His Excellency Ambassador of Brazil to Japan, Mr. Octávio Henrique Dias Garcia CÔRTES gave a written interview for the magazine ‘Latin America Journal’ of JALAC in its winter 2024 edition published at the end of January. The integral transcript of the interview is as follows:
The best word to describe my term as Ambassador is: いそがしい (busy). I arrived in August 2022, and dove immediately into the preparations for the celebrations of the Bicentennial of Brazil’s Independence. We hosted two big concerts, organized a two-week program with a visiting Chef to promote Brazilian gastronomy, and brought a talented young street artist to paint murals in the famous Shibuya scramble, among many other initiatives.
In 2023, with the inauguration of the new administration in Brazil, there was also a flurry of activity, literally from day one. In January, then-Foreign Minister Yoshimasa Hayashi was the first to visit Brasilia. Then President Lula came to Japan for the G7 Summit in Hiroshima. In the meantime, we had visits from several Ministers, State Governors, Parliamentarians, and so on.
But of course, I can still profit from the richness of culture that Japan has to offer. I appreciate most especially the Japanese people’s ability to come together and overcome challenges. During my first tenure in Tokyo, I witnessed the pain and suffering caused by the 2011 earthquake and tsunami. But I also witnessed Japan’s resilience: people helping each other and immediately starting to work to put the country back on its feet. It is a truly remarkable trait and is indeed a vivid memory I will always carry. Japan has always amazed me.
―What is Brazil’s role in the world, which is in turmoil due to wars in Ukraine and the Middle East, the rivalry between the U.S. and China, etc.?
Brazil’s long diplomatic tradition is based on principles set out in our Federal Constitution. These permanent values are the result of the sovereign will of the Brazilian people and guide our country’s international relations. Among these principles are the prevalence of human rights and the right to self-determination; equality between States and non-intervention; the defense of peace and the peaceful settlement of disputes. Thus, Brazil’s external action has an important component of respect for international law and the pursuit of negotiation and dialogue as ways to find understandings for a harmonious coexistence between States.
It is within this spirit that Brazil operates in its bilateral relations, with a strong push for multilateralism and the strengthening of international organizations. As we witness, with extreme concern, tensions growing around the world, it is imperative to remember the motivations that led countries to agree to the creation of organizations that, in short, are focused on promoting peace and socioeconomic development. In particular, it is time to renew support for the United Nations and its Security Council, while at the same time recognizing the urgency for reforms in the UN and other international organizations so that they can have a broader, more diverse membership, more aligned with contemporary international reality, which must include active participation and voices from the developing world.
Home to one of the largest democracies on the planet and also one of the world’s economic powerhouses, Brazil has the credentials to play both regional and international active roles. This year, we are chairing the G20, a group that brings together the world’s main economies, with the motto “Building a Just World and a Sustainable Planet”. We believe that it is imperative that we shape a global agenda for a more inclusive, equitable and sustainable future for all, and that lasting solutions to shared global challenges, from geopolitical conflicts to hunger, from climate change to global health crisis, from economic breakdowns to social disruption, depend on our ability to tackle what is common to all these challenges: inequality. If we do not recognize that inequality is both the root cause and a major factor aggravating multiple crises, we will not be able to frame definitive solutions in the long run.
In that sense, our diplomatic efforts should be towards open, frank, and constructive dialogue among all parties involved, no matter how far their positions might be. There is no rivalry or turmoil that can be solved without active engagement and negotiations. That is mandatory as a starting point to shape a proactive and purposeful diplomatic action.
―It has been a year since President Lula began his third term as president. What are the priorities of the administration? How do you evaluate its achievement so far?
President Lula took office with a pledge to reduce social inequalities and to accelerate growth of the Brazilian economy. And indeed, throughout the last year the Government has been marching steadily in this direction.
