UK eyes Olympics to boost ties with Brazil-INTERVIEW

Trade the News

Saturday September 04, 2010 02:22:16 PM GMT

* UK sees Olympics as key to boost economic ties

* Part of new govt's drive on big emerging markets

* More Brazilian companies seen setting up in London

By Stuart Grudgings

RIO DE JANEIRO, Sept 3 (Reuters) - Britain can take advantage of major sporting events in coming years to boost ties with fast-growing Brazil as part of its drive to revive neglected relations with big emerging economies, Business Secretary Vince Cable said on Friday.

Rio de Janeiro will host the Olympics in 2016, four years after London, and Brazil is keen to learn from Britain's experience as it prepares to host the Games for the first time and invest heavily in stadium and transport infrastructure.

Britain is bidding to host the 2018 soccer World Cup, four years after Brazil hosts the event.

"They're just beginning the process of opening up tendering contracts for stadiums, stadium management, and stadium design," Cable told Reuters in an interview in Rio.

"Obviously that's a competitive process. It's not something you do on a favoritism basis, but British companies are very well placed and very interested."

British defense contractor BAE Systems PLC was in line to benefit from Brazil's growing defense spending while architecture firm Foster & Partners was in a strong position to win stadium contracts, Cable said.

The new British coalition government believes the previous Labour government failed to expend enough diplomatic energy on improving ties with big, emerging economies such as Brazil.

Prime Minister David Cameron took six cabinet members and more than 30 executives from British firms with him to India in July in a bid to revive economic ties with the Asian giant.

Cable has led a delegation of 26 British companies in recent days in meetings with business leaders and government officials in Sao Paulo, the capital Brasilia and Rio.

The visit resulted in the setting up of a chief executive forum made up of major Brazilian and British firms and a bilateral accord to end double taxation of airline crews that Cable hopes is a step toward a full mutual tax agreement.

British firms such as BG Group and Royal Dutch Shell Plc in the oil sector have a strong presence in Brazil, but ties overall have lagged. UK exports to Brazil more than doubled since 2004 to reach 1.7 billion pounds ($2.6 billion) in 2009. But they trailed French exports to Brazil by more than $1 billion in the first seven months of this year.

Major Brazilian firms, including oil giant Petrobras and stock market operator BM&FBovespa have set up offices in Britain, a trend that Cable said his government wanted to encourage.

"I've been talking to some of the big Brazilian companies who are now thinking outward, how do they become global players. London is a very good jump-off point for Europe and the rest of the world," he said. (Editing by Cynthia Osterman)

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