• Categories
  • Archives

Brazil Reasoning to Go to Iran: Let’s Make a Deal Before the Chinese Do It

Miguel Jorge with president Ahmadinejad Brazil’s minister of Development, Industry and Foreign Trade, Miguel Jorge, just went to Iran with 86 Brazilian businesspeople and he has told them that what they have to do is negotiate deals and do business.

 

The minister has prodded them with the Chinese menace: “If you people don’t sell our stuff to them the Chinese will sell their stuff to them. The Chinese are coming. The Chinese are all over the place,” is more or less what he is reported to have said to the group.

The group of Brazilians represent, among others, food, automobile, furniture, home appliance and medical supplies segments of the economy, along with contractors who build infrastructure.

The commercial road show is taking place a month before a state visit by Luiz Inácio Lula da Silva who has become very popular in certain circles in Tehran because of his support for the Iranian nuclear program – as long as it is for peaceful purposes. Lula is very much in the news in Iran.

According to the executive secretary of the ministry, Ivan Ramalho, “Iran sees Brazil as a gate into the rest of Latin America. And our objective is to wipe the slate clean in order to do business.”

One problem doing business with Iran is that there is no credit. Big banks do not operate in the country. In fact, triangulation is the name of the game. That means that financing is done in third countries, outside Iran.

And that adds to delivery costs and means delays, along with higher prices of goods to the final consumer and lower profits. But the latest news from Brazil is that official state-run banks are studying the possibility of opening credit lines directly to Iran for Brazilian exporters and importers.

Back in Tehran, speaking to the businesspeople in his entourage (there are 15 women in the group) minister Miguel Jorge sums it up this way: “Brush the difficulties aside and close the deal.” In other words, says Jorge, as there is no immediate solution in sight, skirt the problems and just do business.

In fact, the Brazilian commercial mission has transformed the biggest conference room in Tehran’s Parnasian Esteghal International Hotel into a gigantic bazaar. In the Brazilian bazaar, the Brazilian women in the group dress Iranian style: headscarves and clothes that cover all of the body.

The Brazilians also follow local custom in the way they interact with Iranians (which is quite different from the way they do it in Brazil): do not look people of the opposite sex in the eye or touch them. Men, in fact, are not even supposed to look at women in public.

At the moment, Brazil is the biggest exporter to Iran of beef and chicken (whole chicken). But the Iranians are interested in soybean, sorghum, sugar cane, soy oil and ethanol.

There are also many opportunities for construction companies in Iran. In 2009, Brazilian imports from Iran rose 28%, to US$ 19 million. Exports were US$ 1.2 billion. Commerce with Iran is less than 1% of Brazil’s world trade.

ABr

Tags:

  • Show Comments (1)

  • Devid

    Busines leads from Brazil for home appliances products
    Brazil is one of the developing nation of Latin America is emorging as economic power to the gobal world. It is good sign for Brazil doing the strong tie-ups with China, Iran as well India. Brazilian correspondents deal with investiment in food, automobile, furniture, electonic home appliances and medical supplies segments.

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazilian Presidential Candidate Marina’s Decision: The Biggest Loss of All

Green Party presidential candidate Marina Silva has decided to abstain from endorsing either of ...

Brazil President Tells UN She’d Rather Prevent Conflicts than Fight Them as the US Does

In the speech that opened the 66th United Nations General Assembly yesterday, president Dilma ...

Learning from the Dead in Brazil

People from around the world and from different backgrounds lie together in Brazil and ...

Lula Blames Gossip for Brazilian Crisis

Brazilian President Luiz Inácio Lula da Silva declared that he was indignant because of ...

All Brazilian Presidential Candidates Say they Have a Soft Spot for Science

The four main candidates in Brazil’s forthcoming presidential elections all aim to increase the ...

The Perils of Buying Under-Construction Property in Brazil

With the increasing amount of Brazilian and international property buyers acquiring pre-construction real estate ...

UN Chief Visits Brazilian Amazon and Calls It Planet’s Common Asset

United Nations Secretary-General Ban Ki-moon concluded today the South American phase of his latest ...

Brazil May Reduce Deforestation by 90% in 10 Years, Says Environment Minister

Brazil may surpass the goal of reducing Amazon deforestation by 80% by 2020 and ...

Brazil’s Lula Is Not Afraid to Attend the World Social Forum in Venezuela

Brazilian President Luiz Inácio Lula da Silva is expected to participate in the American ...

To End Chaos Brazil Airport Authority Forbids Sale of Tickets

In an attempt to control the chaotic situation in the airports, the Brazilian airport ...