PAULO DE MORAES
Speaking to Démarche, Paulo de Moraes, the Senior Counselor of the Embassy of Brazil in Ankara responsible for the Political and Commercial Sectors, said that Turkish investors could find many opportunities for investment and many attractive sectors in Brazil. A diplomat for 35 years, Paulo de Moraes dwelled upon the future of the rapidly growing bilateral economic relations between the two countries, MERCOSUR and Turkey, and the Free Trade Agreement, and said: “The trade balance is in favor of Brazil, but the products and services that Turkey sells to Brazil are more sophisticated and have a more aggregated value in terms of technical and technological input. We must find a more equal balance of trade and finance.”
What do you think about the status of the bilateral relations between Brazil and Turkey in terms of trade and investments?
Our bilateral relations started increasing in 2000s, and achieved their highest import-export numbers in 2011, with 1.459 million USD of import from Brazil and 917 million dollars of export to Brazil. Commerce between the two countries has seen a slow decline since then, although the numbers are still significantly higher than in 2009, and our trade balance for 2017 (January-October) currently stands at 1.872 million USD. According to the Turkish authorities, Brazil’s total investments in Turkey stand at 686 million USD, while Turkey’s investments in Brazil are 37.5 million USD, with Sabancı Holding and Aktaş Holding standing out as significant investors in Brazil.
EMBRAER AND TAI COOPERATION
How does Brazil view Turkey from a business and investment point of view?
Brazil and Turkey are strategic partners, which means they have many aspects in common. Accordingly, there are complementarities as emergent economies that need to be developed in many areas, such as science and technology, energy (alternative sources, as biomass [ethanol], in which Brazil has great expertise) informatics, infrastructure, defense, etc. A cooperation between Brazilian aircraft producer EMBRAER (the third largest aircraft manufacturer in the world) and Turkish Aerospace Industries (TAI) is a must at this moment. In the last three years, three or four missions from EMBRAER have visited Turkey to develop contacts with private and governmental agencies.
What should the two countries be doing to increase their bilateral exchanges?
Brazil and Turkey are quite remote from each other, and so public awareness needs to be raised. In this way, entrepreneurs can gain access to all the necessary information on how to carry out business, to make imports/exports, or to invest in the other party. Brazil and Turkey are evolved and developed in similar areas, particularly in their secondary sectors, and so they should focus on ensuring their entrepreneurs are well informed about the different opportunities.
Which areas will be of interest to Turkish businesses in Brazil, and what opportunities are there for cooperation?
The most promising industries and sectors for Turkish companies in Brazil are automotive and spare parts, construction equipment and construction, wet tissues and other cosmetic products, furniture, informatics (software and hardware), defense, new energy sources (such as biomass [ethanol] and wind farms), infrastructure, and new technologies in agriculture and livestock breeding.
Has Brazil identified which sectors and products will be of most important in future to investors?
I think both Turkey and Brazil have already established the sectors with the most potential, but it is important that this broad potential should be developed in a two-way direction as there is now a certain technological imbalance in favor of Turkey. It is true that the trade balance is in favor of Brazil, but the products and services that Turkey sells to Brazil are more sophisticated and have a more aggregated value in terms of technical and technological inputs. We must seek a more equal balance of trade and fi nance.
WE ARE READY TO MOVE TOWARDS AN FTA
Turkey and MERCOSUR started discussions regarding a possible Free Trade Agreement (FTA) back in April 2008. What have prevented these discussions from coming to a conclusion?
The negotiations for FTA between Turkey and MERCOSUR are unfortunately paralyzed at the moment for a number of reasons, including the regional conflicts and instabilities in the Middle East and the subsequent shift of focus, the change of government in Brazil, and the instabilities here in Turkey following the failed coup, but I think the two countries are now ready to move forward and can now take steps in a positive direction.
MERCOSUR AND THE EU
The EU is currently negotiating a trade agreement with the four founding members of MERCOSUR. If this comes to fruition, how this will affect the economic relations of Turkey and Brazil? I think this is a very good development that could also help speed up the negotiations between Turkey and the EU. As emergent economies at the same level of development, the negotiations between the EU and the core countries of MERCOSUR could help Turkey’s negotiations with the EU. In fact, the ideal would be if Brazil and Turkey could first, reach an agreement within the framework of MERCOSUR, and then coordinate in their negotiations with the EU.
COME TO BRAZIL!
Is there anything you would like to add as a final message for Turkish businesspeople who may be interested in investing in Brazil?
As I always say to any Turkish entrepreneur that comes to visit me at the Embassy, I would suggest you come to get to know Brazil. Despite being strategic partners, we have still a deficit of mutual knowledge and we must fill this gap as soon and as deeply as possible. Come to Brazil, and come to São Paulo – South America’s main industrial and technological hub – to see the new technologies in agriculture and cattle breeding that are being developed in the Central and Northeastern parts of Brazil. Come to see our new aerospace industries and the alternative and clean sources of energy that Brazil is developing. Come and meet the Brazilian people and enjoy Brazilian culture, which has much in common with the Mediterranean culture of Turkey. Come to discover why Turkey and Brazil must develop real and deep and long run partnerships. You will be welcomed.
