This week, President Nicolas Sarkozy was in Brazil, where he met with President Lula in Rio de Janeiro. On Tuesday, they signed an arms agreement worth US$12 billion to help Brazil protect its oil fields and the Amazon.

The deal involves the purchase of fifty Super Cougar helicopters from France, as well as the joint assembly of a nuclear submarine and four diesel submarines. The deal will make Brazil the first Latin American country to own a nuclear submarine. France will also provide night vision equipment and remote monitoring technology for military use in the Amazon.

For more information, see Bloomberg and the LA Times coverage.