21 Oct 2016
Brazil and Mainland China Agree to Promote Bi-lateral Services Trade
Brazil and mainland China signed on 10 October a memorandum of understanding to promote bi-lateral trade and investment in services and encourage the exchange of information on best practices in the services sector in order to achieve greater efficiencies and enhance the quality and competitiveness of the services provided. This is the first agreement that the Brazilian government signs with Beijing under the leadership of President Temer.
According to Brazil’s Ministry of Industry, Trade and Services (MDIC), the main goal of this arrangement is to promote a closer relationship between the Brazilian and mainland Chinese services sectors in an effort to generate new business opportunities. Minister Marcos Pereira observed that the MOU seeks to address a request by the Brazilian private sector to further strengthen bi-lateral relations with mainland China particularly in light of on-going efforts by Beijing to support its services sector. MDIC and mainland China’s Ministry of Commerce spent about two years negotiating the MOU, which identifies various sectors of special interest such as information and communication technology, banking automation, sports services, outsourcing and audio-visual services.
MDIC highlights in a press release that mainland China is the world’s third largest exporter of services as well as the 17th largest recipient of Brazilian services. Brazil imported an estimated US$527 million worth of mainland Chinese services and exported an estimated US$254 million to mainland China in 2015, yielding a bi-lateral deficit of US$273 million. Trade flows are currently focused on logistics services as well as other services related to trade in goods, suggesting there is ample room for deepening the bi-lateral relationship. MDIC and MOFCOM will now develop a biennial plan of action on services and Brazilian authorities will continue to seek input from domestic services providers.