India And Brazil Strengthen Global Trade Ties

Brazil and India held bilateral talks recently with the aim of strengthening global trade relations between them. The two countries are targeting a trading increase of $10 billion by 2010 from the current standing of $2.4 billion. Aside from global trade issues, the meeting likewise focuses on other pertinent matters like investment, defense, energy, science, to name a few. With the meeting represented by Prime Minister Manmohan Singh of India and President Luiz Inacio Lula da Silva of Brazil, both parties realized the strong need to strengthen economic cooperation between them.

On one occasion of the meeting, which is dubbed as India-Brazil Strategic Dialogue, both parties denied claims of the US that progressing countries have an active role in climate change, saying it was the result of unsustained development and elimination processes in the progressive nations. In addition, Brazil expressed its adoption of the global trade agenda of the Doha Round of Talks, which is strongly advocated by India. Likewise, the Brazilian President said that progressive nations cannot take developing countries out of the picture on the issue of the Doha Round of Talks, particularly if India and Brazil hold on to their hard-line stance.

Lula believes that progressing nations have a vital role in the economic system of the world. He contends that powerful nations should learn how to cooperate and negotiate with emerging economies. Lula also added that both wealthy and developing countries can learn from each other. As a result of globalization efforts, the focus of global trade is no longer solely on the United States and European Union.

The global trade partnership of India and Brazil began in September of 2006 when the Indian Prime Minister visited Brazil. Today, trading between the two nations is still on the development stage. Although both parties previously failed to reach their desired quota, they are still optimistic that they will reach their established target. In line with this, Brazil is set to transfer its agricultural, food processing, mining, industrial, and nuclear energy expertise to India.

On the other hand, the South American country is expected to benefit from India's solar energy, wind power, and medicine production technology. Furthermore, formal discussions concerning a three-way global trade, which involve the South African Customs Union, Mercosur(Argentina, Paraguay, Venezuela, and Brazil), and India, are already in the works. The series of discussions can boost economic relations between the involved countries.

Meanwhile, the Group of 20 (G-20) is set to meet on June 11 in Geneva to discuss global trade in relation with the Doha Round. The meeting aims to remove global trade farm subsidies issued by developed countries such as the United States.