Brazil to have US$40 billion trade surplus with China in 2006

24 March 2006

Beijing, China, 24 March – Brazil’s balance of trade in 2006 is expected to have a surplus of uS$40 billion with China, China Radio International reported Thursday, citing a survey of financial institutions by the Chinese central bank.

The survey points to a surplus of US$35.5 billion for 2007.

According to the radio station, since the beginning of the year Brazil has recorded a surplus of US$7.818 billion, with exports of US$25.549 billion and imports of US$16.731 billion.

Brazil mainly exports raw materials to China, particularly iron ore, soy, soy oil and metalworking products, and the country is China’s largest trading partner in Latin America while China is Brazil’s third largest trading partner.

In Beijing, Brazil’s vice president, José Alencar is to open the Chinese-Brazilian High Commission for Coordination and Cooperation (COSBAN), which aims to promote, every two years, the meeting of high-level representatives of the two countries. Alencar will be met by China’s president, Hu Jintao and will meet with deputy prime minister, Wu Yi.

On Wednesday, which was the fourth day of his visit to China, Alencar signed four agreements between Brazil and China, including a memorandum of understanding on meat exports.

Alencar, had previously met with Li Changjiang, minister for General Administration of Quality, Inspection and Quarantine (AQSIQ), with whom he discussed the future signing of a convention for access of Brazilian meat to the Chinese market.

The memorandum of understanding signed by the two countries commits them to working towards signing a protocol for importing and exporting pork. In the previous meeting Alencar told Li that it was urgent for Brazil to increase its meat exports to the Chinese market.

Alencar also presided over the signing of a cooperation agreement on telecommunications and information technology, a memorandum of understanding on setting up mechanisms for dialogue in the finance sector and a plan of action for cultural cooperation with the Chinese government. (macauhub)