¦ noun international trade by exchange of goods rather than by currency purchase.

Countertrade is an umbrella term for several sorts of trade in which the seller is required to accept goods, serivces, or other instruments or trade, in partial or whole payment for its products. Forms include barter, buy-back or compensation, offset requirements, swap, switch, or triangular trade, evidence or bilateral clearing accounts. Some include offsets as a form of countertrade; others make a distinction based on the view that countertrade is a reciprocal exchange of goods and services used to alleviate foreign exchange shortages of importers and that offsets are used as a means for advancing industrial development objectives and may include equity investments. In counterpurchase (one of the most common forms of countertrade), exporters agree to purchase a quantity of goods from a country in exchange for that country's purchase of the exporter's product. The goods being sold by each party are typically unrelated but may be equivalent in value. In a compensation or buy-back deal, exporters of heavy equipment, technology, or even entire facilities agree to purchase a certain percentage of the output of the facility. Barter is a simple swap of one good for another. Switch trading is a complicated form of barter, involving a chain of buyers and sellers in different markets. See: Offsets