Canada - Brazil Relations

Political: The bilateral relationship has expanded and diversified significantly over the last several years, despite some ongoing trade disputes, demonstrating Canada's interest in having Brazil as a key partner in South America. There is unrealised potential that we do wish to address. Prime Minister Chrétien and President Cardoso had an excellent working relationship over the years, both leaders visiting each other countries. The Prime Minister was in Brazil in 1995 and again with Team Canada in 1998 while the President came to Canada in April 1997 and attended the Summit of the Americas in Québec City in April 2001. Similarly, over the years, Canadian Ministers of Foreign Affairs and of International Trade, as well as the Secretary of State (Latin America and Africa) have met with the Brazilian Minister of External Relations on several occasions during official visits or at the margin of international meetings. The Speaker of the House of Commons, the Honourable Peter Milliken, represented Canada at the inauguration of President Luiz Inacio Lula da Silva on January 1, 2003.

In regional and global terms, both countries recognize the other as a valued partner with whom it often shares similar objectives. Formal bilateral consultations are being held regularly on political, international and defence security issues. Co-operation in diverse areas such as aboriginal affairs, human rights, federalism, environment, labour, democratic institution building, international de-mining, sports, and education are giving further structure to our relations.

Development Cooperation: In a typical year, CIDA programmes in Brazil total about $8 million. The goal of CIDA`s bilateral programme is to contribute to Brazilian efforts to achieve greater equity. To this end, four project mechanisms support Brazilian public sector reform, environmental management, and social development: (1) The responsive Technology Transfer Fund supports the transfer of Canadian know-how or expertise to help resolve key developmental issues in Brazil. A second phase of the Fund ($15M) is underway. (2) The Local Public and Social Sector Reform Fund ($1M over five years) responds to Brazilian requests for exposure to relevant Canadian know-how or expertise on a short-term basis. Sub-projects have tackled a variety of reform issues, including witness protection, secondary and technical education, electoral reform, home care for the elderly, human rights, and policing. (3) Brazil participates in regional multi-country projects, in areas such as environmental protection, energy and mining, international humanitarian law, and includes an $800K Gender Equality Fund. (4) The Canada Fund for Local Initiatives (up to $325K per year) supports local grassroots projects, primarily targeted at children and youth. In addition to the bilateral program, CIDA's Partnership Branch supports Canadian associations, educational institutions, non-governmental organizations (NGOs), and youth to help address a variety of challenges in Brazil. It also supports business development through the Industrial Cooperation Program (CIDA INC) www.acdi-cida.gc.ca

Commercial: Brazil is traditionally Canada's largest trading partner in South America. Canadian exports to Brazil experienced an unparalleled seven years of exponential growth, starting in 1991 when former President Collor opened the Brazilian market to imports. During the seven-year period exports more than tripled, reaching a peak of C$1.68 billion in 1997. Successive economic crises in Southeast Asia and Russia had a negative impact on emerging markets.

Statistics Canada indicated official figures were C$5.56 billion in 2001. According to informal estimates, the current value of Canadian investment in Brazil is approximately C$7 billion. Brazil is one of the primary destinations for Canadian foreign direct investment in the hemisphere. Brazil was the world's third largest recipient of foreign direct investment in 1999, behind China and the United States. Brazil is also among the EDC's most active markets and ranks as one of the bank's top five world priorities. EDC opened an office in Sao Paulo in June 2000.

Multilateral: Canada and Brazil work jointly on peacekeeping, arms control, the environment, drugs and UN reform. Brazil was supportive of Canada's Landmines Ban initiative and has ratified the Ottawa Treaty. They have signed and have undertaken to ratify the treaty creating the International Criminal Court once conflicts with domestic law are solved. We supported each other in our respective and successful bids to become nonpermanent members of the UNSC. While serving at the UNSC (Brazil's term expired in 2000), Brazil and Canada together with the US and Argentina constituted an informal consultative group of hemispheric UNSC members. Our two delegations worked closely together on such issues as Iraq, Angola and East Timor. Canada cooperates with Brazil in the Democracy and Human Rights theme of the Plans of Action of the Miami and Santiago Summits of the Americas, for which Brazil acts as hemispheric coordinator. This partnership resulted in the holding of the First Hemispheric Seminar on Police Training, held in Sao Paulo with the participation of 21 out of 34 countries.

Cultural/Academic: The Canadian Embassy and the Consulate General in Sao Paulo have hosted six major business and cultural events in the past seven years. Past events have captured enormous media and public attention, enhancing our profile in the country. A Canadian Education Centre was opened during Team Canada 1998. More than 4000 Brazilians study in Canada every year. There is a Brazilian Association of Canadian Studies (ABECAN), with 18 Canadian studies nuclei throughout Brazil, which have fostered academic linkages and exchanges with a large number of Canadian institutions of higher education. The next international ABECAN meeting is scheduled to take place November 11-14 2003 in Belo Horizonte.