Brazil and UK seek to strengthen bilateral ties in trade and investment

On Tuesday (21/6), Tatiana Prazeres, the Secretary of Foreign Trade (Secex) at the Ministry of Development, Industry, Commerce, and Services (MDIC), held a meeting with Joanna Crellin, the general director of Commercial Systems at the Department for Business and UK Government Trade.

The purpose of the meeting was to discuss cooperation in trade policy matters of mutual interest, including trade and sustainability, trade and gender, trade defense, the strengthening of the World Trade Organization (WTO), and Brazil’s upcoming presidency of the G20 in 2023. This meeting took place as part of the Joint Brazil-United Kingdom Economic and Commercial Committee (JETCO), a bilateral dialogue mechanism aimed at promoting trade and investment between the two countries.

Trade

In terms of trade, government data shows that Brazilian exports to the United Kingdom reached a total of US$3.6 billion last year, up 19% from 2021. During the same period, Brazil imported US$2.7 billion worth of goods from the UK, marking a 9.5% increase year-on-year. The total trade flow between the two countries amounted to US$6.4 billion in 2022, reflecting a 14.9% rise compared to 2021. As a result, Brazil enjoyed a trade surplus of US$884 million in its transactions with the United Kingdom in 2022. The European island currently holds the 20th position in the ranking of Brazilian foreign sales and represents 1% of Brazil’s total exports worldwide.

Investments

Regarding investments, between January and September 2021, approximately US$719 million in investment flowed into Brazil from the United Kingdom, a figure comparable to the total recorded for the entire year of 2020, which amounted to US$872 million in direct British investments in Brazil. The Central Bank of Brazil (BCB) data from 2015 (the most recent available) indicates the presence of over 800 companies with British capital established in Brazil. In 2020, Brazil’s direct investment in the United Kingdom (corresponding to immediate investor equity) totaled around US$5.19 billion. Most of these investments in 2020 were concentrated in the financial services sector, amounting to approximately US$4.58 billion.

Source: Informativo dos Portos

To read the original news report, see: https://www.informativodosportos.com.br/brasil-e-reino-unido-reforcam-parcerias-bilaterais-em-comercio-e-investimentos/

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