They are taking deliveries of new F-16I "Sufa", as we speak. They are Block 52 two-seaters, with CFT and lots of Israeli components of course. 50 ordered in 2000, 52 more in 2001, first deliveries in 2003, final deliveries in 2009. Deal of 4.5 billion USD.
US promised Israel some 30 billion military aid for the next 10 years. Few more years and they'll start shopping for a fifth gen fighter, F-35 probably...
If SAAB sells Gripen to a country that may use them for war and it would do "very good" in combat. That would increase its apeal on the market, right? But why cant SAAB or General Dynamics sell their equipment to countries where they had a coup or being instable? It does not make any sense, weapons of any form are destructive, no matter in whos hands it´s in.
Politics. Actually the "rules" depend on what the government's policies are and how they are prioritized, more than whether the weapon will be used yes or no. Deliveries weapons would not reflect the government's policy of protesting human right violations, defusing the instability, not recognizing the new goverment, or not fuel an arms race or support a regime, or whatever the case. If the policy of supporting an important ally is more important than such things, weapons are delivered even though they are not just a deterrent and actually used. It's just politics... it's not as simple as weapons are good vs weapons are bad.
The Netherlands (initially) supported the Operation Iraqi Freedom politically, but not military. Which was actually something like saying, we don't want a war, don't want conflict, but we must agree with and support the US on anything they do and Saddam is bad, so okay you can invade another country and kill people...
Anyway, I think the Swedish government will add up all the pros and cons of this deal, and let it go through. Since the US reluctance to sell them new F-16s, I wonder if there will be any intervention from the US on this though, because of the US components? Thailand has not been placed under a US embargo, right? Otherwise, it would be time to fit the EJ200?