Deals expected to boost Brazil–Italy trade
Brazil–Italy ties, solid as they are today, may be even further bolstered after the conclusion of economic deals and the creation of investment opportunities expected to give more momentum to bilateral trade, authorities from both countries believe.
Abrão Miguel Neto, Secretary for Foreign Trade with Brazil’s Ministry of Industry, Foreign Trade, and Services, argues that “the much-awaited agreement between Mercosur and the European Union will certainly optimize this connection.”
A recent study by the Getúlio Vargas Foundation, a Brazilian institution renowned for its research on economics, shows that the Mercosur–EU deal may bring about an increase of up to 50 percent in the trade between the two blocs, Neto mentioned.
“By reducing market obstacles and setting predictable rules for greater economic and commercial integration, this accord offers the historic opportunity to even further intensify trade and investment between Brazil and Italy,” Neto said.
A complementary element
In the opinion of Italy’s Ambassador to Brazil Antonio Bernardini, “there is a complementary element in the economic ties between Italy and Brazil—the latter with a consumer market of continental dimensions, rich in natural resources and raw material; the former endowed with a business landscape with state-of-the-art technology in a number of sectors key to the Brazilian economy.”
Italian executives have a great interest in the Brazilian market, he said. “A clear example is, our companies never stopped believing in investing in Brazil, even in the most severe stages of the recent crisis, from which the country is currently emerging. Italy’s business presence encompasses about a thousand firms productive in Brazilian territory. They contribute significantly to the creation of employment, especially in the auto, telecommunication, infrastructure, and energy sectors.”
Trade
As it stands today, the commercial exchange between Brazil and Italy evince the harmony between the two, with a balance leaning slightly on Italy’s side. In 2017, for instance, Brazil exported $3.56 billion to the European country and imported $3.95 billion, a $397 million surplus for the Italians.
From January to June this year, exports added up to $1.79 billion, whereas imports from Italy amounted to $2.32 billion—a positive balance of $521.88 million for Italy.
Italy ranks 11th among countries importing from Brazil, with 1.58% of Brazil’s total exports, and 8th on the list of nations exporting to Brazil, with 2.77% of the total sum.
Long-time partners
Secretary Neto notes that Brazil and Italy “are long-time economic partners. Among the goods exported by Brazil to the Italian market are coffee beans, cellulose, leathers and furs, and iron ore. Also key are manufactured foods, like vehicle engines and parts, plastic polymers, flat-rolled products and pumps, as well as compressors.”
As for Brazilian imports in Italy, Abrão mentioned medications, auto parts and vehicle engines. “The investment flow between the two countries gains momentum as several Italian companies make their presence felt in Brazil and the number of Brazilian enterprises interested in investing in Italy is seen ever on the rise.”
Ambassador Bernardini pointed out that the political relations between Italy and Brazil are based on a common heritage of democratic values and a wide range of contacts established both at the centralized government level and local and regional level—between provinces, states, and cities. Millions of Brazilians are descendants of Italians, and the Italian community in Brazil is large and seen to increase every year.
The Italian diplomat went on to say that the fact that Italy and Brazil are members of the world’s main international organizations—such as the UN, the WTO, the WHO, and the FAO—enable the two countries to forge fruitful joint efforts through which peaceful solutions are sought to address controversies, enforcing and promoting human rights, protecting the environment, and ensuring sustainable development as well as multilateral economic cooperation.
He further mentioned “other opportunities [for the two countries] to come together and address issues on the global stage: the regional summit meetings held by the EU and South American organizations (EU–Celac and EU–Unasur), not to mention the annual G20 summit meetings.”
To conclude, Bernardini argued that the complementary nature of Italy–Brazil relations could have even greater growing potential after the commercial treaty between the EU and Mercosur was concluded, and after the Latin American country joined the Organization for Economic Cooperation and Development (OECD)—formed by 34 countries intent on implementing policies aimed at economic development and social welfare—of which Italy is an enthusiastic member.
