Paulo Montoia
Agência Brasil

The recent Chinese refusals to receive Brazilian soybean shipments will have little impact on the export results forecast for this year, the Minister of Development, Industry, and Foreign Trade, Luiz Fernando Furlan, affirmed today, evaluating the consequences of Monday's (14) decision by the Chinese government to bar 15 more soybean export firms. This raised to 23 the total number of firms prohibited by Chinese health authorities from sending future soybean shipments, because seeds treated with fungicides were mixed with grains for human consumption.

Furlan and the Minister of Agriculture, Livestock, and Supply, Roberto Rodrigues, met yesterday (15) with a Chinese delegation headed by the Chinese Assistant Minister of Foreign Trade, Yi Xiaozhun, who believes that a technical solution will be found for the problem. "Soybeans in China are for human consumption, and our concern is with human health. Technical experts from the two countries will be sitting down shortly to discover a solution together, as quickly as possible. Therefore, I think that we shall resolve this problem," the Chinese Minister said. Xiaozhun added that China is interested in increasing soybean imports from Brazil.

Furlan pointed out China's interest in importing fuel alcohol as part of a bilateral agreement on renewable energies, since that country's vehicle fleet is growing at an annual rate of 30-40%. China already produces and uses fuel alcohol, but in small quantity and at a higher cost than what is produced in Brazil. The meeting with the Chinese delegation included discussions on expanding the sale of industrial products, including footware with greater aggregated value.

The Minister also presented a summary of his other meetings yesterday (15), with the Ministers of Trade of Nigeria, Morocco, South Korea, Finland, and India. Morocco, Furlan remarked, can become an interesting portal for Brazilian products to enter the European Union. Regarding Nigeria, Brazil intends to intensify business dealings in order to minimize a trade deficit that comes to around US$ 1 billion. The Finns already have various enterprises in Brazil, responsible for around 5 thousand jobs, and they plan to establish an export products company with assets worth US$ 1 billion, comprising private capital from Finland, Sweden, and Brazil. According to Furlan, the company will generate an estimated annual export surplus of US$ 500 million and should begin operations in the second half of 2005.

In addition to being interested in fuel alcohol, the Minister from India, Kamal Nath, expressed India's intention to speed up a free trade agreement with the Mercosur. Furlan reaffirmed Brazil's desire to send a sizable trade delegation to the International Fair in the Indian city of Delhi, in November.

Translator: David Silberstein