Communication from the Commission to the European Parliament and the Council - Towards an EU-Brazil Strategic Partnership
Date: 2007-05-30
Institutions: European Commission
Subjects: Brazil, EU relations, Mercosur, bilateral relations, children's rights, cooperation policy, development policy, economic relations, energy policy, environmental policy

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 30.5.2007 
COM(2007) 281 final 

COMMUNICATION FROM THE COMMISSION 
TO THE EUROPEAN PARLIAMENT AND THE COUNCIL  

Towards an EU-Brazil Strategic Partnership 

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COMMUNICATION FROM THE COMMISSION 
TO THE EUROPEAN PARLIAMENT AND THE COUNCIL 

Towards an EU-Brazil Strategic Partnership 

1. 

BUILDING AN EU-BRAZIL PARTNERSHIP 

Over  the  last  years,  Brazil  has  become  an  increasingly  significant  global  player  and 
emerged as a key interlocutor for the EU. However, until recently EU-Brazil dialogue has 
not  been  sufficiently  exploited  and  carried  out  mainly  through  EU-Mercosur  dialogue. 
Brazil will be the last “BRICS”1 to meet the EU in a Summit. The time has come to look 
at  Brazil  as  a  strategic  partner  as  well  as  a  major  Latin  American  economic  actor  and 
regional leader2. The first EU-Brazil Summit, will take place in Lisbon in July 2007, and 
will mark a turning point in EU-Brazil relations. 

The recent intensification and diversification of bilateral EU-Brazil relations demands a 
global, coherent and coordinated framework to conduct them. Its emerging economic and 
political  role  brings  new  responsibilities  for  Brazil  as  a  global  leader.  The  proposed 
strategic  partnership  between  Brazil  and  EU  should  help  Brazil  inexercising  positive 
leadership  globally  and  regionally  and  to  engage  with  the  EU  in  a  global,  strategic, 
substantial and open dialogue both bilaterally and in multilateral and regional fora. Based 
on powerful historical and cultural links, the EU enjoys broad relations with Brazil. Over 
the last few years Brazil has emerged as a champion of the developing world in the UN 
and at the WTO. The EU and Brazil share core values and interests, including respect for 
the  rule  of  law  and  human  rights,  concern  about  climate  change  and  the  pursuit  of 
economic growth and social justice at home and abroad. Brazil is a vital ally for the EU 
in addressing these and other challenges in international fora. 

A  quasi-continent  in  its  own  right,  Brazil’s  demographic  weight  and  economic 
development  make  it  a  natural  leader  in  South  America  and  a  key  player  in  Latin 
America. Brazil is now actively pursuing this role in the Mercosur framework and is at 
the forefront of the drive to promote the Union of South American Nations (UNASUR)3 . 

Brazil is central to the success of the EU-Mercosur negotiations, an EU priority strategic 
objective,  which  have  not  come  to  a  conclusion  due  to  lack  of  progress  in  the  trade 
chapter thus preventing so far the establishment of a wider strategic association between 

1 

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3 

A term coined in 2003 by Goldman Sachs for the rapidly emerging economies of Brazil, Russia, 
India and China, South Africa. 
The  Communication  from  the  Commission  to  the  Council  and  the  European  Parliament,  “A 
stronger partnership between the EU and Latin America - COM(2005) 636 - sets the ground for a 
stronger partnership with the Latin America region. 
The "Unión de Naciones Suramericanas" – UNASUR – was formally established at a Summit in 
Venezuela in April 2007. 

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the  EU  and  Mercosur.  Positive  leadership  of  Brazil  could  move  forward  Mercosur 
negotiations.  In  the  meantime,  the  EU  remains  committed  to  consolidating  a  solid 
political  and  economic  relation  with  Mercosur  as  a  block  and  to  develop  its  bilateral 
relations  with  the  other  countries  in  the  region  as  it  is  the  case  for  Argentina,  another 
important South American interlocutor (a number of policy dialogues have recently been 
launched). 

Commercially, Brazil is a major EU investment hub in Latin America4 and a market that 
will  offer  major  additional  openings  for  EU  business,  once  negotiations  in  the  WTO 
Doha Development Agenda (DDA) and with Mercosur are completed and trade barriers 
have been further reduced. Although its growth rates are not comparable with China or 
India5,  Brazil  has  huge  natural  resources, renowned  scientific  and  academic  excellence, 
broad industrial diversity and a vast internal market. 

Brazil  still  has  challenges  to  address:  acute  income  inequalities  remain  a  real  handicap 
and are one of the Government’s main targets for action, particularly through its ‘Bolsa 
Familia’  programme  and  a  key  area  for  co-operation  and  dialogue  with  the  EU.  These 
inequalities  are  also  reflected  in  sharp  regional  differences  within  Brazil  between  the 
North and the more developed South. Exchanges of good practices on regional cohesion 
is an area where the EU would like to see closer co-operation with Brazil. 

2. 

SETTING A COMMON AGENDA 

A closer, stronger partnership is in the EU’s and Brazil’s interests. In the chapter below 
the  Commission  identifies  a  number  of  areas  and  sectors  at  the  global,  regional  and 
bilateral  levels  where  it  considers  that  closer  cooperation  between  the  EU  and  Brazil 
could be mutually beneficial and could form the core of a future strategic partnership.  

