Ac­tion Plan to help Latin Amer­i­can na­tion build mod­ern ser­vice sec­tor

China Daily (Hong Kong) - - BUSINESS - By ZHONG NAN in Shang­hai zhong­nan@chi­

China and Brazil signed a mem­o­ran­dum of un­der­stand­ing on Tues­day to di­ver­sify ser­vice trade to up­grade their com­merce struc­ture from com­mod­ity and goods ex­changes.

The MOU, or the Two-Year Ac­tion Plan, is de­signed to en­cour­age the two coun­tries to im­prove ser­vice trade in eight ar­eas in­clud­ing en­gi­neer­ing, ar­chi­tec­ture, e-com­merce, bank­ing au­toma­tion and tourism, to en­rich bi­lat­eral trade ties over the next two years.

“Sign­ing this Two-Year Ac­tion Plan will help Brazil build a mod­ern ser­vice sec­tor, as well as cre­ate new e-com­merce and fi­nan­cial ac­tiv­i­ties to boost the econ­omy,” said Marcelo Maia, sec­re­tary of com­merce and ser­vices at Brazil’s Min­istry of Development, In­dus­try and For­eign Trade.

The plan is ex­pected to pro­vide ex­pe­ri­ences for BRICS coun­tries to pro­mote ser­vices trade co­op­er­a­tion.

Even though China-Brazil trade is heav­ily fo­cused on com­mod­ity and goods trade in­clud­ing soy­beans, beef, iron ore, con­struc­tion ma­chin­ery, chem­i­cals, gar­ments and ve­hi­cle prod­ucts, ser­vice trade has not no­tably fea­tured in bi­lat­eral trade.

Chi­nese com­pa­nies in­vested $8.39 bil­lion in Brazil last year, an in­crease of 13 per­cent year-on-year. Both coun­tries have al­ready be­gun to in­ten­sify their co­op­er­a­tion in in­fra­struc­ture, en­ergy and telecom­mu­ni­ca­tion busi­ness development, data from the Min­istry of Com­merce show.

“Sup­ported by rich natural re­sources, Brazil has been keen to up­grade ser­vice trade and re­lated sec­tors such as lo­gis­tics, tourism, ship­ping, health­care, ed­u­ca­tion, fi­nance and smart city development,” said Wang Haifeng, a re­searcher with the In­sti­tute for In­ter­na­tional Eco­nomic Research at the Na­tional Development and Re­form Com­mis­sion.

The deal was sealed dur­ing the trade min­is­ters’ meet­ing from the five BRICS coun­tries — Brazil, Rus­sia, In­dia, China and South Africa in Shang­hai on Tues­day and Wed­nes­day, ahead of next month’s lead­ers sum­mit in Xi­a­men, Fu­jian prov­ince.

China is ex­pected to fur­ther open its mar­ket to im­ports from Brazil, Rus­sia, In­dia and South Africa, and spear­head an anti-trade pro­tec­tion­ism cam­paign. In the past six months, China’s im­ports from these coun­tries surged 33 per­cent yearon-year.

“We hope that BRICS coun­tries can fur­ther ex­pand their co­op­er­a­tion with economies re­lated to the Belt and Road Ini­tia­tive. This will help to bet­ter meet the chal­lenges brought by the un­cer­tain­ties of the global econ­omy and gen­er­ate new growth mo­men­tum,” said Zhong Shan, China’s com­merce min­is­ter.

Vice-Min­is­ter of Com­merce Wang Shouwen said while pro­tec­tion­ists have doubts about mul­ti­lat­eral trade, BRICS coun­tries, as ma­jor de­vel­op­ing economies, can tackle the skeptics as a united team and build a suf­fi­cient trade mech­a­nism.

To strengthen trade links, Wang said China will host an in­ter­na­tional im­ports ex­hi­bi­tion from 2018 in Shang­hai and it will help with trade and stim­u­late in­vest­ment.

“China will fur­ther open its mar­ket to other BRICS coun­tries and in­crease im­ports, as they are highly com­ple­men­tary in trade,” said Wang.

Trade min­is­ters from the five coun­tries will dis­cuss top­ics in­clud­ing trade and in­vest­ment fa­cil­i­ta­tion, en­hanc­ing eco­nomic and tech­nol­ogy co­op­er­a­tion, as well as sup­port­ing a mul­ti­lat­eral trade sys­tem in Shang­hai.

China will fur­ther open its mar­ket to other BRICS coun­tries and in­crease im­ports...” Wang Shouwen, vice-min­is­ter of com­merce

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.