Australia and Brazil hold senior officials' meetings every 1-2 years to exchange views on key bilateral, regional and multilateral issues. The most recent meeting was held in Canberra in May 2008. On 27 August 2008 Australia and Brazil announced that an Enhanced Partnership would be developed to reflect growing interest in the broadening and deepening bilateral engagement. Australian and Brazilian officials are currently developing a Plan of Action containing bilateral initiatives aimed at improving bilateral links, including in education, science and technology and furthering multilateral and regional cooperation.
The Minister for Trade, the Hon Simon Crean MP, visited Brazil on 20-24 April 2010, where he signed an Air Services Agreement with Brazil's Minister for External Affairs, Mr Celso Amorim. The Minister for Foreign Affairs, the Hon Stephen Smith MP, visited Brazil on 24-26 August 2009. In April 2005, during a visit to Brazil by the former Minister for Education, Science and Training, Dr Brendan Nelson, Australia and Brazil signed a Memorandum of Understanding (MoU) on Education Cooperation. This followed an MOU on Science and Technology, signed in 2001, which established a joint cooperation program. In April 1998, an MOU on Sanitary Matters was signed by the Agriculture Ministers of Australia and Brazil to facilitate bilateral trade in agricultural products.
Brazil's Minister for External Affairs, Mr Celso Amorim, visited Australia on 26-28 August 2008. In addition to the visit of Mr Amorim, in the past few years Australia has received a number of Brazilian official visitors, including the former Minister for Culture, Mr Gilberto Gil in 2004, the former Minister for Agriculture, Mr Robert Rodrigues in 2005 and a Brazilian Parliamentary mission in 2008.
In addition to a strong trade and investment relationship, Australia and Brazil also have growing people-to-people links. The Australian education system is an increasingly attractive option for Brazilians. In 2009, around 17,500 Brazilian students were enrolled at Australian institutions (in schools, English language courses, TAFE and tertiary institutions). Brazil is the largest source of students from Latin America studying in Australia. Brazil is also the largest Latin American market for visitors to Australia. In 2009, nearly 26,000 Brazilians visited Australia, while around 12,600 Australians visited Brazil.
Since the 1970s, a small but growing community of Brazilians have migrated to Australia. According to the 2006 census, close to 7,500 people living in Australia were born in Brazil, with a further 6,500 claiming Brazilian ancestry.
There are no direct flights between Australia and Brazil, although since November 2008 Qantas has operated a three times weekly direct flight between Sydney and Buenos Aires in Argentina. Qantas also operates onward services to destinations in South America via a code sharing agreement with Chile's Lan Airlines. Qantas has operated an office in São Paulo since 1999.
In 2001, the Australian Government announced the establishment of a Council on Australia Latin America Relations (COALAR). Since its inception, the Council has been active in promoting Latin America as a market for Australian exporters. It has supported a range of activities in Brazil, including cultural and trade promotion events.
Australian economic engagement with Brazil has grown steadily since the mid-1990s, most notably in the mining, agribusiness and services sectors. Brazil is Australia's largest trading partner in South America, with two-way merchandise trade between Australia and Brazil totalling A$1.53 billion in 2009, a 46 per cent decrease on the previous year reflecting a significant reduction during the year in Australian coal sales to Brazil. Merchandise trade comprised exports of A$900 million to Brazil and imports of A$630 million from Brazil (refer Brazil country fact sheet (PDF)). Major exports to Brazil included coal, crude petroleum and chemicals. Major imports from Brazil included fruit juices, iron ore, coffee and passenger motor vehicles.
Opportunities exist for increased Australian trade and investment in areas such as information technology, biotechnology, transportation (rail and marine), telecommunications, banking and insurance, mining, water and waste water management, oil and gas, power, education, agribusiness, tourism and infrastructure. A growing number of Australian companies are now operating in Brazil, though a lack of mutual awareness remains an obstacle to expanding commercial ties.
Brazil is the world's largest ethanol producer and views Australia as one of its natural partners in the development of a global ethanol market. Brazilian interlocutors have held discussions on bio-fuels with previous Australian government ministers, the Queensland Government and Australian sugar industry representatives.
Major Australian investment activity
Mining and mining services
BHP- Billiton owns 50 per cent of the Samarco iron ore mine, and also conducts bauxite, oil and gas exploration in Brazil.
Troy Resources has 70 per cent ownership of the Sertão gold mine.
Mincom & Maptek provide information technology services — technical support for the mining sector.
GRD Minproc was awarded a $1.6 billion contract for engineering, procurement and construction management in the mining sector. This has prompted them to open corporate and project offices in Belo Horizonte in the state of Minas Gerais.
Orica has an industrial explosives plant in Brazil.
Mundo Minerals is operating its Engenho gold mine in Minas Gerais and is expected to deliver 30,000 ounces of gold per year from the second quarter of 2008.
In September 2007 Coffey International Limited acquired Brazilian mining sector consulting company Geoexplore Consultoria e Serviços Ltda.
Mirabela Nickel has explored and is now developing nickel and other base metal targets in Bahia, Sergipe and Tocatins, including the Santa Rita nickel sulphide project which is one of the world's largest.
A number of other Australian mining juniors have operations of various sizes and stages of development.
Ausenco has a project office in Belo Horizonte to provide engineering and project management solutions to the resources and energy sector.
Agribusiness
In May 2007, Nufarm Limited took 100 per cent ownership of Agripec (Brazil's largest locally owned crop protection company) after acquiring a 49.9 per cent stake in the company in 2004. Nufarm has stated its Agripec investment constitutes a key element of the company's expansion into Latin America.
