Earlier today Brazil and the UK completed a deal to provide the South American country with £2.9 million in ships and frigates. The deal will be a boon to BAE Systems, the British company which has been awarded the contract. The largest arms company in Europe, BAE is expected to experience diminishing profits as a result of the impending budgets cut in Britain.
From Brazil’s perspective, the deal is interesting for two reasons. First, it reveals the extent to which Brazil, a country that is unrivalled in power and influence in the region, is committed to expanding its military capabilities. Second, the deal reflects the significance of the recent offshore oil finds off the coast of Rio de Janeiro. As the Financial Times has noted, BAE will supply Brazil will ships similar to those it built for Trinidad and Tobago, a country which possesses vast amounts of offshore oil.
At this stage, it’s still unclear what this news augurs for the future of Brazil’s military ambitions. Given the Brazil’s growth, the further expansion of the country’s armed forces is a safe bet, in spite of its absence of enemies.
Image by Flickr user Sophr
