Brazil’s VP calls Argentina “eternal beggar”, says Brazil must maintain fiscal responsibility

RIO DE JANEIRO, BRAZIL –  Vice President Hamilton Mourão called Argentina an “eternal beggar” on Thursday, April 8, when he said Brazil must have fiscal responsibility.

Mourão made the statements while participating in a virtual meeting with business people. In the meeting, he addressed the controversy over the Federal Budget for 2021, which has generated conflicts between the national Congress and the government.

“The message I leave is this: we cannot run away from the fiscal anchor because otherwise, the country will go broke. And, if the country breaks, we are going to be just like our neighbor to the south, just like Argentina, an eternal beggar,” said the vice-president.

Argentina is historically one of Brazil’s main political and economic partners. According to the Ministry of Foreign Affairs, Argentina is the third-largest destination for Brazilian exports, while Brazil is the most important business partner for Argentina. According to the foreign office Itamaraty, bilateral trade flow between the countries reached US$26 billion in 2018.

Read: In-depth – 30 years ago, Mercosur’s creation put an end to the historic tensions between Brazil and Argentina

However, the relationship between the two countries has registered friction since President Jair Bolsonaro decided to publicly support the reelection of right-wing Mauricio Macri, defeated by left-wing Alberto Fernández in the elections. Fernández is a political ally of former president Luiz Inácio Lula da Silva.

Brazil and Argentina

The Argentina–Brazil relationship is both close and historical and encompasses the economy, trade, culture, education, and tourism. From war and rivalry to friendship and alliance, this complex relationship has spanned more than two centuries. The countries also share a similar system of government, a federal republic with a presidential system.

Rio de Janeiro was the first capital to recognize Argentinian independence, whereas Buenos Aires’ was the first government to recognize Brazil’s independence.  After achieving independence from the Iberian crown in the early nineteenth century, Argentina and Brazil inherited a series of unresolved territorial disputes from their colonial powers. The most serious breach in the relationship was the Cisplatine War (1825–1828), led by the Brazilian invasion and annexation of the Banda Oriental (part of today’s Uruguay).

Beyond the economic benefits, the creation of the Mercosur customs union allowed the distrust and diplomatic tensions between the River Plate (Rio de la Plata) countries, especially Brazil and Argentina, to finally come to an end.

Conservative Jair Bolsonaro and Alberto Fernández have never met in person since the Argentine elections but have met virtually. Last month, during a Mercosur meeting, Bolsonaro stressed that any political differences between the bloc members could not affect integration or the region’s economic development.

Bolsonaro, however, left the summit before the videoconference ended. Argentina’s Foreign Minister Felipe Solá even mentioned the president’s absence following the meeting.

Below is a list showcasing 15 of Brazil’s top trading partners in export sales, countries that imported the most Brazilian shipments by dollar value during 2020. Also shown is each import country’s percentage of total Brazilian exports.

China: US$67.7 billion (32.3% of total Brazilian exports)
United States: US$21.6 billion (10.3%)
Argentina: US$8.5 billion (4%)
Netherlands: US$7.4 billion (3.5%)
Canada: US$4.2 billion (2%)
Japan: US$4.1 billion (2%)
Germany: US$4.1 billion (2%)
Spain: US$4.1 billion (1.9%)
Chile: US$3.9 billion (1.8%)
Mexico: US$3.8 billion (1.8%)
South Korea: US$3.8 billion (1.8%)
Singapore: US$3.6 billion (1.7%)
Malaysia: US$3.2 billion (1.5%)
Italy: US$3.1 billion (1.5%)
India: US$2.9 billion (1.4%)

Argentina’s Top 15 Trade partners in 2020

Brazil: US$6.9 billion (12.5% of Argentina’s total exports)
China: US$6.2 billion (11.3%)
Vietnam: US$3.7 billion (6.8%)
Chile: US$3 billion (5.5%)
India: US$2.86 billion (5.2%)
United States: US$2.1 billion (3.8%)
Indonesia: US$1.7 billion (3.1%)
Netherlands: US$1.6 billion (3%)

With information from G1