September 14, 2006 [LINK / comment]

Brazil - India trade deal

Indian Prime Minister Manmohan Singh and President "Lula" da Silva signed some major trade agreements focusing on technology and development of alternative energy sources during a visit by Singh to Brazil this week. Bilateral trade between those countries has quadrupled in the past six years, but at only $2 billion a year, it pales in comparison to their trade relationships with other countries. See BBC. Since both are on a similar path of industrialization thanks in great measure to a large, very productive work force, however, it is hard to see what kind of trade complementarities they might be able to exploit. They do share common political aspirations. Those two countries are the true giants of the "Third World," and each has achieved a considerable degree of economic development in the past two decades, in effect "graduating" from Third World status. Along with Nigeria, they are considered serious prospects for eventual inclusion as permanent members of the U.N. Security Council.