Paraguay in talks with Brazil to buy six Embraer combat planes

ASUNCION (Reuters) -Paraguay is negotiating with Brazil to buy six Embraer Super Tucano A-29 fighter planes for $96 million as part of its efforts to fight drug trafficking, Defense Minister Oscar Gonzalez said on Thursday.

The deal is part of a $500 million package the South American nation's government is allocating to defense and security projects, Gonzalez told reporters.

"We're aiming (to close the deal) this year," Gonzalez said, adding that the agreement, negotiated between the Paraguayan and Brazilian governments, would be used to face off "new threats" from drug trafficking and organized crime.

The government had on Thursday issued a decree authorizing the operation, without a public tender, though Gonzalez said the process must still be approved in Congress.

Days earlier, nearby Uruguay said it was in "very advanced" talks to buy six of the same Embraer combat planes to boost its armed forces.

(Reporting by Daniela Desantis; Writing by Sarah Morland; Editing by Alexander Villegas and Aida Pelaez-Fernandez)