Latin American Defense Market Breaks from Traditional Ties

NEWTOWN, Conn. --- Prospects for the Latin American defense market are beginning to look robust. Although Latin American military spending is relatively small compared to the Middle Eastern or Asian markets, the regions military procurement right now shows little sign of slowing.>> Plagued with obsolete equipment and outdated technology, the region as a whole finds itself hard pressed to modernize. Financial constraint has forced many countries to refurbish existing equipment; however, it is no match for the new technology that others in the region can afford. For example, Colombia is refurbishing its fleet of Israeli Kfir fighters, but theyll be no match against Venezuelas new batch of 24 Su-30 fighters.>> Over the years, U.S. arms restrictions have hindered many sales to the region, prompting some nations to diversify their options. Colombia and Mexico, though, will likely remain faithful to the United States, as it provides a large portion of defense funding and equipment needs for the two nations. Colombian defense procurement is based wholly on counter-insurgency, and Mexico is beginning to arm for the same. Meanwhile, Chile is nearing the end of a procurement cycle, while Argentina and Ecuador appear to be ramping up.>> The regions best sales prospects are Venezuela and Brazil. Venezuela has already spent over $4.4 billion on Russian hardware over the past three years. With the addition of a recent $1 billion loan to Venezuela from Russia, Venezuelan President Chavezs ambitious procurement plans are quickly becoming a reality. The Venezuelan wish list ranges from air defense systems and missiles to additional fighters and armored vehicles.