Brazil’s President Luiz Inacio Lula da Silva has announced that Vietnam is keen on signing a trade agreement with the Mercosur trade bloc, which is comprised of Brazil, Argentina, Paraguay, and Uruguay. This is a unique opportunity for both sides, as it would create a vast new market for goods and services.
Vietnam is a rapidly growing economy with a young and increasingly affluent population. It is also a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which is a major trade agreement between 11 countries in the Asia-Pacific region. A trade agreement between Mercosur and Vietnam would create a link between two of the world’s most dynamic economic regions.
Benefits for Brazil
A trade agreement with Vietnam would offer a number of benefits for Brazil. It would increase access to a large and growing market for Brazilian goods and services. It would also help to diversify Brazil’s trade portfolio and reduce its reliance on traditional partners such as the United States and China.
In addition, a trade agreement with Vietnam would help to boost Brazil’s economy and create jobs. A study by the Brazilian Institute of Economics (FGV IBRE) found that a trade agreement with Vietnam could increase Brazil’s GDP by up to 0.2% and create up to 120,000 new jobs.
Benefits for Vietnam
A trade agreement with Mercosur would also offer a number of benefits for Vietnam. It would give Vietnamese businesses access to a large and growing market for their goods and services. It would also help to diversify Vietnam’s trade portfolio and reduce its reliance on traditional partners such as China and the United States.
In addition, a trade agreement with Mercosur would help to boost Vietnam’s economy and create jobs. The Vietnam Chamber of Commerce and Industry (VCCI) estimates that a trade agreement with Mercosur could increase Vietnam’s GDP by up to 2% and create up to 250,000 new jobs.
Conclusion
A trade agreement between Mercosur and Vietnam would be a win-win for both sides. It would create a vast new market for goods and services, boost economic growth, and create jobs. Both sides should now work quickly to finalize the negotiations and bring the agreement into force.