
Brazil's Lula to build trade ties on Japan state visit
Luiz Inacio Lula da Silva and Prime Minister Shigeru Ishiba are also expected to discuss the joint development of biofuels ahead of November's COP30 UN climate summit in the Brazilian Amazon.
In talks on Wednesday, the leaders will reportedly restate their commitment to free trade following US President Donald Trump's levies on steel and other imports.
'Everyone who was talking about free trade is now practising protectionism,' Lula, 79, said ahead of his departure.
'I think this protectionism is absurd,' he told Japanese media.
Brazil is the second-largest exporter of steel to the United States after Canada, shipping four million tonnes of the metal in 2024.
Lula and Ishiba will likely agree to regular leaders' visits and to establishing strategic dialogue on security and other matters, Japanese media reported.
The pair may also affirm the importance of the rules-based international order, a phrase often used to make a veiled dig at Chinese foreign policy.
– Beef to planes –
A welcome ceremony will be held for the left-wing president on Tuesday at Tokyo's Imperial Palace, followed by a state banquet that evening.
It will be Lula's third visit to Japan, the world's fourth-largest economy, as president of Brazil.
Ramping up Brazilian exports to Japan — from beef to planes — is a key objective for Lula, who on Wednesday will attend an economic forum aimed at forging new opportunities.
China is currently Brazil's top trading partner, with Japan trailing behind as its 11th largest partner globally, according to Brazilian officials.
Brazil has 'increased its commercial dependence on China in recent years', Karina Calandrin, a professor at business school Ibmec in Sao Paulo, told AFP.
But since taking office in January, Trump has slapped tariffs amounting to a 20 percent hike on Chinese overseas shipments, which last year reached record levels.
This, Calandrin said, 'puts Brazil at risk, making it more vulnerable to any change in the international scenario'.
Yet efforts to diversify foreign trade could prove difficult given the South American powerhouse's 'structural dependence' on commerce with China, said Roberto Goulart, an international relations professor at Brasilia University.
A more balanced trade landscape for Brazil in the Asia-Pacific region is unlikely in 'the short term', he said.
Meanwhile, Tokyo could see stronger ties with Brasilia as a way to keep Brazil from forming a closer relationship with China and Russia, fellow members of the BRICS emerging economies bloc.
– Apology –
Brazil is home to the world's largest Japanese diaspora, a holdover of mass migration in the early 20th century.
Last year, Lula's government issued a historic apology for its persecution of Japanese immigrants during and after World War II.
Thousands living along the coast of Sao Paulo were forced off of their land in 1943, while at least 150 Japanese immigrants and their offspring later wound up incarcerated on a remote island.
An apology is 'the least we can do to acknowledge our mistakes in the past', Lula told Japanese media ahead of the trip.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Rudaw Net
4 hours ago
- Rudaw Net
China's promise in the Kurdistan Region: A pragmatic partnership in the making
Also in Opinions Eleven years on, the Yazidi genocide continues in silence Tehran at a tipping point: The unraveling of the Iranian rial Turkish lira's rocky road: What rate cuts mean for its neighbors Iraq's budget shortfall crisis: can oil revenues save the second half of 2025? A+ A- China's economic presence in the Kurdistan Region is growing steadily and strategically. From newly erected telecom towers to round-the-clock cement factories and classrooms offering Mandarin lessons, the signs of cooperation are visible. Yet behind this growing footprint lies a deliberate, measured campaign - one that combines commercial outreach, cultural diplomacy, and cautious engagement in major infrastructure projects that still await financing and implementation. China's global economic pivot - from investment-driven expansion to a more targeted focus on high-tech sectors such as renewable energy, artificial intelligence (AI), and advanced manufacturing - offers important context for understanding its approach to the Kurdistan Region. International investors and analysts observe that Beijing favors long-term partnerships and sector-specific engagement over headline-grabbing diplomatic gestures. This strategy helps explain why Chinese firms operating in Erbil are active in sectors where quick, tangible results are achievable, while larger infrastructure ambitions advance more slowly. Zou Demin, Consul for Economic and Trade Affairs of the People's Republic of China in Erbil, described the Kurdistan Region as 'an important gateway for regional trade and a promising hub for economic cooperation.' Chinese activity in the Region is deliberate and tailored, he said, adding, 'We see opportunities not only in oil and gas but also in agriculture, infrastructure, and technology.' Zou emphasized Beijing's pragmatic approach: projects must align with local needs and capacities, and although progress is