The new geography of trade is the basis for the cooperation between India, Brazil and South Africa, says the Brazilian ambassador, Lucio Pires de Amorim.
‘The similarities between the three countries make it mutually beneficial for them to work with one another on key areas that include trade and development. They are three countries with large populations; they are all key democracies in their regions and consist of multicultural and multi-ethnic communities, which makes them particularly sensitive to the challenges posed by diversity.â€
Brazil has no historic or cultural links with South Africa. The ties between the countries have, however, grown very quickly. Since the inauguration of President Lula da Silva, he has met President Thabo Mbeki on at least 19 occasions.
In 1996 the heads of state decided to abolish visa regulations for South African residents who travel to Brazil, as a move towards a relationship with long-term prospects.
But money remains a sore point.
Trade between the countries remains unbalanced in favour of Brazil, which exports 3½ times more goods to South Africa than South Africa exports to Brazil. Although this has improved slightly in recent years, South Africa is keen to explore more avenues for competitive trade.
Brazil’s automotive industry is its most successful trade and export resource. Two million vehicles are manufactured there annually.
With Brazil being the world leader in biofuels, Amorim said South Africa could benefit from the strides the South American country has made in the renewable energy field.
This would be aided by the national agricultural research centre, which looks at ways to improve agricultural output and sustainability. Its most recent success, according to Amorim, is the development of 15 varieties of sugar cane which produce more sucrose while consuming less water.
Trade remains an important ingredient in the relationship between the countries. The total trade volume has grown because of Brazil’s aggressive expansion, particularly in trade relations with countries of the South.
Amorim said that this accounted for the trade imbalance between Brazil and South Africa. ‘Maybe South African exporters were more timid while we did all we could to advance our exports,†he shrugged.
Since 2005 the economic output of developing countries measured by purchasing parity surpassed that of developed countries – by 2005, 54% of total world exports were being consumed by developing countries.
Ibsa is seen as a potential catalyst for closer relations between South America, Africa and Asia. The three countries have created an Ibsa fund, with each partner contributing at least $1-million towards projects in poor countries of the South.