Making his first appearance at a major international event, Brazil’s new president, Jair Bolsonaro, was talking trade. At the World Economic Forum in Davos, he indicated that opening up the country's economy is a priority. Brazil’s import tariffs average 14% against an emerging market average of 6%. He echoed the remarks from his finance minister, Paulo Guedes, who is in charge of a super-portfolio that includes foreign trade. Some, however, might be excused for taking Brazil’s trade talk with more than a pinch of salt.
Opening up Brazil would mean creating a level playing field for other countries – any other country – to enter the market. But Mr Bolsonaro has often described Brazil’s most important trade partner and investor, China, as wanting to “buy Brazil” rather than buying in Brazil. He has also expressed his admiration for US president Donald Trump and his preference for dealing with Washington over Beijing. Others in Mr Bolsonaro’s administration would prefer a less international Brazil, such as foreign minister Ernesto Araujo, who opposes globalism and sees climate change as part of a plot by “cultural Marxists” to harm Western economies and support China.
