Brazil and Kuwait Strengthen Economic Ties
In early February 2025, a Brazilian delegation visited Kuwait to explore opportunities for expanding trade and investment between the two nations. The mission, organized by the Arab-Brazilian Chamber of Commerce (ABCC) and supported by the Brazilian Embassy in Kuwait, aimed to diversify and enhance economic exchanges beyond the traditional sectors of food exports from Brazil and oil imports from Kuwait.
A Strategic Initiative
The idea for this mission was first proposed by ABCC’s Vice-President of International Relations and Secretary-General, Mohamad Mourad, in October 2024. Ambassador Rodrigo Gabsch emphasized that the mission successfully promoted Brazilian products and highlighted strategic sectors of the Brazilian economy that could attract Kuwaiti investments. These sectors include logistics, infrastructure, renewable energy, sustainability, aviation, and food. Gabsch noted that Kuwait’s trade policy is guided by a long-term strategy, making it a valuable partner for Brazil.
Engaging with Kuwaiti Authorities
During the visit, the Brazilian delegation held meetings with several key Kuwaiti institutions and officials. These included the Ministries of Commerce, Defense, and Foreign Affairs, as well as the Public Authority for Agricultural Affairs and Fish Resources (PAAF), the Kuwait Chamber of Commerce and Industry (KCCI), and the National Fund for Small and Medium Enterprises. The discussions focused on identifying mutual interests and potential areas for collaboration.
Expanding Trade Horizons
Trade between Brazil and Kuwait has seen significant growth in recent years. From January to November 2024, bilateral trade reached USD 956 million, a 50.4% increase compared to the same period in 2023. Brazil’s exports to Kuwait amounted to USD 380.4 million, with chicken meat being the largest contributor at USD 289 million. On the other hand, Kuwait’s exports to Brazil totaled USD 575.5 million, predominantly from oil exports valued at USD 572.2 million. Despite this growth, both countries recognize the potential to diversify their trade relations beyond these primary commodities.
Opportunities in Agriculture and Beyond
Brazilian agricultural products have a strong presence in the Kuwaiti market. In 2018, Kuwait imported over USD 215 million worth of agricultural goods from Brazil, with fresh poultry being a significant component. Brazil is the leading supplier of fresh poultry to Kuwait, accounting for 79% of the total imports in this category. There is also potential to increase exports of beef, as Kuwait’s beef imports are currently dominated by the United States and Paraguay. Additionally, sectors such as forestry, paper, and lumber offer promising prospects for Brazilian exporters.
Investment and Economic Diversification
Kuwait is actively seeking to diversify its economy and reduce its dependence on oil revenues. This strategy aligns with Brazil’s interest in attracting foreign investments into various sectors. The Brazilian delegation’s visit provided an opportunity to showcase investment prospects in areas like renewable energy, infrastructure, and aviation. Embraer, the Brazilian aerospace company, was part of the delegation, indicating potential collaboration in the aviation sector.
Strengthening Bilateral Relations
The recent appointment of Ambassador Rodrigo Gabsch to Kuwait underscores Brazil’s commitment to enhancing bilateral relations. Gabsch has expressed intentions to expand trade and investment ties, emphasizing the importance of diversifying economic exchanges. He highlighted that while food and oil remain central to trade, there is ample room to explore other sectors and opportunities.
Looking Ahead
The mission to Kuwait marks a significant step in deepening economic ties between the two nations. By identifying and pursuing opportunities in diverse sectors, Brazil and Kuwait aim to build a more robust and multifaceted partnership. As both countries continue to engage in dialogue and collaboration, the future holds promising prospects for expanded trade and mutual growth.
In conclusion, the efforts to strengthen Brazil-Kuwait relations reflect a strategic move towards economic diversification and cooperation. With shared interests and complementary strengths, the partnership is poised to achieve new heights in the coming years.
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