São Paulo – The future ambassador of Brazil in Saudi Arabia, Flávio Marega, had his appointment unanimously approved by the Foreign Relations and National Defence Commission of the Brazilian Senate last Thursday (10th), in Brasília. During a questioning session by senators, he said Brazilian engineering companies may participate in the Saudi infrastructure expansion plan, whose budget is US$ 400 billion, according to information from Agência Senado.
“Brazilian engineering firms will be able to vastly benefit from this investment program,” he told senators, according to the agency. Marega added that the country’s infrastructure projects are funded by oil revenues. Saudi Arabia is the world’s leading producer and exporter of the commodity.
The diplomat will replace the ambassador Sérgio Luiz Canaes, who will in turn take charge of the Brazilian embassy in Serbia. Marega’s appointment, made by the Presidency of the Republic of Brazil, is still pending approval by the plenary of the Senate.
According to information from Brazil’s diplomatic representation in Riyadh, the Saudi government has already granted Marega an agrément. The diplomat will also occupy the post of non-resident ambassador in Yemen. The Yemeni government has already issued an agrément to the Brazilian diplomat. Next Monday (14th), the new ambassador will pay a visit to the Arab Brazilian Chamber of Commerce, in São Paulo.
Bilateral trade
Saudi Arabia is Brazil’s premier export target in the Arab world. Last year, Brazilian sales to the country exceeded US$ 3 billion, while imports stood at US$ 3.2 billion. Year-to-date through August 2013, Brazil shipped nearly US$ 1.9 billion worth of products to Saudi Arabia, down 3.5% from the same period in 2012. Brazilian imports from the Arab country have amounted to US$ 2.51 billion, up 17%.
The main items shipped from Brazil to Saudi Arabia up until August this year were poultry, soy, sugar, iron ore and maize. The main import items were crude oil, aviation kerosene, sulphur, polypropylene and polyethylene.
It is worth noting that Brazilian exports were negatively impacted by the Saudi embargo on beef from Brazil, after the announcement made in December 2012 that the mad cow disease causing agent was detected in an animal which died in 2010 in the state of Paraná. The bovine, however, did not die as a result of the disease, which it did not develop.
Following the case, the World Organisation for Animal Health (OIE) maintained Brazil’s “insignificant risk” rating for the disease, indicating that Brazilian product poses no hazard to consumers.
Nevertheless, apart from Saudi Arabia, other Arab countries maintain the embargo until this day, among them Iraq.
*Translated by Gabriel Pomerancblum
