Peru ministers resign amid dispute over delayed F-16 fighter jet deal

LIMA: Peru’s defence minister and foreign minister stepped down on Wednesday as questions mounted over the future of a multi-billion-dollar plan to buy F-16 fighter aircraft from the United States.

Defence Minister Carlos Diaz and Foreign Minister Hugo de Zela tendered their resignations after disagreeing with Interim President Jose Balcazar’s handling of the negotiations linked to the proposed purchase.

In his resignation letter, Diaz said, "A strategic decision has been taken in the area of national security with which I have a fundamental disagreement.

Balcazar, who is due to leave office in July, said he had not blocked the agreement but had only deferred the financial commitment until the next administration takes office after the presidential election.

In a televised address, the interim president said his earlier comments suggesting the purchase had been delayed had been misunderstood. He said the agreement itself had moved ahead, while the responsibility for payment would rest with the incoming government.

"We remain firm in respecting all agreements that may have been reached at the level of the armed forces, or in this case with the relevant ministry of the air force, to carry out the corresponding negotiations," he added.

Deal under scrutiny

Peru has been in talks for years with several companies as it seeks to replace and modernise its ageing fleet of Mirage 2000 and MiG-29 fighter jets, which were acquired in the 1980s and 1990s.

According to the government, Peru ultimately wants to acquire 24 aircraft, with the first agreement expected to cover 12 jets.

Among the contenders is US defence company Lockheed Martin. The US State Department approved the possible sale of F-16 aircraft and related support to Peru in September. At the time, the Pentagon said the proposed package, with Lockheed Martin as the principal contractor alongside General Electric Aerospace and RTX Corp, was valued at an estimated $3.42 billion.

Government information said companies from Sweden and France are also competing to supply fighter jets to Peru.

Signing ceremony canceled

Balcazar canceled a ceremony last Friday that had been scheduled for the signing of the Lockheed Martin F-16 acquisition, just hours before it was due to begin, according to a government official.

The official said the ceremony was called off because of concerns about committing the next government to a major defence obligation.

Shortly after that decision, US ambassador to Peru Bernie Navarro said in a post on X that Washington would use all available tools against parties that negotiate in bad faith with the United States.

The US embassy in Lima did not respond to a request for comment, according to Reuters.

The resignations of the two ministers came as the government sought to contain the fallout from the dispute and clarify that negotiations tied to the aircraft purchase had not been abandoned, even as the final financial burden was being left for the next administration.