Canadian International Trade Committee visit Brasilia
As a member of the House of Commons Standing Committee on Trade, I recently travelled with other members of the committee to Brazil. Our time spent in Brazil only served to confirm further the essential need on the part of Canada to encourage in every manner possible our trading relationship with this continually growing economic powerhouse. The opportunities for Canadian businesses are unparalleled in the today's world and particularly with respect to the Americas.
Brazil is a pillar of stability in the Americas and is a peaceful multi-racial society with whom Canada should naturally develop a closer relationship.
Many Canadians would likely be surprised to discover that Brazil is a country with a population of almost two hundred million people, the sixth largest in the world. Geographically, Brazil occupies almost half the total size of the South American continent. It is a country of 26 states and 5,564 municipalities where 80% of residents are urban dwellers.
Brazil's younger population will be a major force in the world and indeed there were 17,000 students from that country who studied in Canada last year.
Perhaps of more significance to Canadian businesses is the sheer size of Brazil's economy. In 2008, the Gross Domestic Product of Brazil was pegged at $1.66 trillion U.S. dollars. By comparison, Canada's GDP for the same year stood at $1.56 trillion U.S. dollars and one must remember that, despite having a smaller GDP than Brazil, our country holds membership in the G8, the eight most powerful industrialized economies in the world. Brazil, along with Canada of course, is currently a member of the larger group, the G20.
Brazil is a member of the Mercosur, the South American trading block that also includes Argentina, Paraguay and Uruguay.
Canada's trading relationship with Brazil has indeed increased in recent history. In 2008, our bilateral trade reached $5.3 billion (CDN). Canadian businesses, as of 2008, had $9.2 billion (CDN) invested in Brazil. At the same time, Brazilian companies had $12 billion (CDN) invested in Canada.
While these are important numbers it is readily apparent that there is a great deal more that Canada can do to take advantage of the many enormous opportunities that await Canadian businesses in Brazil while encouraging investment in the opposite direction.
As noted above, Brazil has a large population who are within working age and just as important is the fact that the country holds vast natural resources. This combination alone positions Brazil as an economic force that can only grow significantly in the coming years.
Canada and Brazil have a long history and share much in common. The trading relationship began over one hundred years ago with Brascan and between the two countries we share over one third of the world's fresh water.
There are relatively minor issues that could be resolved almost immediately that would assist in cultivating the Canada-Brazil relationship. As an example, the ongoing visa requirement that Canada has kept in place is a petty annoyance that is simply unnecessary.
Similarly, the sheer size of Brazil and the diversity of its economy across its regions require better Canadian diplomatic and trade office representation. If we are to encourage our business dealings with Brazil then we need to be present in the various regions of the country where this is possible and it is encouraging that Canada will in fact be opening two new consular offices in Portalegre and Recife.
Finally, we need to engage more directly and at higher levels politically and economically. There are vast opportunities that await Canada economically and culturally in Brazil and if we are to succeed we must pursue them with vigilance as other nations have done. These will not simply come to us without effort and commitment.
One major step forward would be to extend and invitation to Brazilian President Luiz Inácio Lula da Silva to speak to Canada's Parliament.
Brazil is, figuratively speaking, right on our doorstep as part of our hemisphere. While it is important to pursue opportunities in many parts of the world, like the emerging Asian economies, we must not lose sight of one of the most significant economic and political powers in the world that lies in the Americas and which we would be ill-advised to take for granted.
Mario Silva is the Member of Parliament for Davenport and a member of the House of Commons Standing Committee on Trade.