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This formula reach more that 15% of world trade and is a quite advantageous one for dealing in countries with hard currency shortages (Latin America, East Europe, Africa and some parts of Asia ). Even if you operate now in some of this countries, you could increase substantially your sales there because of a growing purchasing capacity.

This formula is also valid for services exports, not only products, like tourism, industry, technology, etc and equity investments.

Inside the Countertrade concept , there are several types of operations that we wish to clarify:

a) Barter: A one-time transaction only, bound under a single Contract that specifies the exchange of selected goods or services for another of equivalent value.

b) Counterpurschase: An agreement by the initial exporter to buy (or find a buyer for) a specific value of goods (often stated as a percentage of the value of the original export) from the original importer during a specified time period.

c) Buyback (Compensation) An Agreement by the original exporter to accept as full or partial repayment products derived from the original exported product.

Offset is a different term of growing importance, designed to deal with compensatory trades for military equipment in with your counterpart is a foreign Government of Public Agency.

Vector acts is able to act as an advisor to the Offset Obligor to search for and deliver “Indirect Offset” investment packages or increased exports of specific products.

These investments or new exports will then be counted as “Compensation” or “Offset Credits” for the main Contract, thus delivering benefits in the host country that act as a financial “Balance” of the initial sale

A fee is payable to the seeker and arranger of these credits (Vector) by the Obligor for the incremental investment or exports, when the Offset Credits are accepted and approved by the host country.

Indirect Offset is designed to create new investment (unrelated to the contract) in the importer’s economy that fulfils a number of stringent demands relating to:

· the creation of sustainable economic growth

· the introduction of new foreign investment

· the transfer of technology

· the creation of new jobs

· the promotion of exports of the importing country’s ‘value added’ goods and services

· the generation of foreign exchange

· the promotion of Research & Development collaboration

Many countries have promulgated offset programmers making it compulsory for suppliers to arrange such offset as part of their obligations under contracts and great emphasis is now placed upon fulfilling indirect offsets, a role that Vector is highly capable of performing.

The military characteristics, typical of these deals, is however opening to new areas, because we are now seen Offsets related to civil aircraft, ships, electrical plants, telecommunications equipment and industrial plants) in which the initial buyer is always public body. This happens even if the WTO (World Trade Organisation) rule against some of its forms, because plays against the free market and open competition.

Vector, direct and indirectly through our worldwide network of partners, practices and banks, offers you its assistance in such deals with the search of importers of products in Spain or elsewhere, that will finance the original deal made by you or your customer via countertrade or Offset.

We also can assist in the implementation of the whole deal.