118 STAT. 2017 PUBLIC LAW 108–375—OCT. 28, 2004 (1) by striking paragraph (1) and inserting the following: ‘‘(1) the amount specified in subsections (c), (d), and (f) of section 32 shall be deemed to be— ‘‘(A) $15,000 in the case of any contract to be awarded and performed, or purchase to be made, inside the United States; and ‘‘(B) $25,000 in the case of any contract to be awarded and performed, or purchase to be made, outside the United States; and’’; and (2) in paragraph (2)(B), by striking ‘‘$500,000’’ and inserting ‘‘$1,000,000’’. Subtitle C—United States Defense Industrial Base Provisions SEC. 831. DEFENSE TRADE RECIPROCITY. (a) POLICY.—It is the policy of Congress that procurement regu lations used in the conduct of trade in defense articles and defense services should be based on the principle of fair trade and reciprocity consistent with United States national security, including the need to ensure comprehensive manufacturing capability in the United States defense industrial base. (b) REQUIREMENT.—The Secretary of Defense shall make every effort to ensure that the policies and practices of the Department of Defense reflect the goal of establishing an equitable trading relationship between the United States and its foreign defense trade partners, including ensuring that United States firms and United States employment in the defense sector are not disadvan taged by unilateral procurement practices by foreign governments, such as the imposition of offset agreements in a manner that undermines the United States defense industrial base. In pursuing this goal, the Secretary shall— (1) develop a comprehensive defense acquisition trade policy that provides the necessary guidance and incentives for the elimination of any adverse effects of offset agreements in defense trade; and (2) review and make necessary modifications to existing acquisition policies and strategies, and review and seek to make necessary modifications to existing memoranda of under standing, cooperative project agreements, or related agreements with foreign defense trade partners, to reflect this goal. (c) REGULATIONS.—The Secretary shall prescribe regulations to implement this section in the Department of Defense supplement to the Federal Acquisition Regulation. (d) DEFINITIONS.—In this section: (1) The term ‘‘foreign defense trade partner’’ means a for eign country with respect to which there is— (A) a memorandum of understanding or related agree ment described in section 2531(a) of title 10, United States Code; or (B) a cooperative project agreement described in section 27 of the Arms Export Control Act (22 U.S.C. 2767). (2) The term ‘‘offset agreement’’ has the meaning provided that term by section 36(e) of the Arms Export Control Act (22 U.S.C. 2776(e)). 10 USC 2531 note.
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