Temer: Brazil's share in international trade to reach 10%

President Michel Temer has shown optimism about the country's agricultural sector as a driver of economic growth, with the incentives from the Agro+ streamlining plan.

Temer went to São Paulo on Monday (Feb. 20) to launch the program in the state. He believes it will help increase Brazil's share in international trade from the current 6.9% to 10% in the coming years.

The program is designed to streamline agribusiness by reducing the cost of business in the sector and mitigating red-tape inefficiencies. São Paulo has been the second state to adopt the program, after Rio Grande do Sul.

Speaking to an audience of agribusiness representatives, Temer responded to those calling on the government to take pragmatic action to address the economic crisis. He said that when he took over as president nine months ago he had found “severe recession” and the first goal was to emerge from it.

To illustrate his point about the government's progress in pursuing this goal, he said “Petrobras had hit rock bottom, but its market value has increased 145%” and that other state-run companies have also seen their shares appreciate.

He went on to mention the decrease in inflation—the January rate (0.38%) reached the lowest level in 20 years—and its tendency to converge toward, and even fall below, the target of 4.5%. As a result, he said, the scenario tends to lead to interest decreases, thus allowing the country to “restore confidence” and investment.

“This is a reform-driven administration. We want our country back on track,” he said, adding that reviving Brazil's economic growth would require measures to control spending.

The president denied the opposition's claims that the pension and labor reforms he is leading will remove workers' rights. “This is not true at all,” said Temer as he asserted he would not touch existing rights.

He again said farming development is among the priorities of his government and that agriculture has been the central theme in all his conversations with other countries.

Cutting red tape

Agriculture Minister Blairo Maggi, who was at the event, said the ministry expects all the states to have adhered to the Agro+ plan by the end of the year. He also reported receiving 400 requests related to cutting red tape so far, of which 300 have already been addressed. Among these demands to enhance regulatory processes and technical standards the government has responded to was a change in the freezing temperature for pork (-18°C to -12°C), a standard that has already been in place in other countries.

Agro+SP

Last year, São Paulo's agribusiness sales totaled about $5.8 billion, up 12.8% compared to 2015. Sugar/ethanol, meat, juice, forest products, and soy products are some of the commodities in high demand.

Translated by Mayra Borges