After Argentina, Brazil approaches KCCI

Envoy calls for greater collaboration to enhance bilateral trade

KARACHI:

The Ambassador of the Federative Republic of Brazil, Olyntho Vieira, on Wednesday, stressed that instead of conducting virtual meetings, the business communities of Brazil and Pakistan should look into the possibilities of face-to-face interactions that can help enhance trade ties.

The comments came during his visit to the Karachi Chamber of Commerce and Industry (KCCI).

“The best way of doing business is to regularly meet with each other and directly examine and feel the goods being produced by Brazil and Pakistan,” he said.

The Brazilian ambassador, who was on his maiden visit to Karachi after assuming charge, said that although his job was to promote Brazilian exports to Pakistan, but he would like to see enhanced trade from both sides as improved trade from one side only was not good business. Vieira was of the view that both countries had the potential to excel in the textile sector and by joining hands they could become an even bigger force.

“This collaboration could prove to be beneficial to both sides,” he said, adding that Brazilian businessmen could also enter into an arrangement with their Pakistani counterparts to produce Brazilian goods in Pakistan and supply them to the Asian markets, reducing shipment costs significantly. “Brazil can also offer many good quality products to Pakistan at good prices. We haves been producing almost everything from food to aeroplanes,” the envoy maintained.

The envoy extended his full support and cooperation to KCCI, and assured the business and industrial community of Karachi that the ambassador would help facilitate meeting with their Brazilian counterparts.

After the Argentinian trade delegation, this is the second South American country to have approached the Pakistan business and industrial community.

Encouraged by the envoy’s comments, Taurus Securities Head of Research Mustafa Mustansir said, “The government should facilitate businessmen to find export opportunities in Brazil and work towards winning more concessions from the country in the form of lower duties and taxes as well as more access to goods originating from Pakistan.”

“The government can also organise or encourage the private sector to participate in trade shows in the country and pitch other than textile exports to Brazilian buyers,” he added. Speaking to the Express Tribune, Union of Small and Medium Entreprises (UNISAME) President Zulfikar Thaver said, “Brazil is essentially self-sufficient in basic agriculture and is a leading exporter of a wide range of crops. We can work together in different sectors of the economy, particularly the IT sector which has developed rapidly in Pakistan.”

KCCI President, Muhammed Tariq Yousuf said Pakistan has an extremely low export share in the Brazilian market. “With just 0.3% share of exports in the Brazilian market, there is a need to look into the possibility of exploring other export goods like, sports goods, surgical and pharmaceutical goods and textile products, so that the meagre trade volume can be improved,” he said.

Explaining that currently no bilateral trade agreements existed between Pakistan and Brazil, he stressed, “If both countries can agree on mutually beneficial preferential treatment or a duty-free regime, it would help in furthering trade relations.”

Arif Habib Ltd Head of Research Tahir Abbas said, “Pakistan should explore new export markets, especially competitive ones which don’t require high value addition.”

“The focus should remain on the diversification of market, products and value addition to maximise the dollar-based earnings for the country,” he emphasised.

Referring to the Mercosur Agreement signed between Brazil, Argentina, Paraguay and Uruguay for ambitious, balanced and comprehensive trade, the KCCI president urged Brazil to look into the possibility of adding Pakistan to the Mercosur Agreement, or another similar arrangement, to improve trade ties with Brazil and its neighbouring countries. “Brazil has been exporting a substantial number of products to China with excellent trade ties. It must also look into becoming a part of the China-Pakistan Economic Corridor (CPEC),” urged the KCCI president.

Published in The Express Tribune, November 3^rd, 2022.

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