manufacturer Embraer won a $428 million contract on Wednesday to produce 20 attack planes for the US Air Force. The planes will be used for counter-insurgency missions in Afghanistan.
In winning its very first contract with the US defense department, Embraer prevailed over the US manufacturer Hawker Beechcraft.
This contract is important for several reasons.
First of all, with the US Air Force giving its official stamp of approval to Embraer aircraft, other countries may be encouraged to consider Embraer as a producer of their own military aircraft.
Second, it's a positive step forward in building and strengthening trade relations between the US and Brazil. Specifically, the contract may increase the chance that US-based Boeing aircraft will be successful in its bid to sell $4 billion worth of planes to Brazil's air force.
Finally, it's exactly the sort of high-tech export that some analysts have encouraged Brazil to expand upon.
The biggest loser in this story seems to be Hawker Beechcraft, which is struggling to recover from Chapter 11 restructuring.
Source: Brazil Portal
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