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Minister Announces in Morocco Brazil Will Soon Get Investment Grade

Brazilian Development Minister Miguel Jorge

Brazilian Development Minister Miguel Jorge Ministers of Arab and South American countries approved this Wednesday, May 23, in Rabat, the Moroccan capital, an action plan for joint activities in the economic area. The program, idealized at the beginning of the year during a meeting of diplomats in Cairo, envisions, among other measures, the promotion of a bi-regional meeting, the organization of seminars about mining, energy, capital and financial markets and tourism.

The approval of the document wasn't expected before today, but talks advanced fast and it was ratified yesterday. The program also plans that diplomats of both regions should, where possible, coordinate positions in the scope of international organizations like the World Trade Organization (WTO), the International Monetary Fund (IMF) and the World Bank.

The document also forecasts foreign trade training of Arab technicians at the Arab Brazilian Chamber of Commerce, negotiations for the simplification of the concession of visas for businessmen, joint actions in the area of culture and tourism and the strengthening of maritime and aerial routes between both regions. The plan gives as examples the direct Emirates Airline flight between Dubai and São Paulo, to be inaugurated in October.

The program also mentions the organization of road-shows promoting investment opportunities in the areas of energy and mining, the negotiation of agreements for protection of investment and to avoid dual tax as well as economic studies aimed at expanding reciprocal knowledge about trade, investment and cooperation.

"The meeting was good and perspectives about relations with the Arab countries are also very good," said by phone the minister of Development, Industry and Foreign Trade, Miguel Jorge, who represented Brazil in the meeting. "We must proceed and intensify these meetings," he added.

Apart from him, the minister of Economic and General Affairs of Morocco, Rachid Talbi El Alami, who presided the meeting, the minister of Finance of Saudi Arabia, Ibrahim Al-Assaf, the minister of International Cooperation of Sudan, Tijani Saleh Foudail, the minister of Finance, Economy and Foreign Trade of Qatar, Youssuf Hussein Kamal, the Finance minister of Bolivia, Luis Alberto Arce Catacora, deputy ministers in the economic area of Bahrain, the United Arab Emirates, Oman and Argentina, as well as representatives of the governments of almost all Arab and South American countries participated in the meeting.

Macroeconomics

In his presentation, Jorge spoke about the current situation of the Brazilian economy, about inflation under control, the reduction of the country risk rating, the increase in investment and of exports and added that the country should soon be granted "investment grade" by international rating agencies. "After the meeting many ministers came to talk to me about these figures," he said.

According to the coordinator for Summit of South American – Arab Countries affairs at the Itamaraty, í‚nuar Nahes, who is also in Rabat, various participants showed enthusiasm regarding the fact that Jorge is of Lebanese descent.

"He also spoke about Brazilian ethanol, about the possibility of its use as an energy complement now and in the future," said the Brazilian ambassador to Rabat, Carlos Alberto Simas Magalhães.

According to information published on Moroccan news agency Maghreb Arabe Presse (MAP), minister Rachid El Alami pointed out that the acceleration of the sustainable development process of both regions requires greater trade relations and the simplification of the flow of capital.

Speaking in the name of the prime minister of his country, Driss Jettou, Alami pointed out that the countries of both regions should eliminate protectionist barriers and follow economic liberalization.

The Saudi minister, according to MAP, pointed out the fundamental part played by the private sector in making cooperation between the Arab and South American countries more dynamic in the economic area. He defended the approval of agreements for protection of investment and to avoid dual taxing, as well as the expansion of cooperation between trade banks, to promote trade and investment.

On Tuesday, before the meeting of ministers, there was a seminar about trade and investment. At the meeting, the former president and current administrative vice-president at the Arab Brazilian Chamber, Paulo Sérgio Atallah, stated that despite the growth registered in recent years, there is still much space for expansion of trade between Brazil and the Arab world.

Anba – www.anba.com.br

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  • Show Comments (9)

  • AES

    shanghai not singapore
    je fait une faute, je regrete.

  • AES

    How much is all the land worth, the trees, the minerals. If you added up the sales price of everything at todays market I wonder what the GDP would be. That is the true value of any country. The value of the land and its natural resources. Brazil is nearly a continent in size. How much is a continent worth? Then once you determin the ad absurdum proposition what is the GDP? Closer to the top than the bottom. It is only a matter of time. In chemestry it is like a supersaturated solution, where one more grain of salt precipitates out the salt in suspension. The new factor in this economic equation is CHINA in 15 years CHINA built Singapore, more high rises than New York. China has a third of the worlds population, and their shopping. Not especially for chocolate, but naturally resources and Switzerland produces nothing that the Chinese cannot copy. There intellectual skill and technology makes Switzerland look like Des Moins, Iowa. How many rocket launching systems do you have, satellites? You are obsolete you just dont know it.

