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Diplomacy
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Press statement on the occasion of the visit of French President Emmanuel Macron

by Luiz Inácio Lula da Silva

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском Press statement on the occasion of the visit of French President Emmanuel Macron Full statement to the press by the President of the Republic, Luiz Inácio Lula da Silva, following the visit of French President Emmanuel Macron in Brasília (DF), on March 28, 2024 It is a great joy to reciprocate the hospitality with which my delegation and I were received in Paris when I participated in the Summit for a 'New Global Financial Pact' last June. Over the past three days, we have carried out an extensive agenda that included stops in Belém, home to COP30; Itaguaí, where we have Prosub; and now Brasília, for a State visit. This true marathon gives a sense of the breadth of the cooperation and friendship ties between France and Brazil. Among traditional powers, none are closer to Brazil than France. And among emerging powers, you tell me if any are closer to France than Brazil. In today's highly complex international landscape, the dialogue between our nations serves as a vital bridge connecting the Global South to the developed world, fostering efforts to overcome structural inequalities and achieve a more sustainable planet. Brazil and France are committed to collaborating in advancing a shared global vision through democratic dialogue. A vision grounded in the priority of production over unproductive finance, solidarity over selfishness, democracy over totalitarianism, and sustainability over predatory exploitation. President Macron was able to personally witness that our commitment to the environment is not merely rhetorical. In the past year, we have reduced illegal deforestation in the Amazon by 50%, and we aim to eliminate it entirely by 2030. As a symbol of the revitalization of our partnership, today we embraced a New Action Plan, broadening our collaboration into new arenas. These include financing the ecological and energy transition, advancing in bioeconomy, agriculture, public administration, digital issues, artificial intelligence, and reinforcing human rights and gender equality on our bilateral agenda. This range of topics is reflected in the more than 20 agreements we celebrate today. We discussed the success of the Brazil-France Economic Forum, held yesterday in São Paulo, which had not convened presentially since 2019. We explored ways to expand and diversify trade, which reached 8.4 billion dollars last year and has the potential to grow even further. France is the third-largest investor in Brazil, with a strong presence in sectors such as hospitality, energy, defense, and high technology, which generate employment and income in our country. I presented to President Macron the new investment opportunities in infrastructure and sustainability facilitated by the Growth Acceleration Program (Programa de Aceleração do Crescimento - PAC) and the Neoindustrialization Program. I presented our commitment to combating inequalities as the cornerstone of Brazil's G20 Presidency. Within this context, we are launching a Global Alliance Against Hunger and Poverty. As we mark the 80th anniversary of the Bretton Woods institutions this year, President Macron and I concur on the imperative for the G20 to send a clear message advocating for global governance reform and the reinforcement of multilateralism. We also agree that it is time for the super-rich to pay their fair share of taxes, in line with the proposal for fair and progressive international taxation that Brazil advocates within the G20. As strategic partners, we exchanged views on the major dilemmas facing humanity. Across the globe, democracy is under the shadow of extremism. The denial of politics and the dissemination of "hate speech" are growing and concerning. For this reason, Brazil joined, in 2023, the French initiative Partnership for Information and Democracy and will continue to work to promote and protect the circulation of reliable information. It is time to promote a truly multilateral debate on the governance of artificial intelligence. It is unacceptable for a new divide to emerge, segregating wealthy nations, possessors of this technology, from developing countries where basic internet access remains precarious. I reiterated to President Macron Brazil's unwavering belief in dialogue and the defense of peace. My administration will continue working diligently to ensure that Latin America and the Caribbean remain a conflict-free zone, where dialogue and international law prevail. The Security Council's paralysis in response to the conflicts in Ukraine and Gaza is both alarming and inexplicable. The arguments questioning the obligation to comply with the recent ceasefire directive in Gaza during the month of Ramadan once again undermine the authority of the Council. Discussing a world governed by rules that are not collectively agreed upon signifies a regression of centuries, reverting back to the law of the jungle. Brazil categorically condemns all forms of anti-Semitism and Islamophobia. We cannot permit religious intolerance to gain ground among us. Jews, Muslims, and Christians have always lived in perfect harmony in Brazil, contributing to the construction of the modern nation we see today. Dear friend Macron, the Strategic Partnership with France embodies our joint endeavor to modernize and invigorate our economies, prioritizing sustainability and upholding human rights. I am convinced that, even after three intense days, there is still much work ahead of us. The future holds countless possibilities for our countries to cooperate, develop, and create together I look forward to seeing you again soon at the G20 Summit in Rio de Janeiro. Thank you very much.

