Speech by President Lula at the Brazil-Chile Business Forum
While these glasses might make me look like President Boric, my goal is to engage in an open and transparent dialogue with our business professionals. I want to begin by sharing that on each of my recent international trips, I have made it a priority to include as many business professionals as possible. It is important to remember that while business professionals are the ones who negotiate and close deals, the president's role is to open these doors and to acknowledge and recognize your efforts in the process.
This approach has been a consistent practice throughout my previous administration and remains a core tenet of my current one. Early in my term, we established the Brazilian Trade and Investment Promotion Agency (Agência Brasileira de Promoção de Exportações e Investimentos/ApexBrasil) as an ambitious initiative. Today, ApexBrasil stands as a significant success in Brazil. We are committed to actively involving ApexBrasil, the Brazilian Micro and Small Business Support Service (Serviço Brasileiro de Apoio às Micro e Pequenas Empresas/Sebrae), the Brazilian Agricultural Research Corporation (Empresa Brasileira de Pesquisa Agropecuária/Embrapa), the Oswaldo Cruz Foundation (Fundação Oswaldo Cruz/Fiocruz), the Butantan Institute (Instituto Butantan), and the Ministers of Health and Education (Ministérios da Saúde e da Educação) to advance South American integration in a genuine and meaningful manner.
Since taking office in 2003, I have dreamed about strengthening integration within South America. Traditionally, Brazil has not prioritized engagement with the region. Instead, it has directed its diplomatic efforts toward the United States, which has shown limited receptivity, and the European Union.
We have recognized that a significant part of the success we seek for our economy, culture, and society is closely tied to our neighboring countries. Despite not sharing a border, Chile has perhaps an even closer relationship with Brazil, with ties dating back to 1836. This is no small accomplishment, and it is well-known that we Brazilians owe much to the solidarity we have received from Chile.
Business leaders, we eagerly anticipate welcoming you to Brazil, where we aim to facilitate impactful business meetings, partnerships, mergers, and joint ventures. The trade flow between Brazil and Chile has reached BRL 13.5 billion [USD 2.4 billion] —surpassing our trade with the United Kingdom, Italy, and France — indicating that the solution to our challenges, President Boric, may be closer than we think.
Occasionally, we may look beyond our immediate circumstances and realize that the solution may be closer to home, within our continent.
Ladies and gentlemen, Brazilian and Chilean business leaders, I am sure you know Brazil has again prioritized integration with its neighbors.
This commitment enhances confidence in negotiations and investments.
This state visit to Chile represents the renewal of a vital partnership for the future of South America.
I had an intense and very productive schedule of official meetings.
I brought an entourage of 14 ministers and as many senior officials from government agencies.
We have signed 19 agreements, many of which will directly impact our economic and commercial relations.
Strong political dialogue among countries fosters thriving trade and investment, which in turn leads to increased income, employment, and innovation.
The significant involvement of entrepreneurs in this event highlights the strength of Latin American entrepreneurship and our countries' economic power.
Last year, Brazil was Chile's third-largest trading partner globally, while Chile was the sixth-largest destination for Brazilian exports.
Bilateral trade approaches USD 13 billion, nearly five times the USD 2.7 billion recorded 20 years ago.
This figure surpasses Brazil's trade with France or Italy, doubling the trade volume with the United Kingdom.
Brazil is now the largest destination for Chilean investments worldwide and Chile's largest Latin American investor.
Chilean companies hold significant stakes in mining, power generation, and air services.
However, there is still more to be done.
We are talking about two neighboring economies that are modern, robust, and stable.
With fiscal responsibility and a commitment to reducing inequalities, Brazil is on track to become the eighth-largest economy in the world by 2024.
Chile was selected to participate in the greatest number of working groups under Brazil's G20 presidency.
This was a strategic decision.
Chile is crucial for discussing agriculture, energy transitions, tourism, sustainable finance, and labor.
We have an active Trade Facilitation Agreement [Acordo de Facilitação de Comércio] that ensures legal security and streamlined procedures to promote the flow of goods, services, and investments.
