Brasília – The governments of Brazil and Kuwait signed an agreement today (22nd) providing for the establishment of a group to look into opportunities of increasing trade and bilateral investment. The treaty was signed by the Brazilian minister of Finance, Guido Mantega, and his Kuwaiti counterpart, Mustafa Al-Shamali, after a meeting between the Arab country’s prime minister, Nasser Al-Sabah, and the Brazilian president Luiz Inácio Lula da Silva, in Brasília.
According to Mantega, Kuwait has funds available to invest abroad and a large sovereign fund, the Kuwait Investment Authority (KIA). To him, there are possibilities for establishing partnerships. As examples, he cited eventual productive sector and stock market investment. The agreement signed was an addendum to an economic cooperation treaty that has been in effect since 1975.
In an address before a luncheon offered to the Kuwaiti delegation, Lula stated that in Brazil, companies from the Arab country will find safety and stimulus to their investment. “Brazil will continue to be a construction site,” said the president, referring mainly to projects required in order for the country to host the FIFA World Cup 2014, the 2016 Olympic Games, and oil exploration at the pre-salt layer.
According to Lula, Brazilian companies are interested in gaining knowledge of business opportunities with Kuwaiti enterprises. In this respect, he underscored that the Brazilian minister of Development, Industry and Foreign Trade, Miguel Jorge, is going to head a business mission to the Arab countries in the Gulf, including Kuwait, in October. According to the president, Brazilian businessmen will be interested in exploring existing possibilities brought about by “Kuwait Vision 2035,” the country’s development program.
The prime minister also highlighted the importance of Brazilian companies for increasing bilateral relations. “The Kuwaiti private sector needs to enter Brazil. This will represent a major step forward, in particular with regard to investment,” he declared. As examples, he mentioned agribusiness and the oil industry.
To Sabah, Brazil is very important internationally in politics, trade, investment and culture, and he called for “total relations” with the Gulf countries.
Lula said that the agreement the Mercosur has begun negotiating with the Gulf Cooperation Council (GCC) will enable business to increase, and called on Kuwait to become “engaged” in its conclusion. The GCC is comprised of Saudi Arabia, Bahrain, Qatar, the United Arab Emirates, Kuwait and Oman. To him, there is potential for trade to grow a lot in a short time span.
The two governments also signed agreements in the fields of environment and sustainable development, cooperation in sports, technical cooperation, and air services.
Sabah claimed that two airlines from the Gulf already operate direct flights to Brazil, Qatar Airways and Emirates Airline. “God willing, there will be a third one,” he said, referring to Kuwait Airways.
Lula also claimed that the two countries had frequent contact on occasions such as the oil shocks of the 1970s, the 1980s debt crisis, and the Gulf War of the early 1990s. Now, according to him, both countries are “determined to make relations more consistent” and the delegation’s visit “is the starting point for something regular.” According to the president, the agreements “will lay the foundation for our ties to grow.” Soon, the Brazil-Kuwait Joint Commission should be reactivated.
*Translated by Gabriel Pomerancblum
