Monday, January 23, 2023 | 3:18 p.m.
The Brazilian president, Luiz Inácio Lula da Silva, said on Monday that from now on a “new story” begins in the commercial relationship between Argentina and Brazil. The president confirmed the intention of both countries to establish a common currency for commercial exchange at a press conference held at the Casa Rosada after signing agreements with Argentine President Alberto Fernández.
“Brazil and Argentina did a small common currency experience in 2008 that was optional. And it didn’t have the influence we expected. What we are trying now is that our Ministers of Economy, each one with his team, can make a proposal for foreign trade and transactions between the two countries that is made in a common currency to be built with much debate and after many meetings. Lula said.
“That is what is going to happen. If it depends on me, I would always have foreign trade with the currency of other countries so as not to depend on the dollar. Why not have a common currency between the Mercosur currency? I believe that this is going to happen and it is necessary because many times there are countries that have difficulties in acquiring dollars. You can establish a currency and then the central banks set the type of currency to do business with,” he added when asked by the Brazilian press.
“It is a day of celebration between Brazil and Argentina, but also of gratitude,” Lula said after meeting Fernández at the Casa Rosada. “I will never forget the gesture when Alberto Fernández went to see me when he was detained at the Federal Police. I will never forget the solidarity of the Argentine people,” said the Brazilian president.
He also spoke of the possibility that BNDES, the Brazilian development bank, finance the second stage of the Néstor Kirchner gas pipeline, which leaves Vaca Muerta and could be used to export to Brazil after being interconnected with other gas pipelines. “I am sure that Brazilian businessmen are interested in the gas pipeline, in the fertilizers that Argentina has, in technological knowledge. If there is interest from businessmen and the Government, we will create the conditions to create financing to help the Argentine gas pipeline”, said the Brazilian.
Alberto Fernández assured that he is very excited about the possibility that the BNDES will finance the gas pipeline, which will link Vaca Muerta and the province of Buenos Aires and that the second section must be put out to tender quickly to take advantage of the inertia of the works. “Try to quickly reach the junction point of Uruguayana and pass gas to Brazil if it needs it. We are both suffering from the decline in Bolivia’s gas production. The two governments understand the importance of public banking, ”he advanced.
Business relationship
Lula da Silva highlighted the commercial relationship with Argentina and noted that it grew from USD 7,000 million to more than USD 40,000 million. “When I came to visit Eduardo Duhlade in 2003, the trade relationship was USD 7,000 million and eight years later, when I left the presidency, it was USD 39,000 million. In the government of Dilma Rousseff we went beyond USD 40,000 million. Brazil lived with its back to South America and looking towards Europe and we were able to build such a strong relationship that Argentina became Brazil’s third trading partner”, she explained.
Lula gave the example of the automotive sector, with agreements between the countries that represented growth in production and job creation for Argentina and Brazil. “It was the most promising moment in our Latin American history. Today we resume a relationship that should never have been interrupted. We are going to rebuild that advanced peace relationship between two countries. Our businessmen need to understand more and more the weight that Argentina has for us”, emphasized Lula.
“I came back to make good agreements with Argentina. And I apologize for all the rude words that the former president of Brazil said about Argentina, that he is a genocide due to his lack of responsibility during the pandemic. A country that is as great as Brazil, with a 6,000-kilometer border with South America, larger economically and industrially, does not have the right to seek enemies”, he indicated.
