By Lise Alves, Senior Contributing Reporter
RIO DE JANEIRO, BRAZIL – In his attempt to expand Brazil’s foreign trade, Brazilian President Michel Temer is meeting with leaders of Asian nations to consolidate partnerships.
Last week Temer met with the head of the Communist Party of China (CPC) delegation, Yang Xiaodu, and Monday (July 2nd) is scheduled to meet with Vietnam’s deputy prime minister, Vuong Dinh Hue.
“China is our biggest trading partner. We have a very fertile political, economic and cultural relationship with the country,” said President Temer after the meeting.
Despite the meeting with Chinese officials, analysts say the recent trade war between the Asian powerhouse and the United States may negatively affect Brazil’s foreign trade results.
“A trade war between the two largest economies in the world will have effects in all countries,” stated the president of the Brazilian Foreign Trade Association (AEB), José Augusto de Castro.
Adding, “Brazil loses because trade war is protectionism, which reduces trade, reduces demand, and emerging countries like Brazil are weakened. One of the natural consequences of this trade war is the fall in commodity prices and Brazil has no way of defending it.”
As for the meeting with the Vietnamese official, it is expected that the two leaders will discuss, trade and investment between the countries, technical cooperation and defense, as well as partnerships in agriculture and agribusiness.
According to the Ministry of Industry, Foreign Trade and Services, Brazil exports to Vietnam mainly crude product and residues of soy oil, corn, cotton, steel, leather and furs.
Vietnam’s exports, on the other hand, focuses on electronics and micro parts, batteries as well as footwear.