Joint Program
for Revitalization of Economic Relations
between Japan and the Federative Republic of Brazil

Tokyo, May 26, 2005

Prime Minister of Japan, Junichiro Koizumi and President of the Federative Republic of Brazil, Luiz Inacio Lula da Silva (hereinafter referred to as "Both Leaders"),

Recognizing the importance of building partnership in a wide range of fields, based upon long-standing mutual trust and benefit, after recalling over one hundred years of friendship and cooperation between the two countries,

Aiming at strengthening and deepening economic cooperation between the two countries,

Reaffirming the strong will, as expressed in their Joint Communiqué in Brasilia on September 19, 2004, towards the revitalization of bilateral economic relations,

Underlining the significant role of the Japan-Brazil Economic Cooperation Committee in the private sectors of the two countries,

Reached common recognition that both countries reinforce cooperation in the economic field in line with the following basic directions;

1. Promotion of Trade and Investment

Both Leaders, recognizing that trade and investment are important as one of the main pillars of the Japan-Brazil relationship, expressed their intention to strengthen the bilateral relations in the economic field.

Both Leaders noted with satisfaction that there is a good sign of revitalization of trade and investment between the two countries, and they confirmed the importance of both governments and private sectors working even harder together, with a view to enhancing this upward trend and improving necessary environment for even more encouraging business activities through the following approaches and actions;

(1) Promotion of Inter-Governmental Consultations

Both Leaders welcomed the progress of the inter-governmental consultations on bilateral economic issues, and further encouraged such consultations as a valuable instrument for promoting mutual communications and understandings.

Both Leaders also shared the view that constant contacts through increased exchange of high-ranking visits, including ministerial ones, as well as through increased interaction not only at the governmental level but also at the parliamentary level should be further promoted.

(2) Reinforcement of Effort towards Improvement of Investment Environment

Both Leaders welcomed the result of the Japan-Brazil economic symposium in Brasilia held on March 3, 2005, and expressed strong hope that both governments and private sectors would carry on more detailed and business-oriented dialogue on its follow-up occasions.

Prime Minister of Japan expressed his view that the protection of intellectual property rights should take a very important part of the economical relationship between the two countries.

Both Leaders further shared the view that the two countries could examine possible methods which contribute to the improvement of the investment environment for both countries.

(3) Encouragement of Exchange of Private Sectors

Both Leaders expressed their intention to encourage more active exchange of the private economic sectors between both countries. In this regard, Both Leaders expressed strong hope that the 11th Japan-Brazil Economic Cooperation Committee will hold constructive discussions in Tokyo on May 27, 2005.

Prime Minister of Japan also made reference to the visit of Japanese economic mission to Brazil, at the appropriate time within this year, and President of the Federative Republic of Brazil welcomed this mission's visit.

2. Enhancement of Cooperation in Energy and Mineral Resources Sectors

Both Leaders reaffirmed their common and keen interest to enhance cooperation in the areas of energy and other natural resources.

Especially, for iron ore, Both Leaders confirmed that the stable supply and development under the cooperation between Japan and Brazil have long been formulating the basis for the mutually beneficial growth of both economies, and reaffirmed the common strong interests in enlarging and reinforcing the cooperation including joint investment in this field.

Besides, Both Leaders welcomed that certain large-scale projects have been promoted vigorously by bilateral cooperation involving Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI), among others, in some strategic fields, such as petroleum, gas, mineral resources including iron ore and nonferrous metal, and pulp.

They expressed strong hope that those projects, including joint development in Jubarte oil field, will be realized successfully and that such cooperation will be further strengthened.

3. Development of Cooperation in Infrastructure Sector

Both Leaders underlined the importance of developing the infrastructure in South America to the economic development as well as the integration process in the region. In this respect, Prime Minister of Japan expressed his interest in the initiative taken by Brazil in the 3rd South American Summit held in Peru, December 2004 for the promotion of the programs of the Regional Infrastructure Integration in South America (IIRSA). The possibility of future financial cooperation by JBIC to the programs was also mentioned. Both Leaders welcomed such cooperation and expressed their support for further dialogue and consultation between countries concerned and international institutions in the region, and the Japanese official institutions concerned.

President of the Federative Republic of Brazil explained that the program of the Public Private Partnership (PPP) has been launched in Brazil and thus certain projects for the development of infrastructure will be urged onwards under this program. Prime Minister of Japan paid careful attention to this, and expressed that some Japanese private companies have shown interest in several projects, such as the railway projects, by taking use of JBIC's loan. Both Leaders shared a common recognition that it would be appropriate that concrete discussion is conducted on those projects.

4. Promotion of Dialogue on the Use of Ethanol

As one facet of measures to prevent global warming, Both Leaders recognized the importance of developing renewable energy sources, particularly in the area of biomass-based fuels for transportation, which are recognized in the Kyoto Protocol as not emitting CO2. They also expressed a shared interest in exploring potential private sector cooperation and exchange of information with regard to commercial applications of biomass ethanol and related technologies, including production of crops.

Both Leaders welcomed the close and continuing dialogues on biomass ethanol that have been held between both governmental and private sector groups on such occasions as the Brazilian mission's visits to Japan.

Both Leaders further expressed their strong hope that the practical testing currently being conducted in six Japanese provinces would yield good results. Prime Minister of Japan stated that Japanese Cabinet Council has approved the governmental action program to reduce greenhouse gas emissions, based on the Kyoto Protocol, and that the introduction of biomass-based fuels for transportation is expected. Prime Minister of Japan noted that Japan would move forward with studying uses of biomass ethanol.

Both Leaders acknowledged the importance of the continuation of close dialogue on this issue between their respective private sectors.

5. Continuation of Dialogue in Agricultural Sector

Both Leaders welcomed that the export of Brazilian mango to Japan started in 2004 after all technical examinations duly conducted by both countries' experts. Both Leaders reaffirmed the importance of keeping the focus on technical and scientific discussion by experts in accordance with the WTO SPS agreement, as both countries have done so far, bearing in mind the importance, on the one hand, of improving human health, animal health and phytosanitary situation in both countries and, on the other hand, of minimizing negative effects on trade.

Both Leaders reached common recognition that dialogues on agricultural issues, including technical talks on sanitary and phytosanitary measures, would be continued between the two countries.

In this regard, it was mentioned that the technical discussion between experts from both countries on sanitary matters, especially Foot and Mouth Disease Control Programs of both countries on ruminant live stocks, particularly cows and pigs was held in Tokyo on the 13th of May, 2005.

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