Brazil and Chile signed a memorandum of understanding to boost defense ties, focusing on tech development, military equipment production and logistics.

President Gabriel Boric of Chile, pictured at the White House in Washington in 2023, said in June he wanted to diversify Chile’s defense trade relations. Photo by Chris Kleponis/UPI UPI

Sept. 18 (UPI) -- Brazil and Chile signed a memorandum of understanding to strengthen defense cooperation, focusing on technological development, military equipment manufacturing and logistics modernization.

With the recently signed agreement, Brazil deepens its strategic ties with Chile and expands its role as a key supplier of aircraft, armored vehicles and defense systems to countries such as Colombia, Peru, Argentina, Uruguay and now Chile.

In his most recent public address in June, President Gabriel Boric expressed his intention to diversify Chile's defense trade relations, "to stop depending on the Israeli industry in every area," in protest against Israel's military actions in Gaza.

"For Chile, Brazil is a strategic partner. This agreement allows us to make a technological leap and advance in our own military production and logistics capabilities," Chilean Defense Minister Adriana Delpiano said.

The agreement enables technology transfers from Brazil, particularly in aircraft such as Embraer's C-390 Millennium, and calls for strengthening logistics capabilities at ports, bases and military transport systems.

The document also provides for the joint manufacturing of strategic components, with the possibility of regional exports, and for military interoperability in joint exercises and international missions.

Brazil's defense industry is thriving. The country has consolidated its position as a global exporter of defense products and services, with sales to nearly 140 countries worldwide. The sector has become a strategic pillar of the economy, accounting for 3.58% of national GDP and generating about 2.9 million direct and indirect jobs.

Former Chilean Deputy Defense Secretary Gabriel Gaspar said that through Embraer, Brazil has the leading aerospace industry in Latin America. Together with Chile, he added, the two nations have ambitious naval construction plans.

The cooperation framework between the two countries establishes a Bilateral Defense Industry Committee to review collaboration in the naval, aerospace and land sectors, including technical exchanges, joint procurement and local equipment manufacturing.

"The agreement does not arise in isolation. In April 2025, the governments of Chile and Brazil met in Brasília to review common priorities. Among them was the need to strengthen mechanisms for technical and industrial cooperation," said Humberto García, president of the Chilean Institute of Public Policy.

That same month, Presidents Gabriel Boric and Luiz Inácio Lula da Silva signed 13 bilateral agreements to deepen cooperation in defense, trade, regional security, education, science and technology.

Both leaders described the meeting as a "milestone in the bilateral relationship" and a clear signal that South America seeks to strengthen its own development strategies amid an international landscape increasingly polarized between the United States and China.

"This agreement represents a strategic regional advance for Brazil's defense industry. It opens opportunities for Chile to acquire Gripen NG fighter jets, KC-390 aircraft, armored vehicles, radar and electronic warfare systems, munitions, air-to-air and air-to-surface missiles and drones. Brazil is growing as many nations seek to diversify from their traditional suppliers," said Humberto García.

Chile and Brazil are historic allies and partners in several fields. This alliance in particular, said Gabriel Gaspar, would allow South America to reduce its dependence on current arms suppliers and move forward with joint research and projects in technology, artificial intelligence, logistics and other areas. "It is a very promising step for both countries," he said.