Brazil asked for help for Argentina at the G7 financial meeting

2023-05-11 22:59:00

fernando haddadBrazil’s finance minister, told the US Treasury secretary, Janet Yellen, the urgency of helping Argentina. It was in the framework of the meeting of finance ministers and heads of Central Banks of the G7 countries.

“We are very concerned with what is happening in Argentina. We need to help her.” It was what he expressed this Thursday Minister of Finance of Brazil fernando haddad a Janet Yellen, United States Secretary of the Treasury. The government official of Lula da Silva He met his American colleague in Niigata (Japan), where a meeting of Economy Ministers and heads of Central Banks of the G7 countries is taking place. Brazil was one of those invited to participate in the presidential summit of the great Western powers, which should take place on May 20 in Hiroshima, the Japanese city destroyed at the end of World War II by a nuclear bomb.

Haddad himself informed the press, after the meeting, that in the conversation with Hellen, he had expressed the urgency of helping the government of Buenos Aires. He said that Lula had specially entrusted him with the mission of dealing with the issue. “This is a fairly obvious humanitarian issue” added.

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“One of the reasons why President Lula da Silva is coming to the G7 is to address this issue. He himself is willing to open the discussion of the subject out loud. The Brazilian interest is not only economic, but also political. As he warned in his meeting with the Treasury secretary, “we are uneasy about the political impact” of the Argentine economic situation, which according to the Brazilian government “explains the emergence of the extreme right” in the elections.

Ten days ago, Alberto Fernandez traveled to Brasilia, together with Minister Sergio Massa, to see how the stress situation that the country is going through due to the shortage of dollar reserves could be overcome. One of the ideas is, precisely, to move to the commercial exchange between both partners without the use of the North American currency. Actually, it would be done in reais and would consist of financing that Brazil would give to its businessmen so that they export inputs and merchandise, without suffering the consequences of “non-payment”. In that bilateral, Lula assumed the commitment to “do everything he can to help the partner (in Mercosur).” In this case, everything indicates that Haddad asked Janet Yellen for the “participation of the United States together with Brazil” in order to resolve the problem of guarantees in that operation.

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For the Americans, the proposal was a “surprise.” But the Secretary of State “undertook” to analyze the mechanism. In the average Brazilian anxiety, also, a weighty economic question: Argentina is the main market for Brazilian industrial products. The difficulties for foreign trade operations involve a decrease in Argentine imports, which according to the Brazilian government are already beginning to be replaced by goods from China.

In addition to the US, Canada, Great Britain, France, Italy, Germany and Japan participate in the G7. And they always tend to invite third nations to their summits. It is the first invitation that they have sent to Brazil since 2009, during the second government of Lula da Silva. In the interview with Haddad, the press inquired what he thought of a possible “default” of the Joe Biden government, an issue that occupies the local media. The minister replied that “the United States is the largest economy in the world and the debt issue will be duly prosecuted.”

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Another of the journalistic questions referred to Brazil’s relations with China, after Lula’s visit to Beijing, where he was received with all the frills by President Xi Jinping. Haddad was forceful: “One of the things that Yellen made clear is that they do not object to Brazil’s trade agreements with China.” However, the minister made a point of endorsing “our desire to get closer to the United States. We should work together for the integration of the Americas”.

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