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Lord Mandelson takes anti-protectionist message to Brazil ahead of the G20

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Issued Date: 25 Mar 2009

In Sao Paulo ahead of the G20 London Summit, Business Secretary Lord Mandelson urges Brazil to keep up their anti-protectionism pledge and underlines the need for the BRICs to take a strengthened role in the new global economy.

"Trade is vital and confidence is the essential commodity for the new global economy," he will say, urging that "we must work together to make the new structures of global governance work for everyone. However long it might persist as a grouping, as a steering committee for the global economy, the era of the G8 is over."

Lord Mandelson will deliver two major speeches during his visit to Sao Paulo - Brazil's major business centre.

Speaking to business leaders today, Lord Mandelson focused on the global economy, and on the challenges for both businesses and governments in strengthening commercial ties between the UK and Brazil. He stressed the need to improve the business environment, increase trade, foster research and the commercialisation of research.

Tomorrow, he will focus on the changed relationship between countries in the globalised economy, the role of emerging economies, how the G20 is replacing the G8 as the steering committee for the global economy.

Speaking days ahead of the G20, he adds,
"The London Summit next week marks the start of a new way of doing things. Confidence is now the essential commodity. We must make the necessary changes to ensure that the events of 2007 and 2008 never happen again. This includes changing the balance of voice and influence in international institutions such as the IMF and the World Bank. We need coordinated action to stabilise banks, restore the flow of credit, coordinate monetary moves and stimulus packages so that they reinforce each other. Keeping the global trading system open is essential."

To promote British business interests and to reinforce Brazil as one of our key emerging market trading partners, Lord Mandelson is leading a senior UK business delegation. The delegation, organised by UK Trade & Investment - the government's international business development organisation, covers a broad range of sectors from advanced engineering to logistics, consumer goods to sport and the creative industries. They are looking at developing their business interests in Brazil as well as new opportunities in the market

Those opportunities for British businesses are significant. Brazil is the tenth largest economy in the world and represents half of South America's GDP. Sao Paulo's economy alone is bigger than that of Argentina. Last year trade between the UK and Brazil grew by 38% to exceed 4 billion in value and it has considerable potential for further growth.

In his speech tomorrow, Lord Mandelson will say,
"Both the UK and Brazil have their strengths. Both must continue to position themselves to take advantage of the economic up-turn when it arrives. However, as we rush to declare the birth of a 'new capitalism', we need to defend the parts of old capitalism that have underwritten three decades of transformation for peoples and societies around the world. There is no G20 country that has not benefited from the expansion of trade. Open trade has to be flanked by policies that help countries adapt to change and enable the poorest countries to co-operate with their more advanced trading partners. We must avoid the mistakes of the 1930's - markets must remain open. The G20 will not transform the world, but it will make a decisive step forward in a number of areas. We must work together to make the new structures of global governance work for everyone."

Notes:

Weds 25 March:
Lord Mandelson speaks to FIESP - the Sao Paulo State Industry Federation.
It has 125,000 institution and trade arm members who cover 40% of Brazil's GDP. With two-thirds of the companies constituting the remaining 60% of GDP having their headquarters in Sao Paulo, FIESP suggest they cover businesses producing around 80% of Brazil's GDP.
Thurs 26 March:
Lord Mandelson speaks at a FAAP university in Sao Paulo.

Members of the UK Business Delegation
* BAE Systems
* BSI
* Bunzl
* De La rue
* Foster+Partners
* Rolls Royce
* Serco
* Thomas Goode
* Cadburys
* Triumph Motorcycles Ltd
* Standard Chartered
* Steer Davies Gleave
* Diageo

UK Trade & Investment is the UK Government's international business development organisation, supporting businesses seeking to establish in the UK and helping UK companies grow internationally. The services offered by UK Trade & Investment bring together a network of business sector specialists and support teams in British embassies and Foreign and Commonwealth Office (FCO) posts all around the world, as well as key experts in government departments across the UK. UK Trade & Investment works with a wide range of partner organisations in the UK, including Regional Development Agencies and the Devolved Administrations, Business Links, Chambers of Commerce and trade associations. For more information, visit the web site at http://www.uktradeinvest.gov.uk .


About the Author

Crown Copyright. Material taken from the BERR- Department for Business, Enterprise and Regulatory Reform replacing DTI - Department for Trade and Industry. Reproduced under the terms and conditions of the Click-Use Licence.


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Article Published/Sorted/Amended on Scopulus 2009-03-25 17:26:28 in Economic Articles

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