Key Facts

• Peru's interim President Jose Maria Balcazar delayed the decision on purchasing 24 F-16 fighter jets from the U.S.
• Defence Minister Carlos Diaz and Foreign Minister Hugo de Zela resigned in protest over the delay.
• The deal, originally approved in 2024, was valued at $3.5 billion and financed by domestic borrowing.
• The agreement was meant to add 12 new jets initially to Peru's aging air force.
• The U.S. ambassador to Peru warned that delaying the deal could harm U.S.-Peru relations and called the jets "the most technically advanced fighter jets ever built."
• Critics in Peru have suggested alternative offers from French and Swedish companies, but the U.S. denies being outcompeted.
• Peru has experienced political instability, with several presidents impeached or removed in recent years.
• The Trump administration is working to strengthen U.S. influence in Latin America, including urging Peru to reduce economic ties with China.