BMI View: The Brazilian defence sector is set to continue to be one of the most active and open for foreignplayers, both with regards to imported goods from more established countries, and its relatively unfetteredexport market. In addition, the government's emphasis on creating a self-sufficient defence sector over thelonger term is resulting in an ever-increasing number of partnerships and joint ventures on variousdevelopment programmes between Brazilian companies and their foreign peers.
At present, the domestic defence sector is comparatively well developed, particularly with regards to smallfirearms, ammunition and aerospace products, and relatively diverse. However, the armed forces and policeforce lack advanced maritime, surveillance and rockets/missile capabilities and are keen to expand theseareas. This is not only resulting in a ramping up of imports relating to these segments, (from countries suchas France, the US and Russia) but also fostering partnership opportunities, as companies such as Odebrechtand Embraer seek to develop their R&D capabilities via joint ventures (JVs) and development programmeswith foreign companies predicated on technology transfers.