Brazil and Norway: A Strengthening Partnership
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Transcript of Brazil and Norway: A Strengthening Partnership
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Brazil and Norway:Brazil and Norway:A Strengthening PartnershipA Strengthening Partnership
Ambassador Sergio E. Moreira Lima
Stavanger, June 5th, 2008
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PlanPlan
I - Brazil: sustainable economic growth with
reduction of inequalities
II - Brazil-Norway: strengthening relations
III - Towards a strategic partnership
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Part IPart I
Brazil: sustainable economic growth with reduction of inequalities
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Among the largest Among the largest economieseconomies
Rank Country GDP (PPP) US$ Mill
1 United States 13,843,8252 China 6,991,0363 Japan 4,289,8094 India 2,988,8675 Germany 2,809,693
6 United Kingdom 2,137,4217 Russia 2,087,8158 France 2,046,8999 Brazil 1,835,642
Country ranking by the International Monetary Fund (2007)
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A New Cycle of A New Cycle of Sustainable Economic Sustainable Economic
GrowthGrowth Expansion of the domestic market Increased industrial and agricultural output Growth in foreign trade with diversified markets and
increased participation of value-added goods Large inflows of foreign direct investment Better wealth distribution Decrease in poverty Creation of jobs
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INTERNATIONAL RESERVESINTERNATIONAL RESERVES
Source: Central Bank of Brazil
mar/06 59,8
MAY.08 > 200
30
40
50
60
70
80
90
100
110
120
130
140
150
160
170
200
sep03
des03
mar04
jun04
sep04
des04
mar05
jun05
sep05
des05
mar06
jun06
sep06
des06
mar07
jun07
MAY 08
Increase: over 140 billion
Liquidation of Foreign
Debt to the IMF
(US$ billion)(US$ billion)
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Reduction in Income InequalityReduction in Income InequalityGini coefficient Household incomeGini coefficient Household income
Source: PNAD/IBGE.
0,528
0,532
0,535
0,545
0,553
0,558
0,560
0,567
0,570
0,5680,567
0,525
0,530
0,535
0,540
0,545
0,550
0,555
0,560
0,565
0,570
0,575
1995 1996 1997 1998 1999 2001 2002 2003 2004 2005 2006
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Decrease in PovertyDecrease in Poverty
28,8 29,028,5
27,2
28,4
27,628,2
22,8
26,7
25,4
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22
23
24
25
26
27
28
29
30
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
% population
Source: FGV/PNAD/IBGE.
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“A new middle class is emerging almost overnight in Brazil.
During 2000 and 2005, the number of families with annual income between US$ 5.900 and US$ 22.000 has grown 50%, from 14,5 million to 22,3 million, while the number of those who received less than US$ 3.000/year has been abruptly reduced to 1,3 million .”
The Economist, August 18 – 24, 2007
A New Middle ClassA New Middle Class
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PAC – Program for Accelerated PAC – Program for Accelerated GrowthGrowth
• January 2007: Government launched new 4-year programme for growth
• The PAC (“Programa de Aceleração do Crescimento”), based on investments of US$ 236 billion
Objectives:Objectives: • Infrastructure: ports, roads, electricity, water, sanitation and housing.
•Stimulate credit and financing
• Improve investment conditions
•More efficient Tax System
• Reduction of regional and social inequalities
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Rate at 31.12.2007: 1 US$ = 1,78 R$
Source: Central Bank of Brazil
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Part IIPart II
Brazil-Norway strengthening relations
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A historic friendshipA historic friendship
Brazil was among the first countries to recognize the Kingdom of Norway in 1905
Since 19th century, Brazil has grown to become the largest importer of Norwegian dried salted cod fish (bacalao)
Through this trade, Brazil has contributed to the development and prosperity of Norway
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2007: a historic year in 2007: a historic year in bilateral relationsbilateral relations
State Visit of President Lula, September
First of a Brazilian Head of State to Norway
Follow-up of King Harald’s Visit to Brazil in 2003
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Ministerial exchanges 2007-Ministerial exchanges 2007-2008 2008
Brazilian side:Brazilian side:
- Minister of External Relations, Celso Amorim
(February and September 2007)
– Minister of Development, Industry and Trade, Miguel Jorge (September 2007)
– Minister of the Environment, Marina Silva (October 2007)
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Ministerial exchanges 2007-Ministerial exchanges 2007-2008 2008
Norwegian side:Norwegian side:
- State Secretary of Fisheries, Vidar Ulriksen (February 2007)
- Minister Development, Cooperation and Environment Erik Solheim (November 2007)
- Minister of Higher Education and Research Tora Aasland (April 2008 )
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High level business contacts High level business contacts 2007-20082007-2008
– Besides 14 governmental delegations, a number of High-level business contacts
– Seminar Meeting of Energy Giants´
– CSR Conference in Oslo, participation of Petrobras and CVRD
– Brazil Seminar in Bergen, Breakfast of President Lula with Norwegian (CEOs)
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Planned Visits:Planned Visits:
Visit of Prime Minister Jens Stoltenberg to Brazil (September 2008)
Visit of Minister Åslaug Haga to Rio Oil & Gas (September 2008)
NHO CEO Finn Bergesen jr. and LO General Director Roar Flåthen (August 2008)
Minister of Foreign Affairs Jonas Gahr Støre (2009)
President of the Storting Thorbjørn Jagland (2009)
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Trade flow reached a new record in 2007 Trade flow reached a new record in 2007 but can triple in the next couple of years.but can triple in the next couple of years.
