THE PAST AND PRESENT
OF TRADE RELATIONS BETWEEN INDIA AND BRAZIL
India and Brazil are
the emerging nations that hold similar principles on democracy, human rights,
global governance and liberal strategies. They are partners on the basis of
trade relations and have a lot to learn from each other. With their uniting stance
on various multilateral and forums, the two countries are considered to be
important for the creation of a new world order. Both the countries have huge
potential to grow bilaterally. However, they require aggressive political will
to strengthen their association.
Despite the many
common challenges and a shared BRICS and IBSA identity, India remains
remarkably underexplored by Brazilian academics and policy makers, and
India-related decisions are often based not on country-specific information,
but on vaguely defined images and concepts, the most prominent of which is the
South-South partnership promoted by Brazil’s former President Lula da Silva.
Brazil’s diplomatic presence in India remains far smaller than in countries
such as France, Italy or China. This lack of knowledge is surprising given the
near consensus about India’s long-term economic growth and certain medium-term
importance in both the political and economic realms. Brazil’s India strategy
is strong on grand rhetoric and high-profile encounters, but it is yet to be
seen whether Brazil is able and willing to engage India in a more lasting and
substantive partnership.
How can we explain this gap? A
look into the past can be instructive. The history of India-Brazil relations,
though generally benign, is marked by accidental and haphazard encounters. Five
centuries ago, the Portuguese seafarer Pedro Alvares Cabral, on his way to
India, was blown off course and landed on the Brazilian coast. After some
initial excitement about the discovery, the Portuguese came to regard Brazil as
much less strategically or economically valuable than India, and the South
American discovery remained an emergency pit stop for ships that had run into
technical or logistical problems. Still, this was enough to allow for the
exchange of plants between India and Brazil early on. Manioc and cashew, both
native to Brazil, were introduced in India, and India’s coconut and mango
entered Brazil. While introduced much later, most of the cattle in Brazil today
are of Indian origin.
Yet, for the following
centuries ties between the Portuguese and British colony lay largely dormant.
Upon gaining independence in 1947, the Indian government allocated land for
important allies’ embassies along Shanti Path, the most luxurious street in New
Delhi’s diplomatic neighbourhood, but the Latin American nations were not
considered. The region, including Brazil, was simply not on India’s diplomatic
or economic radar. Very much the same applied to India in Brazil, which was
seen as an exotic place too far removed from Brazil’s more immediate concerns
in its region.
Until well into the 1960s,
there was not a single trade agreement between the two, and no more than 20
Indian visas were issued for Brazilians annually, most of them for diplomats.
Despite the mutual ignorance, India did figure in the Brazilian universe as an
ally in spirit. Particularly for Brazil’s leaders with a more developmentalist
outlook, India’s world view seemed to be largely aligned with its own, and in
the 1960s, the recently-founded UNCTAD (UN Conference on Trade and Development)
and the G-77 were platforms that allowed both countries to articulate joint
positions on several important issues.
For example, both Brazil and
India were highly critical of nuclear weapons early on, and both condemned the
enactment of the Non-Proliferation Treaty (NPT) in 1967, calling it an attempt
to ‘freeze’ the international power structure to contain emergent powers such
as Brazil. Both countries supported the idea that rich countries should use the
money not spent on arms to help developing countries fight poverty. The ‘3 Ds’
(disarmament, development, decolonization) represented an important aspect of
their foreign policy. Although India embraced its natural claim to global power
status earlier, and in a less ambiguous fashion, there seemed to be a common
notion that the current, western dominated world order was fundamentally
unjust, and that Brazil and India would somehow play an important role in
correcting this plight.
Ties,However
suffered after the signing of the US-India nuclear deal of 2005,In which the
United States recognized India as a nuclear power. Brazil harshly criticized
the deal. Aiding India’s nuclear weapons programme, the Brazilian government
argued, violated theNPT, which banned such help to any country not
recognized as a nuclear power by the treaty. Brazil had signed the
treaty and refrained from developing nuclear weapons. India, Brazil claimed,
had disregarded the rules andwas rewarded for it. Worse, India continued to
refuse to sign the NPT (although accepting India to the NPT as a nuclear
weapon state would have been unlikely anyway, since this would require
the approval of all189 signatories to the treaty).
Yet
Lula, believing in the long-term benefits of the partnership, sought to
not let the disturbances permanently damage flourishing Brazil-India
relations, and the two countries continued their project to strengthen
ties. In 2004, a trade agreement between Mercosur and India was
signed, and although it covers less than 1000 products, it did point
towards a mutual willingness to strengthen economic ties. Trade be-tween
the two grew from (US) $ 0.4 billion in 1999 to $2 billion in 2005, and to
$5.6 billion in 2009, approaching $10 billion in 2011. In 2006, Manmohan
Singh was the first Indian Prime Minister to visit Brazil in almost
four decades.. In 2014,On the international front, the question of
regional leader- ship comes to mind. Both Brazil and India seek to
change the balance of power of international institutions such as the
UN Security Council, while China is more of a status-quo power.In general,
from both the Brazilian and Indian point of view, China may be in a
different league altogether, and morecomparable to the United States.IBSA thus
allows for interaction among equals, while the BRICS alliance is clearly
dominated by China.
By-Arzoo Cheema
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