Korea, Brazil sign deal to promote trade and investment

Diplomacy

Published: 26 Nov. 2023, 14:47 Updated: 26 Nov. 2023, 19:06

Korea, Brazil sign deal to promote trade and investment

Korean Trade Minister Ahn Duk-geun, fourth from right, and Brazil’s Minister of Development, Industry, Commerce and Services Marcio Rosa, fourth from left, at the Four Seasons Hotel in Seoul on Friday. [YONHAP]

The Korean government signed a Trade Investment Promotion Framework (TIPF) with Brazil last week, the first such deal Korea has concluded with a South American nation.

Meeting in Seoul on Friday, Korean Trade Minister Ahn Duk-geun and Brazil’s Minister of Development, Industry, Commerce and Services Marcio Rosa agreed to expand economic cooperation in areas including green economy, hydrogen economy, infrastructure, digital, biopharmaceuticals, as well as business and investment facilitation.

Unlike the free trade agreement, the TIPF is not binding. However, it promotes enhanced economic cooperation and exchanges.

Brazil is the 12th country to sign a TIPF with Korea. Korea also has TIPFs with the United Arab Emirates, the Dominican Republic, Hungary, Bahrain, Poland, Madagascar, Uzbekistan, Finland, Ethiopia, Kazakhstan and Qatar.

During the session, the Brazilian vice minister proposed that the next meeting be held in Brazil.

During his two-day visit, the Brazilian Vice Minister Rosa also met with Kang Do-hyun, the Korean Vice Minister of Science, Information and Communication Technology, where they discussed Korea's digital strategy, advanced technologies, cybersecurity and AI.

Vice Minister Rosa also met with figures from major Korean businesses, including Hyundai Motor, which opened its first plant in South America in Sao Paulo, chip company Hana Microns, Posco, Samsung Electronics and Samsung Engineering.

Brazil became the first South American country to establish diplomatic relations with Korea in 1959.

The latest trade agreement will likely expand Korean business opportunities, considering that Brazil has the world’s seventh largest population with over 215 million people and is the largest market in South America with a $1.9 trillion GDP.

It is also rich in natural resources vital to EVs and other key Korean products, including nickel, lithium, rare earth minerals and graphite.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]