The export of defense products and systems grew under Jair Bolsonaro’s (PL, conservative) government.
The increase was 21% compared to what would be the 2nd term of former President Dilma Rousseff (PT, progressive-globalist) from 2015 to 2018.
The comparison includes the administration of Michel Temer (MDB).
In relation to this same period, the overall average of all exported products – not only defense products – increased 20.2%.
Compared with the first Dilma administration (2011-2014), Bolsonaro’s exports rose 118%. Total exports, on the other hand, increased by 7%.
The record year for exports in the area was 2021, with US$ 1.7 billion in foreign sales.
In 2022, the pace slowed down: until October, it was US$ 593 million. The figures were obtained via LAI (Access to Information Law).
According to Roberto Gallo, president of Abimde (Brazilian Association of Defense and Security Industries), this is a cyclical drop and does not worry the sector.
The sales cycle of these products lasts up to two years. This year, therefore, would reflect the pandemic, when there was a retraction in these purchases.
There are reasons for the increase in the sale of defense products. The most cited is the Pnei-Prode (National Policy for the Export and Import of Defense Products), created in 2018 by Temer.
The set of rules for exporting from the area has made the process more agile.
Another point is the increased demand for these products in countries outside of NATO (North Atlantic Treaty Organization).
COUNTRIES AND PRODUCTS
The main buyers from Brazil are countries in South America, the Middle East, and Southeast Asia. Colombia, Chile, Egypt, Mauritania, UAE, Saudi Arabia, the Philippines, Indonesia, and India are the largest importers.
The most sought-after products are missiles, cartridges and ammunition, and aircraft. According to Gallo, Brazil has found sales opportunities for countries outside the Europe-United States axis.
“Brazil follows the UN but is not limited to regional agreements. NATO countries do not export certain equipment outside the group. We don’t have this situation,” said Gallo.
According to him, there is underreporting of sales because the system [that computes the data] has not yet incorporated all the existing defense services and products.
50 to 1
The return on investment in the promotion of defense products has been high.
According to Gallo, for every R$1 that ApexBrasil (Brazilian Agency for the Promotion of Exports and Investments) invests in promotion at events and meetings abroad, R$50 are exported.
“In recent years, the total budget of countries for defense has only been increasing. This favors Brazilian exports. If we hadn’t launched the programs, they certainly wouldn’t have increased so much, as well as the availability of the other areas involved in the process”, said Paulo Roberto da Silva, ApexBrasil’s industry and services coordinator.
According to him, the defense sector is complex and involves several bodies. Besides the companies and Apex, there is intermediation by the Ministries of Defense and Foreign Affairs.
“It is never just one factor that expands exports, especially in this case. There is a conjunction of factors”, he said.
Read More from The Rio Times