15.3 Agribusiness
Anna Paige Mendenhall
“A. Paige”
Cell:-, Skype: apmendenhall639-1467 Matthews Mill Pond Rd.
Angier, NC, US 27501
Bio:
A. Paige is the typical millennial vagabond you expect to see camping across deserts, in dense
mountain forests, and across icy lakes. “Teach, Research, Travel,” has been the motto in these
extreme environs for the past four years, and A. Paige uses these experiences now to transport
readers. As a burgeoning American ghost writer with talents ranging from the academic to the
narrative, A. Paige loves to show parallels between the real, and the imagined, by explaining and
demonstrating the complexities and symbolic pieces of reality.
A Brief Purview of the Past, Present and Future of
EURO-BRAZIL AGRI-TECH TRADE THROUGH
NORMATIVE ENVIRONMENTAL FOREIGN
POLICY
Europe, Brazil and the Agricultural Technology Industry
Trade in undoubtedly an increasing topic of conversation in diplomacy as well as its use for
normative power approaches. It is arguably that the contemporary era is more focused on people
and their livelihoods than the success of the state, which is why trade has become a predominant
topic of conversation. Trade begets and earns money which brings opportunities to various
sectors of industry within each state, which is important to the people of the state. The European
Union (EU) is most notable for their success as a trading bloc and their normative tactics towards
foreign policy. It would be of interest to compare their trade relations to another, such as Brazil,
to understand how trade relations have an effect on such diplomatic relations. Brazil is notable
for being one of the BRICS, or a successful emerging economy from a long period of
development. To look at an emerging economy is to understand how the present can affect the
future in relations and with BRICS offering more open markets and new ideas; it is not unusual
to focus attention on what they have to offer to this growing new multi-polar world. One area of
curiosity in the practice of a normative agenda would be environmental concerns and effects it
has on various areas of trade like agriculture or more specifically agricultural technology. What
is similarly unique between the EU and Brazil is their focus on the environment albeit in
different methods, but both are mitigating this focus into technology, or more specifically into
agricultural technology considering its direct involvement with the environment which is
simultaneously affecting trade relations. Agriculture’s direct relation to the environment is a
predominant concern for many individuals due to its necessity not only as a job, but a source of
nutrition and luxury. Focusing on agricultural technology is necessary, because it is a growing
field within the industry and offers nuances to trade and diplomatic relations. These nuances are
the interconnectedness of two industries that benefits trade and subsequently can be a tool
towards foreign environmental policy recommendations. The focus on these normative tactics to
achieve an agenda can affect relations which are determinable on the framework present
relations operate in. Utilizing proactive and amenable conversation in diplomatic trade relations
will only increase the benefits this potential future could produce for both the EU and Brazil.
With these considerations, the following research piece will briefly peruse the standard variables
of the agricultural technology trade, the historical context of EU-Brazil relations and the effects
that permeate to today and potentially the future.
Agricultural technology is more recognizable by the advancements machinery has brought to the
agriculture industry during the Industrial Revolution and since then. Before the Industrial
Revolution, agricultural technology was brought by concepts of crop rotation, aqueducts and
crossbreeding plants, but today that goes further (Schmidt, et al 2014). It is more than machinery
and new concepts. It is utilizing robotics, GPS, nanotechnology and providing more development
in education and genetic engineering. It is the sharing of ideas and competing markets that has
brought these new advancements to the agriculture industry which has played a part on the
environment. It is putting a demand on nature and what it can provide for the human race, but
this has also encourage the above mentioned advancements to combat against these demands
(Schmidt, et al 2014). In Europe there are AFOS, Farmeron and Kerbl that promotes such
research as there are Bug Agentes Biologicos, Cepea and Embrapa in Brazil. These are a few
companies that specialize specifically in agricultural technology, but there are many other
corporations with research and development departments working on similar structures of
interests to farming communities and markets. Distinctively, however, is a question of
standardization between research and methods to shift these new valuable technologies between
various parts of the industry. With fragmentation between social understanding, methodology
and technology transfers, it is quite understandable how the agricultural technology industry can
become problematic for trade relations. Many important factors to some of this research are the
logistics of the respective regions of interest for agribusiness.