  • AES

    ch.c.
    that due to the recent strength of the Real currency, it is like receivng 1,3 Real for every 1 Real exported ???????

    Todays Gold Price
    $20.88 a gram at $650 gold costs $R40.716 for a gram of gold at $R1.95
    $20.88 a gram at $650 gold costs $R62.64 for a gram of gold at $R3.00

    You get 30% more gold at todays $R1.95. Your discussion about farmers is specious.

  • AES

    ch.c: Formulate your own opinion.
    Bovespa was 52,140 yesterday if you had invested at 45,000 you would be up 7,000. I dont know how high it will go but I assure you I will sell at a profit.

    You are talking history. Not currency.

    In your mania to be right you lose the opportunity to make money.

    What does it matter if the Deutch Mark hyper inflated? So a loaf of bread cost 10,000 marks. It’s currency is the Euro, and bread is 1 or 2 euros.

    What is important is how many grams of gold will the Real buy today, vs what it would buy two years ago, not ten, not twenty, but two.

    You are frozen in time, you have an economic alzheimers.

    Fitch and Poor and Bloomberg all point to the necessity of reform, but it is about balance, and the tipping point at this time is towards Brazil’s economic rise, not decent.

    I am not married to any investment. When the financial dynamics begin to negatively change I will invest in something else, perhaps the overinflated land values in certain parts of the U.S.

    There are always opportunities. The object is to buy low and sell high. Who cares whether the yen used to be 325 to the dollar and the Japenese after the war made only cheap toys. It is ancient history, it is an irrelevancy.

    See how Bovespa does this week. Petrobras just announced a consortium with Algiers, the largest oil producer in Africa.

    What does anything you present have to do with now? The object is to be right NOW, to profit NOW, profit is not about theory, it is about profit.

  • AES

    GTY
    http://www.ft.com/cms/s/d8ccdc6a-0413-11dc-a931-000b5df10621.html

    By some measures Brazil is already an investment grade economy. Standard & Poor’s yesterday raised its local currency sovereign rating by two notches to investment grade, although the foreign currency rating matters more to analysts and investors.

    Fitch’s “country ceiling” – the general upper limit on ratings for non-government issuers – is also at investment grade.

    Several private issuers, mostly big industrial groups and banks, already have investment grade ratings, some even higher than Fitch’s country ceiling. There is little mystery about what has driven the recent upgrades.

    Brazil’s macroeconomic “fundamentals” – its trade balance and balance of payments, inflation, the profile of public debt – have all improved steadily in recent years. This year alone Brazil has accumulated more than $35bn in foreign reserves bringing the total to more than $120bn

  • AES

    Ch.c.: Nattering naybob
    You are an accountant. A petty bourgoise. Faithless and incapable of economic prophecy.

    Had you invested in Bovespa 5 months ago you would understand the relationship between what is talked about the manner it is talked about and the consequences economically globally .

    You are what we call a ‘nattering naabobb of a nay sayer’.

    You do not know how to look at the relationship of economic factors, such as export contracts, economic trade agreements, strengthening of the Real 50%, Bovespa nearly 52,000.

    You are incapable of extrapolation.

    You are an economic loser. A fear monger. You are not a prognosticator. You are a manifestation of the problem. The faithlessness of Brazilians of their strengths. You look to weakness, to flaw, and in that art you define your strength.

    Do you not think that the articles by Fitch, Bloomberg, Standard and Poors are not significant? That they do not prognosticate the world’s financial perception of Brazil. You my dear friend are out of step with reality and it is you that do not know how to read economic tea leaves.

    Do you not think billions of dollars inreserves, billions of dollars of orders in capital goods and agronomics, portend to future?

    Do you think interest rates will remain 12.5%, why? Does it facilitate business, to the extent that it is useful it is employed. It will be lowered to stabalize the Real and to fascilitate small and medium business.

    Look to the economic history of the U.S. In the ’80s and how interest was moved from over 20% to 5%. Follow what worked.

    Have you made any money in Bovespa this year, or the Real, or are you interested in being right instead of making any money?

    I suggest it is you that cannot interpret ‘even simple readings’.

    You are a self prophesizing fear monger, that will create your own poverty, through the narrow lens of your myopic misperception.

    You do not know how to read a graph, only parce the words of others’, you do not know how to hear what is being said only the way it is said.

  • AES

    GTY: Fitch, Reuters, Bloomberg, Standard and Poors
    [url]http://today.reuters.com/news/articleinvesting.aspx?type=bondsnews&storyID=2007-05-10T174824Z_01_N10431707_RTRIDST_0_BRAZIL-RATINGS-FITCH-UPDATE-2.XML[/url]

    [url]http://www.bloomberg.com/apps/news?pid=20601086&sid=a9A1EGvv4wus&refer=latin_america[/url]

  • ch.c.

