Demagogy in Brazils Foreign Policy and Trade Protectionism Estadao

Demagogy in Brazil’s Foreign Policy and Trade Protectionism Estadão

The positions of the President lula on your journey to Buenos Aires and the Montevideo concern anyone who understands the damage caused by demagogy in foreign policy and trade protectionism. Lula continued to present himself as a paternalistic regional leader who sees integration as a politicalideological bloc and protectionist pact, not as an incentive to invest in economic efficiency.

The assertion that the Brazil, required to be a “generous” leader given his size, Lula announced a return to using the BNDES to fund projects in the region. This comes after Brazil squandered hundreds of millions of dollars in defaults under Lula Venezuela it’s from Cuba, combined with the monumental corruption associated with these efforts. and have presented Boliviawithout a counterpart, with the quadrupling of the gas price.

Lula bemoaned “authoritarian temptations” in the region, a legitimate concern given the stress test Brazilian democracy has just been subjected to. Paradoxically, among the 33 countries of the Community of Latin American and Caribbean States (CELAC) Meeting in Buenos Aires, Lula decided to meet two dictators: the Cuban Miguel DiazCanel and the Venezuelans Nicholas Madurowho eventually canceled the trip.

Lula and Alberto Fernández meet before the CELAC summit in Buenos AiresLula and Alberto Fernández meet before the CELAC summit in Buenos Aires Photo: AP Photo/Gustavo Garello

Bottom line: Lula still thinks socialist dictatorships are good. Brazil does not need to sever ties with autocracies. But honoring dictators with bilateral meetings at a regional summit is an inconsistency for a democratic regime and a leadership ruled by ideological whims that weaken it.

The inconsistency also marks the desire to fund the construction of a gas pipeline to transport shale gas from Argentina, the extraction of which involves injecting toxic chemicals into the rock under intense hydraulic pressure with major environmental impacts. Instead, Brazil could expand gas production from the Santos Basin or invest in renewable energy sources to confirm its green credentials.

In Montevideo, Lula tried to demote the president Luis LaCalle Pou of a free trade agreement China. Uruguayan industry has already paid the price for opening up its market to Brazilian and Argentinian competitors. THE Mercosur it continues with an average common external tariff three times that of developed countries, making the bloc’s negotiations impracticable.

Therefore the Uruguay is aiming for bilateral agreements, as it has already done with the Mexico. The rules of origin prevent the reexport feared by the Brazilian industry. The Manaus Free Trade Zone, an economic, environmental and logistical disaster, imports far more industrial products from China dutyfree than Uruguay could ever import.

Uruguay should serve as an inspiration for Mercosur and not suffocate under the protectionism of Brazil and Argentina.

* IS AN ESTADÃO COLUMNIST AND ANALYST ON INTERNATIONAL AFFAIRS