Brazil and United Kingdom enter partnership for export credit

On Wednesday (23), Brazil’s Vice President and Minister of Development, Industry, Commerce, and Services (MDIC), Geraldo Alckmin; the United Kingdom’s Minister for International Trade and Business, Jonathan Neil Reynolds; and the President of the Brazilian Guarantee Fund Management Agency (ABGF), Maíra Madrid, signed an agreement establishing the groundwork for a risk-sharing partnership between Brazil, through Export Credit Insurance (SCE) backed by the Export Guarantee Fund (FGE), and United Kingdom Export Finance (UKEF).

This unprecedented agreement, signed during a G20 Trade and Investment Working Group meeting in Brasília, may benefit international sales of products containing both Brazilian and British content from joint export insurance. For example, a Brazilian aircraft with a British engine could secure insurance from UKEF and reinsurance from ABGF. This accord is the culmination of more than a year of discussions between the Executive Secretariat of Brazil’s Foreign Trade Chamber (SE/CAMEX) and UKEF.

“This partnership will strengthen our export support system, making high-value-added exports from both countries more attractive by potentially lowering financing costs through joint guarantees,” stated Vice President Geraldo Alckmin.

The next step is to define the terms that will govern the risk-sharing between MDIC/ABGF and UKEF, such as reinsurance structures, to reduce risk exposure for both countries in their official export credit support programs.

G20

During the meeting, the two countries also reached a shared understanding of the importance of addressing topics like women and international trade, which are under discussion within the G20 Trade and Investment group.

Other mutual interests discussed included decarbonization, reducing bureaucratic obstacles, and cooperation toward creating a Unified Foreign Trade Portal. The meeting also highlighted Brazilian companies in the UK and vice versa.

Lastly, both parties agreed to convene the Joint Economic and Trade Committee (JETCO) next year, marking the 200th anniversary of commercial relations between Brazil and the United Kingdom. JETCO is a bilateral dialogue mechanism aimed at promoting trade and investment between the two nations.

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