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A Disputed Jet Deal and Pressure From the Trump Administration Shake Peru’s Government

by TSB Report
April 24, 2026
in World
Reading Time: 5 mins read
A Disputed Jet Deal and Pressure From the Trump Administration Shake Peru’s Government
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Peru’s military moved ahead this week with a deal to buy American fighter jets despite the president’s public objections, after pressure from Washington triggered a cabinet shake-up and political turmoil in the South American nation.

The dispute erupted in the middle of the country’s turbulent presidential election, fueling debate over national sovereignty and the implications of closer military ties with Washington.

This week a $2 billion contract for a dozen F-16 aircraft was signed by an official in Peru’s air force and an initial payment to Lockheed Martin, the manufacturer, was made by the finance ministry.

The moves were carried out without the approval of interim President José María Balcázar.

Mr. Balcázar was informed about the deal only after the agreement had been signed, according to Peru’s former foreign minister, Hugo de Zela. Mr. Balcázar said he was reluctant to advance the deal because he was in an interim role.

Both Mr. de Zela and the defense minister, Carlos Díaz, resigned on Wednesday to protest the president’s efforts to derail the deal. Some lawmakers called for Mr. Balcázar’s impeachment.

Peru has long planned to modernize its aging French and Russian aircraft fleet, much of it acquired in the 1980s.

Buying F-16s over European alternatives that were also in contention would commit the country to a U.S.-designed military system for decades, aligning it more closely with Washington.

Mr. Balcázar, an 83-year-old lawmaker who took office in February after Peru’s third presidential impeachment in four years, has largely kept a low profile and initially backed an earlier decision to select the U.S. bid.

But hours before a ceremonial signing last Friday, he announced in a radio interview that the next president should decide, saying his interim government lacked the legitimacy to make such a large investment.

The U.S. ambassador to Peru, Bernie Navarro, said he learned of the postponement from the radio. In a sharply worded statement, he warned that Washington would use “every available tool” to promote its interests.

Some Peruvian politicians had urged Mr. Balcázar to proceed with the agreement, while others condemned Mr. Navarro’s remarks.

“It’s extortion,” Jorge Nieto, a centrist presidential candidate and former defense minister, said in a television interview. “If we don’t play our cards right, we run the risk of turning from a country into a territory.”

Mr. Navarro said Washington was “happy” with the deal and rejected accusations of meddling.

“The United States would never, ever put pressure on a country or interfere in its internal processes,” he told a local radio station on Wednesday. He said the deal over the fighter jets reflected years of negotiations with Peruvian officials and compared Mr. Balcázar’s last-minute reversal to leaving “the bride at the altar.”

In a statement, the U.S. Embassy in Lima said it had “worked closely and in good faith” with Peru for more than a year and a half. The agreement, the embassy said, was reached “with full awareness from the highest levels of the Peruvian government.”

If the deal had not been finalized, Mr. Navarro said, the cost of the planes would rise and Peru’s reputation would suffer.

“My job as ambassador is to bring investments to Peru,” he said.

The episode has raised questions about the legitimacy of a military purchase seemingly finalized in secrecy and against the president’s wishes.

“The one to decide should be the president” because of his authority over foreign policy and the armed forces, said Gonzalo Banda, a political analyst. He called Mr. Balcázar’s refusal to sign the contentious deal “perfectly sensible.”

A Swedish manufacturer, Saab, had been the preferred choice in earlier stages of the bidding process, according to Peruvian news and defense media reports.

On Wednesday, as F-16s flew over Lima ahead of a military air show this weekend, Mr. Balcázar sought to calm tensions in a televised address.

“Our only intention has been to ensure that state funds are used appropriately,” he said. “At no point has there been any intention of confrontation with the United States.”

With an initial payment already made, it could be costly for Peru’s next president to reverse course. Preliminary results from the first round of voting show that a right-wing candidate, Keiko Fujimori, who supports the deal, may face a leftist, Roberto Sánchez, in a June runoff, though the second-place spot remains too close to call.

Mr. Sánchez has questioned the need to spend billions of dollars on fighter jets and has campaigned against what he describes as U.S. dominance in the region.

The controversy is unfolding as Peru struggles to balance its relationship with the United States against China’s strong presence in the country. U.S. officials have recently raised objections over an enormous Chinese-controlled port on the Pacific Coast, which they say could have military applications.

The origins of the F-16 deal have also sparked doubt. In February, as Mr. Balcázar’s predecessor, José Jerí, faced a scandal over secret meetings with Chinese businessmen, Mr. Navarro publicly backed him. Mr. Jerí’s government then supported the U.S. bid. He was later impeached.

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