STORY-TRÅD·politik
Brazil seeks to expand trade with Indian companies
Brazil has advanced its strategy to diversify its trading partners by signing a memorandum of understanding with India on Thursday (Aug. 27). The agreement paves the way for greater cooperation between the Brazilian Trade and Investment Promotion Agency (ApexBrasil) and the Confederation of Indian Industry, with the aim of bringing companies from both countries closer together, expanding investment, and creating new business opportunities. The initiative comes as the federal government seeks to mitigate the impact of tariffs imposed by the United States on Brazilian products. Alongside its efforts to find new markets, Brazil is preparing to resume negotiations with the US government. Notícias relacionadas:Brazilian and US ministers to resume trade negotiations.Brazil’s July trade balance posts USD 7B surplus.Brazil, US set date for meeting to discuss tariff hikes.Next Monday (31), Brazil’s Minister of Development, Industry, Trade and Services, Márcio Elias Rosa, will hold a virtual meeting with US Trade Representative (USTR) Jamieson Greer. Foreign Minister Mauro Vieira will also participate in the meeting. Partnership with India Signed at ApexBrasil’s headquarters in Brasília, the document provides for the exchange of market information between the two countries, the sharing of best practices, the promotion of trade fairs, and support for the internationalization of small and medium-sized enterprises. The agreement is non-binding and therefore does not create obligations for either party. The purpose is to foster closer ties between Brazilian and Indian companies and create an institutional framework for joint projects focused on attracting investment and facilitating business opportunities. The initiative is expected to help boost bilateral trade to USD 20 billion by 2030. Last year, Brazilian exports to India totaled nearly USD 7 billion, the highest level recorded in two decades. Imports of Indian products, meanwhile, exceeded USD 8.4 billion. India is currently the tenth-largest destination for Brazilian exports, while Brazil ranks 26th among suppliers to the Indian market. Market diversification For Minister Márcio Elias Rosa, expanding trade relations with different countries has become a guiding principle for the Brazilian government in response to the changing international trade landscape. The minister also noted that trade between Brazil and India has grown by 82 percent in recent years. He added that the country also intends to expand the existing preferential tariff agreement between Mercosur and India, which currently covers 450 product lines. ApexBrasil has identified 378 opportunities for Brazilian products in the Indian market. The agency supports approximately 10 strategic projects focused on India, including initiatives carried out in partnership with agribusiness organizations. Strategic sectors The closer ties between the two countries involve sectors considered strategic, such as pharmaceuticals, bioenergy, biofuels, fertilizers, and medical devices. Another area of interest is the extraction of critical minerals. The Brazilian government intends to expand international partnerships in this field but insists that projects be linked to the development of domestic technology. “Brazil wants to partner with all countries in the extraction of critical minerals, without favoring one country over another,” Rosa emphasized. The strategy may also benefit the Brazilian agribusiness sector, which plans to expand its presence in international markets and reduce the concentration of exports in certain destinations. Brazil-India Trade Bilateral trade target by 2030: USD 20 billion Bilateral trade in 2025: USD 15.2 billion Brazilian exports to India in 2025: USD 6.9 billion Imports from India in 2025: USD 8.4 billion Growth in bilateral trade in recent years: 82% Opportunities for Brazilian products identified by ApexBrasil: 378