Text: Otacílio Soares Filho
No international trade agreement, delayed beyond the right time, is a matter of diplomatic calendar. More than political symbolism, this is a decision that will have practical and immediate effects on investments, planning, employment and growth across the country. When time drags on, the risk is no longer theoretical: an agreement will simply no longer come to fruition.
Experience shows that prolonged negotiations in which there is no end in sight usually end up destroying the trust built up over the years. AND trust is an essential element in the world economy.
The agreement in question is a way of facilitating the flow of goods and services, reducing regulatory obstacles and creating an environment more conducive to productive investment. For companies, it represents increased efficiency and legal security; for the countries that participate, the advantages are growth, economic renewal and a strong increase in its insertion in global value chains.
But postponement also has the opposite effect. Investors end up looking for markets where the rules are clear and stable. Decisions regarding the expansion of investments are set aside. In the medium term, The end result is a loss of competitiveness as well as a weakening of the international presence of the economies of all participating countries.
And there is also a social dimension that cannot be ignored. Less investment means fewer jobs, lower income and greater economic instability. In a globalized world where everything changes so easily, where we are always in competition with the rest of the world, committing is very expensive.
Click here and follow the DN Brasil channel on WhatsApp
The Luso-Brazilian Chamber of Commerce and Industry has closely monitored the entire process with permanent dialogue with companies, governments and institutions. The consensus in the business world is unequivocal: signing the agreement is strategic and urgent. This is not about ignoring legitimate concerns, but about recognizing that the absence of a decision is, in itself, a decision, and an expensive one at that.
The future of international trade requires clarity, predictability and commitment. To indefinitely prolong the signing of an agreement of this relevance is to take the risk of being left behind in an increasingly competitive world. The moment calls for leadership, pragmatism and long-term vision.
*Otacilio Soares da Silva Filho is president of the Luso-Brazilian Chamber of Commerce and Industry (CCILB) and chair of the advisory board at Targa Advisors