Gaulier, et al points out that geography matters for major trading partners, but with a multi-polar
world it is debatable if this is necessary to encourage positive trade relations between states or
trading blocs. Both the EU and Brazil make an emphasis on multilateral relations, but have
lukewarm relations at best due to differing points on the value of those relations between each
other predominantly due to the EU focusing on other emerging economies and Brazil focusing
on fellow Southern states (Afionis and Stringer 2014). It is only in realizing that Brazil as an
emerging market offers the potential for developing exponentially economically with the needed
market diversity Brazil offers for the EU and vice versa, that the context of relations is important
to understand the current and potential successes for trade. Geography may play a tiny minor role
due to previous relations, but with the technology of the contemporary information era, it may be
necessary to look further into diplomatic tones to understand current liabilities.
Trade and Relations
Europe is the crux of Western civilization from the philosophers of ancient Greece through the
conquest of the Roman Empire to the stark lack of innovation through the Middle Ages before
the rebirth that study and art brought within the Renaissance (Persson 2015). It was during this
era that a new form of imperialism began with the exploration of the ‘New World’ (Sadlier
2008). Brazil, a part of these explorative missions was a colony to Portugal and Spain separately
with brief moments of Dutch occupation. Trade between Brazil and Europe could not be
necessarily called trade, but more of an extension of the various empires and trade between the
empires were typically contrary. From various natural dangers in Brazil and on the sea to pirate
attacks crossing the sea, a ship would then arrive subjected to the fluidity of human history by
tariffs, conflict and adverse perceptions (Persson 2015). Brazil brought much in gold, textiles and
agriculture to Europe whereas Europe supplied little in technology throughout colonial history.
When Brazil gained independence, it soon adopted an isolationist policy (Sadlier 2008). Trade
between Brazil and Europe would come at a standstill with a total of a few decades of stable
international relations before opening it borders after World War I.
There is undeniably an underlying bitterness, but acceptance to Brazil’s colonial history that has
turned Brazilian foreign policy to be a bit more reserved with Europe at the adoption of the
League of Nations. During-, Brazil would make strides in industry and agriculture
through participating in the League of Nations and the Battle of the Atlantic throughout World
War II (Sadlier 2008). From- there were stable relations between Europe and Brazil,
effectively causing an economic boom in the 1950s when Brazil continued support from the
League of Nations to the United Nations, adopting an anti-communist mentality and supporting
various peacekeeping missions within the region of the Americas (Sadlier 2008). Curiously
following the trend of socio-economic rising and falling with the success of the government
structure, Brazil entered into a reign of a military dictatorship from- that stunted trade
relations with Europe and caused the agricultural industry to fall back on innovation. Although
after 1985, Brazil has made amazing feats in developing a democracy unique to it, trade with
Europe did not pick up until the 1990s.
Europe had to endure most of the conflict at the turn of the 20th century and face facts to adopt a
more proactive cooperative unit, which a few states decided would be through a trading bloc,
now known as the EU, developed between- (Persson 2015). This subsequently
influenced relations on the continent and their subsequent internal state politics throughout the
decades. However, what proved problematic with relations with Brazil were continued support of
Israel and its aggressive tactics to bring Holocaust war criminals to trial, the fall of the Western
empires maintaining control on their colonial territories after World War II and trying to
maintain control through anti-communist or pro-democracy measures, to the politicized and
opposing support of the Marinas/Falklands War (Persson 2015). What finally stabilized relations
came with deconstruction of the Soviet Union, issuing a standard monetary unit and by creating a
larger trading bloc by accepting former territories of the Soviet Union throughout the 1990s.
The 1990s is when emerging economies started rising, first trading with Japan and US before
moving onto the EU due to the expansiveness and the changing nature of the member states
(Gaulier, et al 2012). However, the EU had come to be perceived as a political-economic union
of sustainability, because all members had to agree to an outcome. This was considered a
sustainable system moving from the traditional framework of trade to a more beneficial
framework focusing on quality and variety. With this framework, it sufficiently propelled Brazil
towards innovation in technology advancements for the textile and agriculture industries and
helped the EU maintain production with the addition of more member states to its trading bloc
(Gaulier, et al 2012).
