Fernando Haddad, Brazil’s finance minister Fernando Haddad urged on Monday the United States take a more strategic and liberal approach to industrial development in Latin America. He said the US would benefit from a deeper integration of the region and greater investment.
Haddad told UOL in an interview that improved US-Latin America relationships could create an economic front of opportunity.
He did not make any specific policy recommendations, but he stressed that Brazil was actively seeking new paths of growth aligned to global trends on sustainability and digital infrastructure.
Latin America is experiencing a shift in the economic landscape.
China, which has been a major player in South America, has increased its diplomatic and investment footprint rapidly.
There is no choice between China or the US
Haddad dismissed Haddad’s notion that Brazil should only align with China or US.
He advocated an unbiased, pragmatist foreign policy, which engages the two powers on multiple fronts.
China is Brazil’s biggest trading partner, and has been for more than a decade. This is largely because of its desire for Brazilian commodities.
Brazil is interested in partnering with the US, which remains at the forefront of technology and innovation.
Haddad stated that the administration of President Luiz Inacio Lula da Silva aims to establish Brazil as an international player who is open to collaboration while also pushing ahead with reforms at home to support this goal.
National priority for data centres
The development of a domestic data infrastructure is a key element of Brazil’s economy strategy.
Haddad said that Lula intends to announce a policy for a data center national upon his return from China.
This initiative offers tax incentives in order to encourage technology investment and decrease Brazil’s heavy dependence on digital import services.
Brazil currently imports 60% of the data center capacity it needs. Haddad called this dependence “nonsense” in a nation of Brazil’s size.
This executive order is expected to support the local economy and promote Brazil as an infrastructure hub for digital technology.
Brazil’s mix of renewable energies — over 80% hydroelectric, solar, and wind– adds to the appeal it has for sectors that are energy intensive, like cloud computing.
The officials hope to attract domestic as well as foreign investors who are interested in sustainable digital operations with low emissions.
This move is in line with Brazil’s economic strategy under Lula, which was to be forward-looking and tech-oriented, while also rooted regionally.
Haddad concluded Brazil’s modernization approach is about progress and resilience within a multipolar environment, not choosing sides.
As new information becomes available, this post Brazil’s Finance Minister urges US to adopt a more supportive position toward LatAm could be updated.
