Brasília, May 17, 2004 (Agência Brasil) - On Saturday (22), the President of Brazil, Luiz Inácio Lula da Silva, departs for the Peoples' Republic of China, where he will visit Beijing and Shanghai. His return is scheduled for May 27. According to the Chinese Consul-General in Brazil, Li Baojun, 509 Brazilian entrepreneurs have already formally requested visas to accompany the presidential entourage to China, whose annual growth rate of around 8.5% makes it one of the world's most promising economies.
The business elite thus demonstrates the visit's highly commercial purpose, which is also encouraged by the hosts. "China intends to increase its cooperation with Brazil and the Mercosur in various areas, including the trade sphere," Chinese Ambassador Jiang Yuande guaranteed today at a breakfast offered to the press (Brazilian and Chinese) in Brasília. He admits that his country is already evaluating the hypothesis of establishing a free trade agreement with Brazil.
For Yuande, business transactions between the two countries are still modest in comparison with both countries' potential. "Brazilian entrepreneurs could be more aggressive," the diplomat remarked, citing sales of beef and coffee as examples of Brazilian products that have yet to become popular in China.
The Ambassador affirmed that, in his country, Brazilian beef is not nearly as well-known as Australian beef. Brazilian coffee was also mentioned by the diplomat as "timid" in the Chinese market. Yuande believes that Colombian coffee gets more propaganda and consequently is more successful especially in winning the following of youth, who are more accustomed to drinking this beverage. "In restaurants one pays US$ 10 for a cup of coffee," the Ambassador informed.
Even without taking full advantage of the potential of the Chinese market - the largest in terms of the quantity of consumers, since the population approaches 1.3 billion - Brazil enjoys a surplus in the bilateral trade balance. Last year's surplus was approximately US$ 3.7 billion, mostly from sales of soybeans, vegetable oil, leather, and iron ore. Brazilian transgenic soybeans are another product that recently began to enter Chinese ports.
Yuande foresees a growth in Chinese exports to Brazil in the coming years. "We are going to invest in the São Luís Steel Plant, in the Brazilian Northeast, and we encourage private investors to buy land in the country to plant soybeans," he commented.
CHINA MAY BACK BRAZIL'S ATTEMPT TO WIN A PERMANENT SEAT ON THE UN SECURITY COUNCIL
With President Luiz Inácio Lula da Silva's trip to the Peoples' Republic of China, Brazil may be closer to obtaining that country's support in its attempt to become a permanent member of the UN Security Council. This support is important, because China is one of the five countries that have permanent seats on the Council.
Brazil currently occupies a temporary seat on the Council, which is the most important source of decisions on issues of world peace. "China views the question with sympathy, supports Brazil's desire to play a bigger role in the United Nations, and we can discuss this matter further," said the Chinese Ambassador to Brazil.
The Security Council includes as permanent members the United States, China, Russia, France, and Great Britain, nations which have voting rights and veto powers in international decisions of great significance for world peace.
Translator: David Silberstein
