Brasília, April 20, 2004 (Agência Brasil) - The governments of Brazil and China want to expand trade and the exchange of agribusiness information. A memorandum was signed yesterday (19) by the executive secretary of the Brazilian Ministry of Agriculture, Amauri Dimarzio, and the Chinese vice-Minister of Agriculture, Zhang Guobao, creating the Sino-Brazilian Agricultural Cooperation Committee.
China and Brazil did US$ 6.8 billion in business last year. For Dimarzio, trade between the two countries this year is expected to attain US$ 10 billion. China is currently the third largest importer of Brazilian goods and first in terms of Brazilian agribusiness exports, according to the Ministry of Agriculture.
The committee should define the areas of interest for mutual cooperation. Alternatives should also be presented to attune the two countries' agricultural trade laws and eliminate eventual obstacles.
The document precedes the ratification of potential cooperation agreements between Brazil and China. President Luiz Inácio Lula da Silva will visit China in May.
China's trade interests revolve around the importation of soybeans and minerals. According to the Ministry of Agriculture, China is the largest importer of Brazilian soybeans, with a participation in that jumped from 15.8% in 2002 to 19.5% last year of all sales subsuming the soy complex. In 2003 soybean shipments to the Chinese market totaled 6.1 million tons, earning Brazil US$ 1.3 billion in foreign exchange.
According to Dimarzio, the Chinese are also interested in making direct investments in Brazil, by either associating themselves with agribusiness entrepreneurs to produce foodstuffs or investing funds in infrastructure and logistics projects.
The Minister of Agriculture, Roberto Rodrigues, informs that the proposal to establish an agriculture agreement between the two countries was made in November by the Brazilian government. The Minister explains that China should experience an increasing demand for agricultural products over the next 20 years. The reason is the expected migration of 400 million Chinese from the countryside to the city.
According to Rodrigues, this exodus should result in a growing demand for water in urban areas. "Since agriculture in China is very dependent upon irrigation, this may mean a change in agricultural production and a growth in demand for food products from other countries. Brazil hence appears as a great partner to meet this demand," Rodrigues affirms.
Translator: David Silberstein
