a lot better than 0%…and even then Boeing may have a wholly owned subsidiary in country to do the work and get the pass-through $$ as well.
They’re known as “offsets” and is entirely normal with foreign military sales. Countries often want some kind of technology transfer for their big bucks, so companies offer some manufacturing or overhaul or other technical knowledge/capability to snag the deal. 65% is a lot better than 0%…and even then Boeing may have a wholly owned subsidiary in country to do the work and get the pass-through $$ as well.