Lula Highlights Foreign Investment Openness
Brazilian President Luiz Inacio Lula da Silva reiterated on Friday that foreign businesses are welcome in Brazil, as he inaugurated a new Chinese automaker GWM factory in the Sao Paulo state. “Count on the Brazilian government. Whoever wants to leave, let them leave. Whoever wants to come, we’ll receive you with open arms,” Lula stated, in a clear message of welcoming international investors.
The president also emphasized previous setbacks for foreign carmakers, observing that previous major players such as Ford and Mercedes had also reduced operations in Brazil. In spite of these drawbacks, Lula welcomed newcomers such as GWM, highlighting Brazil’s openness to discussion and ensuring a good climate for enterprise.
Trade Tensions with the US and BRICS Dialogue
Lula seized the moment to denounce US tariffs, calling the 50% duties slapped on Brazilian exports by previous President Donald Trump as bringing “unnecessary turbulence.” He further stated that he would bring up the matter at the BRICS forum, comprising China, India, Russia, and South Africa, to seek mutual avenues of confronting trade obstacles and safeguarding Brazilian exports.
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Economic Impact and Job Creation
GWM’s Brazilian facility has an annual production capacity of 50,000 vehicles and is expected to create more than 2,000 jobs as it ramps up operations and begins exporting to other Latin American markets. Brazil’s auto export sector is on a growth trajectory, with the automakers’ association Anfavea projecting a 38.4% increase in exports in 2025, reaching 552,000 units.
Lula’s statements highlight Brazil’s strategic interest in securing foreign investment and boosting its automobile sector, making the country a Latin America production and export hub. Experts say the actions could diversify Brazil’s economy, generate jobs, and solidify trade relations with major global partners.