At the beginning of 2023, the Government established a new fiscal framework, ensuring that social and fiscal responsibility would go hand in hand, and setting expectations for balanced public accounts in the near future. Within this framework, the Government has renewed a set of social policies, aiming at fighting poverty and hunger and chartering a path for sustainable growth. Brazil’s successful cash transfer program (Bolsa Família) was reinforced, new public housing was being built and big investments were announced in health, education, infrastructure, and so on.
This combination of social and fiscal responsibility has proven successful and was well received by economic actors. Unemployment has fallen by more than 10%, meaning more than 1 million people got new jobs. Our GDP is expected to grow by 3% in 2023.
And the Government is pushing on with its agenda. A long-awaited tax reform has finally been approved. It will streamline our tax system, making it easier to do business in Brazil. This has been a demand from the private sector for quite some time, and it will unlock new avenues for investment and growth in the long run.
―Brazil has applied to join the OECD as a way to bring its economic and social systems in line with the standards of developed countries. Has this policy been the same under the Lula administration? What is the status of the accession negotiations?
Brazil has relations with the OECD since the beginning of the 1990s. We participate, on a formal basis, in 35 committees or similar bodies of the OCDE, comprising areas such as taxation, economic policy, trade, investment, finance, anti-corruption, corporative governance, science and technology, labor, official support to exports, public governance, education, environment, health, agriculture, and combat against money laundering. Brazil has joined 118 of the 268 normative instruments of the OECD. So we have a long history of active participation in the organization.
Now, in 2022 a new negotiation process began which can culminate in Brazil’s accession to the organization. This is not a simple negotiation, as it requires some legislative changes that need Congressional approval. It may be a long process. Some countries that have recently joined the OECD took seven years in the accession process.
Last May, at the G7 Hiroshima Summit, President Lula and the Secretary-General of the OECD, Mathias Cormann, had a brief exchange. Mr. Cormann conveyed the Organization’s interest in Brazil’s accession and briefed the President about the next steps. Later, in June, Brazil’s Minister of Foreign Affairs, Mauro Vieira, participated in the Ministerial Conference of the OECD, in Paris. Recently, Brazil’s Minister of Governance and Innovation in Public Services, Esther Dweck, visited the headquarters of the OECD and presented the priorities of her Ministry, which is also responsible for the digital transformation of public services.
What I see is that the Brazilian Government has had a fruitful year of high-level exchange with the OECD. Also, many structural reforms Brazil has implemented in the last few years take into account OECD standards. One example is the tax reform, which has been approved by our Congress in December 2023. Another example is the taxation of offshore funds, which has just been approved by Congress. It will align Brazil’s tax regime with those of OECD countries.
To conclude: if we take a look at what is happening in Brazil on the ground – structural reforms, digitalization, macroeconomic responsibility – we already see many of the OECD parameters incorporated into our legislation and public governance.
―The 30th session of the Conference of the Parties (COP30) to the United Nations Framework Convention on Climate Change (UNFCCC) will be held in Belém, a city in the Amazon region, in 2025. What is the current situation of forest conservation and development in the Amazon region?
Brazil’s confirmation as the host of the 30th UN Conference on Climate Change (COP30) constitutes an excellent opportunity for the whole world to get to know the riches of the Amazon region up close, in addition to allowing effective participation of local communities, subnational governments, and local civil society in the decision-making process.
Regarding the actions taken by the Brazilian government at home, I would like to highlight that in January this year, President Lula made a commitment to end deforestation in all of the country’s biomes by 2030. During the first seven months of 2023, deforestation in the Amazon fell by 42.5% compared with the same period last year. This is the biggest drop in deforestation in a decade, and is the result of the intensification of command-and-control actions implemented by the Brazilian authorities. From August 2022 to July 2023, Brazil was able to avoid the emission of 133 million tons of carbon dioxide equivalent into the atmosphere, which represents around 7.5% of the country’s emissions based on the year 2020.
