POLITICS-BRAZIL: Gov’t Feels Pressure to Build Warplanes at Home

By Mario Osava Reprint | | Print |

Mario Osava

RIO DE JANEIRO, Aug 15 2001 (IPS) - The Brazilian government has opened an international bidding process for acquiring 24 military jets, attracting the attention of the world aeronautics industry and sparking a movement within Brazil in favour of manufacturing the aircraft locally.

The Brazilian aeronautics market is not the only thing at stake. There are several other Latin American countries that plan to replace their military aircraft within the next few years, so are likely to be future customers – either of Brazil, or of other aircraft exporting nations.

Brazil does not need to import the fighter jets – at an estimated cost of 700 million dollars – because the government can order their manufacture within the country itself and later compete in other markets, argues Paulo Delgado, president of the Foreign Relations Committee in the Chamber of Deputies.

Delgado proposed to President Fernando Henrique Cardoso that the government should call off the bidding, opened Aug 1, and entrust Brazil’s own aeronautics company, Embraer, with the production of the jets the air force needs to replace its French- made Mirage III, which are becoming outdated and are slated for grounding in 2005.

Embraer is the world’s fourth leading commercial aircraft manufacturer and competes with Canada’s Bombardier for the top spot in international sales of mid-range passenger planes, particularly those with capacity to carry 50 people.

But the company’s origins lie in the military and it also manufactures combat aircraft, points out the legislative deputy.

Brazil’s Aeronautics Ministry created Embraer in the 1970s, but the firm was privatised in 1994 – though the government still holds the “the golden share,” that is, veto power over the decisions of the owners, a consortium of investors led by the Bozzano Simonsen group.

Lawmaker Delgado is a member of the opposition Workers Party (PT), but his moderate stance has enabled fluent dialogue with the government. President Cardoso even offered him the ambassadorship in Mozambique last year, a post Delgado could not accept due to the opposition of his party.

It is feasible to manufacture warplanes in Brazil, and it would even be a natural solution, Geraldo Cavagnari, coordinator of the strategic studies centre at the University of Campinas, told IPS. The contribution of technological material from the French firm Dassault, an Embraer partner, makes it a practical option, he said.

Dassault heads a group of French companies that two years ago acquired 20 percent of Embraer’s shares, staking its bets on opportunities in Brazil and in Latin America. Furthermore, it provides technology transfer without restrictions, a requirement of the Brazilian government.

Experts in military aircraft, meanwhile, point to the Mirage 2000, the fifth and latest version of the French fighter jet, as a nearly unbeatable favourite.

The Aeronautics Ministry opted for the bidding process and, on Aug 1, invited six companies – including the US-based Boeing and Lockheed, Russia’s Mikoyan MIG and Sukhoi and the Swedish Saab – to present their proposals within two months. Brasilia expects to announce the winner by December.

According to journalist Roberto Lopes, who specialises in defence matters, it could well be a manoeuvre to force Embraer- Dassault to cut its prices. Furthermore, experts in the Brazilian air force consider Lockheed’s F-16 to be superior to the Mirage 2000, he said.

The purchase decision, however, involves a broad range of aspects. It is not a purely commercial operation, but also strategic, university expert Cavagnari pointed out, adding that there is a strong movement of parliamentarians in favour of manufacturing the aircraft in Brazil.

The unrestricted transfer of technology and the national production of the greatest possible portion of components are key factors, both for security reasons and because they represent income and jobs for Brazilians, said the researcher, who also serves as colonel in the Brazilian army reserves.

In cases like these, a bidding process is not necessary, because the defence of the nation cannot be subordinated to price comparisons, commented Cavagnari. It is necessary, for example, to ensure equipment maintenance, which makes it advisable to be as self-reliant as possible when it comes to spare parts.

Brazil, a vast nation, requires highly autonomous aircraft, particularly with regards to interception airplanes used in protecting the country’s air space. It is this factor that is costing points for the Gripen, Saab’s contender in the bidding.

The traditional restrictions set by Washington on opening technological secrets to the eyes of other countries undercuts the chances of Lockheed and Boeing in the bidding process.

The Russians, meanwhile, suffer the effects of negative experiences like that of Peru, which found it difficult to obtain parts for its Russian-made MIG.

The announced purchase of fighter jets is part of a programme to modernise Brazil’s air force, an effort that bears a price tag of three billion dollars over eight years.

In response to criticisms about the supposed squandering of public resources when Brazil is not at risk of war, the government has said it is essential to protect the country’s air space, particularly in an attempt to curb the rise in drug trafficking in the Amazon region.

The Times, a British daily, has reported on a potential arms race in South America, pointing to Chile’s plans to purchase US- made F-16s, a decision that may now change, depending on the outcome of the Brazilian bidding process.

“That debate is foolishness,” said Cavagnari, who refuted the commentary on an apparent “military imbalance in the region” arising from Brazil’s modernisation of its air force, saying the new jets are a national defence necessity.