Lula defends greater trade between Brazil and Italy, two major economies

In his statements on the occasion of President Sergio Mattarella’s visit, President Luiz Inácio Lula da Silva defended this Monday (15), at the Planalto Palace, greater commercial exchange between Brazil and Italy, which occupy the eighth and ninth positions among the largest economies on the planet, respectively.

“Two countries of this stature must have a flow of trade and investment that is commensurate with their wealth. Our trade flow, of approximately R$10 billion, has only now returned to the levels recorded a decade ago,” notes the Brazilian president.

In 2023 alone, there were more than US$4.1 billion in exports of coffee, cellulose, soybeans, oil and others.

According to Lula, the conversation with President Mattarella involved the desire to diversify the agenda and increase Brazilian exports.

“The upcoming resumption of the Brazil-Italy Council for Economic, Industrial and Financial Cooperation and Development could contribute greatly in this regard,” he said.

Read more: Jurist launches book to celebrate 150 years of Italian immigration to Brazil

The president recalls that Italy is an important source of investment for Brazil, with the almost 1,500 Italian companies established here generating more than 150,000 direct jobs.

“Since the beginning of this term, we have been working to attract even more investment. We have seen renewed interest in Brazil from the automotive industry,” he highlights.

Last year, says the president, the Stellantis group, resulting from the merger of Fiat Chrysler and Peugeot, announced R$30 billion to modernize and expand its factories in Brazil. “It is the largest investment in the automotive industry in all of South America.”

“One sector in which Italy is already well positioned is energy. The wind and photovoltaic parks of Italian companies and their interest in green hydrogen show the potential to be explored in this area. One example is the investment of more than 2 billion reais in the Aroeira Wind Complex, in Bahia, made by Enel,” he said.

For him, opening new fronts of cooperation does not mean abandoning traditional Brazilian collaboration in other areas.

“In the past, technological cooperation in the development of the AMX fighter allowed Embraer to make a leap in jet production. Today, the company is able to collaborate with the Italian Air Force through the supply of C-390 Millenium aircraft,” he says.

The meeting is also a dialogue between two major global forums: Brazil, which currently presides over the G20, and Italy, which presides over the G7.

The visit is part of the celebrations this year of the 150th anniversary of Italian immigration to Brazil. The country has more than a thousand companies operating and around 35 million descendants on Brazilian soil.

agreements

The two presidents signed some agreements such as the conversion of driver’s licenses in both countries; and understandings between the Ministry of Science, Technology and Innovation (MCTI) and the International Center for Physics; Embrapa and the University of Turin; USP and the University of Turin; and Unicamp and ENEL.

Lula said that the greatest driving force behind the ties between Italy and Brazil are the two societies.

“And it is in our interest to bring them closer together through simple measures that support this exchange. That is why I am pleased with the signing today of an agreement for the reciprocal recognition of driver’s licenses. I hope that this instrument will encourage tourism and business and make the daily lives of Brazilians living in Italy and Italians living in Brazil easier,” he says.

Help for Rio Grande do Sul

Lula is grateful for Italy’s help to Rio Grande do Sul. “These ties are strengthened through demonstrations of friendship and solidarity, as occurred in relation to the floods that affected Rio Grande do Sul. We are very grateful for the donation of 25 tons of humanitarian aid that we received from the Italian government. The donated material certainly alleviated the enormous loss suffered by the population of Rio Grande do Sul, which comprises a large portion of the more than 35 million descendants of Italians in Brazil,” he said.

Mercosur

In conversation with journalists, Lula said he had reinforced Brazil’s “interest” in signing the trade agreement between Mercosur and the European Union (EU).

“I reiterated to the Italian president the need to conclude the Mercosur-European Union agreement as soon as possible so that it is balanced and contributes to the development of both regions. I made it clear that progress in the negotiations depends on the Europeans resolving their own internal contradictions.”

Marttella also expressed his support for the agreement: “We believe it is essential to quickly reach a historic decision that concerns two realities for the benefit of the world. A fabric of intercontinental collaboration that guarantees world peace.”

Wars

The two talked about wars around the world: “Ukraine and Gaza show that giving up democracy leads to dire consequences,” said the Brazilian.

The Italian president agrees with Lula that the solution to the conflict in the Gaza Strip is the recognition of two states: Israel and Palestine.

“We share the same goals, the same values ​​and the same hope for humanity,” says Mattarella, who will also visit Rio Grande do Sul, Rio de Janeiro, São Paulo and Bahia. He will stay in the country until Friday (19).