Trade Flow Brazil-Norway
1178,7
932,4
739,5661,3
546,0
0,0
200,0
400,0
600,0
800,0
1000,0
1200,0
2003 2004 2005 2006 2007
US
D M
illi
on
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Trade Flow Brazil-NorwayTrade Flow Brazil-Norway
Exports from Brazil to Norway increased 29,8% in the first quarter of 2008 in relation to same period last year (US$ 221,2 million)
Change in the composition of trade, towards more added-value products (compressors and pipelines)
Main products exported by Brazil: alumina, compressors, soybeans and pipelines for the offshore industry.
Dried salted fish (bacalao) continued to be the main item exported by Norway. Exports also include machinery and radio navigation equipment.
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Norway became the main destination for Norway became the main destination for Brazilian exports to Scandinavia in 2006 and Brazilian exports to Scandinavia in 2006 and
20072007
584
496458
219
651 634
525
279
0
100
200
300
400
500
600
700
Norway Sweden Finland Denmark
2006
2007
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Norways tops Scandinavian investment in Norways tops Scandinavian investment in BrazilBrazil
Scandinavian FDI to Brazil
83 60 5426 43
339
274
0
100
200
300
400
2001 2002 2003 2004 2005 2006 2007
US
$ m
n
Norw ay
Sw eden
Finland
Denmark
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Part IIIPart III
Towards a stategic partnership
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Agreements Signed Agreements Signed 2007/2008 2007/2008
Between companies (Petrobras-Statoil) Between business federations (NHO-CNI)
Between Research institutions:– NTNU and PUC-Rio– Research Centre of Petrobras (CENPES) and SINTEF
Between governments:– Brazil-Norway cooperation in Africa (Angola and Guinea-Bissau)– KD (Ministry of Knowledge) - MEC (Ministry of Education and Culture)
- MCT (Ministry of Science and Technology)
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Agreements in Agreements in Negotiation Negotiation
Environmental Cooperation
Legal Matters
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Possible EFTA/Mercosul Possible EFTA/Mercosul AgreementAgreement
Joint Declarations on Co-operation signed in December 2000
Free trade agreement would represent an important boost to commercial exchanges
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Emerging energy giantsEmerging energy giants
In the last 20 years, Norway has become one of the largest exporters of oil and gas
Brazil evolved from a highly energy dependent country into oil self-sufficiency and a major biofuels producer
Recent offshore discoveries make Brazil a key market for Norwegian oil and gas businesses
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Key areas for strategic Key areas for strategic partnershippartnership
1. Energy sector:
– New offshore discoveries (Tupi, Sugar Loaf)– Seismic research, exploration, FPSOs, transportation,
pipelines etc
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Key areas for strategic Key areas for strategic partnershippartnership
2. Shipping:
– Brazil is investing in rebuilding its maritime sector– Norway is a major shipping nation – Brazil is a growing market for maritime equipment
services– Increasing Petrobras oil & gas production capacity– Transpetro: bidding for 26 tankers (from a total of 42 -
Programa de Modernização e Expansão da Frota)
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Key areas for strategic Key areas for strategic partnershippartnership
3. Fertilizers:
– Norway is one of the world’s main fertilizer producers– As an agricultural giant, Brazil is an expanding market for
chemicals and fertilizers – Global need for increase in food production
4. Environmental sustainable projects:
BR Biofuels N Solar energy Combat deforestation CO2 Capture
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A potential strategic A potential strategic partnershippartnership
Convergence of interest in those important areas is transforming Brazil-Norway
relations into a more “strategic partnership”
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””I come to Norway convinced that the present moment I come to Norway convinced that the present moment opens up new and important opportunities. One of them opens up new and important opportunities. One of them
results from a lasting cycle of sustainable growth in results from a lasting cycle of sustainable growth in Brazil”Brazil”
President Luiz Inácio Lula da SilvaPresident Luiz Inácio Lula da Silva
(State Visit to Norway, September 13, 2007) (State Visit to Norway, September 13, 2007)
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Thank you !
Embassy of Brazil
www.brasil.no
Tlf. + 47 22 54 07 35 or 36Fax: + 47 22 44 39 64
[email protected] (Commercial Section)