Peru’s defense and foreign ministers resigned on Wednesday after President Jose Maria Balcazar suspended a controversial deal to purchase 24 F-16 fighter jets from Lockheed Martin, citing the need to leave the decision to his successor.
The resignations came hours after Balcazar announced he would defer the $3.5 billion procurement until the next administration takes office in July, a move that followed reports that the government had already paid a $462 million down payment — equivalent to roughly Rp 7.9 trillion — despite the deal’s suspension. The two ministers, Carlos Diaz and Hugo de Zela, said in their resignation statements that a strategic national security decision had been made that they could not support.
Adding to the confusion, Diaz and de Zela separately claimed the contract had actually been signed on Monday with Lockheed Martin, General Electric Aerospace, and RTX Corp, with an initial payment of $2 billion scheduled for Wednesday and a second tranche of $1.5 billion to follow. Their assertions contradicted the administration’s public stance that the deal was frozen, deepening uncertainty over the status of the procurement.
The F-16 purchase has long been contentious in Peru, with critics alleging it is less about defense modernization and more about currying favor with the United States, particularly during the presidency of Donald John Trump. Balcazar, who assumed office in February after Congress selected him to replace a recently removed president, has faced scrutiny over the timing and transparency of the negotiations, which have been underway for years to replace aging Mirage 2000 and MiG-29 aircraft from the 1980s and 1990s.
The United States reacted sharply to the suspension, with Ambassador to Peru Bernie Navarro warning on social media that Washington would use “every tool available” against parties negotiating with the U.S. in “bad faith.” Navarro’s comment followed the cancellation of a scheduled signing ceremony just hours before it was to take place, which officials said was halted to avoid binding the next government to a major defense commitment.
Peru is currently in the midst of a tightly contested presidential runoff between conservative candidate Keiko Fujimori and an unnamed opponent, with vote counting ongoing after a turbulent first round. Balcazar said deferring the jet purchase allows the incoming president — set to be inaugurated in July — to make the final call on a deal that has become a flashpoint in national security debates.
The conflicting narratives — between a suspended deal, alleged advance payments, and claims of a signed contract — highlight the fragility of defense procurement during political transitions. Similar tensions emerged in 2021 when Ecuador froze a comparable jet deal amid leadership uncertainty, only to revive it months later under a new administration.
For Lockheed Martin, the Peru contract represents a significant foothold in South America, where it competes with European manufacturers like Sweden’s Saab and France’s Dassault for aging fighter fleets. The company was designated as prime contractor in a September 2025 State Department approval valuing the full package at approximately $3.42 billion, including support and training.
As Peru’s political future hangs in the balance, the fate of the F-16 deal remains unresolved — caught between administrative ambiguity, ministerial dissent, and external pressure from Washington, with delivery of the aircraft now projected for 2029 or 2030 if the purchase proceeds.
Why did Peru’s defense and foreign ministers resign?
They resigned in protest of President Balcazar’s decision to suspend the F-16 jet purchase, stating they disagreed with a strategic national security choice that had been made without their support.
What is the current status of the F-16 contract with Lockheed Martin?
The administration says the deal is suspended, but the two resigning ministers claim the contract was signed on Monday and that payments are scheduled, creating a clear contradiction in official accounts.
How has the United States responded to Peru’s suspension of the jet deal?
The U.S. Ambassador to Peru warned that Washington would use “every tool available” against parties perceived to be negotiating in bad faith, reflecting American dissatisfaction with the delay.
