BRAZIL-CHINA
An Asymmetric Trading
Partnership
By Mario Osava
BRASILIA (IPS) - "Brazil must increase
the added value of its sales" to balance
its trade with China, said Brazilian
President Luiz Inácio Lula da Silva, the
only note of criticism in his references
to the partnership between the two
countries after they signed a Joint
Action Plan.
Bilateral trade showed "spectacular"
growth of "780 percent since the
beginning of my administration" in 2003,
and reached 36 billion dollars in 2009
in spite of the global economic crisis,
Lula said.
But this trade is asymmetric. Brazil
exports almost exclusively minerals and
agricultural products, and imports
Chinese manufactured goods.
The various agreements signed at
Thursday's meeting in Brasilia cover the
agricultural sector, including
cooperation between research centres and
phytosanitary (plant health) issues,
aimed at expanding commodity exports
from Brazil.
Agreements were also reached on oil
exports, and on cooperation between the
two countries' state oil companies for
exploring Brazilian reserves of fossil
fuels. The technology sector was also
included, for example joint satellite
launchings, a programme that has been
developed over many years, as well as
intellectual property.
But the main document signed by Lula and
Chinese President Hu Jintao was the
Joint Action Plan, which establishes
guidelines for expanding and deepening
all-round bilateral cooperation over the
next four years.
The plan sets out goals, methodologies
and initiatives in 11 areas. For
instance, a Cultural Month of China in
Brazil is planned for this year, and a
similar event for Brazil will be held in
China in 2011. In the sphere of
education, scholarships and other
exchange programmes were announced, as
well as the teaching of both languages
at the two countries' universities.
The 9,857-word (in Portuguese) document
also defines the tasks of a number of
sub- commissions, coordinated by the
China-Brazil High Level Coordination and
Cooperation Commission, covering joint
action in space cooperation, information
technologies, science, agriculture,
plant health, energy and mining, as well
as more general issues like economics
and politics.
The two countries have "universal
vocations and global interests" in
common that underlie the "strategic
partnership" between Brazil and China,
said Lula, who called Hu a "friend" and
"statesman." He expressed deep
condolences to China over the earthquake
that hit the northwestern part of that
country on Wednesday.
Because of the disaster, which killed
over 700 people and injured thousands,
Hu left Brasilia Thursday night,
suspending his planned visits to
Venezuela and Chile.
The BRIC (Brazil, Russia, India and
China) Summit, originally scheduled for
Friday morning, was also brought forward
to Thursday evening.
Hu's visit coincided with the fourth
summit meeting of the India-Brazil-South
Africa Dialogue Forum (IBSA),
established in 2003 as a coordinating
mechanism to promote cooperation between
countries and regions of the global
South, including civil society.
The opportunity provided by the presence
of the presidents and Indian Prime
Minister Manmohan Singh was taken to
convene a summit of the BRIC group.
At the presentation of the Brazil-China
agreements, Lula referred to Brazil's
economic progress, which together with
China's rapid growth means the two
countries have "the capability, and the
obligation, to fight for a new world
order."
This must replace today's "asymmetric,
dysfunctional globalisation," he said.
Today, Brazil is an agricultural power
and the phytosanitary agreement signed
with China will expand its agricultural
exports. But Brazil should also increase
its sales of technological products,
like airplanes and their parts, because
the two countries also cooperate on
aviation and space technology.
The launching of the fourth joint
Chinese-Brazilian satellite, possibly
next year, is a sign of the
strengthening of the bilateral
partnership, Lula said.
The Chinese state company Sinopec is now
the largest buyer of Brazilian oil,
importing 200,000 barrels per day, Lula
said.
The partnership extends to the sphere of
international negotiations, as China has
joined the Group of 77 (G77) countries
that represents the developing world in
multilateral bodies.
China's annual economic growth, at close
to double digits, has created a large
market for Brazilian agricultural and
mining products, but analysts and the
business community fear that the South
American country may end up a mere
supplier of raw materials. Closer
bilateral ties have already led Brazil
to refer to China as a "market economy,"
although economists in this country are
sceptical of this description of the
Asian power.
Hu said Brazil and China would diversify
and increase bilateral trade, and
expressed his thanks for the solidarity
received in the wake of Wednesday's
disaster. (END)
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