gradual, momentum is growing. A growing commercial footprint Local business leaders echo this pragmatic tone but offer a sharper on-the-ground perspective. Kamil Ahmed Hama Rash, advisor at the International Chamber of Commerce in China, noted that Iraq's trade with China reached $40 billion in 2023 - 2024. Chinese customs data puts the total trade volume at $54.2 billion in 2024, with $26.65 billion recorded in the first half of the year alone. According to Hama Rash, companies in the Kurdistan Region account for roughly $5 billion of this annual trade, facilitated by approximately 250 trading firms. Much of this commerce arrives via the ports of Umm Qasr, Bandar Abbas, and Mersin located in southern Iraq, Iran and Turkey, respectively. A significant portion is re-exported to neighboring markets, underscoring the Region's potential as a logistical and trade hub. Hama Rash identifies a key logistical priority: establishing a dry port in the Kurdistan Region to streamline trade operations and reduce costs for importers and exporters. However, structural challenges remain. Many local traders avoid commercial loans due to interest rates that conflict with Islamic financing principles. Additionally, the Kurdistan Regional Government (KRG) must upgrade its transport infrastructure, customs systems, and legal frameworks to transform trade into broader industrial development. Agreements vs. actions Despite these challenges, concrete achievements are visible. Chinese partnerships, particularly between Huawei and local telecom providers, have advanced digital infrastructure. Chinese-built cement factories supply a large share of materials fueling the Region's post-conflict construction boom. On the cultural front, China's soft-power efforts are bearing fruit: hundreds of Kurdistan Region residents participated in Chinese training programs in 2024, supported by the China Scholarship Council (CSC) on behalf of the Chinese education ministry. Moreover, the Chinese Language Department at Salahaddin University in Erbil anchors this educational and cultural engagement. However, grander ambitions have yet to be realized. Memoranda of understanding have been signed for hydropower projects and a major refinery, but financing delays and supply chain constraints have stalled progress. This gap between signed agreements and on-the-ground delivery is a key concern for local observers. While MoUs make for optimistic headlines, meaningful impact demands job creation, technology transfer, and long-term capacity building - not just short-term contracts or imported equipment. There is also a broader strategic consideration. Relying heavily on a single external partner for critical sectors raises concerns about competition, local value retention, and economic resilience. To maximize benefits from Chinese engagement, experts argue, the KRG must secure binding commitments on local content, workforce training, and transparent procurement processes that prioritize local suppliers and labor. Consul Zou affirmed that Chinese engagement will continue to deepen. 'Our cooperation should bring mutual benefit and shared growth,' he told Rudaw. But mutual benefit must translate into visible outcomes: sustainable jobs, apprenticeships in Chinese-built facilities, and financing structures aligned with local preferences, including Islamic finance. A path to sustainable partnership The policy recommendations are clear, though challenging to implement. The KRG must prioritize establishing a legal and logistical framework for a dry port to streamline trade and reduce costs. At the same time, it should pursue contracts that include enforceable provisions for local content and workforce development, ensuring that investments lead to meaningful economic participation for the Region's people. Additionally, the KRG needs to diversify its financing mechanisms in ways that address both religious considerations and commercial concerns, especially given the widespread reluctance toward conventional interest-based loans. On the other side, Chinese companies and institutions should emphasize measurable local benefits - demonstrating, rather than merely stating, that their investments are improving living standards, creating jobs, and transferring skills. For the people of Erbil and the wider business community, China's engagement offers a door of opportunity that remains only partially open. The future of this relationship will hinge on whether agreements move beyond paper and result in actual construction, employment, and technology transfer; whether expanding trade flows can be transformed into enduring industrial capacity; and whether both sides can successfully align their legal and financial frameworks to support resilient, locally beneficial projects. If these elements align, the 'momentum for cooperation' cited by Consul Zou could indeed evolve into a powerful driver of regional growth. If not, China's economic footprint in the Kurdistan Region, while significant, may ultimately fall short of its full potential. Omar Ahmed is editor-in-chief of Rudaw's Economy Desk. The views expressed in this article are those of the author and do not necessarily reflect the position of Rudaw.


