Opinion / Carolina Abbott Galvão
All smiles
Brazilian president Luiz Inácio “Lula” da Silva’s first month in office has set a more inclusive tone than that of his predecessor, Jair Bolsonaro. Last week, Lula embarked on his first overseas trips to Uruguay and Argentina, where he met presidents Luis Lacalle Pou (pictured, on right, with Lula) and Alberto Fernández, respectively. He also attended a meeting of the Community of Latin American and Caribbean States in Buenos Aires, where the atmosphere was convivial and good-natured in a way that it hasn’t been for some time.
During his previous two terms (from 2003 to 2011), Lula’s foreign policy relied heavily on personal charisma, so much so that Barack Obama once dubbed him “the most popular politician on Earth”. Being able to make friends isn’t just handy; it’s good for business. Lula’s approach has helped Brazil to create new markets for some of its commodities, such as soya beans and iron ore. Bolsonaro based his presidential campaigns on the promise that his policies would benefit Brazilian business. However, his weakening of environmental laws made him a global pariah and he had poor relations with regional trading partners that he often scolded personally – he once called Fernández a “leftist bandit”. His approach made trading blocs such as the European Union wary of doing business with Brazil.
Lula is taking a different tack. During his visit to Buenos Aires, Brazil’s finance minister, Fernando Haddad, announced that the government-owned Banco do Brasil will issue new credit lines to facilitate exports to Argentina. Meanwhile, Lula says that modernising the Mercosur customs union, working on the bloc’s draft trade deal with the EU and making a free-trade agreement with China are also high on his agenda. After just 30 days, Brazil is beginning to reap the rewards of the president’s friendlier, more consensus-driven take on leadership. The real test will be how long the honeymoon lasts.
Carolina Abbott Galvão is a Monocle writer.