Brasília – The Brazilian Foreign minister, Antonio Patriota, recognised today (4) that there are hardships regarding trade between Brazil and China due to the depreciation of the currencies, affecting trade negotiations in both nations. However, the foreign minister said that there are appropriate "mechanisms for disucssion". Patriota is in Beijing where he is organising the visit of president Dilma Rousseff to China in April.
"We recognise that there may be hardships due to the [yuan’s] exchange rate, but both countries have appropriate mechanisms for discussion and do not want to lose sight of relations," said Patriota. The information was provided by the official Portuguese news agency, Lusa.
To Brazilian businessmen, the yuan is "artificially depreciated" to favour Chinese exports. "Brazil wishes to diversify exports to China and to attract Chinese investment to productive areas and important infrastructure," said Patriota.
China is Brazil’s main trade partner, with exchange of US$ 56 billion in 2010, representing growth of 55.1% over 2009. The trade balance was favourable to Brazil, and exceeded over US$ 5 billion last year. In 2010, China was the main foreign investor in Brazil.
In a press conference today, Patriota said that Brazil and China "have a true strategic partnership" and that "both governments wish to promote relations at a higher level". For two days, the Foreign minister met with the Chinese ministers of Foreign Relations, Yang Jiechi, and Trade, Chen Deming, as well as with prime minster Wen Jiabao. According to Patriota, both the government of China and of Brazil "aim to expand bilateral relations".
President Rousseff’s visit to China is scheduled for April 13th to 15th. The Brazilian should meet with Chinese president Hu Jintao, as well with ministers and businessmen from the country. The main topic to be covered should be the fear of Brazilian businessmen, who complain about the low price of Chinese products reaching Brazil.
There should also be talks regarding partnerships in the areas of iron ore and steel in Brazil and China. In the three days she will be in the country, president Rousseff should also participate in meetings with the heads of India, Russia and South Africa, which will become an official member of the Bric.
*Translated by Mark Ament