Agrichem has a fertiliser production and distribution facility in Riberão Preto, Sao Paulo.
Interest exists from a number of Australian companies and institutions for investment in agricultural production including production of feedstock for biofuels generation.
Renewable energy
Pacific Hydro has 2 wind farms operational in the state of Paraiba in northeast Brazil with investments to date of approx $A200 million, generating renewable energy that is sold back to the grid. The company plans additional projects in the region.
Document management
Recall (Brambles) provides storage of documents in paper or electronic format.
Insurance services
QBE Brazil provides life and accident insurance.
Banking
Macquarie Group maintains a representative office in Sao Paulo to serve the agricultural commodities sectors in Latin America
Other sectors
Chep (Brambles) has service centres throughout Brazil for its pallet and equipment handling systems.
Amcor PET Packaging has manufacturing and sales facilities in Sao Paulo and provides a range of beverage containers to industry.
Export opportunities
Agribusiness
Brazil applies a range of non-tariff measures (e.g. quarantine) that restrict the entry of agricultural products into its market. Australia continues to seek access improvement to the Brazilian market for agricultural goods including genetic materials, meat and dairy products and plant products.
Education and training
Brazil is the largest market for Australian education in Latin America and the 9th most important globally. In April 2005, then Australian Minister for Education, Science and Training, Dr Brendan Nelson, and former Brazilian Minister for Education, Mr Tarso Genro, signed a Memorandum of Understanding (MoU) to increase bilateral education cooperation. The MoU provides opportunities for Australian and Brazilian universities, students, teachers and officials to work together over the coming years.
Austrade (São Paulo) is working closely with Australian Education International to promote Australia as a quality provider of education services in Brazil. Austrade will be conducting the Study in Australia Latin America 2010 education fair in May 2010 in Buenos Aires, Lima, Sao Paulo, Bogota and Mexico. This is the premier Australian education event in Latin America that will showcase 28 Australian higher education institutions across the region.
Mining and minerals
Australian participation in the Brazilian mining industry is increasing. An Australian pavilion was organised by Austrade for the 2009 mining exhibition Exposibram, the biggest of its kind in Brazil. The exhibition was held in Belo Horizonte, the capital of the state of Minas Gerais.
Vale (formerly CVRD), Brazil's largest mining company and the second largest in the world, has recently announced a capital investment program of over US$1 billion: this offers a range of opportunities to Australian firms.
Austrade maintains a virtual office in Belo Horizonte with a primary focus on the mining sector.
Sports infrastructure
A number of opportunities are expected to be generated for Australian companies as a result of Brazil being awarded the 2014 FIFA World Cup and 2016 Rio Olympic Games, in deign, planning, stadia construction and management, event planning, equipment and services and associated infrastructure in transportation. Austrade is planning missions to and from Brazil in 2010 to introduce Australian companies to these opportunities.
Textile, clothing and footwear
Brazil shares Australia's passion for surf and outdoor activities. Australia's expertise in this regard presents strong opportunities for further trade and investment in alternative brands and innovative equipment. Surf and outdoor wear is part of an ongoing Austrade promotional program.
Changes in trade and investment conditions
Changes in trade conditions
Brazil's simple average Most Favoured Nation (MFN) applied tariff was 11.5 per cent in 2008, up from 10.4 per cent in 2004. Brazil reduced its highest duty rates from 55 per cent in 2004 to 35 per cent in 2008. Brazil has introduced a number of export finance, insurance and guarantee measures aimed at assisting producers and exporters to access credit. Brazil claims to have simplified its import licensing regime and expedited customs clearance procedures.
Changes in investment conditions
Brazil continues to liberalise its services sector, including telecommunications and financial services. The government has a reform agenda for the taxation system, social security, bankruptcy laws and other improvements in financial markets to reduce the cost of finance.
Trade successes
Agribusiness
Australian companies have been successful in exporting animal genetics to Brazil, creating new opportunities in this market. Goat and sheep genetics are a promising sector with ongoing exports from Australia expected to complement existing shipments of bovine genetics.
Mining
The mining sector continues to generate successes with consulting services, extraction and processing technologies, and software leading the list of exports.
Manufacturing
Australian companies have also been successful in signing licensing agreements with Brazilian companies to offer lower-priced manufactured goods into Brazil and the Mercosur markets. Typical successes are technology products related to packaging or food processing.
Food and beverage
Australian wine has been successful in growing its base in Brazil with imports worth US$1,583,361 in 2007 , up from US$1,059,677 in 2006. Australia is currently ranked eighth in wine imports with 27 Australian wine brands available in the market. Austrade conducts two wine-related events each year in Brazil. Coopers Beer has also been introduced to Brazil.
Sources
http://www.economist.com/countries/Australia/profile.cfm?folder=Profile%2DEconomic%20Data
http://www.economist.com/countries/Australia/profile.cfm?folder=Profile-FactSheet
http://www.economist.com/countries/Australia/profile.cfm?folder=Profile-Forecast
http://www.economist.com/countries/Australia/profile.cfm?folder=Profile%2DEconomic%20Structure
http://en.wikipedia.org/wiki/Economy_of_Australia
http://en.wikipedia.org/wiki/Australia
https://www.cia.gov/library/publications/the-world-factbook/geos/as.html
http://www.dfat.gov.au/geo/brazil/brazil_brief.html
