SAO PAULO, Brazil - The Brazilian Ministry of Defense reports that the governments of Brazil and Argentina have signed a bilateral cooperation agreement for the expansion of joint projects in the aeronautical sector.

The agreement, called the Aerospace Industry Strategic Alliance (AEIA in Portuguese) aims to strengthen and integrate the military aviation industries of both nations. The accord was signed on October 21 after the launch of Brazil's new KC-390 military transport tanker aircraft at Embraer's facility in Gaviao Peixoto, in São Paulo state.

During the meeting, Argentinean Defense Minister Agustin Rossi announced his government's intent to purchase 24 Saab Gripen NG fighter jets that will be produced in Brazil. Argentina will begin negotiations for the purchase and for the eventual Argentinean participation in the production of the aircraft. For his part, Brazilian Defense Minister Celso Amorim, said that Brazil will explore the possibility of Argentinean participation in the Gripen NG project.

Under a contract expected to be finalized this coming December, Brazil has purchase 36 Gripen NG fighter jets from Saab. The contract is valued at $4.5 billion and includes technology transfer to Brazil. Brazil's long-term goal is to domestically produce the aircraft. Brazilian aircraft manufacturer, Embraer, will partner with Saab to develop a two-seat version of the Gripen NG which is expected to be sold on the international market.

Source: Brazilian Ministry of Defense
Associated URL: http://www.defesa.gov.br/
Source Language: Portuguese
Author: R Barrett Edwards, Latin America Analyst