Recently, the ninth India-Brazil Joint Commission Meeting (JCM) was held in New Delhi.
Key Highlights on the Ninth India-Brazil Joint Commission Meeting (JCM)
India and Brazil share a multifaceted relationship rooted in shared values. During the meeting, both sides took stock of bilateral ties, including cooperation in trade, defence, energy, health, agriculture, space, and technology.
- Global Focus: Exchanged views on global geopolitical developments, the shared concerns and aspirations of the Global South, and advancing engagement in BRICS, IBSA, and G20.
- Diversification of the Strategic Partnership: The strategic partnership spans defence, space, security, technology, and people-to-people relations.
- Support and Appreciation:
- G-20 Presidency: India reiterated its full support for Brazil’s G-20 Presidency. Currently, Brazil holds the G20 Presidency.
- Environment Initiative: India appreciated Brazil’s unique initiatives centered on the theme of building just the world and sustainable planet.
- Culture Connect: India is pleased to see a growing appreciation of Indian culture, performing arts, and philosophy in Brazil.
- Significance: This JCM provides an opportunity to further strengthen the strategic partnership and explore new avenues of cooperation in multilateral arenas across diverse sectors.
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About India-Brazil Relations
India and Brazil share a very close and multifaceted relationship.
- Historical Link: The connection is about five-century old.
- Between the 16th and 18th centuries, Brazil and Goa, both outposts of the Portuguese imperialist empire, had bilateral exchanges that are reflected in food and dressing as well as local traditions.
- Also, the bulk of Brazilian cattle are of Indian origin.
- Example: The popularity of a Brazilian tele-novella called ‘Caminho das Indias’ (Paths of India) has had a great impact in enhancing awareness of India in Brazil.
- Political Cooperation: Both countries cooperate closely within BRICS, IBSA, G4, G20, and the wider multilateral context of the United Nations.
- UN Security Council: Brazil and India (along with Germany and Japan) jointly pursued aspirations of permanent seats in the UN Security Council.
- Global South Cooperation: Both countries played a pivotal role as leaders of the Global South or South-South cooperation.
- Concurrent Focus: The Brazilian foreign policy of reciprocal multilateralism is in concurrence with India’s policy of strategic autonomy.
- Diplomatic Relations: It was established in 1948, with both countries opening the embassies in the same year.
- In 2023, the two countries celebrated 75 years of diplomatic relations.
- Consulate General: India has a Consulate General in Sao Paulo while Brazil has a Consulate General in Mumbai.
- Embassy: India opened its Embassy in Rio de Janeiro, which was later moved to Brasilia in 1971.
- During the Cold War: India and Brazil calibrated against the world order dictated by superpowers (US and USSR).
- For example in 1967, both the countries condemned the idea of creating a Non-Proliferation Treaty (NPT).
- Strategic Partnership: It has been since 2006. The bilateral relationship is based on a common global vision, shared democratic values, and a commitment to foster economic growth with social inclusion for the welfare of the people of both countries.
- Economic Relations: Brazil is one of the most important trading partners of India in the entire LAC (Latin America and Caribbean) region.
- In 2021, India became the 5th largest trading partner of Brazil and the bilateral trade increased by 63.5% to US$ 11.53 billion compared to US$ 7.052 billion in 2020.
- Over the past 5 years the exports of Brazil to India have increased at an annualized rate of 5.68%, from $4.88B in 2017 to $6.43B in 2022.
- The main products that Brazil exported to India were Soybean Oil, Crude Petroleum, and Gold.
- India’s exports to Brazil include organic chemicals, diesel oil, pharmaceuticals and chemicals, engineering goods, etc.
- Defence Cooperation: An agreement was signed in 2003 for cooperation in defence.
- Joint Defence Committee (JDC): Meetings of the JDC are held as an institutionalised mechanism for defence cooperation.
- 2+2 Meet: India and Brazil conducted ‘2+2’ defence and foreign ministerial dialogue.
- It involves the participation of the defence and foreign ministers of two countries, along with their respective counterparts, to discuss strategic and security-related issues, as well as diplomatic matters.
- India conducts ‘2+2’ dialogues with key strategic partners- the US, Australia, Japan, and Russia.
- Security Cooperation: India and Brazil established a Strategic Dialogue mechanism in 2006 to cover regional and global issues of mutual concern.
- The two countries have an Extradition Treaty, Mutual Legal Assistance Treaty in Criminal Matters and an Agreement of Transfer of Sentenced Persons in place.
- An MoU was signed on cooperation in the area of Cyber Security between CERT-In and its counterpart agency in 2020.
- India and Brazil also cooperate in cyber issues at BRICS and IBSA.
- Space Cooperation: Both signed a framework agreement for peaceful use of outer space in 2004 as well an Agreement for inter-institutional cooperation between the space agencies.
- Both have been collaborating in data sharing and satellite tracking of Indian satellites.
- Cultural Cooperation: In Brazil, there is enormous interest in India’s culture, religion, performing arts and philosophy.
- Yoga and Ayurveda: Brazil has a strong community of Yoga and Ayurveda practitioners.
