2006: The Bush Administration Blocked Venezuela’s Purchase of Military Cargo Planes from Spain

Venezuela had acquired eight military cargo planes in 1985. Due to high maintenance costs, only one remained in service in 2005.In November2005, Spanish and Venezuelan Defense Ministers signed an agreement for the sale of ten unarmed Spanish Military transport planes to Venezuela [1]. The $600 million deal was seen as important to Spain’s economy.

Because the planes contained some U.S parts, the U.S. could veto the sale of the aircraft under the 1976 Arms Export Control Act. That 1976 Law subjected US-made technologies designated as “military” to export control. This meant that customers required approval from the US State Department any time they wanted to transfer those technologies to another country either as a direct sale or as a component in a larger item. The Bush Administration denied Spain’s request in January 2006, saying that the sale would strengthen the government of Hugo Chavez, which is hostile to American interests, and destabilize the region [2].

The Spanish company EADS CASA tried to substitute European parts for the US parts. However, the substitution was too expensive to make the deal commercially feasible.[3] The purchase agreement between Spain and Venezuela was canceled.

In October 2007, Venezuela agreed to purchase 10 Ilyushin IL-76E troop/cargo transports and two Ilyushin IL-78 in-flight tankers from Russia. [4].

 

  

 

1.    Venezuela and Spain Proceed with Military Deal, Despite US protest, Venezuelanalysis, November 28, 2005.

2.    New York Times, U.S. Objections Lead Spain to End Venezuela Deal, October 19, 2006.

3.    Spanish Arms Manufacturer Says It Cannot Export Planes to Venezuela, Venezuelanalysis, February 9, 2006.

4.    Separating Fact from Fiction: An Analysis of Venezuela’s Military Power, Venezuelanalysis, May 14, 2009

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