São Paulo – The promise of signing a bilateral agreement between Brazil and Algeria in the area of defence, which may allow the acquisition of equipment by Brazilian companies in the sector excluding the need for tenders, arose during the trade delegation led by the minister of Development, Industry and Foreign Trade, Miguel Jorge, to Algeria and Oman, from September 15th to 18th.
The president of the Brazilian Defence and Security Industries Association (Abimde), Frederico Aguiar, participated in the delegation and in meetings with representatives of the Ministry of Defence and the National Security Department of Algeria. "The agreement opens several possibilities, one of them being the possibility of direct acquisition," explained Aguiar, recalling that the defence sector is very important for Algeria.
According to Aguiar, the Brazilian defence and security industry has been present in Algeria for 10 years, with export of non-lethal ammunition and light armaments. Exports are basically for companies Condor and Taurus. "From 2001 to 2009, contracts totalling US$ 30 million were signed, which is little, as last year alone, Algeria imported US$ 6 billion in armaments, armoured vehicles, aircraft and vessels," he said. The main suppliers were Russia and China.
"We need state tutelage for the sector to be included in bilateral negotiations as a preferential sector, aiming at equalizing the trade balance. Brazil, due to intensive work by the minister [Miguel Jorge], is practicing competitive state intelligence, defending the sector," said Aguiar.
"It is not surprising that Sarcozy [Nicolas Sarcozy, the French president] travels to Brazil to sell his submarines and aircraft. It is not surprising that Russian president [Dmitri Medvedev] travels to Venezuela to sell vehicles, weapons and fighter aircraft," he pointed out.
In Oman, the second country visited by the Brazilian delegation, the Abimde president participated in a meeting at the Ministry of Defence, where he met those responsible for acquisitions. "That market already has Brazilian companies like Embraer and the Brazilian Cartridge Company (CBC). Embraer sold aircraft for executive transport to the government and is participating in a tender for the sale of patrol aircraft," he explained.
"CBC is greatly interested both in export of ammunition and in establishing a company in Oman," said Aguiar. According to him, the demand is not very great, but is constant. Apart from that, they are going to chart their coast, a service that may be provided by Emgepron, the Company for Management of Naval Projects, a company under the Brazilian Navy," he said. "They are engaged in including Abimde as a portal for enquiry regarding new acquisitions," he said.
Abimde
The Abimde was established in 1986, headquartered in São Paulo and representing over 100 companies in the military sector throughout Brazil. Abimde work is supporting relations between industry and governmental organisations to accelerate and stimulate trade, development and quality of Brazilian products.
Contact
Site: www.abimde.org.br
Telephone: (+55 11) 3214-5032
*Translated by Mark Ament
