In Japan, Lula defends free trade and democracy, and mentions ethanol and Embraer

by Andrea
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President Luiz Inacio Lula da Silva defended free trade on Wednesday, 26, in Tokyo, against Japanese and Brazilians and Japan’s primeira, Shigeru Ishiba. Lula listed criticism of the negotiations to the far right and appealed to the Japanese ruler against protectionism.

“We no longer want a wall. We no longer want Cold War. We no longer want to be prisoners of ignorance. We want to be free and prisoners of freedom,” Lula said, when the Brazil-Japan Business Forum.

He asked Ishiba to quench in defense of democracy and multilateralism, in a clear reaction to the policies adopted by US President Donald Trump. The United States has fired a global tariff war that is expected to reach Brazil once again next week, but are a traditional strategic ally of Japan. The petista did not mention Trump, nor Washington, a destination of a recent trip by the Japanese prime minister.

In Japan, Lula defends free trade and democracy, and mentions ethanol and Embraer

Lula stated that “three concerns” should guide the action of heads of state and government from democratic countries in the world.

“Democracy is at risk on the planet with the election of the far-right negation that does not even recognize a vaccine, does not even recognize climate instability and does not even recognize political parties, unions and other things. And the denial of politics will not bring any benefit to humanity. Including, negatives do not even want to meet the fulfillment of the Kyoto Protocol,” said Lula.

“The second thing we have to defend very well and very hard is the issue of free trade. We cannot defend protectionism again. We do not want a second cold war. What we want is free trade so that we can definitely make our countries settle into the movement of democracy, economic growth and the distribution of wealth. Another thing we cannot forget, Prime Minister, is the maintenance of multilateralism.”

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In this sense, the Brazilian president suggested that Japan start negotiations for a commercial agreement with Mercosur. Conversations have dragged on a few years ago, but diplomats reported that the format of exploratory contacts has been running out, as the Estadão/Broadcast.

“In an increasingly complex world, it is crucial that historical partners come together to face the uncertainties and instabilities of the global economy. I am sure that we need to advance with the signing of an economic partnership agreement between Japan and Mercosur. Our countries have more to gain from integration than by the resource of protectionist practices,” the petista said on Wednesday, the 26th, at Hotel New Otani.

The president praised the reciprocal exemption of business and tourism visas between Brazil and Japan and said it was “an essential step in this direction.” The measure was decided in 2023 and it is projected to double the number of Japanese visitors in Brazil in 2025, compared to two years ago-there will be about 82,000 people. In the other hand, the number of Brazilians in Japan increased by 51% in a year, with the fall of the visa.

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Ethanol market

The president mentioned that he expects investments in Brazil from more Japanese automakers such as Honda, Nissan and Mitsubishi, as well as Toyota, to produce electric and hybrid vehicles, capable of operating with any mixture of ethanol and gasoline. Brazil plans to increase from 27% to 30% the mixture of ethanol in gasoline and diesel at 20%, by 2030, as a form of energy transition to cut greenhouse gas emissions.

“Decarbonization is not a choice, it is a necessity and great opportunity. Private sector involvement in this goal is simply fundamental. Brazil will always be an ally to reduce the global dependence on fossil fuels,” said Lula. “We will continue to lead the fair transition.”

The president argued that Japan advances in the plan to expand the 10% ethanol gasoline mixture, which could potentially expand the original imports in Brazil. The mixture is expected to reach 20% by 2024. The country will compete with the United States. However, Lula warned that promises in the past of Japan himself and the European Union were not fulfilled.

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“I keep believing and hoping that it happens, because it will be a revolution in the climate issue in our country,” said Lula, accompanied in Japan by 98 companies, including the main in the sugar and alcohol sector.

COP30

Lula said he waited for a visit from Premier Shigeru Ishiba in November to COP30 in Belém (PA) “to have contact with the heart of the Amazon that everyone talks about and that few people know.” The president said he will hold a conference on climate change with “responsibility, serenity, less ufanism and more serious debate on the issue of controlling the planet’s warming.”

The petista said that the goal of the Paris Agreement to limit the increase in the average global temperature to 1.5ºC. “It’s not a joke, it’s not a scientist thing.”

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Without quoting Trump, who announced US withdrawal from the Paris Agreement, Lula listed commitments not fulfilled by developed countries. The US has never ratified the Kyoto Protocol. The petista also mentioned that the promised contribution, agreed in Copenhagen, to allocate $ 100 billion annually by the rich countries for environmental conservation and climate actions never materialized.

“It is important to remember that the standing forest is very beautiful, but under each tree has a worker, has an indigenous, has an extractive, has a rubber tree, has a rural worker and if we want to keep forests standing we need to give sustainability so that these people can live and access to material goods that everyone wants to have in all countries of the world,” said Lula.

Second main partner

Japan is Brazil’s second main commercial partner in Asia. The trade balance has some balance. In 2024, Brazil exported US $ 5.5 billion and imported US $ 5.4 billion in Japanese products, a surplus for the Brazilian side of US $ 147 million.

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The export agenda is mainly composed of iron ore, poultry, coffee, corn and aluminum; The importer, automotive parts, engine parts, cars, among others.

The president cited data showing a decline in the bilateral trade current in recent years: they were $ 17 billion in 2011 and went to $ 11 billion in 2024. He preached a new relationship strategy.

“We want to sell and want to buy, but above all, we want to share alliances between Japanese companies and Brazilian companies so that we can grow together,” said Lula. “Something has not walked well in our relationship and we need to improve it. This business forum is the opportunity to reverse this decline.”

Embraer

He cited the sale of up to 20 Embraer E-90 E2 aircraft to Ana Nippon Airways Airline-and said that who buys 20 “can buy a little more.” The jet will be operated for the first time in the domestic market from 2028, covering regional routes, according to the company’s plans.

In a global scenario marked by uncertainties of the tariff and commercial war and war clashes, the president indicated that Brazil is a reliable partner for Japanese investments.

“I want to invite the Japanese to invest in Brazil, because Brazil is a safe haven, as it was for the Japanese in 1908, we want to be, in 2025, attracting partnerships, joint ventures and Japanese investments in our country,” said Lula.

Brazil again had stability, says Lula

The president said in Tokyo that the country has again had stability in his term, in the political, economic, legal and social spheres. He cited as examples the presence in Japan of the present and former summit of the National Congress; GDP growth above the first two years of the government; the tax reform with parliamentary support; And what called “the most important social inclusion policy in the history of Brazil and the most important credit policy in the history of Brazil”.

“I can say, minister on top, that never before in the history of Brazil there has been so much credit available to the poorest people, the workers, and also to the great entrepreneurs and the agribusiness, because Banco do Brasil has returned very strongly, because the development bank has returned very strongly, because Caixa Econômica Federal returned to act very hard,” said Lula, after launching a new loan for work.

“Brazil will continue to challenge the projections of the World Bank. In the last two years, our level has exceeded expectations and grew over 3%. In 2025, again, we will surprise the world and we will be surprised in partnership with Japan. We approved a historic tax reform that will simplify costs and offer greater predictability and business efficiency. The economy’s wheel spin, ”said the president.

Lula defended predictability to external investors. “No one can be taken by surprise with a change of law, with a change of decree, with change of concierge every day,” said the petista. “Everyone has to know what will happen so that no one suffers mishaps of government attitude, often acting irresponsibly, regardless of the respect we have to take for workers, entrepreneurs and politicians.”

Prior to speech to businessmen, Lula received at the Imperial Hotel, where he stayed, a delegation of Japanese trade unionists to talk to representatives of Brazilian unions. The president reported that five Brazilian trade unionists were invited to accompany his trip.

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