Switzerland, Brazil pledge to improve trade relations

Swiss Economics Minister Pascal Couchepin (l) and Brazilian President Fernando Henrique Cardoso said they would work toward the swift implementation of an investment protection agreement in order to boost economic relations.

Visiting Swiss Economics Minister Pascal Couchepin (l) and Brazilian President Fernando Henrique Cardoso said they would work toward the swift implementation of an investment protection agreement and pursue the possibility of giving Switzerland’s national airline Swissair greater access to the Brazilian market.

Couchepin, who was paying a weeklong visit to Brazil accompanied by a delegation of Swiss business leaders, said that the Swiss government and industry were very interested in Brazil quickly ratifying the five-year old investment accord.

He said the accord – along with a double taxation agreement that Switzerland would like to see introduced soon – would provide a solid foundation for Swiss business investments in Brazil.

The Brazilian government said the delay in ratification was not a reflection of trade relations with Switzerland since similar agreements had still not been processed with 15 nations. A senior Brazilian government official said he was confident that the accord would soon be ratified.

Brazil is the third major overseas investment market for Switzerland behind the United States and Canada and Swiss-based multinationals have maintained production facilities in Brazil for decades.

Last month, the Swiss airline Crossair – which is the country’s second carrier behind Swissair – signed a major deal with Brazil’s aircraft manufacturer EMBRAER. Crossair placed an order for 75 passenger aircraft with options for another 125 planes.

In return, Brazil and Switzerland would now pursue discussions on granting Swissair better access to Brazilian destinations, said a high-ranking member of Couchepin’s delegation.

The Swiss delegation said after the discussions late Monday that they had also raised the issue of trade regulations. The team called on Brazil to take firm measures against copyright infringements and product piracy.

Switzerland has about $6 billion in direct investments in Brazilian markets, making Switzerland the fifth largest investor behind the United States, Germany, Britain and Japan.

On Tuesday, Switzerland and Brazil were also expected to sign two environment protection accords.


Source: sda-ats