This proposal to the Council and the Parliament could, if endorsed, serve as a basis for 
the formulation of the EU’s proposal to Brazil at the Lisbon summit. On this basis, Brazil 
is invited to submit its own strategic response to the EU’s proposals.  

The Lisbon Summit should therefore be the  launch of a process that will allow the EU 
and Brazil to develop a joint agenda for a strategic partnership. 

2.1. 

Strengthening Multilateralism 

Brazil and the EU share a common understanding that today’s global challenges can only 
be  addressed  through  a  multilateral  framework  centred  on  a  strong  UN.  We  must  both, 
therefore,  constantly  demonstrate  our  commitment  to  the  principle  of  effective 
multilateralism  through  our  actions.  From  UN  reform  to  climate  change,  from 
disarmament  to  world  trade,  Brazil  plays  a  vital  role  in  bridging  divides  that  hinder 

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At the end of 2004 38% of EU capital investment stocks in Latin America were located in Brazil 
(Eurostat Yearbook 2006). 
Brazil’s growth was under 3.7% in 2006. 

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progress on global issues. It is in both partners’ interests to seek greater convergence of 
EU and Brazilian positions on a wide range of issues by means of closer co-operation and 
consultation at all levels. The EU would welcome a more assertive and proactive position 
by Brazil and an increased co-operation with the EU in UN bodies, commensurate with 
its global role and weight. 

•  An important first step will be to strengthen our co-operation in all international fora, 
by consulting systematically ahead of important UN meetings and others, to compare 
views,  align  positions  wherever  possible,  ensure  mutual  support  on  important  issues 
and develop common initiatives. 

For  example,  the  EU  and  Brazil  could  take  advantage  of  opportunities  for  closer 
coordination  of  our  respective  positions  in  the  UN  Peace-Building  Commission  (PBC). 
This could include co-operation to ensure that the Peace-Building Commission becomes 
a  strategy-oriented  organ,  as  it  was  intended  to  be,  rather  than  just  another  donor-
coordination mechanism. 

The  EU  holds  in  high  regard  Brazil’s  commitment  to  play  a  prominent  role  in  peace-
keeping  operations6  particularly  in  Haiti  through  its  command  role  in  the  MINUSTAH 
peace mission. 

•  Taking  into  account  the  EU’s  strong  involvement  in  Haïti7  there  are  ample  grounds 
for  co-operation  and  co-ordination  of  EU  and  Brazilian  efforts  in  that  country  and 
beyond in the field of peace and stabilisation operations. 

On non-proliferation, Brazil takes a keen interest in the global non-proliferation regime 
and could possibly facilitate enhanced relations between the developed countries and the 
G77. 

•  The EU and Brazil should cooperate closely to support and further develop the global 

non-proliferation regime. 

In recent years Brazil has assumed a leading role on behalf of developing countries in the 
WTO, notably in agricultural trade and through the G20 group. Brazil and the EU have a 
shared ambition to strengthen further the multilateral trading system, so that countries at 
all levels of development can benefit more fully from the global opening of markets. As a 
result,  both  Brazil  and  the  EU  have  a  special  responsibility  to  bring  the  ongoing  Doha 
Round  negotiations  to  conclusion.  Over  the  longer  term  we  also  have  to  engage  more 
deeply to face the new challenges of the global economy, where regulatory issues play an 
increasingly important role in ensuring fair competition and sustainable development. 

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Brazil  is  currently  taking  part  on  the  following  UNPK  operations:  Sudan,  Ivory  Coast,  Liberia, 
Ethiopia and Eritrea, Haiti, East Timor, Cyprus. 
The EU’s contribution to Haïti for 2002-2007 (9th EDF) is nearly € 300 million and nearly € 233 
million is allocated for the period 2008-2013. 

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•  The EU and Brazil should continue to engage each other fully in the different formats 

of the WTO negotiations to bring them to conclusion in 2007. 

In the G20 Finance Ministers forum, Brazil could be a key partner to develop common 
positions  with  the  EU,  including  the  discussions  on  the  reforms  of  the  international 
financial architecture. This will be particularly relevant during Brazil's G20 Presidency in 
2008. 

2.2.  Raising Human Rights Standards, Fostering Democracy and Governance 

The EU and Brazil have long shared a broad base of common values and interests when it 
comes to promoting and protecting Human Rights, strengthening democracy, the rule of 
law and governance. Both have been strong proponents of building up a comprehensive 
body  of  global  standards  and  a  range  of  tools  for  their  implementation.  In  the  Human 
Rights  Council  and  the  UNGA  (United  Nations  General  Assembly)  Third  Committee 
there  is  great  potential  for  synergies  and  further  co-operation  to  promote  global  human 
rights. Both the EU and Brazil also share a common interest in fostering democracy and 
the rule of law and good governance in all countries. 

•  Regarding Human Rights, the EU is particularly keen to work closely with Brazil to 
achieve  greater  consensus  on  resolutions  or  co-sponsor  initiatives  on  specific 
countries and issues in the relevant UN bodies. 

2.3. 

