Brazil and China sign document to boost bilateral trade

16 April 2010

Brasilia, Brazil, 16 April – The presidents of Brazil and China Thursday in Brasilia signed a document to boost business between the two countries.

The Joint Plan of Action (PAC) signed by Lula da Silva and Hu Jintao, will be in force for the 2010-2014 period and covers 11 areas of cooperation, including agriculture, science and technology, industry and culture.

“The Plan that we signed offers an excellent pathway for our common future. It will allow for greater coordination of our overall activities to benefit the aspiration of our people,” Lula said.

Lula noted that China had become the main destination for Brazilian exports, but said that products of a greater aggregate value needed to be part of bilateral trade.

According to Lula, exchange between the two countries has grown 780 percent since 2003.

The PAC outlines that the two countries will begin discussing the adoption of local currencies in trade between the two countries.

As well as the PAC, Brazil and China signed a further 13 agreements in the areas of agriculture, energy, communications and culture.

EBX, a Brazilain company owned by Eike Batista, and China’s WISCO signed a deal for construction of a steelworks in the Port of Açu in Rio de Janeiro. The investments are estimated at US$5 billion, of which 70 percent will be provided by the Chinese company.

“The idea is to export everything to China, and also to sell products of higher value, such as steel plates,” Batista said. (macauhub)