Boeing's Proposal Includes Military Division of Embraer

01/04/2018 - 11h41

U.S. company Boeing intends to include the defense division of Embraer in the proposal to become an associate of the Brazilian aircraft manufacturer. That is likely to raise difficulties in the negotiations with the Brazilian government, which holds veto power on negotiations with Embraer.

The Brazilian government says it will decline proposals in which it loses the control over the company – the government is worried about the fact that Embraer is a central piece in strategic projects that go beyond aeronautics.

For example, Embraer is participating in the construction of the future Brazilian underwater reactor as well as in the surveillance of the country's borders.

To try to overcome the Brazilian government's resistance, Boeing will take to negotiations some examples of international partnerships that protect the sovereignty of the countries involved. Boeing itself abides by the specific rules of the local governments to operate in the U.K. and in Australia.

On Wednesday, January 3, Embraer answered a questionnaire by the CVM (the Securities and Exchange Commission of Brazil, an agency that presides over the stock market in the country) and said that if an agreement is made, it will respect the interests of the country's security.

Boeing intends to join Embraer so that it can include in its catalogue a line of regional civil jets, such as its European rival, Airbus, obtained as it purchased Canada's Bombardier segment.

Boeing would have access to products such as the military cargo aircraft KC-390 and the expertise of young engineers.

Translated by THOMAS MUELLO

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