In 2023, we advanced with implementing a pre-authorization system for agricultural exports.
This year, we developed a joint public procurement manual to enhance both sides' opportunities to participate in tenders.
Today, we signed another key instrument to eliminate technical barriers: the mutual recognition protocol for organic products.
Brazil is committed to pursuing regulatory convergence in the cosmetics sector and expanding the mutual recognition of geographical indications.
Mineral and agricultural commodities have historically been significant contributors to our economies.
However, to achieve full development, it is essential to enhance production through technological innovation and value addition while also diversifying trade agendas.
Chile is already the leading market for Brazilian-produced buses.
I look forward to seeing Brazilian electric buses operating in Santiago and EMBRAER aircraft flying across the Andes, bringing our societies closer together.
Brazil and Chile are well-positioned to turn the energy transition into a major opportunity for industrialization.
According to the World Intellectual Property Organization, we are Latin America's two most innovative countries.
Connecting mineral wealth with strong investments in science, technology, and innovation will be central to a fair transition.
Brazil already boasts the cleanest energy matrix among major global countries and invests in alternatives for hard-to-decarbonize sectors such as aviation and maritime transport.
Chile alone holds about 40% of the world's lithium reserves, while Brazil possesses rare earth elements, niobium, cobalt, and other strategic minerals.
Our countries are home to two key biomes for humanity in the context of the climate crisis: the Amazon and Antarctica.
Together, we have everything needed to make South America the epicenter of global sustainability.
In Belém, at COP 30, we will showcase the full potential of our region by combining responsible management of natural resources with ambitious goals for transitioning to low-carbon economies.
Through the Growth Acceleration Program [Programa de Aceleração do Crescimento/PAC] and the New Industry Brazil program [programa Nova Indústria Brasil/NIB], Chilean entrepreneurs will have excellent opportunities to engage in major infrastructure and sustainability projects.
Brazil’s new industrial policy will enhance complementarity with South American neighbors, creating denser and more resilient regional production chains.
Cooperation in defense should also drive our mutual development, extending beyond commercial aspects.
We aim to build industrial partnerships in the aerospace and naval fields.
Submarines of the “Riachuelo” class, built at the Itaguaí Naval Complex, could support the defense of Chile’s extensive maritime borders.
Similarly, Brazil is certainly interested in defense products manufactured by the National Aeronautical Company of Chile [ENAER].
Ladies and gentlemen,
Developing shared infrastructure is the foundation for a more prosperous, united, and interconnected continent.
The new PAC includes two key integration routes with Chile.
The Rota de Capricórnio will connect the state of Mato Grosso do Sul to Paraguay, Argentina, and Chile, providing access to the ports of Iquique and Antofagasta and the Paraguay-Paraná waterway [hidrovia do Rio da Prata].
It is expected to be in operation by the first half of next year.
The Porto Alegre-Coquimbo corridor will link the state of Rio Grande do Sul to Uruguay, Argentina, and Chile.
Chile could serve as a gateway for Brazilian products to the Pacific, while Brazil can fulfill the same role for Chilean exports to Africa.
Completing these corridors will save at least USD 1,000 per container exported to Asia-Pacific and reduce shipping time by at least fifteen days.
The expansion of physical integration is accompanied by an enhancement of air connectivity.
It is noteworthy that today, there are more flight frequencies to Chile than to any European capital.
This is reflected in increased tourism, investment, income, and employment.
Last year, total travel between our countries reached nearly one million travelers.
Chile was the third-largest source of tourists to Brazil, and we are the second-largest source of visitors to Chile.
In January, we launched the “Visit South America” initiative alongside other Mercosur countries to attract tourists from around the world to our region.
The private sector remains a crucial player in Brazil-Chile relations.
Our partnership is more than just a choice; it is a state policy transcending temporary factors and circumstantial changes.
The success of this meeting validates our decision to proceed with an integration project that will ensure a prosperous, fairer, and more sustainable future for all.
Thank you very much.