Achieving the Millennium Development Goals and promoting regional and 
social development 

Cooperating  in  international  efforts  to  tackle  global  poverty  and  inequality:  Like 
other  emerging  powers,  Brazil  is  increasingly  assertive  in  South-South  co-operation, 
especially in its own neighbourhood and in lusophone Africa. Whilst the engagement of 
most  ‘emerging  donors’  is  often  aimed  at  generating  short  term  results  and  returns,  the 
emphasis  of  Brazil’s  own  (relatively  small-scale)  co-operation  programme  tends  more 
towards  long  term,  sustainable  development.  Brazil  is  known  for  its  active  advocacy 
work on the multilateral platform and for the development of innovative multilateral and 
trilateral  co-operation  models,  such  as  the  UN’s  ‘Action  against  Hunger  and  Poverty’, 
launched in 2004, on the initiative of President Lula, together with Chile, France and the 
UN8.  There  is  a  convergence  of  approach  between  the  EU  and  Brazil  regarding 
development co-operation as a means to foster peace and security.  

8 

Over  100  countries  have  signed  this  2004  UN  Declaration,  which  calls  for  innovative  financing 
mechanisms to be used to help achieve the MDGs. The initiative led to the establishment in 2006 
of  UNITAID  to  fight  three  major  killer  diseases  such  as  tuberculosis,  AIDS  and  malaria.  UK, 
France, Italy Spain, Sweden are funding members. 

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EC-Brazil bilateral co-operation in the framework of thematic programmes has been very 
valuable9. Approved projects and programmes address areas ranging from administrative 
and economic reform, social development and the environment. 

The Commission is keen to explore avenues for triangular co-operation with Brazil and 
the  Community  of  Portuguese  speaking  countries  (CPLP)  (e.g.  on  energy),  and  to 
establish  a  framework  for  strengthening  relations  with  Brazil  and  the  Portuguese-
speaking African countries. 

•  The  Commission  is  ready  to  intensify  cooperation  with  Brazil  in  the  field  of 
development assistance, notably in relation to triangular co-operation with the CPLP 
on development co-operation activities.  

Dialogues on social, employment and regional policy issues: Although Brazil is one of 
the  least  ‘aid  dependent’  countries  in  South  America  (ODA  constitutes  0.05%  of  GNI) 
the  country  is  beset  by  considerable  poverty  (e.g.  a  poverty  rate  of  27.9%)  and  a  high 
GINI index (58.2 in 2003, dropping to 56.7 in 2005) as well as growing challenges in the 
form  of  regional  development  disparities.  By  employing  the  ‘Bolsa  Familia’  and  other 
effective  programmes,  Brazil  has  managed  to  increase  its  Human  Development 
Indicator10 and halve extreme poverty 10 years ahead of the 2012 target year, but much 
still needs to be done to distribute resources more evenly. Brazil's employment structure 
is  evolving  very  fast  and  many  aspects  of  globalisation  are  challenging  regional  and 
social policies and the capacity of public action to reduce inequalities. Many aspects of 
the Lisbon strategy are designed to tackle these challenges. Sharing our respective policy 
experience could therefore be of value for both EU and Brazil. On the basis of EU-Brazil 
dialogues on social and employment issues and on regional policy, Brazil could share its 
experience on providing innovative solutions to the challenges of poverty, inequality and 
social exclusion to other countries in Latin America. 

•  The  recently  established  EU-Brazil  dialogue  on  social  and  employment  issues 
provides a forum for exchanging best practices and discussing policy in the fields of 
employment social protection inclusion and social dialogue.  

•  Similarly,  the  dialogue  on  regional  policy  will  allow  Brazil  to  share  the  EU’s  own 
experience in reducing regional disparities and achieving a better territorial balance 
and  to  exchange  best  practices  in  setting  up  and  implementing  regional  policy,  in 
particular on issues like multi-level partnership (involving regional and local actors, 
private sector and civil society), medium-term strategic planning, leverage effects on 
national resources (both public and private), development of administrative capacity, 
inter-institutional coordination and communication, diffusion of the evaluation culture 
and co-operation between regions. 

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10 

The  amount  of  the  co-operation  projects/programmes  portfolio  totals  over  € 165  million, 
excluding RTD projects. 
Ranking in 2004: 69 out of 177 (source: UNDP Human Development Report 2006). 

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•  Brazil  could  usefully  exchange  experience  with  other  South  American  countries  in 
offering innovative solutions to the challenges of poverty, inequality, social exclusion, 
reduction of regional divides, social protection and decent work for all. 

2.4. 

Protecting the environment 

Brazil is custodian of the largest remaining areas of rainforest in the world and a critical 
partner  for  the  EU  in  campaigning  for  greater  international  action  to  combat  climate 
change and to halt the decline in biodiversity. Strong and continued political will will be 
required  to  reach  a  comprehensive  global  climate  agreement  to  limit  increase  in 
temperatures  to  less  than  2°C  compared  to  pre-industrial  levels.  As  expressed  in  the 
Commission  Communication  of  10  January  2007  on  'limiting  global  climate  change  to 
2°C' and endorsed by Heads of State and government at the Spring Council of 8-9 March 
2007, the EU believes that, considering the urgency of the issue, negotiations for a global 
and comprehensive post-2012 agreement, based notably on the principle of common but 
differentiated responsibilities need to be launched at the UN Climate Change Conference 
to take place in Bali in December this year, and completed by 2009. High-level political 
engagement is necessary to strengthen and implement the UN Convention on Biological 
Diversity  and  to  achieve  the  World  Summit  on  Sustainable  Development  biodiversity 
2010 target. The  EU and Brazil also share a particular concern for other  environmental 
challenges notably the protection of forests, water management, the marine environment, 
the global mercury challenge and unsustainable patterns of consumption and production. 

