Bangladesh and Brazil have stepped up their involvement in various fields, particularly in trade and investment since their bilateral trade relations have been set to grow to a new height. Brazil wants to increase trade with Bangladesh because the country is on the verge of becoming a middle-income nation.
Brazil has been expressing its interest in exporting beef to Bangladesh for several years. Brazil is keen to export beef to Bangladesh, which will cost around $4.5 (Tk 495 per kg), according to local news portals published most recently.
Brazilian Foreign Minister Mauro Vieira arrived in Dhaka on Sunday morning on a two-day official visit to Bangladesh. Mauro Vieira was accompanied by a business delegation along with other officials. The Brazilian foreign minister is visiting Dhaka for the first time, marking a milestone in bilateral relations between the countries.
Both sides may explore avenues for enhancing trade relations, signing agreements or several memorandums of understanding (MoUs) to facilitate trade and investment, and discussing ways to deepen cooperation in areas of mutual interest. The two countries are likely to sign an agreement on technical cooperation. Three MoUs on sports, agriculture, and defence are also under consideration.
Brazil is a household name in Bangladesh due to its prominence in football. Brazil established diplomatic relations with Bangladesh in 1972 soon after the victory on December 16, 1971.
Due to unavoidable circumstances both countries had closed their Embassy offices. However, since 2012 they have resumed full-fledged diplomatic operations. Bangladesh has only embassy in South America that is located in Brazil.
Trade has seen significant growth in recent times between both the nations, and trade communities on both sides are seeking further rise with reduced trade barriers under consideration to boost multilateral relations.
To that end, signing a Preferential Trade Agreement (PTA) or Free Trade Agreement (FTA) with Brazil — as is reportedly being considered — would be the wise step forward.
Trade is the primary aim of Brazil’s relations to export raw materials such as metals from its open mines and importing pharmaceutical products from Bangladesh. Brazil is one of the largest producers of various agricultural commodities and also has a large cooperative sector that provides 50% of the food in the country.
Brazil has been the worlds largest producer of coffee for the last 150 years. Brazil is the worlds largest producer of sugarcane, soy, and orange. The country is one of the top 5 producers of maize, cotton, lemon, tobacco, pineapple, banana, beans, coconut, watermelon and papaya; and is one of the top 10 world producers of cocoa, cashew, mango, rice, tomato, sorghum, tangerine, avocado, persimmon, and guava, among others. Regarding livestock, it is one of the 5 largest producers of chicken meat, beef, pork and cows milk in the world.
In the mining sector, Brazil is among the largest producers of iron ore, copper, gold, bauxite, manganese, tin, niobium, and nickel. In terms of precious stones, Brazil is the worlds largest producer of amethyst, topaz, agate and one of the main producers of tourmaline, emerald, aquamarine, garnet and opal.
The country is a major exporter of soy, iron ore, pulp (cellulose), maize, beef, chicken meat, soybean meal, sugar, coffee, tobacco, cotton, orange juice, footwear, airplanes, cars, vehicle parts, gold, ethanol, semi-finished iron, among other products.
Bangladesh is a major supplier of ready-made garments to Brazil. Its RMG exports to Brazil in the July-September period of FY24 surged by 53.79% to $36.93 million, compared to the $24.01 million achieved in FY23 during the same period.
Bangladesh also provides jute products like jute bag and jute sack for Brazilian Coffee industry which will not only increase Bangladeshs export but also create employment at both ends. There is potential of bilateral cooperation in agriculture-knowledge sharing for agricultural research, seed production and fruit processing etc.
Brazil has proposed signing an umbrella agreement with Bangladesh for cooperation in various potential sectors, including agriculture, health, education and sports.
Both parties will share knowledge and experiences about supporting and facilitating the exchange between Small and Medium Enterprises (SMEs), start-ups, incubation centres, research institutes, investors, and other relevant stakeholders of two countries.
Bangladesh now import edible oil, cotton, sugar and others products from Brazil. Brazil is a big country and its citizens purchasing power is also high. As a result there is a great opportunity to increase trade relations with them. However, Bangladesh does not get any duty-free market access. Bangladesh should request Brazil for duty-free market access of ready-made clothes.
Brazils technical cooperation framework agreement with Bangladesh covers agricultural, water resource, animal husbandry, forestry education, fisheries ocean economy, athletes etc. Bangladeshs trade with Brazil has increased from $1.5 billion in 3 years to $2.7 billion at this moment. Emphasis should be given on supporting Bangladesh in the blue ocean development especially deep sea fishing and marine tourism in addition to establishing support for exporting medicine and RMG. Bangladesh is the second largest cotton importer from Brazil and second largest RMG exporter. As a result, Brazil can be a good partner for the cotton exports to Bangladesh.
Bangladesh and Brazil have huge potential for bilateral trade in a number of sectors, if both countries resolve trade barriers, especially Brazils imposing 30%-35% tax on Bangladeshi products.
In Bangladesh, there are 180 million people, of which 40 million possess adequate purchasing power. Bangladesh can be a good destination for Brazil. So, both parties should work to find bilateral trade potential. In the changing world environment, there are a lot of challenges, but also opportunities and they have to unleash the opportunity by overcoming the challenges. Brazil is a global powerhouse in agribusiness, with a robust and growing economy in this sector. The countrys favourable climate, vast arable land, and advanced agricultural practices make it an ideal destination for agribusiness investments.
The sector continues to thrive, presenting long-term growth potential. Brazilian agribusiness has a strong foundation of local competence. The country boasts skilled professionals, innovative technologies, and research institutions dedicated to agricultural advancements. This expertise contributes to the sectors success and ensures continuous growth. Brazil and Bangladesh both can work for bilateral diversified trade, and the two countries have potential in trade in the sectors like agriculture, livestock, investment, disaster management and many more agribusinesses.
