Is Brazil the key BRIC?

CIC | August 24, 2011

Prime Minister Harper’s trip to Brazil – the first by a Canadian prime minister in seven years – earlier this month heralded a new era for Canada-Brazil relations. Mr. Harper courted Brazilian businessmen in a speech in San Paolo and signed a series of pacts with Brazilian President Dilma Rousseff to promote investment and trade between the two countries. Following Canada’s new commitment to a stronger bilateral relationship, the CIC considers Brazil’s unique position among emerging economies and the future of Canada-Brazil relations, as three experts see it:

An interview with Ted Hewitt on Canada-Brazil compatibility
An interview with Raul Papaleo on bilateral business collaboration
An interview with Richard Pound on the upcoming Rio Games

As Prime Minister Harper toured South America, the CIC charted Canada’s relationships with Brazil, India and China.

	BRAZIL	INDIA	CHINA
Population	193,733,800	1,155,347,700	1,331,460,000
GDP	$1.59 Trillion (7^th biggest in the world)	$1.38 Trillion	$4.99 Trillion
Distance From Canada	8,531 km	11,108 km	9,317 km
Government Statement, 2007	Created Secretariat for the Americas Strategy to provide “strategic direction on the comprehensive whole-of-government action plan in support of the government’s commitment to re-engage with the Americas.” The PM took a trip to the region in 2007, signed a deal with Colombia, but didn’t visit Brazil.	Canada and India signed FIPA agreement when India’s Minister of Commerce & Industry, Kamal Nath, visited in June 2007.	“I think Canadians want us to promote our trade relations worldwide, and we do that, but I don’t think Canadians want us to sell out important Canadian values – our belief in democracy, freedom, human rights. They don’t want us to sell that out to the almighty dollar.” (Harper at the Asia Pacific summit before China cancels his meeting with Hu Jintao)
Recent Government Statement	“Friends, too much grass, grows in the cracks on the road between our two great countries. It is time for increased ambition.” (In a notably long speech during Harper’s trip to Brazil last week)	“We want to make sure as India develops its nuclear industry, that we are there and we are part of it because we have an important part to play and important opportunities.” (Harper, last year, after signing civilian nuclear co-operation deal, ending decades of tense relations after India acquired nuclear bomb using Canadian nuclear reactor in the 1970s)	China is an “important ally.” “When you say millions have been killed by the regime, I mean, obviously countries we work well with like Russia and Germany have been through challenges in their history, but we now count them as allies.” (Baird on recent visit to China)
Diplomacy
Meetings between heads of state, 2006 – 2011	Harper‘s current visit represents the first such visit for a Canadian PM in 7 years!	Since 2006, 20 Canadian ministers have visited India, including an official delegation led by Harper in November 2009. Indian Prime Minister Manmohan Singh visited Canada for the G20 last year.	In 2006 Harper met with President Hu Jintoa at the APEC Summit in Vietnam. Hu Jintoa visited Canada last year, and Harper will make his second visit to China since 2006 this November.
Trade agreements, 2005 – 2011	Brazil led the UN Stabilization Mission in Haiti – it was an opportunity for Canada to forge a partnership – how much did we contribute?	Canada signed Foreign Investment Protection and Promotion Agreement with India in 2007. Canada startedfree-trade negotiations with India in November 2010 and should complete them by 2013.	Canada continues to negotiate a Foreign Investment Promotion Agreement with China.
Trade
Total Bilateral Trade, 2006 (in Millions of Cdn $s)	$4,735	$3,594	$42,310
Total Bilateral Trade, 2010	$5,853	$4,212	$57,755
% Change	+ 24%	+ 17%	+ 37%
Exports, 2006	$1,328 (0.3%) (17^th)	$1,675 (0.4%) (15^th)	$7,802 (1.7%) (4^th)
Exports, 2010	$2,566 (0.6%) (9^th)	$2,089 (0.5%) (13^th)	$13,233 (3.3%) (3^rd)
% Change	+ 93%	+ 25%	+ 70%
Imports, 2006	$3,407 (0.8%) (13^th)	$1,919 (0.4%) (21^st)	$34,508 (8.7%) (2^nd)
Imports, 2010	$3,287 (0.8%) (13^th)	$2,123 (0.5%) (19^th)	$44,522 (11.0%) (2^nd)
% Change	- 4%	+ 11%	+ 18%
Canadian corporations operating there	FDI is between $7 and $8 billion (3^rd largest for Canada); 1000 Canadian companies active in Brazil, 110 with offices in Brazil; RIM manufacturing smartphones outside Sao Paulo	Canadian FDI in India is modest at about $801 million.	Canadian FDI in China was valued at $3.58-billion at the end of 2008.
Corporate presence in Canada	Vale took over Inco in 2006; followed with accusations that Vale hasn’t lived up to job commitments under deal	India’s FDI in Canada is also modest at about $1 billion.	Chinese FDI in Canada was$2.75 billion at end of 2008.
Human Linkages
Immigrants in Canada (According to 2006 Census)	15,120	443, 690	466, 940
Study Abroad Programs	DFAIT introduced Canada-Brazil awards to support exchange of PhD students in 2010	Indians are eligible for DFAIT’s Canadian Commonwealth Scholarship Program, among other programs, none specifically targeting Indians.	DFAIT partners with the China Scholarship Council to provide the Canada-China Scholars’ Exchange Program to Canadians seeking to study China at Chinese universities.
Think Tank / University Research, 2005 – 2011	The Canadian Foundation for the Americas just closed for lack of funding.	As part of the Conservatives’ India Engagement Strategy, the 2011 budget provided $12 million over 5 years for a competition to select a Canada-India Research Centre of Excellence.	The Canada-China Program for Joint Funding of International Collaborative R&D Projects and Partnership Development Activities was signed in 2007.
Canada on the Continent	Any free trade deal must go through Mercosur (Argentina, Paraguay and Uruguay)

All statistics from the Census of Canada and Industry Canada.

Photo courtesy of Reuters.