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Procurement: July 30, 2002

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Brazil is shopping for new fighters; the candidates are the French Mirage-2000-BR, the Swedish JAS-39 Gryphon, the US F-16C-50, and two Russian designs (MiG-29 and Su-35). The military had narrowed the selection to the Mirage and Sukhoi designs, as those bidders offered the best technology transfers and had agreed to build factories in Brazil that would build the aircraft. Then the Minister of Industry forced his way into the decision process, insisting that the Swedish bid be accepted as they promised indirect offsets (i.e., buying unrelated Brazilian goods) of $2.1 billion. The Brazilian government remains divided on the issue.--Stephen V Cole

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