EU exports to Brazil make it the top trading partner for the state, whereas Brazil exports a
majority of the agriculture EU imports which contributes to the EU becoming the biggest
investor of the region and recently producing a surplus of goods between the usual trade deficits
in relations (Saraiva 2012). This general overview of success is dedicated to various agreements,
deals and courtesies made between the two trading partners. This has become predominantly
dominated by conversation in diplomatic policies that are overwhelmed with normative actors to
encourage environmental actions in these notable agreements for the sake to continue trade
between these big partners. As subtly mentioned above, the EU has become more than a trading
bloc within the past twenty years at the behest of various member states who find using the EU’s
normative power beneficial to promoting an ethical agenda and security stratagem that all
member states agree with in their relations, more specifically trade relations (Afionis and
Stringer 2014). This ethical agenda and security stratagem does not only promote a value image,
but encourages international cooperation and multilateral relations for the member states of the
EU. This is hypothetically ideal for Brazil that promotes a similar interest of multilateral
relations with an emphasis in international law, yet there have been a few roadblocks between
the two entities in trade relations, because of environmental concerns.
Most notable of encouraging trade relations between the EU and Brazil have been through
conversations around the UN Conference of Environmental Development in 1992, the Doha
Rounds, the World Summit on Sustainable Development in 2002 and the Strategic Partnership
Agreement in 2007 that has dominated foreign policy in the EU amidst trade relations. The
beginning of the EU focusing on the advantage of normative power began when promoting
environmental policies especially regards to Brazil’s deforestation and the effects on climate
change at the UNCED 1992, then later at the 2002 WSSD (Afionis and Stringer 2014). Although
beneficial to EU security by forcing international cooperation, the means have rarely been
effective and more of an aspiration that has compromised trade values with Brazil in the face of
losing the tradition of realpolitik (Afionis and Stringer 2014). This was seen in the Doha Rounds
when Brazil continuously requested fair liberalization of markets for those of developing nations
instead of the more industrialized countries greedily take opportunities from the weaker nations.
Brazil is noted for their activism within the World Trade Organization or in less formal areas and
their development as an emerging economy. As a developing nation and strong emerging
economy, Brazil was the perfect voice for the issue on agricultural protection in industrialized
nations (da Conceição-Heldt 2013). The growing realization of how internal structures can affect
foreign policy and decisions provided the roundabout to negotiating the eradication of industry
protection. Therefore, aims to achieve development goals with trade began with lining up certain
trade barriers to eradicating poverty in rural areas and maintaining a level of environmental
consciousness (da Conceição-Heldt 2013). The Doha Rounds strengthened the use of normative
power to the effect of bringing values to trade and diplomatic relations for a short time.
Following these agreements, the austere tone of the EU was lessened due to the financial crisis of
2008, but the values remain the same in the midst of trade relations between Brazil and the EU.
This brings a level of aggravation for Brazilian actors, due to the increasing and amiable
relations with Asia.
The emerging economies gained a reputation of stability for various markets due to the effects of
the financial crisis and a desire to find more leg room to bolster their economies around the
world, which is when Brazil entered the stage as a strategic partner for EU (Gaulier, et al 2012).
The EU has been noted to favouring interregional relations that makes them a predominate
partner and it was until within the past few decades that Brazil became a notable regional
hegemonic power worth the EU’s attention (Saraiva 2012). Relations within the EU are also
complex and sometimes contrary to the major role of the EU and the individualistic nature
unique to Brazil were cautionary with their old colonial trading partner. With the tentative grasp
of history and a legacy of periods of opening and closing doors, there is little wonder as to the
differing methods and values that are faced in the diplomatic conversations on trade relations.
The two may share principles, but they are not a dominate actor of concern within their foreign
relations, but they could be and be of mutual benefit to either party.
A Contemporary Situation
Trade is maintaining an important cornerstone to society, especially in the contemporary era with
the focus it has on the sustainable livelihoods of the people of a state. To encourage that
sustainability and the importance of trade, one aspect is through normative measures in lieu of
environmental policy in diplomatic and trade discussions. The EU and Brazil have a long history
together, practically over 500 years, and it would not be unusual to suggest that there are a few
common principles in spite of dissimilar routes of ideology and methodology. These principles
have shaped diplomatic and subsequently trade relations today, more specifically in the effect of
the agricultural technology industry. By facing and mitigating environmental concerns with new
technologies and concepts in agriculture, trade has boomed and fostered between the EU and
Brazil. Agriculture is a dominant industry of Brazil and of great importance for the EU for
sustainable growth in both markets. However, there have been moments of austere relations due
to diplomatic tensions, internal relations in both trading partners and developmental goals. The
EU and Brazil could find a mutually beneficial arrangement that is more amiable and less
restrictive to current values and goals, especially in regards to the agricultural technology
industry. Policy and international cooperation may break down geopolitical barriers, but there
will remain the issue of methodology and geographic logistics and internal relations as well as
foreign relations. The agricultural technology industry has developed with relations that were
forged from colonialism towards developmental success by access of the recent financial crisis.
