India-Brazil Economic and Commercial Relations

The following are the highlights of economic relations between India and Brazil during the year 2003 :-

1. Indian companies and export promotion bodies participated regularly in trade fairs in Brazil, mostly in Sao Paulo. EEPC organized an exclusive Engineering Fair – Indiatech – in Sao Paulo in November 2003.
2. As an important member of MERCOSUR, Brazil provided valuable assistance to India for signing a Framework Agreement with the bloc in June 2003 in Asuncion. (During President Lula’s visit to India, MERCOSUR signed a Preferential Customs Duty Accord on 25^th January, 2004. The accord expands on the framework agreement signed in June last year. The Customs Duty Accord is expected to eventually lead to a free-trade agreement. As the next step in this process, India and the MERCOSUR will prepare lists of products that would receive preferential treatment. This phase is expected to be concluded by June 2004).
3. During his visit to Brazil, EAM and the Foreign Ministers of Brazil and South Africa held a trilateral meeting on June 6, 2003 and established a trilateral India-Brazil-South Africa (IBSA) Dialogue Forum to promote mutual cooperation and to voice jointly the demands and concerns of South. A Trilateral Joint Commission was also set up. It was agreed that all the three countries should cooperate in opening up their markets to each other and not depend entirely on the developed countries for investment and export etc. Agriculture, defence, aeronautics, IT, biotechnology, civil aviation, etc. were identified as areas of cooperation. The three countries also voiced jointly their demand for democratisation of the UN system and agreed to project unitedly the views of the developing countries on WTO matters, etc. (The first meeting of the Trilateral Joint Commission was held in New Delhi on March 4-5, 2004).
4. India and Brazil adopted a common approach during the WTO meeting in Cancun, Mexico in September 2003 to ensure an equitable international trade.
5. On September 3, 2003 Defence Secretary Shri Ajay Prasad announced Government of India’s decision to purchase 5-legacy jets from Brazil’s Embraer at a cost of US$ 158 million.
6. Shri Arun Jaitley, Minister of Law & Justice and Commerce & Industry visited Brazil to attend the G-20 (WTO) meeting from 11-12 December 2003. Shri Jaitley had extensive discussions with Brazilian Foreign Minister Celso Amorim, Development, Industry and Foreign Trade Minister Luiz Fernando Furlan and Agriculture Minister Roberto Rodrigues. Shri Jaitley had also useful discussions with EU Trade Commissioner, Mr. Pascal Lamy and DG (WTO), Mr. P. Supachai.

The following tables shows the bilateral trade since 1997 :-

[Source: SECEX: Ministry of Development, Industry & External Commerce, Brazil]

3. The following table shows Brazil’s total imports and India’s share therein since 2001:-

[Source: SECEX: Ministry of Development, Industry & External Commerce, Brazil]

During 2002, India-Brazil trade reached a record 1.226 billion dollars. During 2003, India-Brazil trade decreased but was still over US$ 1 billion. The Brazilian imports from India during the year 2003 decreased by 15.22% over the imports from India during the year 2002. Brazilian exports to India during the year 2003 also decreased by 15.30% over the exports to India during the year 2002.

India-Brazil Trade (in US$ million) – Jan./Dec. 2003 vs. Jan./Dec. 2002

[Source: SECEX, Brazil (All figures in US$ million)

Source : Indian High Commission, Brazil