Lula to request access to Japan's beef market

Energy transition, protection of the Amazon, recovery of the degraded Cerrado biome, and Brazil's access to the billion-dollar Japanese beef market are among the topics to be discussed during the meeting between Japanese Prime Minister Fumio Kishida and President Luiz Inácio Lula da Silva scheduled for this Friday (May 3) in Brasília.

The Brazilian government should seize the opportunity presented by the visit of the Japanese Prime Minister, the first of its kind since 2014, to bolster political, environmental, and economic ties. This includes addressing the longstanding aspiration for Brazil's inclusion in Japan's beef market.

"President Lula will articulate this ambition for trade diversification, with a primary focus on securing entry into the Japanese market for our beef and broadening access to pork. Currently, only the state of Santa Catarina holds authorization for pork exports to Japan," stated Ambassador Eduardo Paes Saboia, Secretary for Asia and the Pacific at the Ministry of Foreign Affairs.

As per the Brazilian Foreign Ministry, Japan relies on imports for approximately 70 percent of its beef consumption, amounting to $3 to $4 billion annually. The bulk of these imports, around 80 percent, currently come from the United States and Australia. Despite efforts dating back to 2005, Brazil has thus far been unable to secure access to the Japanese beef market.

"Presently, Brazil's health standards have significantly improved compared to 2005, notably in terms of being recognized for foot-and-mouth disease-free zones without vaccination. It's imperative to acknowledge this progress, especially considering Brazil's extensive export network spanning over 90 beef markets," emphasized the ambassador.

Ethanol

Another request from Brazil is to increase the proportion of Brazilian ethanol in the Japanese market. Ambassador Saboia asserts that Brazilian ethanol surpasses that of other suppliers to Japan, such as the United States, in terms of quality.

“All objective and scientific measurements indicate that Brazilian ethanol, including corn ethanol, boasts higher energy efficiency compared to offerings from other suppliers,” he stated.

As per the Ministry of Foreign Affairs, Brazil is also poised to request Japan's involvement in investments towards Brazil's neo-industrialization initiative, a federal government program aimed at increasing the industrial sector's role in the economy. Additionally, Brazil seeks Japan's participation in the new Growth Acceleration Program (PAC), an infrastructure endeavor reliant on private investment.

Prime Minister Kishida is set to be welcomed by President Lula this Friday at the Planalto presidential palace, where they'll engage in discussions. Accompanying him is a delegation comprising 35 Japanese business leaders. In Brasília, the anticipated agenda includes the signing of agreements spanning cybersecurity, science and technology, industrial collaboration, as well as cooperation in agriculture and environmental sectors.

Following lunch at the Foreign Ministry, the Japanese Prime Minister will proceed to Paraguay. Then, on Saturday (4), Fumio Kishida will return to Brazil for engagements with business leaders and the Japanese community in São Paulo. The event is expected to be attended by Brazilian Vice President and Minister of Development, Industry, Trade, and Services, Geraldo Alckmin.

Environmental issues

The Brazilian government is confident that Brazil can play a significant role in Japan's energy transition. The proposal involves the Asian country investing in renewable energy projects in Brazil, enabling the country to export clean energy to Japan.

Eduardo Paes Saboia emphasized, “More than 80 percent of Japan's energy consumption is reliant on imports, predominantly from non-renewable sources. Hence, Japan possesses the capability to invest in and promote the growth of renewable energy in Brazil. This move would enable us to further solidify our position as a global leader in renewable energy."

Furthermore, there are plans to sign an agreement between Brazil and Japan for the latter to provide financing for Brazil's program aimed at restoring degraded areas of the Cerrado biome. Another matter is the investment in the Amazon Fund, which focuses on executing projects to safeguard the biome. Japan was the first Asian nation to invest in the Fund, contributing a total of $14 million. However, Saboia remarked, "We aspire for more; I believe it's an insufficient amount."

Historical relations

Japan stands as Brazil's second-largest trading partner in Asia, following China, and ranks ninth among Brazil's global trading partners. The bilateral trade volume between the two nations amounts to $11.7 billion, with Brazil enjoying a surplus of $1.4 billion. Additionally, Japan ranks as the eighth-largest foreign investor in Brazil, with investments totaling around $28.5 billion.

Brazil predominantly exports commodities such as iron, chicken, coffee, aluminum, and corn to Japan, while it imports primarily manufactured goods from Japan, including auto parts, chemical compounds, measuring instruments, and integrated circuits.

Brazil is home to the largest Japanese-descendant population outside Japan, estimated at over two million people. Conversely, Japan hosts the fifth-largest Brazilian community abroad, consisting of approximately 221,000 nationals.