Skip to comments.Brazil and UK ready to sign huge defence contract, say media reports
Posted on 02/06/2011 8:50:15 PM PST by sukhoi-30mki
Brazil and UK ready to sign huge defence contract, say media reports
Brazil with a defence market described as one of the fastest growing in the world will be signing a defence agreement with the UK which should open the way for a deal worth billions of dollars, according to reports in the Brazilian and UK media.
If the agreement finally goes through a first deal could involve £ 2.9 billion which includes the purchase of six patrol vessels (£ 60 to £ 80 million) and five or six frigates Type 26 with a unit cost of £ 300 to £ 400 million, similar to those of the Royal Navy.
The main reason behind the strong Brazilian defence investment is the massive development of the offshore oil industry and its pre-salt deposits which could make the country one of the worlds main producers and exporters.
The articles mention that according to the agreement with BAE Systems and following on Brazilian policy of technology transfer the first patrol and frigate units would be built in the UK and the rest in Brazilian yards.
A similar technology transfer agreement has already been signed by BAE with Greece and Thailand point out the reports. The vessels would be used for anti-submarine warfare, protecting sea traffic in the oil basins and support for land operations.
Developed countries are most aware of defence dynamics in Brazil since the countrys long term policy is to increase defence expenditure from the current 1.5% of GDP to 2% of GDP by 2030. Since the countrys economy is forecasted to grow a sustained 5% in the coming decades, defence investments will also expand strongly.
With a nominal Brazilian GDP of 1.57 trillion US dollars, --IMF figures-- if defence expenditure was now 2.2% of GDP, it would represent 34 billion USD.
Another developed country poised to close a huge defence agreement with Brazil is France. Paris is hopeful that Brazil will finally opt for the Dassault Rafale fighter bombers, a contract worth billion of US dollars which comes on top of the already agreed purchase of several conventional Scorpion submarines and technology transfer for a nuclear submersible by the 2020ies.
Apparently the decision regarding the contract for the purchase of at least 36 aircraft was delayed because of the presidential election.
The state of the art Royal Navy Type 26 frigate
Their government is Socialist/Communist from the top down, they are in league with Chavez, Morales, etc., they havevast oil reserves, mineral wealth, aggie wealth, a scruffy Turd World population that is exploding on exactly the wrong end ... so they are going to arm them ... and send them where?
BTW, you think the Illegal Mexican Invasion is bad? Wait until you get a load of what the Brazilians have waiting in the wings. Brazil is as big as the lower 48 and soon will have more people than we do. That is, they have a vast, Afro-Brazilian population that is a growing burden they would love to share with us by dropping off ... O say a 100 million or so.
So against whom, exactly, are these hot new armed forces and their ultra-modern arms to be used?
Brazil? Powder keg, pal.
In the meantime, Brazil is awash in petroleum and petroleum products and I wager that they would be delighted to sell them to the Royal Navy ... politics aside.
Cheap, domestically produced petroleum products are powering Brazil's rapid economic development. Sound familiar?
Latest data disagrees.
Bummer! However, the Brazilian oil is real enough. Thanks for the update. I'll just have to fill up elsewhere.
I have a feeling this will turn out to be like a repeat of us selling type 42 destroyers to the argies. Brazil has demonstrated that it is an ally of Argentina, not Britain, and the next time the Argies decide to have a crack at the falklands, the Royal Navy will find itself having to the contend with a Brazilian Navy with top-notch equipment...
Wow...we are going to sell them type 26 frigates? That is actual cutting edge. So new we dont even have them ourselves yet!
But still, Brazil is a rising power. What can you do?
It’s a tough choice but sales like this help push R&D and product development up. How else is the UK going to fund all that given savage strategic review of last year?
If BAE Systems drop out, there are plenty of other competitors to hawk their wares.