India and Brazil signed 15 agreements during the visit of President Jair Bolsonaro. Both sides agreed to increase trade relations from the current USD 7 billion to USD 15 billion by 2022. The Investment Cooperation and Facilitation Treaty will provide the legal framework for future trade between India and Brazil.
CNBC-TV18 caught up with Marcos Troyjo, Brazil’s Vice Minister for trade & international affairs for an exclusive conversation. Troyjo urged India to open up its market to Ethanol exports from Brazil, as this could reduce India’s dependence on fossil fuels and reduce sugarcane stock across the world.
During the visit Prime Minister Modi and President Bolsonaro also spoke about resolving the dispute over sugarcane pricing. Brazil’s top trade official also spoke about expanding the Mercosur Preferential Trade Agreement.
Q: India – Brazil trade stands at about USD 7 billion currently, have the two sides set any trade target during this visit?
A: There was a very interesting speech by Prime Minister Modi acknowledging that the potential that both Brazil and India should elevate bilateral trade relationships up to USD 15 billion by the end of 2022 and I think this is realistic objective because on the one hand India continues to grow very well, and the incremental GDP that India will experience in the next couple of years can be a very important magnet for Brazilian exports of food and agricultural commodities.
Apart from that, we also have to diversify the relationship in terms of the kind of trade flow that we have right now because it is very much focused especially on Brazilian side in low value added goods. I am sure one of the characteristics of the current international scenario is rerouting of global supply chains.
So, Brazilian firms and Indian firms must come together in helping to re-design how trade flows are happening around the world.