Brazil - GCC Relations

Updated June 2022

1. Key Domestic Developments October 2022 elections, whereby Brazilians
will elect a new president, vice president, and
Brazil continues to face social issues and has one of Congress. On the one hand, far-right incumbent
the highest levels of inequality in the world. During President Jair Bolsonaro seeks a second four- year
the past 15 years, Brazil lifted 28 million people term. Bolsonaro left his original political party in
out of poverty. However, 10% of the population 2019 and joined the centrist Liberal Party. Since
still live in poverty, while the country’s richest then, Bolsonaro has been criticized for numerous
5% have the same income as the remaining 95%. issues.
Moreover, Brazil has been negatively affected by
numerous corruption scandals that involve either For instance, a Brazilian congressional panel
government officials or private companies, such called for charges of crimes against humanity
as the impeachment and conviction of Former after he dismissed the COVID- 19 pandemic as
President Dilma Rousseff in August 2016. The a “little flu” that led to a terrible surge in cases
Temer administration that followed implemented and deaths. At the same time, understanding the
fiscal and structural reforms to restore credibility damaging political impact this could have on his
to government finances but the policy proved- re-election chances, the Bolsonaro government
short-lived with Jair Bolsonaro taking over the under pressure acted to mitigate the impact of
presidency in January 2019. COVID-19, by putting forward government
implemented fiscal measures adding up to 12%
Latin America is amidst a new leftist resurgence, of GDP. These measures include the expansion
as the region is leading for progressive victories. of health spending, temporary income support to
The resurgence, also referred to as Pink Tide 2.0, is low-income households, temporary tax breaks for
shifting the power back to the political left. Brazil, suspended workers, lower taxes and import levies
the region’s largest country, is among the states on essential medical supplies, and new transfers
experiencing the possible shift in the upcoming from the federal to state governments.

2 Overview: Brazil-GCC Relations

Bolsonaro’s primary opponent in the upcoming rise to 102.8% in 2021 and 103.5% in 2022.
election in October 2022 is former President Many argue that the pension system is the main
Luiz Inacio Lula da Silva, who was convicted contributor to the rising government debt. For the
of corruption in 2017 but was later overturned moment, the economy is expected to recover with
on appeal. Recent polls and surveys show the an estimated GDP growth of 1.5% in 2022 and
leftist Lula da Silva leading well in front of 2.5% for 2023.
Bolsonaro, who has questioned the validity and
security of the electronic voting system. Many 2. Brazil Foreign Policy
argue that Bolsonaro, like his mentor, former
U.S. President Donald Trump, with whom he has Brazil’s foreign policies are based on article 4
shared strategist Steve Bannon, is questioning the of its Federal Constitution, which emphasizes
legitimacy of elections as a way for him not to multilateralism, non-intervention, international
accept defeat. In fact, Bolsonaro stated that he cooperation, and peaceful settlements of conflicts
sees only three alternatives for his future: “being as the main principles. As a result of stressing
arrested, killed or victory.” However, Bolsonaro’s the importance of regional cooperation, Brazil
ratings have been rising after he embraced a is a founding member of the Organization of
proposal that would, at the risk of breaking the American States (OAS) and the Inter-American
national budget, increase cash assistance to the Treaty of Reciprocal Assistance (Rio Treaty).
poor substantively. To ensure validity and fairness
in the elections, Brazil’s top election authority, Moreover, Brazil is part of the Southern Common
the Supreme Electoral Court (TSE), invited the Market (Mercosur), a South American Trade Bloc
European Union to observe its general elections alongside Argentina, Paraguay, and Uruguay.
for the first time. Brazil is also a member of the BASIC countries,
an agreement formed on November 28, 2009,
Key Brazil Economic and Social Data alongside South Africa, India, and China, to act
together in the Copenhagen Climate Summit.
● GDP: $1.445 trillion (2020). Furthermore, Brazil engages in multilateral
● GDP per capita: $6,796.84 (2020). diplomacy through the Organization of American
● Annual Growth Rate: -4.1% (2020). States and the United Nations. Brazil currently
● Inflation: 3.21% (2020). commands a United Nations Stabilisation Mission
● Population: 212,559,409 (2020). in Haiti (MINUSTAH). Additionally, Brazil is
● Unemployment Rate: 13.93% (2020). part of the BRICS states, alongside Russia, India,
● Credit Rating: Standard & Poor: BB- China, and South Africa.
with a stable outlook. Moody: Ba2 with a
stable outlook. Fitch: BB- with a negative According to the Constitution, the president has
outlook. DBRS: is BB (low) with a stable ultimate authority over foreign policies while
outlook. Congress is in charge of diplomatic nominations,
international treaties, and legislation regarding
Brazil is the world’s ninth-largest economy. foreign policies. The Ministry of External
Following an economic contradiction of almost Relations is in charge of the administration of
7% during the 2015 and 2016 recession, the foreign relations in Brazil.
Brazilian economy experienced a slow but steady
recovery. However, the COVID-19 pandemic led
to another GDP decline of 4.1% in 2020. Brazil
also continues to be strained by debt. Government
debt reached 88.83% in 2020, with an expected

