Sunday, February 6th 2011 - 21:29 UTC

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.

The state of the art Royal Navy Type 26 frigate

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 world’s 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 country’s long term policy is to increase defence expenditure from the current 1.5% of GDP to 2% of GDP by 2030. Since the country’s 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.
 

20 comments Feed

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1 briton (#) Feb 06th, 2011 - 10:27 pm Report abuse
Well we did all predict that brazil France and the British government would get this on, this will benefit us and brazil, and as for the refusal of a British ship stopping of in brazil, I hear that sometimes one has to pretend to others you are on their side just to keep them quiet, after all you don’t think brazil would allow any side show to interfere with a multy billion pound deal would you, tea anyone ?
2 Redhoyt (#) Feb 07th, 2011 - 04:51 am Report abuse
If this is true, then it would explain the lack of trumpeting of Brazillian support following the recent meeting between the two Presidents.
3 Think (#) Feb 07th, 2011 - 08:09 am Report abuse
(2) Hoyt

Morning lad.........

Did you find any of the afore mentioned “Reports in the UK Media” about this story?

I certainly coldn't find anyt in the “Brazilian Media”

We must be very dumb or.............................................................
4 Redhoyt (#) Feb 07th, 2011 - 08:33 am Report abuse
I did start with ... “If this is true ...”
5 Think (#) Feb 07th, 2011 - 08:41 am Report abuse
Another MercoPress “exclusive story” then..............!

This “journalists” are “good”................... :-)
6 Be serious (#) Feb 07th, 2011 - 09:10 am Report abuse
If this is true then it is good news for Brazil and UK.
7 Rufus (#) Feb 07th, 2011 - 11:55 am Report abuse
The only reference I can find is some paper in Malaysia, so not quite completely unsourced (just nearly so).

As it stands, something does strike me as a bit odd. Not the type 26 frigates or the River-class patrol boats, both fair enough, but the previous publicity included variants on the Wave Knight class of fast fleet tankers. Given that Brazil only has two fleet tankers I'm surprised that they haven't received more prominance.
8 briton (#) Feb 07th, 2011 - 12:20 pm Report abuse
no doubt the truth will seep out sooner or later .
9 Zethee (#) Feb 07th, 2011 - 01:14 pm Report abuse
I think this is just an old story retold.

I wouldn't be suprised either way if the deal goes through. I understand the french deal had competitors, was the BAE deal simular?
10 mastershakejb (#) Feb 07th, 2011 - 06:02 pm Report abuse
“‘technology transfer’ the first patrol and frigate units would be built in the UK and the rest in Brazilian yards.”
Clearly this is the reason why. It's probly the best option for Brazil, with all the tech transfer agreements they keep making with the world's most advanced arms producers, Brazil should soon be able to produce all the latest defense equipment right at home. These tech transfer agreements provide a huge leap in tech that would have been hard for Brazil to achieve itself in so little time.
This has nothing to do with Malvinas, except that in the long run, it will actually give far more dominance over the seas around the Malvinas, to Brazil and Mercosur.
11 Martin_Fierro (#) Feb 08th, 2011 - 08:58 am Report abuse
5 Think,

“Another MercoPress “exclusive story” then..............!”

Look like it, more like a re-run.

10 mastershakejb,

Good point, a bright side if Brazil decides to build ships for Argentina, or share technology with us so that we can build them.

Possibilities..........................
12 Zethee (#) Feb 08th, 2011 - 04:55 pm Report abuse
Perhaps they'll also man, maintain, pay for and sail them for you also.
13 Denrich (#) Feb 08th, 2011 - 05:59 pm Report abuse
“This has nothing to do with Malvinas, except that in the long run, it will actually give far more dominance over the seas around the Malvinas, to Brazil and Mercosur.”

The seas around the Falklands are British so Brazil would have no authority or need for domminance, you really believe Brazil would risk a conflict with UK over your silly claim??
Again Argentina still wanting others to do their dirty work, hahaha

Does this not prove that if Arg had some form of military it wouldn't hesitate to use it...

So much for taking the Islands by peaceful means eh ? Oh and long live Mt Pleasant & BFFI always one step ahead!!
14 mastershakejb (#) Feb 09th, 2011 - 01:40 am Report abuse
lol, Brazil wouldn't be “risking” conflict with the UK, because the leaders of both the UK and Brazil know that the UK would simply back off out of the south western hemisphere altogether rather than face the prospect of a trade conflict with Brazil.
15 Zethee (#) Feb 09th, 2011 - 10:22 am Report abuse
“because the leaders of both the UK and Brazil know that the UK would simply back off out of the south western hemisphere altogether rather than face the prospect of a trade conflict with Brazil.”

I seem to remember Argentina thinking the same also in 1982. How did that work out?
16 Denrich (#) Feb 09th, 2011 - 11:33 am Report abuse
@14
“the UK would simply back off out of the south western hemisphere altogether rather than face the prospect of a trade conflict with Brazil.”

You really do overestimate the support from your Latin nieghbours don't you?

You also under estimate Britains commitment to the Islands, no pressure from any LatAm country will make the British Government withdraw from any of it's southern territories.

Keep on dreaming shakey.
17 mastershakejb (#) Feb 09th, 2011 - 01:07 pm Report abuse
mad mohammeds, here is the REALITY:
your nation is stagnating, and has been doing so for quite some time, and will continue to do so for much longer
Brazil is booming, and has been for some time, and will continue for some time.
Now you can spazz all you want online, as mad as you want...........but it won't change reality.
18 Zethee (#) Feb 09th, 2011 - 04:12 pm Report abuse
Can someone explain why he always calls people mad mohammed? I'm neither mad or named mohammed.

He seems rather devoid from reality.. neither of our posts had an ounce of emotion to them that would suggest that either of us got “mad”.

As for you talking about reality master. This is a subject you seem very distant from.
19 mastershakejb (#) Feb 10th, 2011 - 05:32 am Report abuse
lol, you can't fight reality, mad mohammed
20 NicoDin (#) Feb 13th, 2011 - 07:08 am Report abuse
@ mastershakejb

Haha the Brits don’t know way we call them Mohammed.

Any Idea?

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