As  well  as  working  together  on  the  international  stage,  the  EU  and  Brazil  consult 
bilaterally  on  a  range  of  environmental  issues.  Regular  policy  dialogue  meetings  on 
environment  and  climate  change  take  place  between  the  European  Commission  and 
Brazil. The EU is interested in sharing experiences in water management and in dealing 
with unsustainable patterns of consumption and production. 

•  The EU should develop and reinforce our Environmental Policy dialogue with Brazil 
on topics such as climate change, water management, bio-diversity and deforestation, 
including  the  role  of  indigenous  people  so  that  we  better  understand  each  others’ 
positions, thereby enhancing our collective influence in these areas. 

•  The EU should work with Brazil in international fora to advance climate change and 
deforestation  discussions  with  a  view  to  reaching  agreement  for  a  global  post-2012 
framework. 

•  Closer  co-operation  should also  be  envisaged  towards  implementing  the  Convention 
on Biological Diversity and achieving the biodiversity 2010 target as well as on other 
key global concerns, such as addressing mercury pollution.  

2.5. 

Strengthening energy cooperation 

Brazil  was  the  first  country  to  develop  successfully  a  very  large  indigenous  biofuels 
production which has great further potential. It has taken a leading role along all different 
stages  of  production,  distribution  and  consumption  of  biofuels.  The  EU  has  recently 

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confirmed  that  greater  use  of  renewable  energies  is  a  key  priority  for  the  EU  energy 
policy. The 2007 action plan on an energy policy for Europe, which has been endorsed 
politically  by EU leaders, sets ambitious targets for the use of renewable energy (20%) 
and of biofuels (minimum 10%) until 2020. 

The  EU  and  Brazil  share  the  conviction  that  co-operation  in  this  area  can  offer  mutual 
benefits: a partnership has been forged in the context of the International Biofuels Forum 
initiated  by  Brazil  in  March  200711.  This  Forum  contributes  to  developing  common 
standards  in  order  to  enable  an  international  market  to  grow  whilst  ensuring  that 
production  is  sustainable  and  results  in  the  reduction  of  green-house  gas  emissions  and 
addresses  other  sustainable  development  objectives.  The  International  Conference  on 
Biofuels  organised  by  the  Commission  on  5-6  July  2007  in  Brussels  will  offer  an 
opportunity to widen this co-operation significantly. 

The  EU  is  also  keen  to  enhance  co-operation  on  energy  efficiency  with  Brazil,  both  at 
bilateral level, as well as through a future international framework agreement.  

•  The launch of the EC-Brazil Energy Policy Dialogue in 2007 could allow significant 
progress  in  EU-Brazil  energy  co-operation,  both  at  regulatory  and  technical  level. 
Topics  should  include  sustainable  biofuels  and  other  renewable  energy  sources, 
energy efficiency and low carbon energy technologies. The dialogue would also allow 
closer  ties,  exchanges  on  major  international  energy  developments  and  promoting 
policies to improve energy security and sustainability. 

2.6. 

Enhancing Latin America’s stability and prosperity 

Over  the  last  few  years,  Brazil  has  strengthened  its  relations  with  its  neighbours, 
particularly Argentina, with whom Brazil has established a ‘strategic relationship’.  

On the political front, Brazil has become a pillar of South American stability. It has been 
able to address challenges faced by many countries in the region (such as social cohesion) 
within the framework of its political and institutional system.  

Brazil  has  been  at  the  forefront  of  efforts  to  deepen  South  American  integration  both 
through Mercosur and with the founding of the South American Community of Nations 
in December 2004, leading to the establishment of UNASUR at the regional Summit in 
April  2007.  In  recent  years  Brazil’s  relations  with  its  neighbours  have  been  marked  by 
moderation,  as  shown  by  the  way  in  which  it  has  handled  areas  where  there  are 
divergences of views with Venezuela and Bolivia. 

In the areas of energy, telecommunications, water and transport, interconnectivity plays 
an  important  role  in  promoting  stability  and  prosperity  in  Latin  America.  Brazil’s 
participation  in  any  big  regional  energy  scheme  is  an  essential  condition  for  its 
contribution  to  the  regional  energy  infrastructures.  The  development  of  bi-oceanic 

11 

Other members include China, India, US, South Africa. 

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corridors  along  Pan-American  axes  means  that  Brazil  is  now  better  integrated  into  the 
Latin American transport network. 

Brazil  has  an  essential  role  to  play  in  EU-Latin  American-Caribbean  co-operation.  The 
EU places a high value on its active participation and contribution to the discussions on 
social cohesion and, in particular, the next EU-LAC Forum on Social Cohesion.  

•  The  EU  will  work  in  continued  engagement  with  Brazil  in  implementing  the 
recommendations of the EU-LAC Conference on Social Cohesion of March 2006 and 
in  moving  this  agenda  forward.  Preparations  for  the  EU-LAC  Forum  on  Social 
cohesion will provide a good opportunity for dialogue. Both sides could also engage 
jointly  in  encouraging  international  organisations  and  civil  society  in  promoting 
social cohesion.  

•  The EU would welcome Brazil’s close involvement in the preparation of the next EU 

LAC summit in Lima in 2008. 