Overview: Brazil-GCC Relations 3

Key Foreign Policy Initiatives in 2022 a new worrying record during the first three
months of 2022. According to Brazil’s National
● On March 7, 2019, President Bolsonaro Institute for Space Research, 166 square miles
withdrew Brazil from the Union of South of the Amazon were cleared in January 2022, a
American Nations (UNASUR) and joined record monthly high.
the newly created Forum for the Progress
and Development of South America 3. Brazil-GCC Fact Sheet
(PROSUR).
● On January 26, 2021, Brazil reversed ● Brazil’s trade in goods with GCC countries
an earlier decision to ban Huawei from as of 2020.
developing 5G networks.
● Brazil occupies a temporary seat on the Country Exports Imports
Security Council United Nations seat
Saudi Arabia $1.63B $1.89B
in the 2022-2023 biennial. The last time
Brazil had a seat was in 2010. United Arab $764.28M $2.06B
Emirates
China has developed both close economic and Qatar $538.02M $271.40M
security ties with many Latin American countries, Oman $166.23M $737.32M
particularly Brazil. China has surpassed the United
States as Brazil’s top trading partner. It has become Bahrain $116.08M $673.81M
a significant source of foreign direct investment Kuwait $5.06M $183.90M
and lending in energy and infrastructure. Bilateral GCC $3.22B $5.82B
trade between Brazil and China expanded
aggressively in the past few years, with trade with Establishment of Diplomatic Relationship
China making up 28% of Brazil’s total trade as of
2019. ● Brazil-GCC Diplomatic Relations: Saudi
Arabia (1968), Kuwait (1968), Bahrain
(1974), United Arab Emirates (1974),
Qatar (1974), and Oman (1974).

Current Diplomatic Representation

● Brazil Embassy in Riyadh: Ambassador

Marcelo Della Nina.
● Embassy of The Kingdom of Saudi Arabia
in Brazil: H.E. Hisham Al-Qahtani.
Brazil is facing worldwide criticism and pressure
regarding the deforestation of the Amazon Key Brazil Officials with Responsibility for the
rainforest, which has reached a record high. Gulf Region
Bolsonaro promised to end illegal deforestation
by 2030 and achieve carbon neutrality by 2050 ● Cabinet:
during President Biden’s 2021 Leaders’ Summit ○ Vice President: Hamilton Mourão
on Climate. Additionally, he pledged to end ○ Chief of Staff: Ciro Nogueira
deforestation by 2028 at the United Nations’ 26th ○ Minister of Foreign Affairs: Carlos
Conference of the Parties (COP26) in Glasgow. Alberto França
However, Brazil’s Amazon Deforestation recorded

