French Rafale semi-stealth fighter jets deal with Brazil in balance

French Rafale semi-stealth fighter jets deal with Brazil in balanceIt has been reported that a multibillion dollar deal for a potential sale of French Rafale semi-stealth fighter jets to Brazil is in the balance as France, under pressure from its farmers, seeks to scuttle a Spanish move to renew talks with Latin America's Mercosur trade pact.

It was also reported that the pact, which has Brazil as its most influential member, is opposed by most agriculturalists in Europe, who see cheaper farm imports from South America as a direct threat and a potential risk to lucrative European Union subsidies.

Current EU President Spain argues closer Mercosur ties will benefit Europe and will be worth tens of millions of dollars in new business in the South American trade bloc's market of 800 million people. Farmers' representatives will have none of it, however, and want EU governments to dissuade Europe from reopening the talks.

The report further noted that farmers' concerns were put across by France, which argued the deal would endanger European agriculture, and hurt French farmers, main beneficiaries of EU subsidies.

French government support for farmers is linked to the agriculture sector's political clout. The problem is that the well-being of French arms manufacturer Dassault depends on the Brazilian contract going through. (With inputs from Agencies)