Sweden Offers Brazil Partnership Deal
By Gerard O'Dwyer
Published: 25 Nov 2009 15:20
Helsinki - Swedish Defense Minister Sten Tolgfors will lead a high-level delegation that will meet for two days of talks, beginning Nov. 25, with Brazilian defense and state officials in Rio.
A possible collaboration between Sweden and Brazil hinges on Brazil agreeing to purchase the Gripen, a Swedish export-driven combat aircraft. (U.S. Air Force)
The discussions mark an escalation in the Swedish government's push to persuade Brazilian authorities to engage in a broad aerospace partnership with Sweden. The possible collaboration hinges on Brazil agreeing to purchase the Gripen, Sweden's export-driven combat aircraft.
"The Brazilian government is close to making a decision on which type of fighter plane to purchase, even though the exact decision date is not known. We want to use every opportunity to highlight the Gripen, and we hope to be able to advance Sweden's interest in this," Tolgfors said.
The Swedish officials are mounting a last-gasp effort to swing the deal Gripen's way after Brazilian President Luiz Inacio Lula de Silva announced in September that he favored the French Rafale bid.
Purchase of the French fighter would be consistent with the Brazilian policy of building a wider strategic defense partnership with Paris. The two sides have recently signed procurement deals covering helicopters and submarines. France has also said it will cooperate in a longer-term Brazilian plan to construct nuclear submarines.
Brazil has shortlisted Boeing's F/A-18 Hornet, Saab's Gripen and the French company Dassault's Rafale as candidates in the final round of the aircraft selection process, which centers on the purchase of up to 36 aircraft.
Sweden is offering a broad aerospace and industrial partnership with Brazil that includes capital participation in the development of the next-generation Gripen.
Tolgfors and the Swedish delegation have scheduled meetings with Brazilian President Lula da Silva, Defense Minister Nelson Jobim and Sen. Eduardo Azeredo.
The Swedish delegation includes Ake Svensson, Saab's CEO, who is set to meet with the heads of Brazil's military and civilian aviation and aerospace industries.
The partnership structure being proposed by Sweden would allow Brazil to become directly involved in the development, manufacture and sale of the Gripen NG worldwide. Brazil would become an equal partner, and the aircraft bought would be produced in Brazil, which would also have exclusive rights to sell the Gripen NG to other South American states.
Another trump card in Saab's offer is that Brazil would have the full freedom to choose weapon systems for the fighter. Sweden has spiced up its offer by guaranteeing a countertrade package worth 175 percent of the aircraft order value.
For its part, Saab has offered to become a partner in the development of the future military transport aircraft Embraer KC-390, expressing an interest in purchasing the aircraft to support its long-term tactical transport needs. France has also expressed interested in purchasing the KC-390 if Brazil selects the Dassault Rafale.
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