2.7.  Advancing the Mercosur agenda  

The importance and influence of Brazil and its vast market within Mercosur is evident. In 
2005  Brazil  represented  nearly  80%  of  the  entire  Mercosur  GDP12.  Further,  Brazil  is 
South America’s economic engine and the direction of its economic policies will have an 
influence on the whole region's economic stability and economic integration.  

Given Brazil’s weight within Mercosur, reinforcing the EU’s political relationship with a 
country of such critical importance will support intra-Mercosur integration as well as EU-
Mercosur relations.  

By  sharing  its  knowledge  of  the  EU  and  the  experience  acquired  in  negotiating  a  joint 
agenda  with  the  EU,  Brazil  can  better  support  Mercosur  efforts  to  build  up  a  common 
market  and  political  union.  This  is  of  particular  relevance  at  a  time  when  Mercosur  is 
going through a delicate phase. The group still has work to complete on several aspects of 
its economic integration, such as the completion of the customs union and the finalisation 
of the services common market. There is also an increasing sense among opinion makers 
in all Mercosur's developing countries that the group needs to boost its level of ambition 
and effectiveness including by developing its political and foreign policy dimension. The 
Brazilian government has repeatedly showed interest in the EU experience as a model for 
Mercosur  integration,  although  Mercosur  governments  are  generally  very  wary  in 
transferring power to supranational institutions in their pursuit of economic and political 
integration. The EU is Mercosur’s biggest supporter and a major donor. 

The reinforced dialogue will also assist both parties in their objectives to finalise an EU-
Mercosur  Association  agreement,  the  success  of  which  is  intricately  linked  to  the 
progress of intra-Mercosur political and economic integration, a process in which Brazil 
should take an important lead.  

12 

Source: World Bank. 

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•  We  therefore  look  to  Brazil  to  make  a  constructive  contribution  towards  the 

conclusion of a balanced and comprehensive EU-Mercosur agreement.  

•  The  EU  and  Brazil  should  explore  together  how  to  maximise  co-operation  and 

exchange of experiences in regional integration questions. 

2.8. 

Reinforcing trade and economic relations 

Developing  trade  and  investment:  Brazil  is  the  most  important  market  for  the  EU  in 
Latin America, accounting for one third of total EU trade with this region and with a two 
digit annual growth rate in recent years in bilateral trade flows. The EU is also Brazil’s 
most  important  trading  partner,  accounting  for  22%  of  Brazil's  total  trade.  However, 
Brazil only accounts for 1,8% of total EU trade, ranking only number eleven of major EU 
trade  partners  (Eurostat,  2005).  This  demonstrates  the  significant  potential  this  market 
represents for the EU. Of all the BRICS, Brazil has attracted the most EU foreign direct 
investment13, with an investment stock reaching € 80,1 billion. Brazil is also a significant 
investor in the EU14, in particular in sectors such as trade, mining and construction.  

On  market  access,  our  objective  is  to  increase  our  trade  opportunities  even  further 
through  the  DDA  and  the  EU-Mercosur  negotiations,  given  the  relatively  high  current 
level of protection in Brazil's goods and services markets. The EU therefore encourages 
Brazil  to  reduce  tariff  and  non-tariff  barriers,  promote  economic  reform  and  good 
governance  in  the  tax  area  and  establish  a  stable  regulatory  environment  for  economic 
operators,  including  foreign  investors.  A  more  open  trade  and  investment  climate  in 
Brazil  would  boost  competitiveness  in  all  sectors  and  create  means  for  increasing 
prosperity.  

•  The  future  EU-Brazil  Partnership  is  an  opportunity  to  address  issues  of  specific 
bilateral  relevance  that  complement  the  EU-Mercosur  discussions,  for  example 
through dialogue on intellectual property issues, industrial policy and regulatory co-
operation  as  well  as  consultations  in  the  sanitary  and  phyto-sanitary  (SPS)  area,  so 
increasing  mutual  understanding  of  the  respective  SPS  conditions  that  may  affect 
trade. 

Economic  and  financial  issues:  In  view  of  Brazil’s  significant  weight  in  the  world 
economy  and  key  international  fora,  such  as  the  G20,  the  WTO  and  the  G8  outreach 
group,  the  EU  should  also  enhance  dialogue  with  Brazil  on  financial  and  macro-
economic issues. This could include macroeconomic and fiscal challenges, strategies for 
structural reforms to increase sustainable growth, and social cohesion issues.  

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While outward flows to Russia, China and India in 2003-2005 have been above those of Brazil, in 
overall the volume of EU stakes in Brazil is larger than the other BRIC countries together: 2005. 
Brazil € 80,1 billion; Russia € 31,3 billion; China € 31,3 billion; India € 13,7 billion. 
€ 5.2  billion  Brazilian  capital  was  invested  in  the  EU  in  2005  alone  (source:  Banco  Central  do 
Brasil). 

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•  The  EU-  Brazil  strategic  partnership  should  involve  a  regular  macro-economic 

dialogue.  

The  European  Investment  Bank’s  (EIB)  loans  have  played  an  important  role  in 
reinforcing economic ties between Brazil and the EU and supported the development of 
the private sector. Brazil has been the largest recipient of EIB loans in Latin America and 
will  remain  an  important  recipient  of  EIB  loans.  EIB  financing  in  Brazil  will  be  in 
support  of  the  EU  objectives  of  focusing  on  environmental  sustainability  (including 
climate  change  mitigation),  energy  security,  support  of  the  FDI,  and  the  transfer  of 
technology and know-how.  

