D I P L O M AT I C A| TRADE WINDS
Brazil and Canada: diverse and lasting partnership
By Pedro Henrique Lopes Borio
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Brazil is the largest economy in Latin America and 12th in the world, with a GDP of about US $1.45 trillion in 2020.
solar panels and windmills. Brazil and its partners of Mercosur (Argentina, Paraguay and Uruguay) are also negotiating a number of free trade agreements with many other countries, with Canada on top of that group. Such a deal with Canada will expand the trade of goods and services and enhance the environment for investments. The pandemic effects on the world economy are widely known, and tourism was one of the most affected sectors. In 2019, Brazil introduced the electronic visa for Canadians, with facilitated process and reduced costs. Original estimates of an increase in the flow of tourists could not be achieved so far due to travel restrictions, but Brazil expects that more Canadians will soon benefit from the expedient visa process and visit our country. The flow of students from Brazil to Canada has also been severely affected. Canada is one of the main destinations for Brazilian students abroad: In 2017, more than 23,000 Brazilian students enrolled in Canadian universities, colleges and language courses. In addition to the enriching academic experience, such exchanges promote closer human connections and understanding and they will continue. Recently, Canada has included Brazil in the “Student Direct Stream” program, expediting the flow of Brazilian students to Canada. As mentioned, bilateral trade and investments have shown impressive resilience during the pandemic. In 2020, Brazil-Canada trade accounted for US
$6.03 billion, an increase of 6.9 per cent from 2019. Brazil’s exports to Canada include mainly gold, inputs for aluminum, sugar from sugarcane, semi-manufactured goods of iron and steel and coffee beans. Canada’s exports to Brazil include mainly potassium for fertilizers, aircraft, coal, ethylene, medicine and wheat. An example of the investments in the last year was the acquisition of CEDAE, a Rio de Janeiro water treatment company, by a consortium of a Brazilian company and a Canadian investment fund. Likewise, another Canadian fund invested in expanding the wind farms “Complexo dos Ventos do Piauí e do Araripe,” in the Brazilian Northeast, the largest in the country, with a capacity of one million watts. The traditional and close economic ties between Brazil and Canada stem from continuous and persistent efforts from both sides. There is vast untapped potential for further co-operation and more trade, investment and personal exchanges. The expected free trade agreement between Mercosur and Canada will trigger new opportunities, advancing a well-established economic relationship. Other initiatives geared towards reactivating the flows of tourists, professionals and academics will certainly boost the BrazilCanada partnership and continue to help overcome the challenges of the pandemic. Pedro Henrique Lopes Borio is Brazil’s ambassador to Canada. Reach him at brasemb.ottawa@itamaraty.gov.br or (613) 237-1090. FALL 2021 | OCT-NOV-DEC
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ince 1866, with the opening of the first Canadian trade office in Rio de Janeiro, Brazil and Canada have worked together to improve bilateral trade and investments based on a set of shared values. This year, both countries celebrate the 80th anniversary of the establishment of formal diplomatic relations. The traditional and significant bilateral exchanges were critical during the pandemic as trade and investment flows showed resilience amid turbulence and maintained a solid upward trend. Brazil is the largest economy in Latin America and 12th in the world, with a GDP of about US $1.45 trillion in 2020. The country is home to a diverse economy, ranging from commodities to aerospace. Brazil is the third largest exporter of agricultural products, therefore, like Canada, a key actor in feeding the world, with a highly mechanized and technological yield that brings together productivity and sustainability. The Brazilian government is committed to continuing to improve the country’s business environment and facilitating foreign investment and international trade. Extensive tax reform is under discussion to simplify and modernize the rules. Numerous new partnerships with the private sector are also on the way, notably in infrastructure projects, such as roads, railroads, ports, airports, sanitation and water treatment, frequently with Canadian participation. Canada has been a close partner in all these efforts. The Canadian public and private investment funds have been successfully present in Brazil for more than a century and remain key sources for financing companies in a vast array of sectors, now including renewable energy, such as