Shafaq News
7 hours ago
- Shafaq News
Oil climbs on US-China truce and geopolitical hopes
Shafaq News Oil prices rose on Tuesday as the United States and China extended a pause on higher tariffs, easing concerns an escalation of their trade war would disrupt their economies and crimp fuel demand in the world's two largest oil consumers. Brent crude futures gained 26 cents, or 0.39%, to $66.89 a barrel by 0015 GMT, while U.S. West Texas Intermediate crude futures rose 22 cents, or 0.34%, to $64.18. U.S. President Donald Trump extended a tariff truce with China by another 90 days, a White House official said on Monday, staving off triple-digit duties on Chinese goods as U.S. retailers prepared for the critical end-of-year holiday season. This raised hopes that an agreement could be attained between the world's two largest economies, and could help sidestep a virtual trade embargo between them. Tariffs risk slowing down economic growth, which could sap global fuel demand and drag oil prices lower. Investors are also looking ahead to a meeting between Trump and Russian President Vladimir Putin on August 15 in Alaska to negotiate an end to the war in Ukraine. The meeting is set amid heightened U.S. pressure on Russia, with the threat of harsher penalties on Russian oil buyers such as China and India if no peace deal is reached that could upset oil trade flows. "Any peace deal between Russia and Ukraine would end the risk of disruption to Russian oil that has been hovering over the market," ANZ senior commodity strategist Daniel Hynes wrote in a note. Trump set a deadline of last Friday for Russia to agree to peace in Ukraine or have its oil buyers face secondary sanctions, while pressing India to reduce purchases of Russian oil. Washington has also been pressing Beijing to stop buying Russian oil, with Trump threatening to impose secondary tariffs on China. The risk of those sanctions being enacted has receded ahead of the August 15 Trump-Putin meeting. Also on the radar is U.S. inflation data later in the day, that could hint at the Federal Reserve's interest rate path. Any sign that the central bank may cut rates soon would support crude prices.


Shafaq News
20 hours ago
- Shafaq News
Iraq, Iran discuss rail links, regional security in Baghdad talks
Shafaq News – Baghdad Iraqi Foreign Minister Fuad Hussein met Iranian Supreme National Security Council Secretary Ali Larijani in Baghdad on Monday for talks on bilateral cooperation and regional security challenges. The two sides reviewed the stalled Shalamcheh–Basra railway project, agreeing to accelerate demining and remove technical obstacles. They also discussed extending the line from Iran's Khosravi to Iraq's Khanaqin and Baghdad, linking it to Iraq's Development Road project to boost economic ties and religious tourism. استقبلتُ اليوم في بغداد أمين المجلس الأعلى للأمن القومي الإيراني السيد علي لاريجاني، حيث ناقشنا تطوير العلاقات الثنائية ومشاريع الربط السككي بين #الشلامجة – #البصرة و #خسروي – #خانقين – #بغداد وإمكان ربطها بطريق التنمية، بما يعزز التعاون الاقتصادي ويخدم السياحة الدينية. — Fuad Hussein | فؤاد حسين (@Fuad_Husseein) August 11, 2025 In addition, talks covered Israel's military campaign in Gaza, alleged plans to displace Palestinians to Egypt, and threats to annex the West Bank, as well as security risks facing Iran and the impact of the Syrian crisis on regional stability. Hussein and Larijani underscored the need for joint regional security mechanisms and explored a UN-backed proposal for a '6+2' dialogue involving the GCC states, Iraq, and Iran on the sidelines of the UN General Assembly.