18 Aug 2017
Brazil and Mainland China Sign Action Plan to Implement Services Co-operation Agreement
Brazil and mainland China recently agreed on a two-year action plan to implement the October 2016 memorandum of understanding on the services sector, which is aimed at incentivising bi-lateral trade and investment in services and promoting 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. Signed on the side-lines of the seventh meeting of BRICS trade ministers, the action plan is reportedly designed to enhance services trade in eight areas, including engineering, architecture, electronic commerce, banking automation and tourism.
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 has indicated 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.
According to MDIC, 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.