- The Brazilian Association of Ayurveda (ABRA) is a non-profit association with offices in 9 states of Brazil and has members all over Brazil.
- India’s first cultural centre in Latin America was opened in Sao Paulo in May 2011.
- A Cultural Exchange Programme (CEP) for the years 2020-2024 was signed in 2020.
- Mahatma Gandhi: He is highly regarded in Brazil and the government and NGOs are trying to inculcate the philosophy of non-violence among students, youth and police.
- Bio-energy Sector: India and Brazil are co-operating in multilateral forums such as Bio platforms.
- ‘National Biofuel Policy’ of India and the ‘Renova Bio’ Programme of Brazil have some common objectives related to increase in the current blending percentage of bio-fuel with Petrol and Diesel.
- An MoU on Cooperation between India and Brazil in the area of Bio-energy was signed in 2020.
- Cooperation in Agriculture, Food Processing and Animal Husbandry: Indian cattle like Gir and Kankrej, which were exported centuries back, have been suitably modified to yield large quantities of milk in Brazil.
- Both sides are working on training and capacity building, including technology transfer.
Significance of Brazil for India
Brazil is strategically important to India for many reasons, including its natural resources, growing markets, and potential for collaboration in many sectors.
- Strategic: As India aims to achieve 30% electric vehicle sales by 2030, partnering with Brazil for lithium supply becomes a strategic necessity.
- Reliable Source for Lithium: Brazil’s lithium industry, which has seen significant investments and advancements, offers India a reliable source of lithium.
- Boost in Economic Ties: Joint ventures and long-term supply contracts could not only secure India’s lithium needs but also provide a boost to Brazil’s mining sector, further strengthening the economic ties between the two nations.
- Economic Growth: Brazil is a critical supplier of minerals and hydrocarbons, such as crude petroleum oil that are essential for India’s economic growth.
- Brazil is the largest country in Latin America, with a large and diversified economy, which makes it an attractive destination for Indian investors and businesses.
- Partner in South-South cooperation: India and Brazil are two of the largest and most influential countries in the Global South.
- As countries with large populations and growing economies, both India and Brazil have taken on significant roles in shaping the global political and economic landscape.
- Multilateral Cooperation: Brazil and India are both members of several international organisations that share common interests in promoting multilateralism and reforming the global governance architecture.
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Challenges in the bilateral relationship between India and Brazil
Both have a strategic partnership that spans many areas, including defense, space, security, technology, and people-to-people relations, however facing various following challenges:
- Trade Competition and Fiction: Both are major exporters of agricultural products such as sugar and meat that can create competition and trade friction between the two countries.
- Sugarcane Subsidy: Brazil complaints to the World Trade Organisation about India’s subsidies to sugarcane farmers that has led to tensions between the two countries.
- Brazil concerns over India’s agricultural policies that could negatively impact on its economic interests.
- Limited people-to-people Contact: India and Brazil have a limited number of people-to-people contacts, including business, cultural, and educational exchanges.
- China Factor: China is Brazil’s largest trading partner, and can have an impact on relations between India and Brazil.
- Differences in Strategic Priorities: Both emerging powers that seek to enhance their global influence, but their approaches to regional and global issues may differ.
Way Forward
Following are few suggested measures by which both countries can continue to strengthen their relationship:
- Food and Energy Security: Brazil is a major agricultural powerhouse and India is looking to increase its imports of edible oil and other agro-products.
- Both can further focus on ensuring a stable supply of essential commodities, a critical concern for both nations amid global food security challenges.
- Strengthening Defense Ties: Both nations have been exploring ways to enhance their defense ties, including joint exercises, technology transfer, and defense trade.
- As global geopolitical dynamics shift, closer defense cooperation between India and Brazil could play a crucial role in ensuring regional stability and security.
- Identify new areas of Collaboration: Such as technology, health, and infrastructure are new opportunities for them to strengthen and deepen their ties.
- Example: The operationalisation of the Social Security Agreement (SSA) signed between Brazil and India in March 2017 could allow investments in each other’s pension funds, enabling business processes and encouraging the flow of investment.
- Address Tariff and Non-tariff Barriers: There is a need to identify the specific trade and investment issues, conduct bilateral negotiations, and provide preferential treatment to each other’s exports.
- Example: Indian exporters of basmati rice face challenges in accessing the Brazilian market due to stringent phytosanitary requirements.
- To address this issue, Brazil could consider reviewing its phytosanitary requirements in consultation with Indian authorities and industry stakeholders.
- Tariffs are monetary barriers in the form of taxes imposed on imported or exported goods.
- Nontariff barriers encompass a diverse range of non-monetary measures.
- Promote People-to-People Connects: There is a need to promote more tourism, organise cultural events, facilitate educational exchanges, and encourage mutual understanding and respect for each other’s culture.
- Example: India’s film industry is popular in Brazil and leveraging this can be an excellent way to promote cultural ties.
- Energy Cooperation: India and Brazil are both major consumers and producers of energy and hence can further collaborate in areas such as renewable energy, green hydrogen, and energy efficiency.
- According to a report by the International Energy Agency (IEA), India and Brazil are among the fastest-growing energy markets in the world.
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August 28, 2024
