The U.S. Air Force has canceled a contract with the winner of a competition for the USAF’s new trainer aircraft.

Brazil’s Embraer Defense and Security, along with U.S. company Sierra Nevada, won the contract for the counter insurgency (COIN) aircraft deal in December 2011, for the A-29 Super Tucano.

There are rumors that a company that did not take part in the bidding could get the contract.  Hawker Beechcraft has filed a lawsuit over the whole issue.

The decision to cancel the contract with Brazil could be more about the growing power of the South American country, and its membership in CELAC.

Don’t think awarding the contract to Hawker Beechcraft would create more U.S. jobs. Officials with Sierra Nevada said the contract would have allowed them to hire 1,200 people in Florida, compared to 1,400 with Hawker Beechcraft.