Sunday December 25, 2022 | 4:40 p.m.
There is a week left for Luiz Inacio “Lula” da Silva to assume the Presidency of Brazil, in what will be his third term as head of the South American giant. And in the government of Alberto Fernández they not only celebrate the arrival of “an ally and friend”, as they usually define it, but also prepare a series of agreements to strengthen the bilateral alliance, particularly in economic matters.
In this sense, the Minister of Economy, Sergio Massa, led an advanced mission this Friday, December 23, to meet with who will be the head of the Brazilian Treasury, Fernando Haddad, and with the elected vice president and future Minister of Industry and Commerce of Brazil. , Geraldo Alckim.
The intention was to advance in the understandings that have two well-marked axes. On the one hand, the most pressing, an agreement that allows the reserves of the Central Bank (BCRA) to be reinforced, through a currency exchange that allows the dollar to be set aside as the currency of bilateral trade.
Some analysts indicate that it would be a kind of “swap” like the one that the country has with China, but the draft that Argentina and Brazil are working on involves more of a compensating mechanism for the legal tender on both sides of the border ( pesos and reales), so that purchases and sales are made in those bills and exchange “corrections” are made every semester.
As TN was able to learn from official sources, the technical talks are already advanced (they even worked with the now outgoing government of Jair Bolsonaro on that path) and in Argentina there are great expectations of signing the agreement when Lula visits Buenos Aires, between the 23rd and next January 25.
Vaca Muerta, a strong card in the relationship between Argentina and Brazil
The other economic agreement in which Massa has already made contacts is in energy integration. Although both Mercosur partners are connected in terms of electrical energy (for which reason electricity is bought and sold according to the needs of each side), the Argentine intention is to take advantage of the export potential of Vaca Muerta, which, they hope, will be exponential when the Néstor Kirchner gas pipeline and its future extension to the south of Brazil.
In this regard, both governments are looking for financing alternatives for the construction of section three of the gas pipeline, from the Argentine coast to the state of Santa Catarina, in the southeast of Brazil, which could inject Neuquén gas directly into the powerful industrial center of Sao Pablo. .
Although there is interest from China in being a financier of this segment, as well as of section two of the gas pipeline to Vaca Muerta (to connect the point in the province of Buenos Aires with the Argentine coast), in recent weeks the possibility that the funds come from the Brazilian investment bank (BNDES) or the Inter-American Development Bank (IDB), now commanded by Ilan Goldfajn, former Brazilian central banker and former director of the IMF.
While waiting for Lula, the Argentine government reinforces the political and commercial alliance with Brazil
While they advance in the technical details of these agreements, President Alberto Fernández prepares the delegation to travel to Brasilia on January 1, 2023 to participate in the inauguration ceremony of Lula Da Silva as President, which will take place on that Sunday afternoon. .
They are expected to accompany the head of state, Minister Massa, Foreign Minister Santiago Cafiero and the Argentine ambassador in Brasilia, Daniel Scioli, although the presence of other officials on a lightning visit is not ruled out, as described in the Casa Rosada, since the entourage would return to Buenos Aires as soon as the ceremony concludes, in which the outgoing president of Brazil will not be a part. Jair Bolsonaro.
They are also waiting for Lula to designate a new ambassador in Buenos Aires after taking office and swearing in his ministers. In Brazil, it is expected to have a more political than diplomatic profile, as it has been in recent years, and there is even mention of Dilma Rousseff, former Brazilian president and very close to Da Silva, as a possible envoy from the Itamaraty Palace to Argentina.
Expectations for Lula’s visit to Buenos Aires
The president-elect of Brazil recently announced that his first trip abroad would be to Argentina. And he already has a date: he will be in Buenos Aires on January 24 to participate in the summit of heads of state of the Community of Latin American and Caribbean States (CELAC), chaired by Argentina.
It will also be the occasion for a bilateral meeting between Lula and Alberto Fernández. It has not yet been confirmed if it will be before or after the CELAC summit, but the Argentine government hopes that the visit will boost the bilateral relationship and, above all, be the scene of the new economic agreement between the two countries, with the exchange of currencies. and Vaca Muerta as central axes.
