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Weekly Report - 1 March 2012 (WR-12-09)

BRAZIL: Is Embraer the victim of US presidential politics?

Brazil’s defence industry has had a bad week. The US air force cancelled a US$355m order for 20 Embraer Super Tucano light attack aircraft, saying it was unhappy with the documentation supplied in support of the contract. Latest Wikileaks documents revived old US government allegations about irregularities (bribery) in Brazil’s strategic defence deal with France, under which France will supply nuclear submarine and other defence technology to Brazil. All of this comes at an inopportune moment, just a month before President Dilma Rousseff is scheduled to make her first trip to the White House as part of the détente in Brazil-US relations.

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