Srettha wants to see offset policies before deciding on fighter jets

Prime Minister Srettha Thavisin said on Tuesday that he wanted to see the “offset policy” from both the US and Sweden before his government makes a final decision on purchasing a fleet of fighter jets.

He said that though the Royal Thai Air Force (RTAF)’s procurement committee has found Sweden’s Gripen E/F most suited to its needs, a final decision cannot be made until he sees the offset policies from both countries first.

Srettha was speaking to reporters after the weekly Cabinet meeting. He said the lawmakers did not discuss the Royal Thai Navy’s plan to go ahead with the buying of a submarine from China because Defence Minister Sutin Klungsang had taken the day off.

The premier said he also wants to see the offset policy from China before his Cabinet makes a final decision on the submarine deal.

“Yesterday [Monday], I called the US ambassador and asked him to provide an offset policy for the F-16 proposal so I can compare it with the Gripen proposal and make a final decision,” Srettha said.

When a reporter noted that the RTAF appeared to have already decided in favour of Gripen jets, Srettha said: “I don’t think we can conclude the deal yet because we have not received any offset policies. The two jet makers must do their best [to offer us an offset policy] because it is not a small sum. We must use the money wisely.”

The premier said he believes the RTAF understands his government’s needs to consider the offset policy before making a final decision.

An offset policy is used typically when buying military equipment from another country. The idea is that the seller (the country that produces the equipment) compensates the buyer (the country that purchases it) in some way. This compensation can come in different forms but generally involves some kind of economic benefit to the buyer country.

Some of the common goals of an offset policy include:

Technology transfer: The seller may be required to share some of its technological knowledge with the buyer country. This could involve things like training workers, setting up joint ventures, or licensing intellectual property.

Industrial development: The seller might be required to invest in the buyer country's economy, such as by building factories or creating jobs.

Knowledge sharing: The seller might be required to collaborate with the buyer country on research and development projects.