Energy & Economics
Chinese Yuan on the map of South America. Trade between China and Latin American countries, economy and investment

Ahead of the curve: Why the EU and US risk falling behind China in Latin America

by Ángel Melguizo , Margaret Myers

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском As Beijing’s investment approach to Latin America focuses on industries of strategic importance, the EU and US will need to contend with growing Chinese competition China is pouring less foreign direct investment (FDI) into Latin America. But while this may seem like a sign of Beijing’s disinterest in the region, data suggests that Chinese companies are simply recalibrating, not retreating. In doing so, they are becoming important players in sectors key to Western interests: critical minerals, fintech, electric vehicles, and green energy. While the European Union and the United States have long been top investors in Latin America, increased competition with Chinese investment now jeopardises their interests in the Latin American industries that will become most crucial to the digital and green transitions. The number of Chinese projects in Latin America grew by 33 per cent from 2018-2023, compared with the previous five-year period of 2013-2017, even as the total value declined. In other words, Chinese companies are making more investments in the region but are pursuing smaller-scale projects on average. These investments are also more focused on what China calls “new infrastructure“ (新基建), a term which encompasses telecommunications, fintech, renewable energy, and other innovation-related industries. In 2022, 60 per cent of China’s investments were in these frontier sectors, a key economic priority for the country. Beijing also views smaller projects in these industries as incurring less operational and reputational risk, especially compared to some of the large-scale infrastructure investment projects often associated with the Belt and Road initiative. Like China, the investment priorities of the G7 grouping – particularly the US and the EU – are centring on critical minerals, fintech, electric vehicles, and green energy as they aim to grow and reinforce existing economic and political partnerships in Latin America. However, both the US and the EU risk falling short of China’s investment strategy in the region. The US has signalled want for greater economic engagement with the region, especially in sectors of strategic interest. However, to date, US efforts to compete with China remain largely focused on building US domestic capacity in these strategic sectors, even as some US companies, such as Intel, are increasingly focused on including regional partners in their supply chains. Some see opportunity for Latin America in Joe Biden’s landmark legislation, the Inflation Reduction Act (IRA), which is aimed at incentivising the energy transition while also de-risking critical supply chains. For example, certain countries in the region may benefit from preferential market access for their lithium or other key inputs to new energy and technology supply chains. However, the reach of the IRA – which remains a largely domestic policy – does not stretch as far as China’s current investment reshuffle. The Americas Act, announced by members of Congress in March could generate promising new investment opportunities for the region, as it encourages US companies and others to move their operations out of China, to which Latin America stands as a promising replacement. But Americas Act reshoring would primarily incentivise textiles and potentially medical equipment manufacturing, with less overall focus on the range of “new infrastructure” industries that China is prioritising. Chinese interests in information and communication technologies reveal a similar story. While the US has focused its policy on 5G equipment sales, China is undertaking a process of vertical integration in Latin American tech sectors that will dramatically boost its competitiveness. For instance, Chinese company Huawei is rapidly expanding its focus to include data centres, cloud computing, cybersecurity, and other services, especially in Argentina, Brazil, Chile, Colombia, Mexico, and Peru. (Computing accounted for a sizable 41 per cent of total Chinese information technology investment in the region between 2018 and the first half of 2023.) At the same time, Global Gateway, the EU’s proposal for a global investment initiative is yet to reach its potential in the region. Brussels is looking to be Latin America’s partner of choice by building local capacity for making batteries and final products like electric vehicles, as European Commission president Ursula von der Leyen noted last year. Yet even as the EU signals renewed commitment, China is becoming increasingly dominant in the electric vehicle market in Latin America and other regions. China surpassed the US in electric vehicle sales in 2023, with Chinese companies accounting for 45 per cent of total global sales and three times that of Germany’s. What is more, China has invested $11 billion in lithium extraction in the region since 2018, as part of a bid to control a third of global lithium-mine production capacity. Meanwhile the EU has secured some access to lithium as part of trade deals with Chile, alongside other nations, but this pales in comparison to what will be required to fuel the future of EU battery production. Latin America as a whole accounts for an estimated 60 per cent of the world’s lithium reserves. Based on its current levels of engagement in the region, the EU risks falling short of lithium, stalling its battery production and subsequently, its electric vehicle sales, just as China advances in this field. The window is closing for the EU, the US, and other partners looking to both maintain market share and compete with China in these Latin American industries, despite still-high rates of US and EU investment in and trade with the region. Indeed, US automakers increasingly see Chinese competition across the globe as an “extinction-level event.” Ensuring competitiveness in “new infrastructure” and related sectors will require a continuous commitment by partners to building and supporting project pipelines, and to delivering products and services at price points that can compete with China’s subsidised offerings. Both the EU and the US remain critical economic partners for Latin America and are contributing in ways that China is not. Still, complacency risks allowing China to take the lead in emerging industries in the region, some of which weigh heavily in the EU’s green and digital transformation. To protect their own future industries, the EU and the US need to first take a longer look at Latin America’s – especially as China vies for a dominant position.

