Offset/Countertrade

Countertrade is a generic term used to refer to various forms of reciprocal trade obligations. The fundamental principle is one of reciprocity.

Offset transactions increasingly represent  the most prevalent structures where capital goods are supplied and paid for by the customer and as a ‘quid pro quo’ the supplier identifies other goods or services which can either be purchased for the supplier’s own requirements or marketed to third parties for the purpose of developing new export sales. Alternatively, the customer may seek inward investment from the capital goods supplier. The countertrade transaction is intended to generate a new income stream for the customer to mitigate the overall economic costs of purchasing the initial capital goods.

Offset is often used by governments or state owned companies when procuring military or other types of equipment.

Stemcor Trade Finance Limited (“Stemcor”) has over 50 years’ combined experience in providing countertrade and specific offset solutions for our clients. Our team of countertrade practitioners enables clients to liquidate their contractual liabilities through the promotion of exports or investments in countries to which they have made sales. Our clients are typically first ranking international equipment manufacturers from the aerospace, defence, telecommunications, power generation and transportation sectors.

An 'all-in' success fee is normally quoted for our countertrade services based on the country concerned. However, more tailor-made consultancy and advisory services can be also provided upon request.

Stemcor is able to provide countertrade services on a global basis due to the knowledge base of its specialist team supported by 80 Stemcor offices in over 40 countries around the world. The offset team regularly accesses Stemcor Group’s long standing relationships with over 60 international banks to identify project opportunities that can be developed into offset opportunities for our clients. Today, Stemcor is actively providing offset and countertrade services to clients across Europe, the Middle East, South & South East Asia, South America and South Africa.

Stemcor is a member of the London Countertrade Roundtable (‘LCR’), of the Global Offset & Countertrade Association (‘GOCA’), of the Deutsches Kompensations Forum (‘DKF’) and of the European Club for Countertrade & Offset (‘ECCO’).