4 Overview: Brazil-GCC Relations

 ○ Minister of Defense: Walter Souza ● Vânia Carvalho Pinto (RAESP - RJ)
Braga Netto ● Rasheed Abualsamh
● The National Defense Council: ● Jorge Mortean (University of Sao Paulo)
○ Gen. Laerte de Souza Santos ● Danielly Ramos Bécard (University of
(Chief of the Joint Staff of the Brasília)
Armed Forces)
○ Adm. Almir Garnier Santos (Navy Key Recent Literature
Commander)
○ Gen. Paulo Sérgio Nogueira de ● The Middle East and Brazil: Perspectives
Oliveira (Army Commander) on the New Global South
○ Lt. Brig. Carlos de Almeida ● Brazil and the Middle East
Baptista Júnior (Air Force ● Brazil’s Relations with Middle Eastern
Commander) Countries: A Diplomacy in Search for
Constancy (2003–2014)
Key Research Centers and Think Tanks ● A “Brazilian way”? Brazil’s Approach to
Peacebuilding
● BRICS Policy Center: https://
bricspolicycenter.org/ 4. Key Developments in Brazil-GCC Relations
● Monte Castelo Institute: https://
montecastelo.org/ Brazil-GCC
● Igarapé Institute: https://igarape.org.br/en/ ● In September 2021, the Brazilian
● Public Policy Centre- INSPER ‒ CPP: government applauded the GCC’s decision
https://www.insper.edu.br/en/ not to impose safeguard duties on steel
● Sou da Paz Institute ‒ ISDP: https:// imports.
soudapaz.org/en/ ● On January 15, 2020, the Director-
● Institute of International Relations of the General of the GCC Bureau of Technical
University of São Paulo ‒ IRI-USP: http:// Secretariat for Anti Injurious Practices
www.iri.usp.br/ in International Trade, Mr. Rehan
● Brazilian Forum on Public Security ‒ Mubarakand, the Ambassador of the
FBSP: https://forumseguranca.org.br/ Republic of Brazil to the Kingdom of
● Institute of International Relations ‒ IRI: Saudi Arabia, Mr. Marcelo Della Nina,
http://www.iri.puc-rio.br/ met to discuss means of cooperation in
● Brazilian Center for International combating harmful practices.
Relations ‒ CEBRI: https://cebri.org/ ● In October 2019, Brazilian President Jair
● Brazilian Centre for Analysis and Planning Bolsonaro visited three GCC countries:
‒ CEBRAP: https://cebrap.org.br/ Saudi Arabia, Qatar, and the UAE. The
● Getulio Vargas Foundation: https://portal. Brazilian Minister of Agriculture, Tereza
fgv.br/en Cristina, also visited four GCC countries.

Selected Key Regional Experts Brazil-Saudi

● On March 22, 2022, Saudi Crown Prince
● Hussein Kalout (CEBRI) Mohammed bin Salman and Brazilian
● Celso Amorim (UNITAID) President Jair Bolsonaro discussed
● Adriana Erthal Abdenur (UNU-CPR) strengthening bilateral ties during a phone
● Charles T. Call call. They also discussed both regional
● Cecilia Baeza (Sciences Po) and international issues.

Overview: Brazil-GCC Relations 5

 ● In November 2021, Saudi Arabia’s Brazil-United Arab Emirates
Foreign Minister Prince Faisal bin Farhan ● In April 2022, the United Arab Emirates
met with Brazilian Foreign Minister surpassed China as the leading destination
Carlos Alberto Franca, Minister of Mines for chicken products from Brazil.
and Energy Bento Costa Lima Leite de ● In March 2022, President Bolsonaro
Albuquerque, Minister of Tourism Gilson invited UAE businesses to explore Brazil’s
Machado Neto, and the Secretary for new investment opportunities.
Strategic Affairs Admiral Flavio Rocha ● Sheikh Mohammed bin Zayed Al Nahyan,
to discuss Iran, combating terrorism, and the crown prince of Abu Dhabi, and
investment. Brazilian President Jair Bolsonaro signed a
● On September 15, 2021, Saudi Arabia deal to deepen trade and investment funds
banned beef imports from Brazilian in agribusiness, infrastructure, energy, and
meatpackers after two cases of mad defense in October 2019.
cow disease. Five days later, the Saudi
Food and Drug Authority (SFDA) lifted Brazil-Qatar
the suspension from five Brazilian ● In November 2021, President Bolsonaro
meatpackers. visited Doha to enhance bilateral relations
● During the first quarter of 2021, Saudi between Brazil and Qatar. The two
Arabia becomes Brazil’s biggest Arab leaders agreed to enhance economic their
importer as trade surges to $526.16 economic partnership, discussed logistics
million. sector and global supply chains of both
countries, negotiated the conclusion of
an Agreement on Maritime Transport,
declared their intention to expand
their defense partnership through joint
initiatives, and encouraged cooperation
initiatives in the areas of technology,
culture, education, tourism, and sports.

