terça-feira, 12 de março de 2019

New Brazilian international trade policy - We want to export soy and iron ore but won't sell our souls

Mr. Ernesto Araujo, the current Minister for Foreign Affairs, has given us some insights on what to expect of Brazil's future trade policy. 

During a public lecture to a class of new ambassadors Mr. Araujo has stated that  "We want to export soy and iron ore but won't sell our souls for that".

Although dramatic (he is very poetic is his speeches), the phrase is a good condensation of the main points of the new policy. 

That is what I can infer from what Mr. Araujo said in his lecture:

a) Brazil will probably try to atract other bidders for big public tenders, such a hydroelectric and railway projects. So far, Chinese investments in these areas has been predominant;

b) Brazil will NOT tax exports to China or impose export quotas; but it will try to make the market lesse dependant on Chinese demand;

c) as discussed in my article about Bolsonaro's plans, Brazil will probably tighten the enforcement of restrictions to the purchase of rural land by foreigners;

d) the Minister alluded to the fact that commerce with China and other socialist/communist nations did not bring as much economic development as expected by the people, or promissed by the previous administrations. This may be interpreted as a pivot towards the US and other countries with freer economies;

e) his comments on the harsh reality of international commerce and international competition seem to be a hint towards Bolsonaro's government plan which clearly stated the objectives of reducing import tariffs and incentivizing high-tech industries. 

Nenhum comentário:

Postar um comentário

Do you have any doubts or suggestions? Leave your message (the comments shall not be considered as legal advice)