Prospect mission to Brazil

June 03, 2019 - Brazil


Prospect mission to Brazil

The IFT organised a trade prospect mission to Brazil, in order to discuss potential post-Brexit trading terms, and the latest developments in Mercosur.

Brazil is undergoing dramatic, liberalising economic reforms under the current administration. President Bolsonaro has delegated much of his economic policy to Minister Paul Guedes: a University of Chicago economist educated under Milton Friedman.

The administration has strong aspirations for trade liberalisation. While we were in Brasilia, the President was in Argentina announcing Mercosur’s readiness for the EU Association Agreement; we believe the United Kingdom should be prepared to upgrade the terms therein.

This was the subject of our conversation with Foreign Minister Ernesto Araujo, as well as with officials in the Ministry of Finance. Alongside the Institute of the business group Brasil200, IFT is working to produce a policy paper on how the UK’s negotiating positions can and should be different from the EU’s.

One other suggestion we made - both to the Foreign Minister, and to the diplomats we met at the Embassy - was the possibility of the United Kingdom becoming an Observer to Mercosur. This is a position already enjoyed by New Zealand, so why not the UK?

Prospect mission to Brazil