The Australian government offsets program has been in place since 1970, but until recently, with the publication of the report of the Committee of Review on Offsets, it has operated with little public scrutiny and has attracted little academic interest. This is a program aimed at the manufacturing sector in Australia, with a view to increasing Australian firms’ participation in internationally competitive activities. Issues posed as requiring investigation include: the protection aspects of offsets, their efficacy in transferring technologies from overseas suppliers of government funded purchases, the question of economic integration and the countertrade dimension of offsets.