Barter is the direct trade of one product or service in exchange for another product or service without the use of cash.

Barter is a Multi-Billion Dollar Industry

According to the International Reciprocal Trade Association (IRTA), it is estimated in the U.S., over 470,000 companies actively participate in barter for a total of over $12 billion in annual sales. Over 65% of the corporations listed in the New York Stock Exchange are presently using barter to reduce surplus inventory and increase sales and to ensure that production facilities run at near capacity. The U.S. Department of Commerce estimates that 20% to 25% of world trade is now barter, and corporate barter is now a $20 billion dollar industry. Barter continues to carve out an important place in the world economy. Click here to see our presentation on how Barter works and how it can benefit your company.

Key Points in the History of the Barter Industry

• The birth of the modern barter industry started in 1960 by former banker Marvin "Mac" McConnell in California.
• In 1979, the first important trade association called the International Reciprocal Trade Association (IRTA) was formed to help professionalize the barter industry.
• In 1982, the Canadian and United States Government signed into law the Barter Income Tax Act which legally recognized barter as a viable form of commerce. The Barter Income Tax Act recognized barter exchanges as third-party record keepers - a status similar to banks and accountants. For more information about Revenue Canada and Barter, please refer to IT-490 Barter Transactions.
• In 1984, a second trade association called the National Association of Trade Exchanges (NATE) was formed to further promote and professionalize the barter industry.
• In the early 1990's, computers and the Internet helped advance the barter industry making accounting simple, services more efficient, and helping barter members expand their market opportunities through online global trading.