Contra Deal

A contra deal is an arrangement where parties barter or exchange goods and/or services without cash changing hands, sometimes described simply as a ‘contra’. Contra deals are typically informal domestic exchanges, as opposed to countertrade which is prevalent internationally, and which may allow parties to avoid accounting for the transactions. From a procurement perspective contra deals require careful management to ensure that the value of the goods and/or services exchanged is broadly equivalent and to manage the implications if a one-off transaction becomes reciprocal trade. See also Countertrade and Reciprocal Trade.