http://www.bloomberg.com/news/2013-02-23/nigeria-brazil-sign-agreement-to-boost-trade-investment.html
Petroleo Brasileiro SA is expecting to expand oil production in Nigeria as the Rio de Janeiro-based company looks to strengthen its presence in Africa's oil production.
Trade between Brazil and Nigeria is $9 billion a year and is expected increase with the greater investment in oil industry. Two presidents signed an agreement to boost cooperation in energy, aviation, agriculture, electricity, infrastructure development and defense. This agreement is supposed to benefit both countries in establishing stronger trade ties.
This is an important move that could potentially lead to a greater cooperation between two continents and it could cause an increase in other trade agreements in both regions.
This is a good deal for these countries to make because it will boost both of the countries incomes as well as potential job openings. This also has a chance to increase both GDP and GNP. Hopefully this deal lasts for a long time.
ReplyDeleteI believe this will be a very beneficial relationship for both countries. Their has recently been a lot of money in oil and now with the world cup coming up in Brazil I believe you could see a large increase in Brazil's GDP in the coming years. This is very beneficial for Nigeria but also problematic. Nigeria has a pipeline problem that could end up separating the country into a north and south region. This could be problematic for Brazil.
ReplyDeleteThis also might make the countries more competitive in the world economy especially given talks of a trade agreement between the United States and the European Union. An agreement with each other will keep them possibly in a place of competition with the "world powers".
ReplyDeleteThis could also be problematic for Nigeria. They have faced problems by placing too much pressure on the oil industry to support their economy. Although the article says that the trade agreement will also involve aviation, agriculture and infrastructure, it appears that the strongest emphasis will be on the energy aspect of the agreement. Also if the country does become divided into a North and South, we could see a problem similar to South Sudan today. They have all the oil, but are landlocked and unable to export their oil without an agreement with N. Sudan.
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