Diplomacy
Casa Rosada (Pink House), Argentine Presidential Palace - Buenos Aires, Argentina

Remarks by the President of the Nation, Javier Milei, at the Global Peace Summit for Ukraine

by Javier Milei

한국어로 읽기Leer en españolIn Deutsch lesen Gap اقرأ بالعربيةLire en françaisЧитать на русском Good afternoon, everyone. It is an honor for me and for Argentina to participate in this Peace Summit organized by President Zelenski, with whom we have established a close relationship. We Argentinians are fully aware of the value of peace and democratic coexistence as guiding principles of life in society, and that is why I want to especially thank you for the invitation to this event. I want to express, on behalf of the Argentinian people, our utmost support for the people of Ukraine and our friend, President Zelenski, as defenders of the idea of freedom, we condemn any form of violence, whether between individuals, but particularly, we repudiate war as an illegitimate mean of resolving conflicts between nations. War, tragic by nature, can never be the answer to problems that should be resolved in the political sphere. War is not a legitimate tool for resolving conflicts; it is the last resort of a people who must defend themselves, nothing more, nothing less. We are defenders of the idea of freedom. Liberalism, as we understand it, is the respect and protection of the life projects of others, based on the principle of non-aggression, in defense of the right to life, freedom, and private property. As defenders of freedom, we can advocate for nothing other than peace among free peoples and nations. When we say that the guiding principle of our doctrine is the defense of individuals' lives, liberty, and property, we are expressing that there is a direct relationship between peace, commerce, and prosperity. There is no economic prosperity without free trade, and there is no free trade without peace. Free trade naturally promotes peace, because as Bastiat said, "where trade enters, bullets do not," or as Milton Friedman said, "I may hate my neighbor, but if he doesn't buy my product, I go bankrupt." As a fervent believer in the philosophical consciousness found in liberalism and peace, I make this brief defense of these principles today, as they seem to have gone out of fashion. I believe it is an important step for Argentina to be present first at the G7 Summit and now here at this Peace Summit. It is part of the great shift we are undertaking as a country after decades of turning our back on the world. There is a new Argentina that is once again embracing the ideas that, 150 years ago, made it one of the most prosperous countries in the world. There is a new Argentina that also seeks to reclaim the prominent role in the concert of nations that it once held and never should have abandoned. Know that Argentina will always be committed to defending the ideas that made great the West, and that for us, peace among free nations is not only a moral duty but also a necessary condition for prosperity. Thank you all very much.