Brazil says negotiating for French fighter jets

BRASILIA — Brazil’s president said Monday his country is negotiating with France for the purchase of 36 Rafale combat jets, a sign that Dassault SA is the clear favorite over U.S. and Swedish companies to win the $2 billion-plus contract.

The announcement by President Luiz Inacio Lula da Silva came during a Brazilian Independence Day visit by French President Nicolas Sarkozy.

Silva’s office said negotiations have begun with Dassault, “taking into account the breadth of the proposed transfers of technology and the guarantees offered on the part of the French.”

Sweden’s Saab AB has been offering its Gripen fighter and Boeing Co. of the U.S. has proposed the F-18 Super Hornet for the Brazilian contract, which is expected to be worth about $2.2 billion to $2.5 billion.

Sarkozy, meanwhile, told a news conference that France plans to acquire a dozen KC-390 military cargo transport planes made by Brazil’s Embraer to replace U.S.-made C-130s it now uses.

A Brazilian deal would be a breakthrough for France, which has yet to find a foreign buyer for the jets. The French government has been trying for years to market the Rafales, from Saudi Arabia to India and elsewhere, but has yet to clinch a deal.

While the announcement gives Dassault an inside track on the sale, Silva indicated that the negotiations do not rule out purchase of a rival plane.

“The most important thing for us is to have access to technology and that is what we are negotiating with the French defense minister, with the constructing company” he said after meeting Sarkozy.

Foreign Minister Celso Amorim said the French offer also gives “freedom to participate in markets,” apparently referring to the ability to sell planes made with the technology to other countries. He said price is among the topics still under discussion.

Sarkozy said his country has no worries about transferring technology to Brazil.

“France will be a trustworthy, efficient partner,” he said. “We do not fear sharing technology.”

Sarkozy also announced France supports Rio de Janeiro’s bid for the 2016 Olympic Games — and asked that Brazil back France’s proposal to host the 2018 winter games.

They also discussed plans for December’s global warming summit in Denmark and this month’s economic meeting of the Group of 20 in the United States.

Brazil already has agreed to buy five French Scorpene submarines, one of them with nuclear propulsion, and 50 Cougar helicopters for about $12 billion. All would be assembled in Brazil.