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Reading: Macron Promotes $4 Billion Military Exports During South America Trip
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Home » Macron Promotes $4 Billion Military Exports During South America Trip

World Defence News

Macron Promotes $4 Billion Military Exports During South America Trip

By SSBCrack
Last updated: November 25, 2024
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Macron Promotes $4 Billion Military Exports During South America Trip

French President Emmanuel Macronโ€™s recent trip to South America, extending beyond his attendance at the G20 Summit in Rio de Janeiro, has placed a significant spotlight on military trade relations between France and the region, particularly in Argentina and Chile. Macronโ€™s visit has garnered attention due to his promotion of French-made military equipment, primarily focusing on the sale of Scorpene class diesel-electric submarines, with a potential value exceeding $4 billion.

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Local reports from the French daily La Tribune indicated that Macronโ€™s itinerary was strategically aligned with both the G20 Summit and efforts to strengthen bilateral ties with key South American nationsโ€”Argentina and Chile. His inaugural stop in Argentina set the stage for key discussions with President Javier Milei, which took place on November 16 and 17. According to military sources, Macron expressed Franceโ€™s commitment to supporting Argentina in its ambitious plan to procure three Scorpene submarines, estimated to cost around $1.5 billion. The urgency behind this procurement stems from the Argentine Navyโ€™s current capabilities, as it lacks fully operational submarines, compelling its submariners to seek training opportunities abroad.

During Macronโ€™s visit, Argentine Defense Minister Luis Petri reportedly signed a letter of intent for the submarine purchase earlier this year, initiating a series of negotiations on the specifics of the deal. Furthermore, the Argentine government has sought parliamentary authorization to secure multiyear funding of approximately $2.31 billion through the 2025 budget law, which would encompass both the submarinesโ€™ procurement costs and related debt services.

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After concluding discussions in Argentina, Macron attended the G20 Summit in Brazil, where he engaged with President Inazio โ€œLulaโ€ da Silva about future military collaborations, specifically the potential order of two additional Scorpene submarines. This conversation comes in the wake of a $10 billion agreement established in 2009, which enabled Brazil to acquire four submarines of the same class. The Brazilian submarines are being constructed domestically by Itaguai Construรงoes Navais, a cooperative venture incorporating both French technology and local manufacturing capabilities.

Macronโ€™s tour culminated in Chile, where he reiterated the significance of military partnerships, especially considering Chileโ€™s historical context as the first export customer of Scorpene submarines, having placed an order for two units in 1998. Looking forward, the Chilean government is preparing to launch a tender in 2026 aimed at replacing its aging fleet of German-built submarines, with estimates suggesting that the potential deal could value around $1 billion.

Overall, Macronโ€™s visit not only underscores the French governmentโ€™s pivot towards enhancing its military ties in South America but also highlights the critical role such international partnerships play in the broader context of defense and security strategies across the region.

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