Government officials and business executives from Brazil and India are meeting in New Delhi this week, aiming to triple their $12 billion business partnership, according to a report by Yahoo Finance. The meeting comes as economists warn that President Donald Trump’s trade policies could reduce countries’ economic growth by about one percentage point.
Also read: India-US trade talks seen positive amid tariff disputes
The Brazilian delegation, led by Vice President Geraldo Alckmin, will discuss potential partnerships with Indian business leaders in areas including agribusiness, biofuels and defence. The delegation includes executives from oil giant Petrobras, mining company Vale SA, and food processing company BRF SA.
The partnership between Brazilian President Luiz Inacio Lula da Silva and Indian President Narendra Modi is cited as an example of the global realignments taking place as the White House changes long-standing business practices. The shift has also prompted New Delhi to improve relations with China and helped Mercosur and the European Union finalize a trade agreement.
“Trump’s trade war is leading to a comprehensive reorganization of trade everywhere,” said Thiago de Aragão, president of Arco International, a consultancy in Washington. “Although everyone wants to solve the problems they have with the United States, everyone is concerned that this mentality from the Trump administration may be a long-term trend.”
India and Brazil faced tariffs of up to 50% on their goods. Although the White House later issued waivers for hundreds of Brazilian products and Indian pharmaceuticals and electronics, the tariffs remain an economic risk. Nearly 12% of Brazil’s exports went to the United States last year, leaving the country vulnerable if tariffs reduce demand for key exports such as beef and steel.
Source: Index Box Market Intelligence
