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Rio De Janeiro (UPI) Apr 8, 2010 Brazil is upbeat on a new defense cooperation agreement scheduled to be signed in Washington next week, officials said. Brazilian Defense Minister Nelson Jobim told congressional committees the accord, to be the first between Brazil and the United States since 1977, will help defense industry businesses but gave no further details. President Luiz Inacio Lula da Silva last year embarked on a regeneration program for Brazil's defense manufacturing industries, mostly dormant since the end of military dictatorship, and announced plans for boosting arms exports. Brazil in the early 1980s was one of the leading armaments exporters in the developing world and profited from the 1980-1988 Iran-Iraq war. From 1985 to 1989 Brazil was the eleventh largest exporter of arms, counting more than 40 countries among its clients. It sold about 50 percent of its arms exports to the Middle East, particularly Iraq under Saddam Hussein. The end of Iraq's war with Iran dealt a fatal blow to Brazil's arms industry, causing the collapse of major manufacturers Engesa and Avibras. Exactly how the new Brazil-U.S. agreement will work remains unclear, but Lula da Silva has been shopping worldwide for military suppliers who agree not only to sell weapons to Brazil but also accept transfer of enabling technologies for Brazil's own defense industry. Officials said the agreement could open the door for greater collaboration between military academics and facilities for U.S. Navy ships visiting South America. Last year the United States signed agreements with Colombia giving U.S. troops shared use of seven military bases in the ongoing battle against narcotics trade to North America. U.S. officials have hinted that other military cooperation agreements are being negotiated with Latin American countries. Uruguay was approached by U.S. officials about a possible arms pact and is interested in taking the negotiations further. Lula da Silva has been pursuing a series of key foreign deals on Brazil's defense arrangements before the presidential election in October. His handpicked candidate, Dilma Rousseff, is widely tipped to win the vote, though a majority sweep is far from certain. Analysts said Lula appeared keen to ensure he took all major decisions on Brazil's defense industry direction, as well Brazil's growing energy industry and Brazil's international and regional leadership before the election. Lula told the media there is a global pre-disposition to recognize what Brazil is and its political and economic potential, as well as a new attitude in Brazil.?"Brazil will continue to be respected overseas, no matter who the next president is," he told the media.
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