Chillin' out till it needs to be funded
Sardarji is pretty happy with two meetings back to back trying to launch India in a central position with Brazil and South Africa on the 15th and the conventional BRIC axes tomorrow. However, the world seems more tuned in to real trade with Lula De silva and Hu meeting each other on the sidelines before Hu rushed back to care for the Qinghai Earthquake.
In a period of just one year China’s trade with Brazil and its neighbours has grown by 23% and true to form now Lula De Silva’s government is planning anti dumping tarriffs in 26 categories to combat Chinese goods. Brazil’s $20bn FDI in its neighbours not withstanding, its trade remains $9bn while China’s trade in the region has already crossed $4 billioon and china is also aggressively looking for Energy and Mining investments in the materially rich region.
While China and Brazil may still consider being friends to develop their mutual power regionally and globally as the Dollar recedes..local traders are already crossing swords with each other as the closest competitors. It may infact be too close to be called early days anymore.
Moreira, quoted below in Bloomberg Business Week is the chief Economist of the Inter-American Development Bank
While China surpassed the U.S. as the biggest buyer of Brazil’s exports last year, after the global recession reduced sales to the U.S. by 43 percent to $15.6 billion, most of its purchases are raw materials. Soy and iron ore accounted for 66 percent of $20 billion in Brazilian sales to China last year.
“This is the same pattern of trade Brazil had in the 17th and 18th century,” Moreira said in a phone interview from Washington.
Exports to Venezuela from China surpassed those from Brazil in 2008, according to the state-run, Caracas-based export bank known as Bancoex. While Brazilian sales to Mexico, Latin America’s second biggest economy, increased three-fold since 1998, those from China surged 20 times to $32.5 billion last year, according to Mexico’s Economy Ministry.
China’s push into Latin America also is helping Brazil as investments in industries from energy to metals production creates jobs and improves infrastructure.
the BRIC nations though still accidentally refered to their original avatar as Emerging Markets are now counted as major players in the Global Economy after the disintegration in US and Europe and the N11 nations (like Bangladesh, Vietnam and Venezuela), Mexico and South Africa increasingly take center stage for labor arbitrage businesses and the “Emerging” tag. India’s International trade has virtually been reduced to minor partner status globally with minute participation in Energy, Services and any other manufactured products outside IT services exports.