The UK ambassador to Brazil, Stephanie Al-Qaq, said in an interview with CNN which expects to advance in 2025 in the agreement between the two countries to avoid double tax collection.
The agreement was signed in November 2022, when the lights were turned off by the previous government, but has not yet come into force. To do so, it needs to be ratified by both sides.
The British Parliament has already approved the text, but the text was not even sent by the Palácio do Planalto for analysis by the National Congress.
According to the ambassador, it helps business and encourages new investments. “Brazil has much more to gain”, said Stephanie Al-Qaq.
She hopes to see the agreement become a milestone in bilateral relations, which celebrate 200 years in 2025. Read the main excerpts from the interview that the diplomat gave to CNN.
CNN: British media recently reported that more than 600 Brazilians were repatriated from London. Itamaraty later said that they returned voluntarily. In any case, how is the migratory relationship between Brazil and the United Kingdom today?
Stephanie Al-Qaq: We have many Brazilians in London. As you know, we are already in contact with Itamaraty about people who want to return to Brazil. Because there are Brazilians who go there and decide, after a while, that they prefer to return here. So this is a conversation with Brazil, with Itamaraty, and we are in contact with them.
CNN: Isn’t it a deportation?
Stephanie Al-Qaq: No, this is called “voluntary return” [retorno voluntário]. These are people, for example, who arrive in the country and exceed the period of stay allowed by the visa. After a while, they decide to return. So, it’s voluntary, they decide they want to come back. And there is also a support program for these people who are returning. There is an agreement with Itamaraty. The keyword is “voluntary”.
CNN: When Brexit happened, it was thought that the United Kingdom could speed up trade negotiations that the European Union was unable to conclude. However, we managed to close the EU-Mercosur agreement and the UK-Mercosur talks have not even started. Why?
Stephanie Al-Qaq: We decided to prioritize reducing trade barriers with Brazil. Our two-way trade has increased greatly in the last two years and now stands at £11.2 billion annually. We are one of the largest external investors in Brazil. There have been businesses here for over 100 years.
Our priority has been to reduce protectionist barriers to face in advance what could be obstacles to a free trade agreement. When we reach the point where both sides are ready to negotiate, it will be much easier with this clear path.
We can’t do a 25 year deal [uma referência ao período de tratativas entre UE e Mercosul]. We are currently negotiating with India and Israel. We learned a lot and these negotiations are going quickly.
CNN: Brazil and the United Kingdom signed, at the end of 2022, an agreement to avoid double taxation in their respective countries. The British Parliament has already ratified the agreement, but the Palácio do Planalto did not even send it to the National Congress. What arguments does the Brazilian government give you for this delay?
Stephanie Al-Qaq: In the meeting he had with our Minister of Commerce, in October, vice-president Geraldo Alckmin said that he will help reevaluate and move forward [com o acordo]. It makes perfect sense for both sides. The value that Brazil gains from this agreement[graças ao crescimento dos negócios]is much higher than the amount that is no longer collected in taxes. We have all the evidence, but I think Brazil wants to make its own calculations too. It is an agreement that both sides – Brazilian companies and British companies – are eagerly awaiting.
CNN: In 2025, the bicentenary of the establishment of Brazil-United Kingdom diplomatic relations will be celebrated. Mrs. Do you hope that the entry into force of the double taxation agreement will be a milestone in these 200 years of relationship?
Stephanie Al-Qaq: I hope so. We have a broad relationship, technology exchange, highly qualified professionals. Our trade goes far beyond commodities. The United Kingdom is one of the largest foreign investors in Brazil. Companies need a transparent and consistent environment to continue making these investments. And the agreement brings that. It makes no sense, for those who want to generate jobs and wealth, to pay the same taxes in both countries.
CNN: In closing, what else is being planned to celebrate 200 years of bilateral relations?
Stephanie Al-Qaq: Let’s celebrate the most important pillars of our relationship. We will have events, visits, celebrations that will shed light on essential areas. There will be activities here and there. We are also looking forward to a series of artists who will come because it will be the year of Brazil-United Kingdom culture.