    Yesssss……AES….the greaaaaaattttt economist and investor !
    1) Brazilian foreign currency reserves stand at Us$ 120 billion, a large amount by itself but only Us$ 666.- per capita !!!! Quite low by most standards even for developing countries.
    2) Exports at around US$ 150 billion, a large amount too, but around Us$ 800.- annually…per capita ! Quite low …sorry !
    3) The Brazilian economic growth rate was simply the lowest of 95 % of the developing nations, even after your recent re-adjustments of years past !!!!! If you find this as a tremendous success to be near the queue and within the worst 5 % of the developing nations, great for you ! But not the ranking ! Sorry….. again !!!!

    Ohhhhh…and you did not on purpose, copied the whole articles which also said :
    “Both Fitch and Standard & Poor’s praised the government’s adherence to sound macroeconomic policies that have helped drive the recent improvements, which have also ridden the rising tide of global liquidity.
    But both also point to a failure to tackle fiscal reforms, especially of the overburdened pensions system, as obstacles to future upgrades. Other barriers include Brazil’s cripplingly high tax burden.
    Liberalisation of restrictive labour regulations, the subject of loud complaint from the business sector, is explicitly off the government’s agenda.
    But the two agencies differ in their view of the implications of Brazil’s fiscal problems for its debt.
    Standard & Poor’s, by giving Brazil investment grade for its local currency debt, has rewarded improvements in the profile of domestic debt to the extent of regarding it as free of default risk. Fitch regards the vulnerability of domestic debt to external shocks as the main reason for holding back on investment grade.”

    You are already the only investor on this planet who sold gold during the past year at US$ 830.-…..price never reached in the last 25 years ! Are you also not the only “financial expert” in the world saying that due to the recent strength of the Real currency, it is like receivng 1,3 Real for every 1 Real exported ???????
    Why dont you repeat it in an audience of brazilian exporters or farmers ???? Loud laughs..laughs and laughs—–GUARANTEED !!!!

    And the hardest to swallow and the most tragico-comic was your statement that Brazilians can manufacture lawn mowers, for seeding and harvesting grains and sugarcane !!!!!

    Thus let me have some doubts about your own expertise and financial capabilities !!!!!!

    On the recent strength of the Real currency, you forgot to mention, on purpose, that it went up by 70 % or so….but after having been
    devalued by 70 %. The result being not equal ! Because the Real went from 1 to 1….to nearly 4 to 1 and is now 2 to 1 !
    Reality being that it is still down 50 % from where it was 10 years ago. Sorry junkie !
    And worse yet, the Brazilian currency is down well over 99 % in the last 3 decades…if you can figure that out !!!

    Conclusion being that you are comparing the Real recent strength similarly as a stock price that went from US$ 100.- to 10 cents in 25 years, but talk only about when the price went from 10 cents to 20 cents or doubled as a great achievement…in 4 years !!!!!!

    Your ignorance is also on the performance of the World Stock Indices. Some outperformed the BOVESPA by a wide margin in the last decade ! But of course…you just use the bottom of your choice…and do not include the previous collapse, just as you do in the Real currency ! But take 3 or more economic cycles…and the BOVESPA…is a laggard performer…wether it pleases you or not !

    BOOM AND BUST ECONOMY BRAZIL IS NICKNAMED FOR …..doesnt come from me…to my knowledge !
    Lets face the reality, it took exactly 25 years for Brazil, to return to its 1980 country wealth, inflation adjusted !
    Therefore today in 2007, you are only around 10 % above your wealth of 1980 !!!!

    Sorry Junkie, but even many sub saharan countries did better than that, and ALL Asian countries ! And again…this is wether you like it or not !
    You simply have a hole in your memory…..on purpose !!!!

  • ch.c.

    Great AES !
    Thus why have you written just a day or two ago that Brazil was raised to investment grade ?????

    Even the references you mentionned above said :
    – ” Fitch Ratings upgraded Brazil’s sovereign ratings on Thursday to one notch below investment grade”
    – ” The improvement of Brazil’s credit rating to one level below investment grade has boosted demand for local assets.”

    It is great for Brazil to have been upgraded but a shame to you that you cant even interpret correctly simple readings !!!!
    You are like Mantega who said : “”It is the price of the success,” Mantega told journalists in Brasilia.”
    Stupid question : is it such a great success that despite 15 rates cuts, Brazil still has the world highest interests rates…..after inflation ?????

    Not in my view !
    S O R R Y

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