Doha – The intensification of economic and trade relations between the Arab and South American countries as a way to face the effects of the international crisis on both regions was defended on Sunday (29) by most of the speakers in the first day of the South America-Arab Countries Business Forum, in Doha, Qatar. “We are here to cooperate. This forum is an opportunity to exchange information and opinions and I believe that in both regions there are ideas as to how to deal with the situation," said the Minister of Trade and Business of Qatar, Fahad Bin Jassim Al Thani, in an interview.
At the opening of the meeting, the minister declared that cooperation between Arabs and South Americans should result in measures to simplify economic exchange, the exchange of information and the facing of the crisis. "Balance and economic justice are necessary to minimize the effects of the crisis," he pointed out. As the epicentre of the turbulence is in central economies, the debate on Sunday focussed on the stimulation of trade and investment between emerging nations in both regions.
The forum precedes the 2nd Summit of South American-Arab Countries (Aspa), to take place on the 31st, also in Doha. According to the head of the Latin America department at the League of Arab States, Ibrahim Mohieldin, the meeting of heads of state and government should also seek new solutions for the international financial system. "The agenda has several important points, like finding more options for exchange and investment for both parties," he said.
According to the ambassador of Brazil to Doha, Ânuar Nahes, the recommendations of those participating in the forum should be sent to the heads of state of the summit. In this respect, the Trade and Services Secretary at the Ministry of Development, Industry and Foreign Trade of Brazil, Edson Lupatini, pointed out that cooperation between both blocs "is vital to face the crisis".
"The solidity reached by our economies makes them appropriate to reciprocal trade and investment. We are not totally immune to the crisis, but we have a solid economic system that is more appropriate to the facing of turbulence," said Lupatini.
He defended the formulation of a strategy for long-term economic cooperation, with the intensification of transport channels between both regions as well as business financing. "In this scenery of recession and lower credit, the expansion of trade must be through the desire and efforts of governments and businessmen," he added.
In the same lines, the president of the General Union of Chambers of Commerce, Industry and Agriculture for Arab Countries, Lebanese banker Adnan Kassar, defended the incentive to free trade as an "excellent idea". "The exchange should become much more useful," he added.
To the president of the Federation of Arab Businessmen, Hamdi Al Tabaa, the businessmen and authorities in both regions should have innovative ideas to overcome the international economic turbulence. "With the cooperation between both regions we may overcome this crisis," he said.
The president at the Arab Brazilian Chamber of Commerce, Salim Taufic Schahin, pointed out that the close political, economic and cultural ties between Arab and South American countries may make the difference at this moment.
"If we act together in a correct manner and support one another, we should be better prepared to face the crisis and overcome it in better conditions," he said. "If we eye this moment as an opportunity, we may therefore say that there is a great potential awaiting to be reached," he added.
In this respect, the secretary general at the Arab Brazilian Chamber, Michel Alaby, listed a series of measures that may be taken to expand the economic interaction of the countries involved in the forum, among them greater transport options for goods and people, the signing of agreements to guarantee investment and avoid dual income tax, greater exchange of visits of businessmen and authorities, the standardization of norms of products traded and technical cooperation in agriculture, industry and technology.
The president of the Egyptian Businessmen Association, Hussein Sabour, defended greater publicity by governments, organisations and companies in both regions. "If we do not advertise, we will not be known," he said. In this line, according to him, without promotion of the image there is no incentive to investment.
Cases of Success
To illustrate biregional opportunities that are already being explored, representatives of companies Crystal Lagoons, from Chile, and of the Brazilian Marcopolo, Randon and Vale do Rio Doce spoke about direct investment made or in progress in the Middle East and North Africa.
Sérgio Espeschit, of Vale, spoke about an iron ore pelleting mill that the company started building in Oman, alongside a maritime terminal. The mining company should invest US$ 1.3 billion in the project, which should have an initial capacity for production of 9 million tonnes of pellets a year, possibly being expanded to 20 million.
Fernando Fischmann, of Crystal Lagoons, a company that builds clear water artificial lagoons, spoke about the company projects in Egypt, Morocco, the United Arab Emirates and Saudi Arabia; Michel Rodrigues Mensh, of Marcopolo, spoke about the bus body factory that the company is going to inaugurate in Egypt in the near future in partnership with the Egyptian Gabbour Auto; and Jascivan Carvalho, of Randon, gave details about the semi-trailer assembly line that the company has in Algeria in a joint venture with a local businessman.
Effort
Faisal Bin Qassem Al Thani, president of the Qatari Businessmen Association, which is organizing the forum, pointed out the efforts of those involved in the promotion of the event, especially the Arab Brazilian Chamber, which focussed on attracting businessmen from South America.
Salim Schahin recalled the business meeting that took place in the sidelines of the 1st Aspa, in Brazil, in 2005, organized by the Chamber, and pointed out that from then on, trade between Brazil and the Arab nations rose from US$ 10.5 billion in 2005 to US$ 20.3 billion in 2008.
He pointed out that a good share of this growth was boosted by several trade missions, business fairs and seminars promoted in Brazil and in the Arab countries in the period. "I am very proud to say that the Arab Brazilian Chamber participated actively in this sustained growth in trade between both regions," he said. "When there is political will and a good business environment, we reach all conditions to develop our trade relations," he added, pointing out the effort made by Brazilian president Luiz Inácio Lula da Silva in generating closer ties with the Arab nations.
*Translated by Mark Ament
