By Richard Moreira
As a result of the interest generated by one of the most stable economies in the region, a senior representative of the Government of the United Kingdom was in our country last week.
Ambassador Jonathan Knott, Her Majesty’s Trade Commissioner for Latin America and the Caribbean, visited Nación Media, where he outlined the reasons for his visit to Paraguay for the first time and pointed out the points of interest for his Government.
According to the prominent diplomat, the objective is to expand the current commercial exchange between the two countries (which amounts to some US$95 million a year) by increasing the links between British and Paraguayan companies in areas such as the environment, agriculture, and medical technology.
The following interview dealt with bilateral issues, the UK’s current relationship with the region, a future FTA with Mercosur, and, of course, the expectations generated by the inauguration of a new tenant of the Lopez Palace, which this year falls on Santiago Peña, a man with enormous experience in economic matters and whose vision on trade could mean a strong increase between the two countries.
Since the reopening of diplomatic relations ten years ago, Paraguayan-British ties have undoubtedly been boosted. But the commercial exchange has been lagging. How can greater dynamism be achieved?
First, we already have an interesting exchange of around £77 million (about US$95 million).
It is not bad, but we want to improve. At the moment, we are prioritizing some sectors, and we believe that there, we have the best possibilities to increase those levels for the United Kingdom and Paraguay.
We want to focus on energy, especially green energy.
We already have a British company installed here, Atome, with experience in green energy, it manufactures ammonia and hydrogen-based energy, which is very interesting and I think it will be very important.
We are also working with Agritec to see ways to improve agricultural yields here in Paraguay.
Also, in health techniques, a company uses a surgical robot to help with the service they offer to Paraguayans.
So we have a very optimistic future.
What we have to see is an increase in the exchange we have.
In what way can the United Kingdom contribute to the production of clean and sustainable energy? In what areas would you focus, and in addition to the hydrogen and ammonia production project, is there any specific program in this area at the bilateral level?
We would like to present British companies with experience in wind energy, photovoltaic energy, and above all, companies that focus on the science of the future.
So, hydrogen or ammonia are very interesting, because they can offer energy and be a fertilizer.
There is a huge universe of efforts that we are doing now.
For me, it is a sample of what we can do together.
The key word is “green” because it is the future of energy worldwide.
We have good companies and good levels of expertise in the UK, so we want to introduce those companies here to potential Paraguayan partners to create a future together.
To realize the vision of Paraguay’s future that the Government wants to realize.
Paraguay exports wood and cork and its manufacturing: organic chemicals, seeds, and oilseeds; and meat and its preparation. Are there any other products that interest or expand exports of some of these products?
We are working on that, and that is why I am here.
Now we are seeing with the ambassador in Asunción, Ramin Navai, which are the products and sectors where we can cooperate, always thinking that successful companies are partners with other companies at the international level.
So, we can present attractive British companies to Paraguayan companies.
We have a very open perspective, but it is not for the Government to say it; the perspective has to be that the companies and the entrepreneurs do it and say, “Here we can”.
My responsibility is to help and support the entrepreneurs at this point and then see if we have some barriers to help lower so that they can organize this opportunity again.
Brexit has had political, economic, and commercial repercussions for the British Isles. But what has been the impact of Brexit on trade relations with Latin America, and what is the alternative to recover ground?
The word is not to recover; for me, the UK has to renew relations with other countries in other parts of the world than Europe, especially in Latin America.
The reason I am working is to take advantage of all the opportunities that we have not realized so far.
We have teams in 19 nations in the region, and we are seeing how we can realize that possibility in each of those countries.
Now we are focusing on the whole world, not so much on Europe, to be a totally international country.
That is also my challenge; happily, last year, the level of trade between the UK and Latin America grew by 30%.
That also indicates that we are on the right track but not satisfied; we have to improve and improve and visit more often.
Bring business people to Paraguay, take business people there, and see the possibility there.
If a company wants to grow and internationalize, for me, the UK is the ideal place because of the network we have around the world.
That is my hope and my expectation.
As part of the EU, when it was a full member, the UK had certain reservations about tariffs to promote a free trade agreement with Mercosur. After Brexit, is the Government in London interested in maintaining a global agreement or promoting an FTA with Mercosur?
Absolutely. I can’t say a year, but an FTA is something we want to do.
A bit like I was explaining before. We want first to identify what the areas are commercially and focus on those areas. Because then we can move forward as quickly as possible.
Then, I repeat, I do not know when, but it would also be ideal to have an FTA with Mercosur in the future.
But right now, we are focused on how we can help our companies and entrepreneurs.
After Brexit, it is as if the UK no longer has its hands tied and has the freedom to trade with the world.
The first thing we did was to renew all the agreements we had as members of the European Union.
Then we gradually looked at where to start strengthening our ties, from a British point of view, not as a European.
That gives us a little bit of flexibility; it gives us agility.
As I see it, by focusing on Latin America, I see all the possibilities we have. For me, this part of the world is the most exciting part.
Promising too. We have so much to do if we work well and in a focused way.
That is why I am visiting the country and its authorities.
I visited the MOPC and its future plans; we visited representatives of the MRE and the Treasury.
From a business point of view, we are really renewing these links that can be commercially successful.
What expectations do you have, not only at a political level but in a broader framework, the arrival of a technocrat to the Presidency of Paraguay? Being an economist expert in the IMF, having been Minister of Finance, you have a different view of bilateral relations; what are your expectations concerning the Government of Santiago Peña?
First, I have to recognize and celebrate democracy in action.
Then, as the new president was Minister of Finance, I imagine he will have a quite sophisticated vision of the economy and how trade can help not only in terms of money but also in terms of the development of a people and a country.
Because by doing good business, you can access the development of the people, and part of our job, of my job, is to support that growth and the improvement of the quality of life of the people.
It’s not just the money; it’s that quality of life, which should be a challenge, a goal.
“What we would like to do is present British companies with expertise in either wind energy, photovoltaics, and especially companies that focus on the science of the future.”
“First, I have to acknowledge and celebrate democracy in action.”
“Then, because the new president was a former Chancellor of the Exchequer, I imagine he will have a fairly sophisticated view of economics and how trade can help not just in terms of money but in terms of the development of a people and a country.”
With information from La Nación
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