India and Brazil have urged the private sector to explore trade opportunities in the respective markets.
The potential for growth in bilateral trade figured in the 8th Brazil-India Joint Commission Meeting co-chaired by External Affairs Minister S Jaishankar and Brazilian Foreign Minister Carlos Alberto Franco França in Brasilia on August 24.
According to a joint press release issued on Saturday, they reviewed trade and economic relations and expressed satisfaction over the steady increase in bilateral trade, despite the challenges posed by the COVID-19 pandemic. The total bilateral trade increased by 63.5% to US$ 11.53 billion in 2021 from the previous year, and India became Brazil’s 5th largest trading partner.
"They noted the great potential for growth and diversification of bilateral trade and urged the private sector to explore opportunities in the respective markets," the press release said.
The Ministers emphasized the importance of holding the 6th Meeting of India-Brazil Trade Monitoring Mechanism (TMM) in Brasilia at the earliest opportunity to discuss bilateral trade-related issues. Further, the two Ministers also expressed their support for early expansion of scope of the India-MERCOSUR Preferential Trade Agreement.
The Ministers recognized the importance of agriculture and livestock production and trade for development and food security.
In this regard, they welcomed the willingness of the concerned authorities of both countries to establish a technical committee on agricultural and livestock trade, with the objective to address specific market access issues, sanitary and phytosanitary measures and regulatory systems, and to exchange information, expertise and experiences in this field, the press release said.
India’s External Affairs Minister noted Brazilian investments in areas such as IT services and equipment, machinery, energy, auto parts, defence products, fintech and healthcare materials.
The Brazilian Foreign Minister acknowledged that a significant number of Indian companies have been investing in Brazil in sectors such as oil, mining, engineering, tractors manufacturing, information technology, pharmaceuticals, agrochemicals and power transmission. The two Ministers agreed on the potential for expansion of the sectors in which companies have invested both in Brazil and in India.
The two countries cooperate extensively in multilateral organisations, including the United Nations, and plurilateral fora such as G20, BRICS, IBSA, BASIC and G4.
According to the joint press release, the two Ministers appreciated the close coordination between the two countries in the United Nations Security Council in 2022, when both countries coincided as elected members. They also reaffirmed the urgent need for a comprehensive reform of the UN Security Council, especially its expansion in both permanent and non-permanent categories, to make it more representative, effective and responsive to contemporary challenges to international peace and security, the joint press release said.
Both Ministers highlighted the importance of the G20 and agreed to cooperate closely during the upcoming presidencies of India (2023) and Brazil (2024).
They agreed to give new impetus to IBSA, which congregates India, Brazil and South Africa, three large democratic, pluralistic, and diverse societies from three continents, in favor of the interests of the developing world and South-South cooperation.
Both Ministers also welcomed the cooperation under BRICS, which has delivered meaningful results to both countries since its creation.