Improved international relations will benefit Brazil’s trade. As the country’s economy recovers, efforts are being made to enhance its appeal to foreign investors by stabilizing the economy, concluding trade agreements with strategic partners, and engaging in deeper conversations with BRICS countries (Brazil, Russia, India, China, and South Africa). This article delves into the trade relationship between Brazil and Russia, focusing on the commercial opportunities and prospects of their trade relations.
At the recent eleventh BRICS Summit, Russian and Brazilian representatives and business officials worked to improve trade relations between the two countries. The Chairman of the Brazil-Russia Chamber of Commerce mentioned the potential for Russia and Brazil’s economic interactions to reach US$50 billion if energized.
The representatives and top management from Russia and Brazil met at the summit to discuss and identify future commercial opportunities. According to the Ambassador of the Russian Federation to Brazil, economic transactions between the two countries are not currently at an optimal level. The Chairman of the Brazil-Russia Chamber of Commerce also mentioned that the current transactions between Brazilian and Russian businesses still have the potential to reach up to US$50 billion.
Opportunities for improvement in Russia-Brazil trade include simplifying bureaucratic procedures, diversifying logistics to boost bilateral trade, and negotiating more trade deals with the Euro-Asian country.
Currently, Brazil has a trade deficit with Russia, importing more than it exports. Brazil’s main exports to Russia include agricultural products, vehicles, and meat. On the other hand, Brazil imports fertilizers, mineral fuels, and aluminum from Russia. Trade agreements, such as the abolishment of a 6% tariff on high-quality environmentally friendly fertilizers made in Russia, have facilitated the import of fertilizers and increased supply for Brazilian agricultural production.
With successful trade deals with the United Arab Emirates, China, and access to countries through Mercosur’s preferential trade agreement, Brazil’s traders have easier access to international markets.
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