Need for further consolidating Pakistan-Brazil diplomatic and trade relations

Brazil can be rightly termed an emerging economic power in the world – 6th by GDP after US, China, Japan, Germany and France. Brazil has been expanding its presence in international financial and commodities markets and is one of a group of four emerging economies called the BRIC countries.

The relations between Pakistan-Brazil are friendly and face zero issues. Brazil considers Pakistan an important country, and wants to promote relations in areas of trade, agriculture, defense, tourism and education. Brazil has been granting scholarships to Pakistani students and this number has been increasing over the years.

Brazil is keen in boosting bilateral trade ties with Pakistan as both countries have great potential to enhance trade in diverse fields. Pakistan produces a number of products which are in high demand in Brazil. Pakistani exporters should make efforts to enhance their exports to Brazil.

It is worth noting that number of Pakistani products go to Europe and then sold to other countries, including Brazil at high prices. Pakistan has opportunity to focus on promoting direct exports to achieve better results.

Although, Brazil was among the 5 largest world producers in 2013, its textile industry is very little integrated into world trade.

Brazil has great expertise in producing renewable energy. The country has been producing around 65% of its energy from water and using ethanol along with bio-fuels instead of costly petroleum products.

Pakistan has enormous potential for hydropower generation while it is also one of the largest sugar producers in the world. Brazil could cooperate with Pakistan in energy production from renewable sources including hydro and ethanol sources.

Keeping in view that the China-Pakistan Economic Corridor (CPEC) project will open trade doors for Pakistan with other countries, Brazil can find new markets in Pakistan and adjoining countries.

Pakistani handicrafts, carpets, fresh dry fruit, sporting equipment and other products enjoy reputation in international markets and can also find buyers in Brazil.

It is on record that Brazil is keen in investing in Pakistan. Brazilian government understands the need of international investment in Pakistan, particularly Baluchistan.

In the mining sector, Brazil stands out distinguished in the extraction of iron ore (second largest world exporter), copper, gold, bauxite (one of the 5 largest producers in the world), manganese (one of the 5 largest producers in the world), tin (one of the largest producers in the world), niobium (concentrates 98% of reserves known to the world) and nickel.