SAO PAULO, March 19 (Xinhua) -- Brazilian economist Antonio Marcio Buainain, a professor at the State University of Campinas, stated that countries in the Global South should implement national strategies to shield their economies and vulnerable populations from external shocks.
"In times of international instability and global inflationary pressure, the continuity of trade between major partners is fundamental to preserving food security and market stability," Buainain said while talking about the impacts of the Middle East turmoil.
He highlighted China's position as Brazil's top trading partner since 2009, deeming the current global situation as an ideal opportunity to deepen bilateral ties. Buainain suggested that cooperation between the two countries could expand beyond commodities to include more strategic cooperation in agricultural technology, sustainability, innovation and food security.
Buainain urged governments of Global South nations to adopt policies that protect the most vulnerable and preserve economic stability. He said that recurrent crises underscore the importance of long-term strategies, such as diversifying energy sources and strengthening food security, to reduce structural exposure to external shocks.
Buainain said that a prolonged conflict would be predominantly negative for Brazil, as rising energy and fertilizer costs would pressure agricultural production and fuel inflation. He also noted that the conflict could affect Brazilian agribusiness exports to the Middle East, a key market for products like corn and poultry.
Buainain praised Brazil's current measures, including cutting diesel taxes for food transport and imposing a levy on oil exports. He argued that state intervention to cushion external shocks is legitimate, while an oil export tax can boost domestic supply and moderate prices with minimal impact on companies. ■
