Countertrade

In recent years, an upsurge has occurred in requirements that exporters take merchandise in lieu of money or that they promise to buy merchandise or services in the country where the sales are made. More specifically, it is defined as “a practice whereby a supplier commits contractually—as a condition of sale—to reciprocate and undertake certain specified commercial initiatives that compensate and benefit the buyer” Therefore, this is also called reciprocal requirements and these barter transactions, referred to as countertrade or offsets.