INTERVIEW Brazilian envoy hopes to upgrade trade pacts with Korea

Brazilian Ambassador to Korea Marcia Donner Abreu sheds light on burgeoning trade relations between Korea and Brazil during an interview with The Korea Times at the Embassy of Brazil in Seoul, Dec. 6. Korea Times photo by Choi Won-suk

Brazilian Ambassador to Korea Marcia Donner Abreu shed light on the burgeoning trade relations between Brazil and Korea, emphasizing the need for upgrading trade agreements and high-level diplomatic visits to further solidify the dynamic bilateral partnership.

"Korea ranks fourth in our trade with Asia, and it's a significant investment by major Korean companies like Samsung, LG, Hyundai, Hanwha and CJ. However, crucial updated agreements are lacking," Abreu said during an interview with The Korea Times, Dec. 6, underscoring the importance of diplomatic engagements at the highest levels.

As Brazil gears up to host a G20 summit next year, the ambassador sees it as an opportune time for high-ranking level meetings between Korean and Brazilian officials, fostering a deeper and more productive partnership between the two nations.

The ambassador highlighted collaboration in the meat industry, emphasizing the necessity to streamline regulations and establish additional agreements for the prompt entry of Brazilian beef products into the country.

"Ninety percent of poultry imports in Korea come from Brazil. However, in the beef sector, there are challenges, and discussions need to address the lag in the process," she said.

She expressed optimism that a formula for cooperation would emerge with the establishment of a bilateral agreement. The ambassador argued that providing consumers with a diverse choice of beef sources, including Australian, American, Brazilian and Korean beef, contributes to a healthier market.

The ambassador assured that Brazilian beef is “top quality” and not detrimental to health, highlighting the country’s exports to 160 countries.

“We export to the United States and to the European Union which are markets that are extremely rigorous in these aspects,” she said. “The biggest problem is the competitors of Brazilian beef in Korea whom are already authorized to come into this market don't want our competition.”

The Brazilian ambassador says the country is willing to take a strategic approach to beef trade, focusing on selling exclusively to the industry rather than directly to consumers so as to ease the concerns of competitors.

"We will only sell to industry; we are not going to sell directly to the consumer," the ambassador declared. This unconventional approach, according to the ambassador, has been successfully implemented in several countries, where industry-exclusive sales have proven beneficial in terms of price advantages, cost efficiency and combating inflation.

Furthermore, the ambassador delved into the challenges associated with tariff barriers in the Korean market. Highlighting the significant disparities in tariffs, she pointed out that while Americans pay 8.5 percent and Australians pay 5 percent, Brazilian beef would be subjected to an exorbitant 40 percent tariff if the market were opened tomorrow.

"The agreement is not about an immediate reduction to 8 percent. It involves a gradual decrease over the years, coupled with smaller quotas," the ambassador explained. She emphasized the necessity of a comprehensive trade agreement to level the playing field, allowing Brazilian beef to compete effectively in the Korean market.

The interview delved into Brazil's substantial efforts to catch up with emerging industries and foster the development of future industries, with a particular emphasis on science, technology and innovation. The ambassador highlighted Korea's success, attributing it to the strong connection between the private sector and innovation. In Korea, over 70 percent of innovation is driven by private enterprises.

Abreu also illuminated potential collaborations in health care, specifically in the biosimilar industry. Initiatives with companies such as Samsung, along with ongoing partnerships in vaccine production and new biosimilar medicines, were highlighted as promising avenues for future cooperation.

Regarding Brazil's aspirations to become a significant player in the renewable energy sector, particularly in green hydrogen, the ambassador pointed out Brazil's potential for green hydrogen production. She emphasized the possibility of collaboration in technology and equipment sales to enhance Brazil's renewable energy production.

Looking forward, the ambassador outlined a comprehensive approach to collaboration, underscoring the importance of a shared work plan. She expressed optimism for the signing of a memorandum of understanding, a Trade and Investment Promotion Framework and a work plan in the coming year, coinciding with the 65th anniversary of bilateral relations.

Brazilian Ambassador to Korea Marcia Donner Abreu speaks of the growing people-to-people exchanges between the two countries during an interview with The Korea Times at the Embassy of Brazil in Seoul, Dec. 6. Korea Times photo by Choi Won-suk

People-to-people exchange

The ambassador emphasized Brazilians' growing interest in Korean culture, particularly the younger generation's enthusiasm for K-dramas, K-pop and K-food, acknowledging Korea's status as a cultural trendsetter.

“Korea today is the talk of the town. People are very much interested in all things about Korea — particularly the Brazilian youngsters who are big fans of K-series drama, K-pop and K-food,” she said.

"We already have the term 'dorama' (the Korean pronunciation of drama) in our dictionaries, signifying the influence of Korean dramas on global entertainment. The younger generation is a big fan of K-pop and K-food."

While acknowledging the geographical and financial challenges associated with visits, the ambassador remained optimistic, stating, "Although it's far away and expensive, we have a work and holiday agreement that hasn't been signed yet. It's ready for signature."

The ambassador highlighted the potential for deeper cultural engagement, mentioning the work and holiday agreement would enable young Brazilians to experience Korea through work and language courses, fostering mutual understanding.

Addressing the rising popularity of Korean cuisine in Brazil, the ambassador shared, "The number of Korean restaurants is expanding in Brazil. Even in my hometown, there's a new Korean restaurant being inaugurated."

Sharing anecdotes about cultural events organized by the embassy, the ambassador expressed a desire for more sophisticated opportunities to collaborate with Korean partners, stating, "I will try next year to explore better these possibilities with more sophisticated events because Korea is sophisticated too."