US, Brazil sign defence pact, no decision on jets

WASHINGTON (Reuters) – The United States and  Brazil signed an agreement yesterday meant to bolster military  ties, but Brazil’s Defence Minister Nelson Jobim did not offer  any hint about a key defence contract sought by US-based  Boeing Co.

The US-Brazil accord, which was announced last week and  signed at the Pentagon by Jobim and US Defense Secretary  Robert Gates, is the first agreement of its kind in more than  30 years between the two countries.

“This agreement will lead to a deepening of US-Brazil  defence cooperation at all levels,” Gates said at the signing  ceremony.

Gates, who leaves on a trip to South America later this  week, said the accord also offered a “transparent, positive  model for engagement throughout the Americas.”

A similar accord with Colombia last year that allowed  increased use of Colombia military bases by US troops raised  eyebrows in the region. Venezuelan President Hugo Chavez called  it part of a plot for invasion.

The US-Brazil accord contains no provisions related to  the use of Brazilian bases. It does promote military exchanges  — such as naval ship visits — and cooperation on “the  acquisition of defence products and services,” the Pentagon  said.

Brazil is in the final stages of picking a company to  manufacture 36 jets, a contract worth more than $4 billion. The  deal could eventually rise to more than 100 aircraft.

US officials have said a victory by Boeing could bring  the US and Brazilian militaries closer together. But Brasilia  has sent signals that Boeing’s Super Hornet might be passed up  in favour France’s Rafale jet, manufactured by Dassault.

Jobim last week said the Brazilian air force preferred the  Rafale.

Asked about the matter at the Pentagon, Jobim suggested a  final decision was still weeks away. He still needed to present  his recommendation to Brazil’s president. It would then need to  be reviewed by the National Defence Council before a final  decision is reached, he said.