[LINK] "Brazil-China: An Asymmetric Relationship"

[rfmcdonald]

Intra-BRIC solidarity isn't all that, at least not for Brazil.

"Brazil must increase the added value of its sales" to balance its trade with China, said Brazilian President Luiz Inácio Lula da Silva, the only note of criticism in his references to the partnership between the two countries after they signed a Joint Action Plan.

Bilateral trade showed "spectacular" growth of "780 percent since the beginning of my administration" in 2003, and reached 36 billion dollars in 2009 in spite of the global economic crisis, Lula said.

But this trade is asymmetric. Brazil exports almost exclusively minerals and agricultural products, and imports Chinese manufactured goods.

The various agreements signed at Thursday's meeting in Brasilia cover the agricultural sector, including cooperation between research centres and phytosanitary (plant health) issues, aimed at expanding commodity exports from Brazil.

Agreements were also reached on oil exports, and on cooperation between the two countries' state oil companies for exploring Brazilian reserves of fossil fuels. The technology sector was also included, for example joint satellite launchings, a programme that has been developed over many years, as well as intellectual property.

[. . .]

Today, Brazil is an agricultural power and the phytosanitary agreement signed with China will expand its agricultural exports. But Brazil should also increase its sales of technological products, like airplanes and their parts, because the two countries also cooperate on aviation and space technology.

The launching of the fourth joint Chinese-Brazilian satellite, possibly next year, is a sign of the strengthening of the bilateral partnership, Lula said.

The Chinese state company Sinopec is now the largest buyer of Brazilian oil, importing 200,000 barrels per day, Lula said.

The partnership extends to the sphere of international negotiations, as China has joined the Group of 77 (G77) countries that represents the developing world in multilateral bodies.

China's annual economic growth, at close to double digits, has created a large market for Brazilian agricultural and mining products, but analysts and the business community fear that the South American country may end up a mere supplier of raw materials. Closer bilateral ties have already led Brazil to refer to China as a "market economy," although economists in this country are sceptical of this description of the Asian power.

Hu said Brazil and China would diversify and increase bilateral trade, and expressed his thanks for the solidarity received in the wake of Wednesday's disaster.