Brazil and Argentina take joint actions to strengthen alliance
During their meeting at the Itamaraty Palace, headquarters of the Ministry of Foreign Relations in Brasília on Monday (Jun. 26), President Luiz Inácio Lula da Silva highlighted that both countries have implemented nearly 100 initiatives to give substance to their joint development project. Lula also announced that the Brazilian government is actively working on establishing a “comprehensive financing line” to support Brazilian exports to Argentina.
"We have adopted an ambitious action plan to revitalize our strategic alliance," stated Lula alongside President Fernández.
Lula expressed his satisfaction with the positive prospects for financing from the National Bank for Economic and Social Development (BNDES) for the export of products related to the construction of the President Néstor Kirchner gas pipeline. Argentina has shown support for this gas pipeline project, which aims to transport gas from the Vaca Muerta shale reserves to Brazil.
"It doesn't make sense for Brazil to lose space in the Argentine market to other countries because they offer credit, and we don't. Everybody wins, Brazilian companies and workers, and Argentine consumers," added Lula while speaking about the creation of a financing line for Brazilian exports to Argentina.
During his brief speech, Lula reiterated the need for a specific reference currency for regional trade, which would help reduce operational costs and dependence on foreign currencies. "We need to move in this direction [expansion of commercial exchange], with new and creative solutions that allow greater financial integration and facilitate our exchanges," he said.
Argentina is Brazil's third-largest trading partner, with Brazilian exports to Argentina reaching $15.3 billion in 2022. Meanwhile, imports of Argentine products into Brazil amounted to $13 billion.
Decoration
President Lula awarded President Fernández the Grand Necklace of the National Order of the Southern Cross, a prestigious decoration bestowed upon foreign dignitaries. Additionally, the first lady of Argentina, Fabíola Yañez, was decorated with the Order of Rio Branco.
"Both President Fernández and First Lady Yañez represent a nation for which we Brazilians have respect and affection, and their presence on this special occasion is a great honor," stated President Lula.
