The EU-Brazil Relations

The EU-Brazil Relations

Introduction Brazil: Background Information The Current Economic and Political Situation The European Union EU-Brazil Relations: First Steps Strategic Partnership: Contextualization. Basis, Agreements, Effectiveness, Future

Brazil: Background Information Brazil is an upcoming market, a country with continental proportions, with a great variety of natural resources. Territory: 8,5 million m² - almost half of the entire South American s territory Estimated population: 200 million aproximately Composition of the population: 47,51% white, 43,42% multiracial, 7,52% black, 0,42% amerindian, 0,02% others Federative Republic composed by 26 States + Federal District

Brazil: Background Information Regional leader in Latin America 7th economy in the world Inequality problems Different levels of development throughout the country The south is more developed. The industries concentrate mostly in the state of São Paulo. The oil & gas exploration takes place mainly in the state of Rio de Janeiro

Brazil: Current Situation Political crisis demonstrations, negative evaluation of the current government Economic pifious growth in the past few years Decline on the ethanol production recently government killed the existing industry Foreign Policy: stone in the way of an effective cooperation Petrobras corruption scandal

Brazilian Annual GDP Inflation GDP Forecast Source: Itaú Unibanco, Bloomberg

*Forecast 2010 2011 2012 2013 2014* 2015* 2016* 2017* 2018* 2019* 2020* World GDP Growth 5,2% 3,9% 3,2% 3,0% 3,1% 3,4% 3,3% 3,4% 3,3% 3,2% 3,1% Brazilian GDP Growth 7,5% 2,7% 1,0% 2,5% 0,2% 1,1% 2,0% 2,0% 2,0% 2,1% 2,3% Inflation (IPCA) 5,9% 6,5% 5,8% 5,9% 6,5% 6,5% 6,3% 6,0% 6,0% 5,5% 5,0% Interest Rate (SELIC) 10,75% 11,00% 7,25% 10,00% 11,50% 12,00% 12,00% 12,00% 12,00% 10,00% 9,00% Source: Itaú Unibanco, Bloomberg, Central Bank of Brazil

The European Union New kind of international actor Prefers negotiation/diplomacy rather than using military power Great example of a successful integration and economic model Economic superpower Has both intergovernmental and supranational characteristics Not merely an international organization; nor it fits completely to the definition of a federation Economic giant, political dwarf (Mark Eyskens Belgian Foreign Minister)

The EU Brazil Relations: First Steps Brazil is a former colony from Portugal, an EU member-state The partners share cultural aspects due to the connected historical background Brazil was the first Latin American country to establish diplomatic relations with the EU in 1960 In 1961 a permanent Brazilian diplomatic representation was founded in Brussels Currently known as the Mission of Brazil to the European Union The EU is represent in Brazil (Brasília) by the EU Commission Delegation (DELBRA) 80 s: Portugal and Spain become new EC members. Changes in the cooperation more interest in Latin America 90 s: End of the cold war: EU rises as a new potential partner. LA has increasingly tried to reduce its dependency to the US

Jean-Baptiste Debret

Strategic Partnerships Declaration of common intentions with key partners Legal Status: not a formal deal; nor an international agreement Should help enhancing the already existing bilateral relations Each of the EU strategic partners have an specific feature of strategic importance to the EU Possibility of having more influence in a certain region EU strategic partners: Brazil, Russia, India, China, South Africa, South Korea, USA, Canada, Mexico, Japan

The EU Brazil Strategic Partnership Why Brazil? Regional leader and a role model of the developing world Emerging global actor: economic and political role as the leader of the developing nations in international organizations Share the EU values of democracy, multilateralism, human rights and rule of law Holds the largest areas of rainforest in the world; 12% of the world s fresh water and 20% of the biodiversity

The EU Brazil Strategic Partnership Launch: 2007 in Lisbon, during the 1st EU-Brazil Summit 2008: 2nd EU-Brazil Summit held in Rio de Janeiro Joint Action Plan: Platform for practical action. Valid for 3 years Aim: Deepen relations on issues of global relevance, namely: Climate change & sustainable development Security Energy supply Renewables Fight against poverty (UN Millenium Development Goals) Regional integration / Stability in Latin America Science, technology and innovation Multilateralism UN Reform Triangular Cooperation with African Countries Trade Doha Round Free Trade

The EU Brazil Strategic Partnership The EU-Brazil Summits happen every year. The last one was held in 2014 in Brussels The issues addressed on the Joint Action Plan are discussed on over 30 sector policy dialogues EU and Brazil bilateral agreements: EC-Brazil Framework Cooperation Agreement (1992) Agreement for Scientific and Technological Cooperation (2004)

The EU Brazil Strategic Partnership Sector Policy Dialogues Inserted under the joint action plan umbrella Material for further discussions on the Brazil-EC Framework Agreement sphere Over 30 themes. Among them: Industrial Policy and Regulatory Cooperation Energetic Policy (Energy Security / Renewables) Regional Policy Social Development Sustainable Development / Climate Change Agriculture

The EU Brazil Strategic Partnership Key aspects of the cooperation: Intensification of the EU-Brazil relations Support Brazil as a regional leader (contrabalance the populist governments in LA Brasília: use the recognition of Brazil as an important regional player on its favour. South-South cooperation in exchange of diplomatic support Brazil is a bridge builder between the north and the global south Economy: trade and natural resources

The EU Brazil Strategic Partnership Brazil is the 9th most important trading partner from the EU The EU is the #1 Brazilian trading partner and investor Main Brazilian exports to the EU: agricultural goods, minerals, metals, machines & equipment, services. Main EU exports to Brazil: machinery, chemicals, transport equipment, services.

The EU Brazil Strategic Partnership Problems: Lack of clear objectives / Vague concept Brazilian current foreign policy (south-south cooperation) Alliance to anti-liberal Bolivarian countries i.e. Venezuela Human rights and democracy The UN Reform different views Different interests from the EU member States. The EU political external relations is based upon a complex policy-mix with intergovernmental and supranational characteristics Trade protectionism

The EU Brazil Strategic Partnership Future: The Strategic Partnership with Brazil has not yet been fully developed, but the parties are partners in many aspects and share similar points of view. Possibility of a free trade agreement with Brazil (EU-Mercosur negotiations have been problematic) Suspension of trade preferences from the EU side. Brazil is classified as a middle-income country Cooperation in the energetic area renewables; low carbon emission target

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