If either partner were to embrace the growing research into technology and the vast multitude of
markets of a multi-polar world, then their environmental incentives could be achieved with
international cooperation. Instead of forcing superficial regulations, the EU could find that Brazil
is more receptive than China to environmental concerns and when relations have reached a more
amiable atmosphere, the EU and Brazil could use a cohesive normative approach to normalizing
environmental concerns through trade relations especially in the development of the agricultural
technology industry. Afionis and Stringer happen to offer a standard give and take method that is
mutually beneficial for the EU and Brazil by stating that the EU could offer technological and
financial expertise to various industries and projects that curb deforestation in Brazil, while
Brazilian biofuels could help alleviate dependence on fossil fuels. This is a stable and amenable
solution. However, current majority of interests and funding are streamed towards Asian
ventures and Brazil acknowledges this scenario by counteracting with focusing on other
developing nations that unfortunately do not have the funds to further research investment into
areas of concerns. Other solutions that could offer a potential for an increase in trading relations
between the EU and Brazil are by acknowledging that focusing too much of trade with China is
not beneficial to either partner and that there are concerns that could deconstruct relations if
those concerns are not stabilized in a formal manner.
What could derail relations between the EU and Brazil are generally as mentioned before the
development of trading avenues elsewhere around the world, another financial or internal
governance crisis and a strong state opinion on various oppositions to conflicts in the global
community. If the reduction of tariffs are not acknowledged in negotiation in further
conversations and a solution is not offered, this may increase a desire to focus more on Asia as a
new market which could destabilize the sustainability of markets within the EU and Brazil.
Mercosur, the regional trade union of Latin America, must also gain more teeth to its agreements
and potential capabilities in constructing its own normative power structure to become an
accessible trading bloc to the rest of the world. This could only benefit Brazil, who cannot work
alone against a trading bloc and help the EU maintain a stable relationship within the region. By
embracing that there are other emerging economies and markets within the world, it
acknowledges that there are other partners as well as finding stable regional hegemonies to work
with and not try to gain control over as in previous eras of imperial rule. The EU has made
several transitions from the past that this is only another concession for the livelihoods of the
people of Europe. Afionis and Stringer were not unwise to use a simple give and take method,
because it works and is a fair system to all parties involved. Like with any relationship,
communication and concessions are necessary to maintain a flexible and harmonious association
that could lead towards a mutually beneficial future.
REFERENCES
Afionis, S, & Stringer, L 2014, 'The environment as a strategic priority in the European
Union-Brazil partnership: is the EU behaving as a normative power or soft imperialist?',
International Environmental Agreements: Politics, Law & Economics, 14, 1, pp. 47-64.
da Conceição-Heldt, E 2013, 'The Domestic Sources of Multilateral Trade Negotiations:
Explaining Brazil's Negotiating Position in the Doha Round', International Trade
Journal, 27, 2, pp. 173-194.
Gaulier, G, Lemoine, F, & Ünal, D 2012, 'The rise of emerging economies in the EU15 trade',
European Journal Of Comparative Economics, 9, 2, pp. 133-175.
Persson 2015, Economic History Of Europe, n.p.: Cambridge University Press.
Sadlier, DJ 2008, Brazil Imagined : 1500 To The Present, n.p.: Austin : University of Texas
Press.
Saraiva, MG 2012, 'Brazil's Strategies and Partnerships: The Place of the European Union',
Perspectives: Central European Review Of International Affairs, 20, 2, pp. 45-62.
Schmidt Bassi, N, da Silva, C, Hinça Schneider, A, & Gomes de Carvalho, H 2014,
'Controversies about the Process of Technology Transfer from Public Research
Institutions in Brazil: The Case of the Brazilian Agricultural Research Corporation Embrapa', Journal Of Technology Management & Innovation, 9, 3, pp. 182-195.