Mercosur, Singapore negotiate investment boost
On the eve of the United Nations (UN) General Assembly, the Brazilian government considered expanding the commercial agreement between Mercosur and Singapore—the region’s third biggest partner and an important gateway for the South American bloc into Southeast Asia.
Brazil’s Foreign Minister Aloysio Nunes today (Sep. 24) stressed the importance of bolstering the partnership. In his view, new investment routes must be opened between Mercosur—the bloc formed by Brazil, Argentina, Paraguay, and Uruguay—and Singapore, like the investment funds of the government of Singapore (GIC) and Singaporean holding company Temasek. Direct investments from Singapore in Mercosur member countries added up to $2 billion in 2016.
There is potential for investment from Singapore in Mercosur in such sectors as oil, ports, airports, roads, and electricity, Nunes said. Despite the impact of protectionist measures on the global landscape, which leads to an undermined multilateral trade system, the Brazilian chancellor sees it as a priority to diversify our commercial and economic partnerships.
Trade flow
In 2017, the commercial flow between Mercosur and Singapore amounted to some $3.6 billion, of which $3.4 billion stems from Brazil–Singapore trade ties.
The main goods exported by Brazil to Singapore include oil rigs, fuel oils, engine parts and aircraft turbines, ferroalloys, and frozen chicken.
Among the products imported from Singapore to Brazil are insecticides and herbicides, fuel oils, integrated circuits and microsets, medications, and polymers of ethylene.
Brazil–Austria
Also on Monday (24), Aloysio Nunes met with Austrian Foreign Minister Karin Kneissl. In the assembly, it was arranged that the two countries would work to bolster bilateral trade for commerce and investment.
Today, Austria chairs the European Union Council. Mercosur and the European bloc reached a deal and settled 18-year-old impasses. Brazilian and Austrian authorities agreed that the deal plays a strategic role, linking the two blocs to a common integration project, with shared ruled and standards.
The Brazilian chancellor complimented the Austrian government for subscribing to the Treaty on the Prohibition of Nuclear Weapons, which ratifies the commitment of most of the international community with nuclear disarmament.
