Historical, social and cultural relations between Portugal and Brazil are inevitably strong, thanks to more than 500 years of association. Political relations, after stagnation under the government of former President Jair Bolsonaro, seem to be strengthened with the election of Lula da Silva. And the economic relations, how are things going? “More or less,” says an expert to DN/Dinheiro Vivo. In summary, Brazil exports a lot from Portugal but imports little. And it invests reasonably in the small European country, unlike the Portuguese in Vera Cruz.
“In terms of investment by Brazilians in Portugal, there are localized but heavy areas: namely real estate, and not only because of the visa issue, but also taking into account attractive prices and medium-term investments”, underlines Leonardo Trevisan, professor of economics and international relations at the Superior School of Advertising and Marketing in São Paulo.
“There is also the agri-food sector and also the Brazilian franchise chains that not only focus on Brazilians living in Portugal, but also on the Portuguese themselves and on the digital market,” he tells DN/Dinheiro Vivo.
“In the end,” the academic points out, “Brazil is the third non-European country in terms of investment in Portugal, which is relevant, all the more if we take into account that it loses only to the giants United States and China “.
The opposite relationship, on the other hand, has a long way to go, says Trevisan. “From Portugal to Brazil, the investment is small: in 2021 it was only 88 million euros and in 2022 it grew to 127 million, but still far below what is possible if we compare it with other countries of the same size and GDP or even below that of Portugal”.
“EDP is leading this investment, and very well, but the investments in general are still below what is possible and it is certain that Lula could have helped show business opportunities in Brazil and bring a different image of the country to present to Portuguese businessmen in this official visit, with the help of the Ministry of Foreign Affairs and the Brazilian Agency for the Promotion of Exports and Investments”.
In the trade balance between the South American giant and the small country in southern Europe, Portuguese exports focus on what is traditionally called the “saudade market”, that is, products with emotional appeal between the two peoples.
“Portuguese exports to Brazil are dominated by products such as cod, olive oil, wine and fruit,” says the university professor. “Interestingly, this market has made a lot of progress in the last five to ten years with recent environmental regulations, i.e. the products are already undergoing industrialized treatment and this added value is important to maintain the Brazilian market for Portuguese companies these sectors”.
“However, contrary to what one might think, Brazilian exports to Portugal include items such as vehicles, machinery, plastic or rubber, according to the Foreign Trade Secretariat of the Brazilian Ministry of Economy…” continues Trevisan.
“Of course Portugal, with its 10 million inhabitants, is not a market for Brazil comparable to China, with its 1.4 billion, but the number of Brazilian exports is very significant compared to countries with a GDP comparable and even countries bigger and richer than Portugal,” he adds.
The economic relationship between Portugal and Brazil can also be explained by an acronym, EU, and an acronym, Mercosur. That is, the relationship between the European Union, of which the Portuguese have been a part since 1986, and the Southern Common Market, a regional intergovernmental organization established on March 26, 1991 on the basis of the Treaty of Asunción, which promotes regional economic integration between the South American Member States, for the time being alone
A political agreement was reached between the two blocs in 2019, after more than 20 years of complex negotiations, but it was not finalized due to fears over the environmental policies of Bolsonaro, a defender of economic and mineral exploration in the Amazon. The tone changed with Lula’s inauguration, in January, and Europeans and South Americans are now discussing how to include the climate issue in the negotiated agreement, as the former demanded.
“An agreement with Latin American countries is not possible if the same environmental and health constraints as the EU are not respected,” French President Emmanuel Macron declared in February. Foreign Ministry spokeswoman Anne Claire added on Thursday, May 20, that France supports “the extremely ambitious commitments to reverse the rapid dynamics of deforestation on the part of the new Brazilian government,” which plans to to put an end to this environmental catastrophe. problem in 2030.
“Portugal is mainly seen by Brazilian investors as a gateway to the European Union,” Trevisan recalls. “A friendly gateway, by the way, and not only because of the language, but also because of the proximity of customs to which the common history between the countries is, of course, no stranger”.
“There are several projects that are clear examples of this: Embraer [conglomerado transnacional brasileiro, fabricante de aviões comerciais, executivos, agrícolas e militares, peças aeroespaciais, serviços e suporte] has a production unit in Portugal for adaptation and full adaptation to European regulations.” “And this investment must grow with the Super Tucano’s [aeronave turbo-hélice de ataque leve e treino avançado produzida pela Embraer]a subject that was certainly discussed during Lula’s visit”.
In meetings with Marcelo Rebelo de Sousa, President of the Republic, António Costa, Prime Minister and other Portuguese authorities, Lula took seven ministers and the intention to sign agreements in the fields of technology, energy, culture, tourism, health and education, in addition to tackling the problem of climate change.
After Portugal, the Brazilian president begins his visit to Spain, a few days after returning from a trip to China and the United Arab Emirates, and after meetings in Washington with Joe Biden and with the heads of state of neighboring Argentina and Uruguay.
Source: DN
