Counterpurchase refers to a set of parallel cash agreements in which the supplier sells a service or product and orders unrelated products to offset the costs to the buyer. Here are some examples:
Canada is buying McDonnell Douglas F-18 aircraft worth $2.4 billion. In return, the company will help Canada find customers for goods and services worth $2.9 billion.
Yugoslavia requires automakers to buy Yugoslav goods equal in value to components they ship to Yugoslav auto plants. Fiat buys autos from its Yugoslav licensee.
Brazil asked bidders on a $130 million space satellite for pledges to export Brazil's goods. Canada's Spar Aerospace won jointly with Hughes Aircraft and will arrange imports of Brazilian products of equal value into Canada.
Russia is buying construction machinery from Japan's Komatsu and
Mitsubishi. The Japanese are taking Siberian timber. Colombia is asking equipment suppliers to buy its coffee. A Spanish government company did so in return for Colombia's purchase of buses from Spain's ENESA.
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