Lula says purchase of oil will balance Brazilian trade with Venezuela

08:38, April 29, 2010      

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Brazil's president Luiz Inacio Lula da Silva said on Wednesday during the visit of his Venezuelan counterpart Hugo Chavez to Brasilia that upcoming purchase of oil from Venezuela will balance the trade between the two countries.

"When Abreu e Lima refinery is concluded, a share of the oil will come from Venezuela and certainly the oil that we will buy from them will balance a little our trade balance, which is important for Venezuelan economy growth and is also important for strengthening strategic relationship between Brazil and Venezuela, " said Lula.

The search for greater balance in bilateral trade was one of the topics discussed by Lula and Chaves, since out of a total of 4. 2 billion dollars in 2009, 3.6 billion dollars corresponded to Brazilian exports.

Brazil and Venezuela have also signed cooperation agreements in the fields of industry, agriculture, urban development, banking services globalization and border integration.

"When I see that (the state-controlled bank) Caixa Economica Federal will open an office in Caracas, when I see Embrapa ( Brazilian Enterprise for Agricultural Research) willing to open an office in Caracas, I may say that our relationship is more than a trade relation and it is irreversible," said Lula.

The leaders held a private meeting at the start, then extended to a group of collaborators, culminating in a signing ceremony of agreement and press statement, after which a luncheon was offered in honor of the Venezuelan president.

After the meeting in the Brazilian capital, Chavez is expected to return directly home, in Caracas, to receive his Bolivian counterpart Evo Morales.

This was Lula and Chavez's eighth meeting under the quarterly meetings mechanism, established in 2007, and was held on Wednesday morning at Itamaraty Palace, the headquarters of Brazilian Foreign Ministry.



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