India, Brazil decide to upgrade ties to strategic partnership

Brasilia, Sep 12 (UNI) India and Brazil today decided to qualitatively upgrade their deepening economic and political ties to a strategic partnership and signed nine agreements designed to step up cooperation in a variety of areas.

In a joint communique issued after summit-level talks between Prime Minister Manmohan Singh and Brazilian President Luiz Inacio Lula da Silva, the two sides said they had also agreed to initiate a bilateral strategic dialogue covering regional and global issues of mutual concern such as energy security and the international security situation, including the menace of terrorism.

''I conveyed to President Lula today that India will support all efforts to ensure a qualitative transformation of our bilateral relations and their elevation to that of a strategic partnership. I am happy that President Lula has accepted our suggestion. To further facilitate and coordinate cooperation in various areas, a strategic dialogue has been agreed to,'' Dr Singh said at a joint appearance before the press after the signing of the agreements.

Mr Lula described the talks and the agreements signed today as a ''gigantic step.''

This is the first visit by an Indian Prime Minister to Brazil in 38 years after Mrs Indira Gandhi came here in 1968. President Lula had visited India as the Chief Guest at the Republic Day Parade in January, 2004.

Dr Singh was given a ceremonial welcome and a tri-services guard of honour on his arrival at the Alvorada Palace, the official residence of the President, this morning.

The two leaders had a one-on-one interaction first and were later joined by their respective delegations.

The Indian team included Commerce and Industry Minister Kamal Nath, Minister of State for External Affairs Anand Sharma and National Security Adviser M K Narayanan. The Brazilian team included the country's Foreign Minister Celso Amorim.

Dr Singh, who is making his maiden visit to this country, said India and Brazil were large pluralistic democracies whose economic growth was broad-based and multi-faceted.

''This provides opportunities for expansion of our bilateral trade and economic relations. Our economic growth is also of global significance, as part of the so-called BRIC countries,'' he pointed out.

Both Dr Singh and Mr Lula noted with satisfaction that bilateral trade had grown five-fold in the last five years from 500 million dollars to 2.5 billion dollars in 2005. ''We are hopeful of increasing our bilateral trade in the coming years. Implementation of the India- MERCUSOR Preferential Trade Area agreement and the proposed deepening and expansion of our trade relations in the framework of the India-Brazil-South Africa (IBSA) initiative will be important steps in that direction,'' Dr Singh said.

The Prime Minister was happy that several Indian companies such as Tata Consultancy Services, Ranbaxy and Dr Reddy's had taken advantage of opportunities in Brazil. He said ONGC Videsh Ltd (OVL) had earmarked about 400 million dollars for acquisition of a stake in an offshore block in South-East Brazil.

Dr Singh also said there was considerable scope for expanding bilateral cooperation in the agriculture sector, especially food processing. He invited Brazil to take advantage of India's success in Information Technology, biotechnology and pharmaceuticals.

The Prime Minister expressed India's support for the International Ethanol Initiative proposed by Dr Lula and said several Indian companies were keen on exploring opportunities for production of ethanol in Brazil to meet demand from the industrial and automobile sectors in India.

Dr Singh also noted that the two countries had a long tradition of cooperation in international fora including on global economic and trade issues. He said the two countries were united in their desire for a successful conclusion of the Doha Round of negotiations.

The two countries are also partners in the G-4 initiative, along with Germany and Japan, for UN reforms and are aspirants for a permanent seat on the UN Security Council.

Dr Singh and Mr Lula will be joined by South African President Thabo Mbeki at the first IBSA Summit here tomorrow.

Mr Lula said the visit indicated the resolve of the two countries to revive and intensify their ties.

He said he had, at the time of his inauguration as President in 2003, announced that Brazil would forge stronger ties with developing countries and a strategic relationship with India.

''We are two major democracies with common interests and affinities of positions on a variety of issues,'' he said.

Speaking of the G-4 initiative, Mr Lula said no reforms of the UN system would be complete without representation for developing countries in the UN Security Council. He also spoke about the dynamism imparted to the trade negotiations because of the partnership between the two countries at the WTO.

The documents signed included one designed to provide a comprehensive framework for establishing air services between India and Brazil and beyond their respective territories. It covers a wide ambit, including tariffs, user charges, aviation security and designation and authorisation of airlines. The two sides also signed an agreement for development of cooperation in the areas of Science and Technology.

Under this, the Ministries of Science and Technology of both the countries will look at having joint research programmes and exchange of students and specialists.

The initial thrust will be in the areas of biotechnology, chemistry, climate research, marine sciences, new materials, mathematics, physics, renewable and sustainable energies, space and industry partnerships.

The two countries signed a memorandum of understanding on cooperation in the field of human settlements. Both countries face similar challenges of urbanisation and development and concomitant increase in internal urban migration.

The MOU will facilitate exchange of information on housing and human settlements through biennial action plans.

The public sector Bharat Earth Movers Limited (BEML) signed an MoU to set up a joint venture company with Brazilian company CCC for the manufacture of rail wagons, coaches and mining equipment.

BEML will invest Rs 100 crores in the project, to be located in Brazil, and hold a 60 per cent stake and manahgement control in the project.

The Indian Council of Agricultural Research (ICAR) and the Brazilian Agricultural Research Corporation (EMBRAPA) agreed on a work plan to ensure closer cooperation between the two premier organisations.

Major areas of cooperation envisaged under the plan include crop and livestock improvement, soil and pest management, biofuels production and technology, fisheries and animal breeding.

The two countries signed an MOU for conducting Weeks of Indian Culture in Brazil and Brazilian Culture in India. It aims at organising four week-long festivals in 2007. The MOU also provides for setting up a working group to supervise the planning and organisation of the culture weeks.

Another MOU was signed between the Bureau of Indian Standards and its Brazilian counterpart, the Associacao Brasileira de Normas Technicas for the exchange of information and expertise.

An MOU on Plant Health Cooperation seeks to promote regulatory and technical cooperation in this area, to prevent the spread of quarantine pests and to limit the impact of regulated non-quarantine pests. It was signed between India's Department of Agriculture and Cooperation and the Ministry of Agriculture, Livestock and Food Supply of Brazil.

ONGC Videsh Ltd of India and Brazil1s Petrobras signed an MOU under which the Indian company will benefit from the knowledge and expertise of the Brazilian giant in the area of deepwater exploration.

UNI