Information  society:  The  EU  and  Brazil  share  the  understanding  that  Information  and 
Communication  Technologies  (ICT)  not  only  are  essential  to  foster  innovation, 
competitiveness and economic growth, to create jobs and to increase the efficiency of the 
public sector but also have an important social dimension in improving social cohesion, 
increasing the quality of life and reducing poverty. 

•  The EU‘s priority is to expand further the bilateral dialogue and co-operation on ITC 
covering regulatory, policy and research aspects. This will contribute to guarantee a 
sound and stable regulatory framework in this sector, to make the best use of ICTs in 
support of public policies and social welfare, and to develop the exchanges in relevant 
scientific and technological areas. 

Air  Transport:  With  about  four  million  annual  passengers  on  scheduled  flights,  the 
Brazil-EU  air  transport  market  is  of  crucial  importance  to  link  people  and  businesses 
between the EU and Brazil. For the sector to develop, air services between Brazil and the 
EU need a stable legal framework. The air transport agreements between Brazil and EU 
Member  States  therefore  need  to  be  modified  to  reflect  the  existence  of  the  EU  single 
aviation  market.  Once  Brazil  has  recognised  the  existence  of  the  EU  in  its  bilateral  air 
services agreements, Brazil has the potential to become an important partner in various 
aspects  of  aviation  policy.  A  good  example  in  air  traffic  management  is  the  SESAR 
(Single  European  Sky  ATM  Research)  project,  which  aims  to  increase  the  safety, 
efficiency and environmental sustainability of air transport by enhanced co-operation in 
the  field  of  aviation  safety,  particularly  with  regard  to  recognition  of  airworthiness 
certification findings.  

•  The  EU’s  priority  is  to  modify  the  air  transport  agreements  between  Brazil  and  EU 

Member States as a matter of urgency.  

Maritime  transport  and  maritime  governance:  Brazil  and  the  EU  are  both  major 
players in world economy and maritime transport is of key importance to growth, trade 
and development. The recently established EU-Brazil maritime transport policy dialogue 
should  be  further  developed  with  a  view  to  improving  the  conditions  for  Brazilian  and 
EU shipping companies, facilitating maritime transport in Brazil and the EU, developing 
enhanced  co-operation  between  the  two  sides  in  all  areas  of  mutual  interest,  including 
ports, inland waterway transport, infrastructure and maritime safety, as well as discussing 
convergence of approaches in international organisations.  

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•  Furthermore,  parties  might  wish  to  consider  the  establishment  of  cross-sectoral 
cooperation  regarding  maritime  governance  matters  covering  a  wide  range  of 
maritime  aspects,  from  transport,  fisheries,  maritime  research,  the  protection  of  the 
marine environment and the sustainable exploitation of natural resources, to relevant 
planning, governance and law enforcement.  

•  The  recently  established  EU-Brazil  maritime  transport  policy  dialogue  should  be 

further developed. 

Science, Technology (S&T) and innovation is a declared priority area for the Brazilian 
government15.  Bilateral  co-operation  is  also  significant,  Brazil  being  one  of  the  most 
important third country participants in the Sixth Research Framework Programme  (FP6 
2002-2006)  with  joint  research  activities  at  bilateral  and  bi-regional  levels  in  all  major 
thematic  areas  from  environment,  food  and  health  to  energy  and  surface  transport.  The 
recent  entry  into  force  of  the  EU/Brazil  S&T  Co-operation  Agreement  and  the  new 
possibilities  for  international  participation  in the  EU’s  Seventh  Research  FP  2007-2013 
provide a sound basis for increasing existing co-operation.  

•  The S&T sector dialogue should be strengthened and joint planning improved to focus 
and set priorities through appropriate thematic dialogues in areas of common interest.  

•  The Brazilian side is encouraged if and when appropriate to fund its own participants 
in  FP7  activities.  Both  sides  should  facilitate  researchers’  mobility  which  the  EU 
promotes  through  the  specific  People  programme.  The  EU  and  Brazil  should 
consolidate and improve the visibility of co-operation in this area. 

•  The establishment of an agreement between Euratom and Brazil should be considered, 
following the model of existing agreements with other countries. This could be either 
in  the  specific  field  of  fusion,  for  example  to  promote  Brazil's  accession  to  the 
International  Thermonuclear  Experimental  Reactor  (ITER)  project,  or  in  broader 
areas of nuclear research. 

Satellite  Navigation,  Galileo:  Co-operation  on  the  European  Satellite  Navigation 
Programme, Galileo should be further intensified through a new co-operation agreement 
(on the basis of initial information exchanges and other contacts).  

•  Brazil’s participation in Galileo would provide a perfect opportunity to deepen high 

tech industrial and scientific co-operation between the EU and Brazil. 

2.9. 

Justice, Freedom and Security 

The  EU  and  Brazil  should  cooperate,  including  in  international  fora,  on  establishing 
international  standards  to  combat  organised  crime  and  corruption,  by  promoting 
cooperation  in  criminal  matters  and  in  particular  the  full  implementation  of  the  UN 

15 

Current investment in research of 1% of GDP is set to double until end of President Lula's second 
mandate. 