Brazil is convinced that international cooperation, an integrated vision and collective action are fundamental to face the political, social, economic and environmental challenges of the Amazon region, in particular those related to the climate crisis, the loss of biodiversity, water and soil pollution, deforestation and forest fires and the increase in inequality, poverty and hunger. This was the commitment of the Amazon countries emanating from the Amazon Cooperation Treaty Summit (Amazon Summit), held in Belem last August.
At the same time, the Brazilian government currently is formulating the Ecological Transformation Plan, a transversal initiative to promote sustainable development and guide the country’s transition to a low-carbon economy, increase employment and productivity, and guarantee sustainability and social justice. The plan will be constituted by six axes: sustainable finance, circular economy, technological development, bioeconomy, energy transition and adaptation to climate change.
Brazil’s preparations to receive the COP30 meeting has already begun. Our motto in last year’s COP28 in Dubai was “Brazil united in its diversity on the path to a sustainable future”. The Brazilian pavilion, named “Espaço Brasil”, hosted a total of 110 events in several areas over the two weeks of COP28, including a number of exhibitions and debates on tackling climate change and the transition to a low-carbon economy.
―What are the prospects for the entry into force of the Economic Partnership Agreement (EPA) between MERCOSUR and the EU, which is said that Amazon deforestation is one of the reasons for the delay? What are your thoughts on the Japan-Mercosur EPA negotiations?
The moment is ripe to kick off trade talks between Japan and Mercosur. Brazil has taken over the presidency of the G20 on December 1st so we expect the visit of many Japanese leaders to Brazil over the course of 2024. This is a window of opportunity we should not miss.
I firmly believe Japan’s interest to deepen relations with developing countries will be best served with an EPA with Mercosur. Diversification of trade partners is the best insurance policy against supply chain disruption and global inflation. We see a lot of complementarities in the trade relations between Japan and Mercosur countries. We have plenty to offer to Japan. We can strengthen Japan’s food security, we can provide Japan with renewable energy and help decarbonize the Japanese economy. We have deep and traditional human connections with Japan, shared history and values. We need an EPA that is all encompassing, dealing with the complete array of sectors of our economies, including agriculture.
As you know, Mercosur is making progress in trade negotiations with other partners. We have now just signed an agreement with Singapore. We are talking to Vietnam, Korea, India and Indonesia. With the European Union, we were very close to finalizing a deal in 2023, but the negotiations were postponed for the coming year. As we move forward, Japanese companies may have its competitiveness reduced compared to companies from countries that gain preferential access to Mercosur’s markets.
Without an agreement, the natural trend is that we face an increasing number of obstacles for trade and investment as we will both lose mutual access to each other’s markets, we will both lose mutual relevance. I will give you some examples. In 2011, Brazil’s trade with Japan reached US$ 17 billion; in 2022, it amounted only to US$ 12 billion. Ten years ago, Brazil had a 1.1% share in Japan’s external trade. Today, our share has decreased to 0.9%. Similarly, Japan had traditionally been Brazil’s number one trade partner in Asia for decades. In 2003, Japan moved down to the second position in Asia; today, Japan is our number three partner in the region – India gained the second position in 2021.
Japanese companies know very well the Brazilian industry and market through decades of good business relationships and iconic joint ventures. They know Brazil hosts successful startups, renowned research institutions, and a world class aerospace corporation. Why not take advantage of such network and expand business with old and reliable friends that are not involved in heated geopolitical struggles?
Our industries have on many occasions stated their support to an Economic Partnership Agreement. They know the economic gains that would derive from it. It is up to our governments now to sit together and negotiate a comprehensive agreement that would benefit both our countries.
―What is your assessment of the current bilateral relationship between Japan and Brazil, which is believed to maintain a good relationship with deep personal ties? What do you think of the future possibilities and challenges?
Japan is Brazil’s most traditional partner in Asia. We have a long and deep relationship based on strong human ties, dating back more than one hundred years. It is up to us to make good use of this legacy and this human connection to further strengthen our political dialogue, to increase our trade and investment flows, and to deepen our social and cultural exchange.
