The opportunity to create a common digital market between Brazil and the European Union (EU) was the main message of EUBrasil Association during the European Parliament’s Delegation for relations with Brazil meeting. Two other priorities were also pointed out: to encourage the step forward of the negotiations for a free trade agreement between Mercosur and the EU and to prioritize bilateral discussions to find regulatory convergence.
“Brazil and the EU should work together on digital cooperation to boost economic relations. This is a crucial sector for the country’s economic growth. Let’s talk about the future; we can’t wait any longer for EU-Mercosur negotiations, this is taking too long. It is time to act”, said Luigi Gambardella, president of EUBrasil, on Thursday (25/06), at the European Parliament (EP) in Brussels.
Gambardella was invited by the MEP Paulo Rangel, president of the Delegation for Relations with Brazil, to present the results of the research “Enhancing economic and financial ties between Brazil and the European Union” conducted by EUBrasil together with main Brazilian and European companies.
“Although Brazil is going through a period of slow economic growth, there are still many opportunities for expanding business operations in different areas and sectors”, commented Gambardella. The EU is the destination number one of Brazil’s exports and imports: 20% of Brazil’s exports go to the EU, while 21% of Brazil imports come from the EU.
Gambardella also said that Brazil and EU could improve focusing in investments and infrastructures. “This is the key”, continued.
“I find it very interesting and relevant to have, within the framework of our parliamentary delegation EU-Brazil, the prospect that the private sector has of the relationship between the EU and Brazil. I welcome this initiative by the EUBrasil partnership hoping to continue to contribute to a deeper understanding of the entrepreneurial realities of both regions”, said MEP Paulo Rangel.
Private Sector Opinion
The major conclusions of the study indicated that a free trade agreement should be the priority for the European Commission. The companies pointed out that the elimination of tariffs is still important but no longer a priority and that regulations are the main barrier for the growth of businesses.
“The business sectors believe that the political influence over regulations is now bigger in the most sensitive sectors in Brazil (energy, telecommunications etc.) and in the EU (bio fuels, raw materials etc.). The regulations now incorporate political or ideological criteria which give less weight to technical and scientific ones”, indicated Gambardella.
About the document – The survey for “Enhancing economic and financial ties between Brazil and the European Union” was conducted by EUBrasil between July and October. A questionnaire was sent to the main companies with strategic position in the trade and investment relations between Brazil and EU, which was answered by 27 of them. Brazil’s Centro de Estudos de Integração e Desenvolvimento (CINDES) was responsible for collating the answers and preparing the final document.