Brazil to be first country to sign new investment protection agreement with India

NEW DELHI:Brazil will be the first country to sign the new investment protection agreement with India, when Brazilian president Jair Bolsonaro visits India starting Friday. Bolsonaro is the chief guest of India’s Republic Day this year.
Announcing the visit, the MEA spokesperson said, it “is expected to further enhance and strengthen the multi-faceted ties between India and Brazil.”
Bolsonaro has been at the centre of global ire over the forest fires in the Amazon, which many have accused of being deliberately lit to clear grazing and agricultural ground.The populist Bolsonaro has engaged in a verbal skirmish with French president Emmanuel Macron, and more recently, with Hollywood star Leonardo di Caprio over the fires.
But in India for four days, Bolsonaro and Modi are expected to focus on bilateral ties rather than the multilateral, which they engage in frequently, at Brics, IBSA and G-4.
Bolsonaro is believed to be bringing with him a large business delegation of over 50 companies spanning agro-processing to defence. For India, it will be important to sign the new model investment pact with Brazil. The Modi government had scrapped investment treaties with 50 international partners in 2018, but its new model text has found virtually no takers. Incidentally, the new text is similar to those by Brazil and Indonesia, but have been almost rejected by European countries and even Australia, as offering too little protection.
Brazil has signed the international solar alliance but not yet ratified the treaty. This will form part of the conversations between the two sides. India is also hoping for more technology and partnerships on bio-ethanol since Brazil is virtually a world leader here. The Brazilian defence company Embraer is said to be scouting for new business in India as well.
The Brazilian economy, like India’s, is going through a slowdown, so both sides would be looking for activities to increase growth. “Both sides will focus on boosting trade and investment during the visit,” said an official.
Bolsonaro, a former army captain, won a landslide victory in Brazil's presidential election in October 2018 and took the reins of the country in January last year.
The last presidential visit from Brazil was by President Michel Temer in October 2016 on the sidelines of the eighth Brics summit in Goa. Modi visited Brazil in November to attend the XI Brics Summit. Brazilian presidents have been chief guests at Republic Day celebrations in 1996 and 2004.
On Saturday, President Ram Nath Kovind will hold talks with Bolsonaro and host a banquet for him. Vice-President M Venkaiah Naidu and external affairs minister S Jaishankar will also call on Bolsonaro according to established protocol. Bolsonaro will be the chief guest at the 26th January parade and the President’s “At Home” reception afterwards. On January 27, Bolsonaro will address a group of Indian and Brazilian business leaders at the India-Brazil Business Forum, according to the MEA.
“Our bilateral relations are based on a common global vision, shared democratic values, and a commitment to foster economic growth of both countries,” the MEA said. Bilateral ties were elevated to a strategic partnership in 2006.