Brazil-Oman
● In March 2022, His Highness Sayyid
Shihab bin Tarik Al Said met with Ligia
Maria Scherer, the Brazil Ambassador to
the Sultanate of Oman, to review bilateral
relations.

Brazil-Bahrain
● In October 2021, Bader Abbas Al-
Helaibi was appointed as Bahrain’s first
ambassador to Brazil.
● In November 2021, President Bolsonaro
became the first Brazilian president to
visit Bahrain.

Source: Arab News

6 Overview: Brazil-GCC Relations

Politically, Brazil has diplomatic ties with all and the GCC grew, particularly from 2017 to
six GCC states. In addition, Brazil and the 2019. Imports, mainly of gold, meat, iron ore,
GCC countries are members of the Arab-South cereals, sugar, and coffee, surged from $9.6
American Summit (ASPA), first held in Brazil billion in 2016 to $17.2 billion in 2019 before
in 2005. The ASPA aims to foster a regional falling to $15.4 billion in 2020. Brazil makes up
dialogue between the member states to promote the largest share of these imports at 42%, as it is
multiculturalism and consolidate cooperation. considered the largest producer and exporter of
Since then, the second summit was held in Qatar halal meat. In return, fertilizer, plastic polymers,
in 2009, the third in Peru in 2012, and the most aluminum, ammonia, and oil are exported, but a
recent one in Saudi Arabia in 2015. low rate of an average of $2.5-3.5 billion a year
between 2016 and 2020. Specifically, imports
After the first ASPA Summit, the GCC states from Latin America were only 3.2% of the GCC’s
(Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, total imports, while exports accounted for 1.6% of
and the United Arab Emirates) and the Southern Latin America’s total exports.
Common Market (Mercosur) states (Argentina,
Brazil, Paraguay, and Uruguay) signed a One of the main challenges for trade between
Framework Agreement on Economic Cooperation Brazil and the GCC is the absence of a direct
between the two organizations on May 10, 2005. maritime line between the two regions. At the
Since then, Brazil and the GCC states have enjoyed same time, Latin America, particularly Brazil, is
a complementary but limited trade relationship as turning to the GCC for investments. The GCC
the agreement did not materialize yet. extended investments of $4 billion to Latin
America between 2016 and 2021, with 77% from
According to The Economist Group and ITC the UAE, 22% from Saudi Arabia, and 1% from
Trade Map, bilateral trade between Latin America Qatar.

Overview: Brazil-GCC Relations 7

However, President Bolsonaro is keen on 5. Supporting Documents
strengthening ties with the GCC states, particularly
after criticism from purposing to move Brazil’s GRC publications and GRM workshops
embassy from Tel-Aviv to Jerusalem, going against ● GRC Publication 2016: Latin America
Brazil’s traditional support for a two-state solution and the Gulf: Assessment of Current and
to the Palestinian conflict. Consequently, GCC Future Trends.
states denounced this move, which put a damper ● GRC Publication 2016: The Gulf and
also on expanding trade ties. After a visit to Israel Latin America: Exploring New Avenues
in April 2019, President Bolsonaro announced of Exchange.
the opening of a trade office in Jerusalem instead. ● GRC Publication 2014: Integration
Moreover, he visited the United Arab Emirates, Processes in Latin America.
Qatar, and Saudi Arabia to strengthen ties from ● GRC Publication 2013: The Gulf and Latin
October 25-31, 2019. America: An Assessment of Expectations
and Challenges.
● GRM Workshop 2015: The Gulf
Cooperation Council and the BRICS.
● GRM Workshop 2013: The Relationship
between the Gulf Countries and Latin
America: The Role of Non-State Actors.
● GRM Workshop 2012: An Assessment of
Opportunities and Possibilities: The Gulf
and Latin America.

8 Overview: Brazil-GCC Relations