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L’entrée

This independence holiday weekend was marked as a special one for a couple of reasons.

On Saturday the greatest soccer derby in the world, Brasil x Argentina, took place in Rosario, northern Argentina. It granted the country’s presence in the South African World Cup next June. A superb performance by ‘seleção canarinho’ let Diego Maradona wordless after the game..... others say he may be jobless soon.

A 3 x 1 that confirmed this county’s supremacy in the most popular sport on earth.

The second reason was far different from the first one. France’s president Nicolas Sarkozy was in Brazil for the long weekend, to meet his peer, Lula. ‘Le président Sarkozy’ was here not only to reinforce “l’année de la France” and to celebrate Brazil’s Independence day from Portugal, the 7^th of September, but also for some lobbying. The final act of an armament deal. The largest in Brazil’s history.

Brazil is out shopping for fighter airplanes, submarines and helicopters. Apparently the French president came over to grant that his defense industry will take the order evaluated at 21 billions of reais, which makes 11,15 billion dollars, as of today’s exchange rate. It represents more than Venezuela’s and Colombia’s acquisitions together during the recent years. Two countries more militarily active than Brazil , due to their social and political situations.

The New York Times states that an American Congress study shows the USA as the greatest armament dealer, with 68,4% of 2008’s 55,2 billion dollars negotiated. A total of 37,8 billion dollars worth of closed deals throughout the world. Far behind comes Italy in second with 3,7 billions sold, then Russia in third with 3,5 billions. This gives us and idea of the market shares and figures as for the last year, to better comprehend the following paragraphs.

Le plat de Resistance

What´s on Brazil’s Lula shopping list ?

- 5 submarines (among which 1 nuclear and its fabrication technology)- deal closed

- 50 helicopters – deal closed

- 36 fighter ariplanes – letter of intentions signed

The resources for the payment of this considerable bill is Brazil´s national treasure.

The helicopter deal will only reinforce the ties of cooperation between France and Brazil, as there are two large industries in the southern hemisphere country – Eurocopter and Helibras.

As part of the aircraft purchase, it is included the possibility of technology transfer. Brazil would produce its own Rafale fighters. It would also be able to produce to sell for neighboring countries.

New element introduced during independence festivities - the purchase by the French government of 10 Embraer’s long range military transport KC-390 aircraft to be produced by in 2015.

According to the French company, Dassault, they hope to close the deal the latest in 2010. This sale alone represents between 5 and 7 billion dollars.

The boos Serge Dassault is more than happy, as this deal may save his business, in crisis, as it is good part of the French armament industry. Moreover, this fighter would come ‘nude’, which means that all the missiles and bombs will be sold separately...

According to Brazil’s defense department ‘ these new elements of technology transfer and the purchase of 10 Brazilian KC-390 military transport aircraft only added to the French proposal, demanding further analysis.’

It also states that ‘Usa’s Boeing and Sweden’s Saab may still propose their offers, which will be carefully studied’, despite the head advantage taken by France’s Dassault.

Side effects

As the military budget of Latin American countries has raised, according to Le Monde, 91% between 2003 and 2008, this deal may generate, or accelerate - as prefer some - the acquisition of military apparatus by other Latin America countries, causing a sort of regional military race, stuffing up traditional arm dealers’ pockets while putting aside local military development cooperation.

Time will tell.

Le dessert

It means the end of an era, the largest military deal in 40 years, and it was not with the USA industry! It does not represent tension between Brasilia and Washington, but a sign of Brazil’s independence concerning its military autonomy.

What for ? To show the country’s power, the only Latin American country with a global role at play. After February 2008’s Brazil – Argentina nuclear deal, this new Franco-Brazilian pact will represent a major test: either the reinforcement of local security for neighboring countries or it will show the way for Brazil’s military autonomy.

Brazil has an historical peaceful vocation, this upgrade on its defense apparatus will not represent a threat to potential enemies – if there is any - but rather a concern to protect its vast natural resources and to reinforce its global role as an emergent country.

La Cerise sur le Gâteau

These purchases are part of an axis of a major plan, which also includes stronger leadership and economical presence among BRIC countries, social developments, the role as one of the world’s major power suppliers, and preservation of natural resources.

Final goal: A seat at United Nation’s Security Council, the dream of Brazilian diplomacy.

Sources:

O Globo, BBC, Le Monde, Libération, New York Times, Ministério das Relações Exteriores – Itamaraty, Último Segundo, Deutsche Welle World, Terra magazine