We already have a very close political dialogue in the highest level. President Lula visited Japan in 2023 for the G7 Summit, in Hiroshima. And we are expecting the visit to Brazil of Prime Minister Fumio Kishida. Our Foreign Ministers have also met on more than one occasion, not to mention many other ministerial and technical meetings.
We keep a close coordination in areas ranging from sustainable development to peace and security. We are also partners in the G4, together with Germany and India, in calling for the reform the United Nations Security Council. We believe that the reform is absolutely essential so that the Council can be more effective in dealing with challenges to international peace and security.
As for our human ties, in 2023 the governments of Brazil and Japan have reached an agreement to exempt travelers from visa requirements for short term stays. This is a big step forward, that will increase tourism and business in both countries. Now we must discuss the next way forward, exploring possibilities such as an agreement on working holidays visa or how we can work together to improve the situation of the Brazilian community in Japan and the Japanese community in Brazil.
I am convinced that a window of opportunities for the strengthening of our bilateral ties is being opened. We should act fast to make the most of it.
―What are you working on as Ambassador to Japan in particular to advance relations between Japan and Brazil?
One of my priorities is to enhance trade and investment ties between our countries. Our bilateral exchange is still far below the true potential for two of the world’s ten largest economies.
Brazil is one of the world’s largest producers of food, selling meat, grains, fruits and many other products throughout the globe. We export to the world’s most sophisticated and exacting markets, such as the European Union. But still our products such as beef and pork face restrictions in the Japanese market. The result is that when Japanese consumers go to the supermarket they find fewer options, at higher prices. At a moment when inflation is a concern, Brazil can be part of the solution, as a reliable, competitive and sustainable partner.
Conditions are also ripe to increase investment flows. In 2023, the Brazilian Government has launched a new package of over 340 billion dollars of investments in infrastructure. From railways and roads to ports and airports, there are many opportunities to invest. We want Japan and the Japanese companies to play a key role in this new moment of Brazil’s development.
Energy transition is another area in which we can do more together. In order to fight climate change, all countries need to reduce our carbon footprint. In this challenge, each country must find the strategy that best suits its need, but still we can share technologies and resources. In Brazil, our energy transition started over 50 years ago, with massive investments in renewable energy sources. One of those sources is biofuels, where Brazil is a global leader. Today, over 80% of cars in Brazil have fully flexible engines, which means they can run on either ethanol or gasoline. On top of that, the mixture of ethanol added to gasoline is currently at 27%, reducing even further the overall carbon footprint. We want to share this expertise with Japan. We are currently starting a discussion about sustainable aviation fuel (SAF), which is an area with enormous potential in both economic as well as environmental terms.
―Do you have any message to the readers?
I would like to encourage all of your readers to engage closely with Brazil. In whatever field of interest, Brazil has a lot to offer: science & technology, energy, trade, agriculture, and academic research, not to mention our diverse culture and rich landscapes.
We are currently entering a new development cycle, with massive investment in infrastructure, housing, and sanitation, just to name a few areas. Our economy is growing steadily. Our trade balance is hitting record after record. For those willing to invest and do business, Brazil offers huge opportunities.
We are also investing in our human capital, through renewed scholarship programs, including for overseas exchange. Brazil is leading in fields such as biotechnology, particle physics, artificial intelligence, petroleum engineering, and many others. There are many areas in which our researchers can work together.
And of course, I invite your readers to visit Brazil and experience our culture from up-close. Last year, Brazil and Japan reached an agreement exempting travelers from visa requirements for short stays. It is easier than ever to visit our cities, our beaches, our country side, the forests and everything we have to offer. You will not regret it!
And while you are preparing to travel, follow our social media accounts (@BrazilEmbassyJP) to stay updated with our Embassy’s activities and events.
