U.S. and Brazil must reduce dependence on China imports: Pompeo
Send a link to a friend
[October 20, 2020]
By Anthony Boadle and Andrea Shalal
BRASILIA/WASHINGTON (Reuters) - U.S.
Secretary of State Mike Pompeo warned on Monday that as the United
States and Brazil reinforce their business partnership, they need to
reduce their dependence on imports from China for their own security.
At a virtual summit on increased U.S.-Brazil cooperation aimed at
post-pandemic recovery, Pompeo underscored the importance of expanding
bilateral economic ties, given what he called "enormous risk" stemming
from China's significant participation in their economies.
"To the extent we can find ways that we can increase the trade between
our two countries, we can ... decrease each of our two nations'
dependence for critical items" coming from China, he said.
"Each of our two peoples will be more secure, and each of our two
nations will be far more prosperous, whether that's two or five or 10
years from now," he added.
The Trump administration is working to boost ties with Brazil and
provide a counterweight to China, keen to gain some advantage in what it
sees as a new "Great Power" competition.
Brazilian far-right President Jair Bolsonaro wants to follow suit but is
hamstrung by China being Brazil's largest trade partner, which buys much
of its soy and iron ore.
Some U.S. politicians are trying to "sow discord," said Chinese foreign
ministry spokesman Zhao Lijian, when asked about Pompeo's comments.
Cooperation between China and Brazil is durable and has broad support in
both countries, he said, speaking at a news conference in Beijing on
Tuesday.
Bolsonaro has yet to decide whether to ban Brazilian telecom companies
from buying 5G equipment from China's Huawei Technologies Co Ltd [HWT.UL]
as the U.S government has sought.
At the summit organized by the U.S. Chamber of Commerce, Bolsonaro
announced three agreements with the United States to ensure good
business practices and stop corruption. He said the package will slash
red tape and increase trade and investment.
"In the last year and a half, together with President Trump, we have
elevated Brazil-U.S. relations to its best moment ever, and opened a new
chapter in the relationship between the two largest economies and
democracies in the hemisphere," he said.
[to top of second column] |
U.S. Secretary of State Mike Pompeo speaks during a news conference
at the State Department, in Washington, DC, U.S., October 14, 2020.
Manuel Balce Ceneta/Pool via REUTERS
The two countries signed the protocol outlining the three agreements late on
Monday, saying they would set the stage for future talks on expanding trade ties
between the two allies and identifying priority sectors to further reduce trade
barriers.
Two top U.S. Democratic lawmakers slammed the Trump administration for
increasing trade cooperation with Bolsonaro's far-right government despite its
"abysmal record" on human rights, the environment and corruption.
"Giving President Bolsonaro ammunition to claim that the United States endorses
his behavior sullies our nation’s reputation as a country that demands our trade
partners respect human rights and the rule of law," said U.S. House Ways and
Means Committee Chairman Richard Neal.
Representative Earl Blumenauer, who heads the committee's trade panel, said the
protocol was the latest mini trade deal signed by the Trump administration
without congressional buy-in.
Pompeo said Brazil was getting closer to joining the Organization for Economic
Co-operation and Development (OECD) grouping rich nations with the support of
the United States.
"We want this to happen as quickly as we can," he said.
The U.S. Export-Import Bank would back projects valued at $450 million in Brazil
this year, while the U.S. Development Finance Corp had plans involving about $1
billion in projects there, he said.
U.S. goods and services trade with Brazil totaled an estimated $105.1 billion in
2019.
(Reporting by Lisandra Paraguassu and Anthony Boadle in Brasilia, Humeyra Pamuk
and Andrea Shalal in Washington, Leonardo Benassatto in Sao Paulo; Additional
reporting by Gabriel Crossley in Beijing; Editing by Richard Chang, Cynthia
Osterman and Edwina Gibbs)
[© 2020 Thomson Reuters. All rights
reserved.] Copyright 2020 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content. |