By Li Hongmei
The plans of the Boeing company to sell 36 F-18 fighter jets to Brazil have failed.
This bargain might have brought about US$4 bln to Boeing. However, the success of this deal would have meant much more for Boeing and for the US in whole - it might have opened a wide door to the Brazilian market. Instead, Brazil preferred to buy Gripen NG fighter jets from the Saab Swedish company.
The official explanation of Brazil's authorities was that first, the Swedish jets are cheaper than the ones offered by Boeing, and, second, Saab is looking forward to further cooperation with the Brazilian Air Forces.
Both facts are true. Among its analogues, Gripen is one the cheapest fighter jets in the world.
And, Saab really wants to sell its production to Brazil. It may also be added that Brazil's President Dilma Rousseff and her government have come under sharp criticism for spending too much on huge infrastructure projects for the World Cup, which will take place in Brazil in 2014, and for the 2016 Olympic Games, and are now cautious about making new expensive bargains.
However, the real reason behind the Brazilian government's decision to refrain from a deal with Boeing was quite different.
Boeing should "thank" no one else but the well-known whistleblower Edward Snowden for the failure of this much-promising bargain. He has revealed something that now, Brazilians would think twice before concluding any deals with the US.
At first, nothing indicated that this deal might not have taken place. Boeing has opened a large corporate office in Brazil and hired a former US ambassador in Brazil as its point-person in the country. In June, US Vice President Joe Biden visited Brazil and lobbied on Boeing's behalf. The bargain seemed to be as good as already concluded.
But then, the scandal caused by Edward Snowden's revelations broke out. Besides other things, Brazil's President Dilma Rousseff learned that NSA had intercepted her talks with her aides and spied on Brazilian oil giant Petrobras. Ms. Rousseff canceled her initially planned visit and turned to the UN with a request to adopt new international laws aimed at strengthening privacy rights.
Boeing reported in last quarter that revenue from military aircraft was down 5 percent to $3.5 billion, though the company noted a surprising 12 percent profit jump. A deal that might have brought about US$ 4 bln would have been very welcome for the US, which, as it is known, is currently suffering from a budget deficit.