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Conventions and Protocols on the fight against trans-national organised crime and against 
corruption.  The  EU  and  Brazil  should  also  promote  regional  multidisciplinary  law 
enforcement  co-operation.  Co-operation  between  the  EU  and  Brazil  in  tackling  illicit 
drug problems should be based on the principle of shared responsibility and support the 
development  of  policies  and  programmes  that  help  enhance  the  Brazilian  capacity  to 
address the global drugs problem through an integrated and balanced approach. 

The  Commission  is  confident  that  a  short  stay  visa  waiver  agreement  between  the 
European  Community  and  Brazil  will  be  successfully  negotiated  and  concluded  in  the 
coming  months.  This  agreement  will  put  an  end  to  a  situation  of  unequal  treatment  by 
Brazil  of  some  EU  citizens,  following  the  2004  enlargement,  and  will  ensure  a  full 
mutual  visa  free  travel  for  both  Brazilians  and  European  citizens.  The  Commission  is 
expected to adopt a draft negotiating mandate in late June. 

In  the  context  of  these  negotiations,  it  must  be  stressed  that  the  fight  against  illegal 
immigration shall be discussed in order to favour closer cooperation between the EU and 
Brazil. Of particular relevance in the context of migration is the question of remittances 
from  Europe  to  Brazil  which  have  grown  substantially  in  recent  years.  When  well 
managed,  they  can  contribute  to  economic  growth  and  development.  Ways  to  further 
facilitate  remittances  should  also  be  part  of  the  discussions,  including  in  the  macro-
economic dialogue.  

•  The  EU  and  Brazil  should  promote  regional  multidisciplinary  law  enforcement  co-

operation. 

2.10.  Bringing people together 

There  is,  of  course,  much  more  to  the  EU-Brazil  relationship  than  economic  interests: 
historical links, strong cultural and linguistic affinities, co-operation between universities, 
sporting  links,  tourism  in  both  directions,  business-to-business  relationships,  common 
interest in health and much more.  

As part of the process of strengthening and deepening the EU-Brazil relationship, there is 
a need for action to raise popular awareness and understanding of our partners’ cultures 
and societies. We should take direct action to measure public opinion and understanding 
regarding the EU in Brazil, and vice-versa, and develop and implement strategies to raise 
visibility and awareness, strengthen understanding and correct misconceptions.  

Higher education 

There is considerable interest and scope in EU-Brazil co-operation in higher education, to 
broaden  academic  knowledge  and  bring  future  intellectual  elites  closer  together.  Brazil 
has  been  an  active  participant  in  the  EU’s  higher  education  programme  ALβAN16, 

16 

Some  2 500  Brazilian  students  have  participated  at  the  EC’s  “ALBAN”  higher  education 
programme for Latin America since 2003: this represents 30% of all Latin American participants. 

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Erasmus  Mundus17  and  in  EU  Member  States’  bilateral  exchange  programmes.  Brazil 
also  registered  a  strong  participation  in  the  EU's  ALFA18  programme  for  EU-LA  inter-
university  co-operation.  Significantly,  consideration  is  being  given  to  the  launch  of  a 
policy dialogue on education to exchange best practice.  

•  The  EU  proposes  to  stimulate  further  the  exchanges  and  dialogue  between  our 
cultures, by intensifying university exchanges in the near future, with funds from the 
EU’s  Country  Strategy  Paper  2007-2013:  € 30,5  million  are  foreseen  for  additional 
Erasmus Mundus scholarships for Brazilian students.  

Culture: The EU and Brazil share converging views and common objectives on culture, 
in particular with regard to cultural diversity and intercultural dialogue. A recently agreed 
sector dialogue will provide the framework for fostering cultural diversity and promoting 
cultural  industries.  The  dialogue  will  put  particular  emphasis  on  the  UNESCO 
Convention on the Protection and Promotion of the Diversity of Cultural Expressions and 
on fostering co-operation in international fora regarding its effective implementation. In 
the  area  of  languages,  the  EU  experience  can  provide  best  practices  on  promotion  of 
linguistic diversity.  

Civil  society:  Contacts  between  the  peoples  of  Brazil  and  of  the  EU  should  be  also 
enhanced via civil society: on both sides there is considerable common interest in issues 
of  mutual  concern,  such  as  climate  change,  environment,  poverty  alleviation,  social 
development,  urbanisation,  but  also  in  more  technical  and  economic  issues  such  as 
science and technology and maritime transport questions.  

•  Civil society contacts should be enhanced in a variety of fields. 

•  Youth  exchanges  and  co-operation  outside  the  formal  education  sector  could  be 

enhanced further via the “Youth in Action” programme. 

Business:  The  potential  for  business  co-operation  -  reflected  in  impressive  investment 
figures on both sides - is still far from fully exploited. Business contacts should be further 
encouraged and supported in the organisation of EU-Brazil Round Table. 

•  The first EU-Brazil Business Round Table is scheduled to take place in parallel to the 

EU-Brazil Political Summit in Lisbon. 

17 

18 

Brazil  is  the  most  successful  Latin  American  country  participating  in  the  Erasmus  Mundus 
programme.  89  students  and  28  scholars  from  Brazilian  institutions  have  been  awarded  an 
Erasmus  Mundus  grant  to  study  or  work  in  Europe  in  the  period  2004-2006.  Seven  Brazilian 
universities are involved in partnerships with Erasmus Mundus masters' courses. 
ALFA II (América Latina Formação Académica) – around 70 different Brazilian HE institutions 
implemented some 136 projects, out of which 82 enabled some 1 300 LA-EU semester-mobility. 

