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Pedro Sánchez highlights the strength of the deep economic and business ties between Spain and Brazil

by | Mar 9, 2024

During the first week of March, the President of  Spain inaugurated the Spain-Brazil Business Meeting in Sao Paulo. The gathering was attended by more than 200 representatives of  Spanish companies present in the country to acknowledge the economic and business ties between Spain and Brazil.

The President of the Spanish Government, Pedro Sánchez, defined Brazil as “a human-friendly country, a political ally, and an economic partner” during his opening speech at the Spain-Brazil Business Meeting recently held in Sao Paulo. Excellent economic and commercial relations between both countries exemplified by their deep business ties, Sánchez stressed.

Spain is the second largest investor in the world in Brazil. The president reaffirmed that it is only behind the US and is the second destination of Spanish exports to Latin America. A situation that is “no coincidence.” Sánchez said Brazil is a desirable destination for investments due to multiple factors, including the policies implemented by Lula da Silva’s government.

In this regard, President Sánchez highlighted the economic similarities between both countries: “Spain led the growth of advanced economies in 2023 with a positive rate of 2.5%, exceeding, like Brazil, all expectations.” Synergies, too, include the consideration that leadership in the energy transition and the decarbonization of the economy are crucial attractions for international investments.

“A process in which we aspire to be a global benchmark,” said Sánchez, thanks to Spain’s technological and innovation capacity and abundant sun and wind. “Clean and cheap energy is our main competitive advantage,” he asserted.

That is why the collaboration between the two countries in the field of ecological transition, the green economy, and the protection of the Amazon “represents a unique opportunity.” For this reason, there has been a call to join forces and promote renewable energy, clean technologies, and sustainable development projects.

Spain leads the most extensive civil works in progress in Latin America

The President of the Spanish Government visited the expansion works on line 6 of the Sao Paulo metro, led by the Spanish company Acciona, accompanied by its president, José Manuel Entrecanales, and the Minister of Economy, Commerce and Business, Carlos Body. It is Latin America’s most extensive civil work, demonstrating the profound economic and business ties between Spain and Brazil.

“It is fair to acknowledge the importance of this project,” said Sánchez, which is also based on a conviction shared by the governments of Spain and Brazil: the need to move towards sustainable mobility.

The Spanish president has highlighted that this project is committed to the environment and achieving gender equality. More than 750 women participate in it, who are an integral part of the project and who, for example, have manufactured 70% of the more than 60,000 segments produced for the construction of the tunnels, the president further explained.

Spanish companies have a very significant presence in Brazilian strategic sectors such as infrastructure and civil works, Sánchez explained.

In the latter, Spain stands out for being second in the ranking of the public-private partnership program of the Brazilian government, the Investments Partnership Program – with insured investments of 8.7 billion euros.

EU-Mercosur agreement and shared global interests

Spain is a fundamental investment destination for Latin American companies, the president has pointed out. Likewise, Latin America is the fourth largest investor in Spain, with a volume of more than 68 billion euros.

But the determined commitment to the profound economic and commercial relations between Spain and Brazil and the region as a whole will continue to be “incomplete” until the agreement between the EU and Mercosur is ratified, the president of the Spanish government maintains.

Spain’s commitment to such an accord is firm. An eventual agreement will create shared prosperity, although some doubt it, Sánchez said. Europe and Latin America are “strategic partners,” and an agreement between both regions will cause “profound changes in the geopolitical context.”

At the international level, the Spanish president has also reaffirmed the need to address the reform of the global financial system so that “no country has to choose between fighting poverty and fighting for the planet.”

This position coincides with the priorities and objectives of COP30, which will be held in Brazil in 2025 and aligned with the goals set for the Fourth International Conference on Financing for Development that will take place in Spain in the middle of next year.

Meeting with the Association of Spanish Scientists in Brazil

During the gathering of the two countries, Pedro Sánchez held a meeting with the Association of Spanish Scientists in Brazil (ACEBRA) at the Cervantes Institute in Sao Paulo. This meeting has served to learn first-hand about the activity carried out by Spanish scientists in Brazil and to support their research work, as well as scientific cooperation with the country.

The mission of this consortium is to promote scientific relations between Spain and Brazil, facilitating the connection between Spanish researchers who live and work in the country and Brazilians who have academic-scientific interests in Spain.

In this regard, a memorandum of understanding (MOU) has been signed between the Center for Technological Development and Innovation (CDTI) and the Research Support Foundation of the State of Sao Paulo (FAPESP), the largest and most prominent public research institution in the country. Spain is Brazil’s third leading collaborating country in the field of science. Cooperation between the two nations has increased in recent years and, after this official trip, has been reinforced with the signing of five new memoranda.

In conclusion, the recent events underscore the robustness and vitality of the economic and business ties between Spain and Brazil. From the inauguration of the Spain-Brazil Business Meeting, emphasizing mutual investment and trade relations, to the visit to significant civil works projects, showcasing collaboration in infrastructure, the narrative consistently highlights the depth of their economic partnership. Moreover, the commitment to scientific cooperation further solidifies the bond, reflecting a multifaceted relationship poised for continued growth and mutual benefit.

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