After Sunak's meeting with Lula, the UK announces R$500 million for the Amazon Fund

Published on 05/05/2023 at 14:15 / Updated on 05/05/2023 at 15:07

Lula meets British Prime Minister Rishi Sunak during his visit to the United Kingdom for the coronation of King Charles III – (Credit: Ricardo Stockert/Presidency of the Republic)

London — In a meeting full of expectations that lasted 45 minutes, the UK Prime Minister, Rishi Sunak, told the President of Brazil, Luiz Inacio Lula da Silva, that his country would invest in the Amazon Fund. British government sources said the amount would be 80 million pounds, or about 500 million Brazilian reals. Germany, Norway and the United States are already part of the group of financiers. The fund was suspended under the previous government, due to a lack of commitment to environmental issues.

“I am delighted to announce on this occasion that we will invest in the Amazon Fund, and all this is thanks to your work, your leadership and your struggle (for preserving the environment),” said the British leader. He stressed his pleasure in welcoming Lula to his official residence at 10 Downing Street, and stressed that the competition between the two countries is limited to football only, when England and Brazil play on the field. “Our conversation will be better than the competition in the FA Cup matches. Besides football, we have a lot in common. He referred to economic relations, trade flows and climate change.

The Brazilian government greeted the prime minister’s announcement with celebration. Lula had already given up on travelling to London for the coronation of King Charles III. But the prospect of a bilateral meeting with Sunak made the Brazilian leader change his plans. In addition to the pomp of announcing the contribution to the Amazon Fund, the king received Lula at Buckingham Castle. Only 10 heads of state attended the meeting on the eve of the coronation. Charles is a strong supporter of measures to contain climate change and preserve the Amazon.

The conversation between Lula and Sunak was very cordial. The UK and Brazil were very far apart. There was a certain ill will among the British towards the administration of Jair Bolsonaro, a relationship that had worsened after the then Brazilian president was in London for the memorial service for Queen Elizabeth II. The country was in turmoil and Bolsonaro had called on his supporters outside the Brazilian ambassador’s residence in England to demonstrate in his favour. The riots were widely criticised.

In trade, both Sunak and Lula said they needed to improve relations between the two countries. Adding imports and exports, the flow reaches $6.5 billion per year. According to the Brazilian government, British investment flows to Brazil remain high, and are primarily aimed at the oil and gas sector. The total volume of British investment in Brazil is concentrated in the extractives, financial and transport sectors. According to the central bank, in 2021, the United Kingdom invested $22.6 billion in Brazil according to the direct investor criterion (sixth largest) and $36 billion according to the final observer criterion (fourth largest).

The UK is second among the 17 countries with investments in the Investment Partnership Programme, with R$59 billion (US$11 billion), behind only China, in 10th place, with R$2.2 billion (around US$440 million). The UK is also the 10th largest recipient of Brazilian direct investment, with its shares worth US$5.1 billion in 2020.

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