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3. 

THE WAY FORWARD 

The rapidly expanding EU-Brazil relationship is currently based on the 1992 Framework 
Co-operation  agreement,  and 
the  1995  EU-Mercosur  Framework  Co-operation 
Agreement. This inevitably restricts the scope and depth of our dialogue. 

President Barroso’s visit to Brazil in May 2006 gave a new momentum to our relations, 
with the recognition of the potential benefits of co-operation in a range of sectoral areas, 
defined  in  the  Joint  Committee  meeting  in  April  200519.  A  first  round  of  political 
consultations with Brazil in Troika format has been held in Brasilia in May 2007. 

These recent steps have demonstrated a growing enthusiasm on both sides for expansion 
and strengthening of our co-operation in many areas. Brazil has shown great interest in 
both the process and in developing a ‘strategic partnership’ with Europe. 

The July Summit provides the Union an opportunity to give a strong new impetus to the 
overall EU-Brazil relationship. A strategic partnership with Brazil, a long standing friend 
and ally in a region of great importance to the EU, would imply building consensus and 
agreements  on  broader  political  co-operation  to  promote  peace  and  stability  in  our 
respective continents and further afield, and would enable us to pool our efforts to tackle 
the global challenges that confront us. It would mean assuming a co-operative approach 
on  economic  and  trade  relations  and  making  progress  in  the  sectors  identified  for  co-
operation. It would also involve a strong commitment to regional integration, enhancing 
our  co-operation with Mercosur and seeking successful conclusion of the EU-Mercosur 
Association  Agreement.  An  EU-Brazil  strategic  partnership  would,  in  conclusion, 
represent  a  very  positive  step  forward  for  the  EU,  for  Brazil  and  for  the  region  as  a 
whole. 

In these circumstances, it is the Commission’s view that at the Lisbon Summit, in July, 
will  be  the  opportunity  for  the  EU  to  take  the  first,  crucial  steps  towards  offering  a 
strategic partnership to Brazil. 

The Commission therefore recommends the following: 

•  bearing  in  mind  the  priorities  set  out  in  this  communication  and,  in  particular  the 

substantive elements defined under Chapter 2, and 

•  in  order  to  intensify  ties  between  the  European  Union  and  Brazil  by  widening  the 
political  dialogue  to  include  all  issues  of  common  interest  and  global  significance, 
strengthening  bilateral  co-operation  and  contributing  to  the  conclusion  of  an  EU-
Mercosur Association Agreement, 

19 

Energy, environment, science and technology, maritime transport, social policy, regional policy. 

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the EU should: 

•  engage  with  Brazil  to  launch  a  strategic  partnership  at  the  EU-Brazil  Summit  in 

Lisbon; 

•  invite Brazil to submit its own views on the scope of the strategic partnership. 

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Brazil at a glance 

Political and geographical data 

Official Name :  

Federative Republic of Brazil 

Current President of the Republic : 

Mr. Luiz Inácio Lula da Silva  

(since  January  2003,  reelected  in  October 
2006) 

Surface area: 

8.512 million sq km 

Land boundaries: 

total: 14,691 km 

Border  countries: Argentina  1,224  km, 
Bolivia  3,400  km,  Colombia  1,643  km, 
French Guyana 673 km, Guyana 1,119 km, 
Paraguay  1,290  km,  Peru  1,560  km, 
Suriname  597  km,  Uruguay  985  km, 
Venezuela 2,200 km 

Population:  

189 million (2007) 

Population growth: 

Urbanisation: 

Main cities: 

GDP:  

GDP/capita : 

GDP growth:  

Inflation: 

1.3% p.a.  

84% (2005) 

São  Paolo  (10.8m),  Rio  de  Janeiro  (6m), 
Salvador  (2.6m),  Belo  Horizonte  (2.3m), 
Fortaleza (2.3m)  

Economic indicators 

€ 710 billion (2006, Eurostat)  

€ 3,820 (2006, Eurostat)  

0.5%  (2003),  4.9%  (2004),  3.3%  (2005), 
3.5% (2006) 

14.8%  (2003),  6.6%  (2004),  6.8%  (2005), 
4.6% (2006) 

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Current Account Balance: 

Exports to EU: 

Imports from EU:  

0.8%  (2003),  1.9%  (2004),  1.7%  (2005), 
0.7% (2006) 

€26.2 billion (2006) = 22% total exports;  

1.9% of EU imports 

€17.7 billion (2004) = 22% total imports;  

1.5% of EU exports 

EU investment stock in Brazil :  

€59,2 billion (2002), €76,3 billion (2005)  

Selected social indicators  

Illiteracy: 

11,5% 

Life expectancy at birth: 

71 years (2005) 

Net  school  attendance  rate  of  people  aged 
7-24: 

Elementary (7-14): 96 % (2005) 

Secondary (15-17): 46% (2005) 

Higher (18-24): 22% (2003) 

Poverty :  

36.3% (2005); (Indigence: 10.6%) 

Child mortality rate: 

20 per 1000 live births (2005) 

Gini coefficient: 

0.61  =  high  (0  is  equivalent  to  absolute 
equality/ 1 to absolute inequality) 

Sources: Eurostat, Banco do Brasil, Worldbank, IBGE, IMF, UN-ECLAC. 

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