Trade relations between Portugal and Brazil have "room to grow"

"This is an important moment to reset and boost the economic relations between Portugal and Brazil", stated the Portuguese Prime Minister António Costa during the Portugal-Brazil Entrepreneurial Forum held in Matosinhos and which set off the start of the third day of Brazilian President Lula da Silva’s official visit to Portugal, of which we stress the 13th Summit between the two countries.

"We are at the CEiiA, one of the ten greatest research and innovation centres in Portugal, but above all one of the major symbols of the outstanding cooperation that we have had before and need to reset between Portugal and Brazil", he added.

António Costa stated that the CEiiA was a central part in the greatest collaborative innovation and engineering project developed between Portugal and Brazil, and which was reflected in the KC-390. "We will return to Lisbon on the first KC-390 aircraft Embraer already delivered to the Portuguese Air Force", he stated.

The Prime Minister said "the KC-390 is just an example of what we can do together" and recalled that there will be a signature of a new agreement to adapt another Embraer aircraft to NATO standards, with the A-29 Super Tucano project. "It is a new door that is opened for us to continue this cooperation", he highlighted.  

António Costa thanked the Portuguese and Brazilian companies who attended the forum for "the willingness you’ve shown to meet, get to know each other and develop joint projects".

Memoranda of understanding were signed at the forum between the Portuguese Agency for Foreign Investment and Trade (AICEP) and the Brazilian Agency for the Promotion of Exports and Investment (APEX) with the aim of strengthening the economic and corporate ties, and an agreement between IAPMEI – Agency for Competitiveness and Innovation and the Federation of Portuguese Chambers of Commerce in Brazil.

"From an institutional standpoint these agreements signed today translate the huge potential there is and the institutions’ effective willingness to open the doors so that the companies can go on their path", underlined the Prime Minister".

Trade relations

The Prime Minister claimed that the trade relations between Portugal and Brazil have "room to grow, so it makes sense to invest and work on this".  "There has been some growth in trade, but far from what is the huge potential for growth on either side".

Recalling that "Brazil is one of the greatest ten investors in Portugal and the second largest outside the European Union," he however noted that Portugal "is only the 18th investor in Brazil, a position we wish to improve".

António Costa said the Portuguese companies have been present in the food sector, in energy, construction, transports, finance, ITC, tourism, and health.

"Concluding the trade agreement between the European Union and Mercosul is absolutely strategic for us to have the best opportunities to increase trade relations in both directions", he underlined.

Digital transition

The Prime Minister called the Portuguese and Brazilian companies’ attention to "the new opportunities that contribute to us strengthening these ties", one of which has to do with "the two major transitions we have ahead of us: the digital and the energy transitions".

Concerning the digital transition, he recalled that Portugal and Brazil are the landing stations for the new fibreoptics cable linking the entire Latin America to Europe – from Fortaleza to Sines. "This means the most important infrastructure for transmitting knowledge data in the whole of Latin American and Europe goes through Brazil and Portugal. It is the new physical bridge linking two continents through our countries".

"In Sines we have the intention to invest in data centres, in everything that has to do with technology, with data science and this is a huge opportunity on both sides of the Atlantic", he said.

António Costa also pointed out the entrepreneurial ecosystem. "Brazil has been the third largest country to take part in the greatest digital fair in the world, the Web Summit", which was held in Portugal in the last few years. "This year, it will be held in Rio de Janeiro for the first time. This means a huge opportunity for Portuguese companies and start-ups to strengthen ties with their Brazilian partners and set up new business areas".

The Prime Minister highlighted the system to take in investment and innovation. "We set up an important network, the Digital Innovation Labs, and free technological areas, where it is possible to experiment and launch new products and technologies. Furthermore, we have been implementing a tax and residence permit framework that fosters investment and technological innovation".

Energy transition

Concerning the energy transition, "Portugal has been at the forefront for 15 years". "58% of the electricity we consume today comes from renewables and we are investing so that in four years’ time, that percentage will be", he claimed.

"Portugal will invest 50 billion euros, 25% of our GDP in projects relating to renewable power: solar power, offshore wind power, and the set of products that comes from being able to have the lowest cost of energy produced using solar in the whole world for two years now (green hydrogen, green ammonia, green steel ad sustainable fuels for aviation. These are the new areas with huge development potential", he added.