Joesley travels with Lula to rearrange relations with China – 03/20/2023 – Market

Special adviser to the Ministry of Agriculture, businessman Carlos Ernesto Augustin, known as Teti, says that the trip of a delegation with more than 100 agribusiness representatives on the trip that President Luiz Inácio Lula da Silva (PT) will make to China represents a rearrangement of relations with the country.

The list of 102 names includes those of Joesley and Wesley Batista, executives at J&F, the parent company of JBS, who signed a whistle blowing agreement with the MPF (Federal Public Prosecution Service) and admitted participation in corruption cases.

The brothers, says Teti, are major meat exporters and have “billions of reais” in business with China. Therefore, they could not be left out of the entourage that goes to the Asian country.

“This is a rearrangement of Brazil’s international relations with China, and businessmen go there to do business,” says Teti, who directly advises Minister Carlos Fávaro (Agriculture) and worked in Lula’s presidential campaign.

Teti claims that the fact that the brothers signed a plea bargain and were indicted for crimes in which they profited in the financial market by having privileged information is not a reason for them to leave the entourage.

He recalls that Lula himself was arrested for accusations that were later considered invalid by the STF (Federal Supreme Court) and that this is not a reason why he cannot head the Executive.

Joesley and Wesley Batista closed a plea deal with the MPF (Federal Public Ministry) in 2017 in which they reported having received benefits in exchange for compensation to public agents.

In 2019, due to problems in the agreement signed with the MPF, the two were arrested and later released.

On another front, J&F signed a leniency agreement in 2017 and is now seeking to revise it to reduce by at least BRL 3 billion the total BRL 10.3 billion (in 2017 values) that it agreed to pay for involvement in corruption cases.

The Batista brothers are part of a list of another 100 agribusiness entrepreneurs who are going to China. They leave this Monday (20th) for a series of meetings with Chinese people and return next week.

Businessmen will travel on flights with similar schedules. Travel and accommodation costs will be paid by them, according to the Ministry of Agriculture. The role of the portfolio and the government, according to advisers, is to facilitate meetings and business that executives have with Chinese people.

In addition to the agro executives, at least another 50 industrialists are going to China. The list includes companies such as Embraer, Vale and some banks. This group is also expected to go earlier this week.

Lula, on the other hand, is scheduled to leave for the country on Friday (25). On the 28th, the president will hold a series of bilateral political meetings with the Chinese. On Wednesday (29), there will be an agenda with the participation of around 200 businessmen who are going to the country and Lula.

The president will return to Brazil on the 30th after passing through Shanghai, where he will meet former president Dilma Rousseff (PT), who will be confirmed head of the new Brics bank, and should make at least one stopover in the United Arab Emirates.

Lula has at least two intentions with the trip to China. One of them is to strengthen relations with the Asian giant, Brazil’s main trading partner, with whom it maintains a flow of R$ 125 billion.

On another front, the government is trying to pressure the Americans to offer new investment, trade and cooperation partnerships. According to aides, the idea is to get Americans to “put their hands in their pockets”.

Also going to accompany Lula on the trip are the presidents of the Chamber, Arthur Lira (PP-AL), of the Senate, Rodrigo Pacheco (PSD-MG), and 25 other parliamentarians.

The list includes, as the Panel showed, the president of the Brazil-China Parliamentary Front, Fausto Pinato (PP-SP), and of the Foreign Affairs Commission, Paulo Alexandre Barbosa (PSDB-SP), as well as leaders of parties such as the PT, PDT and PC of B.

Senator Renan Calheiros (MDB-AL), president of CRE (Commission on Foreign Affairs), and government leaders in Congress, Senate and Chamber, Randolfe Rodrigues (Rede-AP), Jaques Wagner (PT-BA), and José Guimarães (PT-CE), are also in the entourage.

The prediction is that Lula will sign a series of memorandums with China.