CBI helps launch UK-Brazil Working Group with Brazilian sister federation

Andy Burwell, CBI International Director, spoke as a panellist at the working group’s kick-off event on 2 September, which is recapped below:

The CNI’s launch event of the UK-Brazil Working Group was keynoted by the UK Ambassador to Brazil, Peter Wilson, who outlined three major priorities for the government’s future relationship with Brazil. First, he reminded audience members that expanding the bilateral relationship was not reliant upon the UK’s potential trade deal with Mercosur, the South American Continental trade bloc, which is hampered by political challenges. Second, UK officials hope to conclude a double taxation agreement with Brazilian counterparts as soon as possible, the lack of which is arguably the largest barrier to the Brazilian market right now. And finally, the UK plans to lobby heavily for Brazil to join the Organisation for Economic Co-operation and Development (OECD) and to support them in the accession process. Ambassador Wilson reminded the CBI and the UK business community that while it is sometimes challenging to do business in Brazil, it is always profitable.

CNI officials then took the time to lay out their own priorities for Brazil’s future trading relationship with the UK, the most significant of which in their minds was also a deal on double taxation. Such a deal remains crucial to promoting UK services trade into Brazil and ensuring that FDI can lead to profit dividends for investors on both sides. They also mentioned that the UK and Brazil are well positioned to collaborate in areas such as technology transfer and innovation, to better connect UK know-how to Brazil’s burgeoning IT sector and the food and drink industry.

CBI International Director Andy Burwell reiterated the CBI’s strong support for a stronger relationship with private industry groups in Brazil. Even though a free trade agreement between Mercosur and the UK appears unlikely due to political challenges, he stressed that the Brazilian market by itself is still a priority, given the huge opportunities for members in services, innovation, decarbonisation and green growth. Andy also highlighted that the UK in particular has a lot to offer Brazil in services, especially when it comes to building up a rapidly growing consumer market in areas like finance and credit. However, he noted that there is still significant room for improvement as only 35% of UK exports to Brazil in Q1 2021 were in services trade. Andy also stated that future areas for cooperation between the CBI and the CNI could include customs facilitation measures that cut red tape and enable UK goods to spend less time at Brazilian ports, as well as joint campaign efforts to promote World Trade Organization (WTO) reform and fight against global protectionism. This is particularly relevant with intellectual property protection, which underpins rules-based trade and certainty around the world.

The event also included a discussion between Bruno Cassiano, a head technical advisor in the Brazilian Ministry of Economy and Georgina Ayre, Commercial Counsellor at the British Embassy in Brazil. He highlighted the Brazilian government’s low carbon policy ambition and their creation of a trade sustainability working group but admitted concerns for ensuring that global climate measures are not disguised as protectionism towards certain countries. On the other side, Georgina highlighted the UK government’s ongoing rollout of its new trade facilitation programme in Brazil, part of the Foreign Office’s Prosperity Agenda that works to elevate sustainable living conditions and reduce poverty across the developing world. The programme focuses on increasing the efficiency of Brazilian ports, connecting local small businesses to trade-supporting services, and improving the quality of intellectual property (IP) in Brazil.

While this event simply marked the start of a budding partnership, it served a valuable purpose in cementing the CBI’s growing influence across Latin America. And while challenges remain for UK businesses hoping to enter Brazil – such as geographical distance, regulatory barriers, and consumer credit – this dialogue between the CNI and the CBI will work to educate members on the real, tangible opportunities that exist in Latin America’s largest and most populous economy.

If you are interested in getting involved with the CBI’s work on Brazil, our partnership with the CNI, or other areas concerning Latin America, please contact John Bleed.