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Government Bets on G2G Negotiations to Expand Defense Exports, Strengthen National Industry, and Broaden Diplomatic Influence in Strategic International Contracts.
The Ministry of Defense and the federal government are working to implement the G2G (Government to Government) sales model, aiming to boost defense product exports and strengthen the national industry.
According to a report by CNN, this is a long-standing request from the Brazilian defense sector, which seeks greater competitiveness in the international market.
What Is the G2G Model
In the G2G format, the government negotiates directly with another country for the sale of goods, services, or technologies.
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Although the contracts may involve private companies, it is the state that conducts the negotiation and acts as a guarantor, ensuring the delivery of the products.
Military powers such as the United States and France widely use this model.
In Brazil, one example was the acquisition of the Gripen fighters, manufactured by the Swedish Saab, through a G2G contract with the Swedish government.
This type of negotiation is considered strategic because it strengthens diplomatic relations and provides more security for transactions since the government assumes the role of representative.
Legal Obstacles and Alternatives
Currently, Brazilian legislation prevents the government from intermediating sales of private companies.
This model can only be used when state-owned companies are involved. This limits Brazil’s reach, as these companies do not produce all the items demanded abroad.
To circumvent the hindrance, authorities have identified an alternative: a state-owned enterprise can establish a collaboration agreement with private companies to represent specific products in international negotiations.
Thus, it would be possible to move forward with G2G sales without the immediate need to amend the law.
State-Owned Companies on the Front Line
The Ministry of Defense intends to test the format through state-owned companies and strengthen the integration between the state and the private sector. A future legislative change is not ruled out, but it is not the objective at this moment.
Last Thursday (25), representatives from the government and state-owned companies participated in a meeting on the subject.
Among them were Alada (Brazilian Aerospace Projects Company), dedicated to aerospace equipment and infrastructure; Emgepron (Naval Projects Management Company), which supports the military naval industry; and Imbel (Brazilian Ordnance Industry), responsible for armaments and defense products for the Armed Forces, police forces, and private clients.
With these moves, Brazil seeks to align itself with international practices and create more favorable conditions to expand its presence in the global defense market.
Avibrás! Chama a Avibrás para fornecer armamentos também! Vai ajudar muito na recuperação dela!
Retardatário governantes retardados
O problema é que no Brasil as coisas são muito lentas,pra fazer um submarino,um navio…e temos que diversificar os locais da construção,para agilizar a construção.