Security Industry: In spite of probe, Brazil´s national interest will favor jets deal for french fighter Rafale.
Presidents Nicolas Sarkozy and Luiz Inacio Lula da Silva during the celebrations of september 7th
A multibillion-dollar lucrative defense deal is on the cook in Brazil. The southamerican country wants to replenish its aging fleet of fighters, and France´s Rafale, U.S. Boeing and Sweden´s Saab are all trying to eexpand their defense exports by selling 36 combat aircraft to Brazil. However, there is ongoing probe based on the prosecution claims of a certain brazilian preference of France’s Rafale combat aircraft. That situation could change with the election of a new President. Aerospace giants competing for the contract are France’s Dassault with its Rafale fighter, Sweden’s Saab with the Gripen NG aircraft, and U.S. company Boeing with the F/A-18 Super Hornet.
By some accounts, the contract for the initial 36 planes could rise to more than 120. Last month Brazil’s Defense Ministry said it would release final details of the estimated $6 billion procurement deal in early April. All the contenders have met technical specifications and relevant reports have been delivered to the Defense Ministry.
The probe followed statements by Brazil’s defense minister indicating that the government’s pick of the French Rafale afforded a better deal for the country. Speaking at a hearing in Brazil’s Congress, Defense Minister Nelson Jobim said the French bid was the only offer that guaranteed full technology transfer — a sweetener that allows Brazil to assemble the jets domestically and sell them to regional allies. “This is a political option for the government,” Jobim said to the press. Brazil has already signed a deal with the French for the construction of five submarines in Brazil. The deal also includes building a nuclear-powered vessel.
French President Nicolas Sarkozy has personal prestige knotted into the deal. In September 2009 Sarkozy and his Brazilian counterpart locked in a deal, issuing a statement that negotiations for the purchase had begun when the tender process had not been concluded. Should the deal succeed with Brazil, it will mark Rafale’s first export order. READ MORE HERE.