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Brazil's Lula heads to Saudi Arabia, China and Turkey
by Staff Writers
Brasilia (AFP) May 15, 2009


Brazilian President Luiz Inacio Lula da Silva.

Brazilian President Luiz Inacio Lula da Silva leaves this weekend on a trip to Saudi Arabia, China and Turkey designed to boost bilateral trade, and his country's international profile.

The middle leg in China is considered the most important part of the trip, given rapidly expanding exchanges between Brazil and the great Asian nation and Beijing's interest in Brazil's vast natural resources.

China in March became Brazil's biggest trading partner, ahead of the United States -- although Brazilian officials acknowledged that the status was achieved in the midst of the global financial crisis that had created volatile rearrangements.

Lula is scheduled to meet Chinese President Hu Jintao at a dinner Monday, followed by a working meeting the next day.

The two already spoke this year during the G20 summit in London, when Lula suggested their two countries do trade in their own currencies, cutting out the US dollar as an intermediary.

A Brazilian official in the foreign ministry's political affairs unit, Roberto Jaguaribe, said Lula's visit to China represented a "reorganization of the international scene" in which the top emerging economies were playing a bigger role in world affairs.

He noted that Beijing and Brasilia have a strategic association dating back to 1993, and said strategic political dialogue was on the agenda along with technological and trade cooperation.

So far this year, Brazilian exports to China -- mainly iron ore and soya products -- grew 65 percent over the same period in 2008, a jump from 3.4 billion dollars to 5.6 billion dollars.

Chinese imports, though, have fallen 17 percent to 4.6 billion dollars from 5.6 billion dollars.

During his China stay, accompanied by 240 Brazilian industrialists, Lula is to promote oil contracts, sales of Brazil's Embraer aircraft, meat exports and biofuel technology for cars, officials said.

Brazil's state-run oil company Petrobras was notably interested in winning deepwater exploration contracts in China, Trade and Industry Minister Miguel Jorge told journalists.

Brazil's BNDES development bank was also keen on negotiating an 800-million-dollar credit line with Chinese officials.

Lula's tour will start with Saudi Arabia, where he will meet King Abdullah and lunch with Saudi businessmen interested in investing in Brazil.

Saudi Arabia is the biggest market in the Middle East for Brazilian goods. The two countries have annual trade worth 5.5 billion dollars.

But Lula's spokesman, Marcelo Baumbach, said Brazil's intent with that country was more strategic than commercial.

"Good dialogue with Saudi Arabia is a positive element for Brazil's relationship with other Arab countries, especially those in the Gulf," he said.

The final leg in Turkey will see Lula arriving Thursday in Istanbul for a trip to historic sites before going into meetings with Brazilian and Turkish entrepreneurs.

Friday next week, Lula will go to Ankara to hold separate talks with Turkish President Abdullah Gul, Prime Minister Recip Tayyip Erdogan and parliamentary leader Kosal Toptan.

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