Brazil and India, a US historical partners who have become Donald Trump targets in recent months, seek to strengthen commercial ties.
The federal government movement precedes
In July, during the visit of Indian Prime Minister, Narendra Modi, Brasilia,
The Brazilian government evaluates that India, the most populous country in the world and has undergone an industrialization process in the last two decades, is still little explored by national exporters.
In addition, the exporting agenda from Brazil to New Delhi is poorly diverse: vegetable oils, sugars and gross oil represent more than 60% of the total sent.
The Brazilian offensive to expand trade with the Indians is on three fronts, according to government officials heard by CNN.
One of the strategies came after Donald Trump’s tariff. The US President decided
Brazil sees in this scenario an opportunity. According to estimates from the 2024 government, about 30% of oil imported by India comes from Russia, while only 1% is Brazilian.
Still, oil is already the second most exported item in Brazil to India. In case of retreat in Indian Russian oil purchases, Brazil, along with Middle East countries, is expected to be able to occupy part of this market.
Another front follows the strategy adopted by the Ministry of Agriculture since the beginning of the government of President Luiz Inacio Lula da Silva: the opening and diversification of markets.
Folder technicians evaluate that there is growth potential for products such as vegetable oils, cotton, beans and pulses, ethanol, bovine genetics and fruits. Running outside are poultry, fish, coffee and orange juice.
The main obstacle, however, is the high rates applied by India. The country has not included almost any agribusiness product in the preferred trade agreement it maintains with Mercosur.
This is precisely the third axis of negotiations: expand the scope of the current trade agreement.
Today, only 14% of Brazilian exports to India are covered by the agreement. The limited range treaty covers 450 product categories in a universe of about 10,000, and provides for modest tariff reductions, between 10% and 20%.
The goal of the Brazilian government is to negotiate the inclusion of new products, especially agribusiness, negotiate tariff reductions and seek the removal of commercial barriers.
