World Politics Review: Q&A on Brazil-Israel Relations

Israel’s minister of industry, trade and labor recently hosted a delegation of Brazilian business leaders. The following Q&A looks at relations between the two countries:

WPR: What is the extent of the economic and political relationship between Israel and Brazil?

SG: The two countries have a history of friendly, but rarely robust, relations.  Ambassadors have been regularly exchanged since the 1950s, while trade flows have been low. Bilateral trade totaled less than a billion dollars in 2009.

Two thousand ten saw relations briefly intensify, then deteriorate. In March, Lula became the first Brazilian head of state to visit Israel, and a month later a free trade agreement between Israel and MERCOSUL came into force. In May, Brazil and Turkey tried to finagle an accord on Iran’s nuclear program; Security Council sanctions quickly doused that effort. Iran’s nuclear program is seen as a security threat of the highest order for the Jewish state, and Israel and Brazil hold diametrically opposing views on the issue.

Political relations hit a low point last December when Brazil recognized an independent Palestinian state along Israel’s 1967 borders. Israel responded that unilateral declarations were counterproductive and publicly questioned why Lula would initiate such a move days before leaving office.

WPR: How does the bilateral relationship fit into the two countries’ regional strategies?

SG: Under Lula, who said “someone with neutrality” needed to mediate peace in the Middle East, Brazil injected itself into the region as the United States’ alter ego. With hindsight, Brazil overplayed its hand by prioritizing relations with Iran. Championing Palestinian statehood helps Brazil bank some of its investment in Mid East diplomacy, and it also looks like a strong pro-democracy position in light of the Arab Spring. But it clearly doesn’t help relations with Israel.

Israel’s relationship to Latin America has traditionally focused on those countries with large Jewish communities, i.e. Argentina, Brazil and Mexico. Like many countries, Israel is now coming to terms with the new power dynamics in South America: Brazil has immense clout and swaying Brasilia can have a ripple effect across the region.

WPR: What are the main opportunities for and obstacles to the bilateral relationship?

SG: The political headwinds are strong and unlikely to abate soon because the Netanyahu government is tacking further to the right, and Brazil is too heavily vested in Palestinian statehood—land has already been donated for a Palestinian embassy in Brasilia—to reverse course.  Yet on the economic front there are several industries—defense contracting, agrochemicals, pharmaceuticals, possibly nanotechnology—where cooperation between Brazil and Israel could chalk impressive gains. It isn’t hard to prefigure trade increases because Brazil and Israel have complementary economies and business groups in each country have detailed plans for expanding operations.

Ideally, trade ties will be fleshed out and cultural ties will persist, leaving an undercurrent of cooperation that can be readily tapped to rebuild political relations once the opportunity presents itself.