Us Brazil Free Trade Agreement

Brazil is currently our 14th largest trading partner with a total of $73.7 billion (two to two) merchandise trade in 2019. Exports of goods totaled $42.9 billion; Imports of goods amounted to $30.8 billion. The U.S. trade surplus with Brazil was $12.0 billion in 2019. The United States and Brazil signed a new protocol on trade rules and transparency and updated a 2011 agreement between the two countries, as announced by the U.S. Trade Representative`s Office on October 19. The roadmap or report entitled “Trade between the United States and Brazil: Improving Bilateral Economic Relations” is written by former U.S. and Brazilian politicians and private sector leaders. The USTR said the United States and Brazil would “continue to look for ways to increase trade in goods and services and promote new investment.” The new trade agreement may not resemble the U.S.-Mexico-Canada (USMCA) agreement, but it will boost trade between the two countries, analysts say. The pact, the latest in a series of “mini” trade deals falsified by the Trump administration, follows seven months of negotiations between the United States and Brazil and is coming in as President Trump looks forward to winning trade profits before the November 3 election. But it is not known to what extent the new agreement will stimulate trade between countries, as it is limited.

The U.S. trade surplus with Brazil was $12.0 billion in 2019, an increase of 46.6% ($3.8 billion) over 2018. The United States and China split this year on coronavirus, trade and Hong Kong. Shortly after a trade agreement was put in place in January, the global pandemic was declared in March, crippling economies around the world and putting pressure on national health systems. The Trump administration has often targeted China because of the virus – which is widely believed to have appeared in Wuhan late last year. At the summit, Pompeo also stressed the need for the United States and Brazil to reduce their dependence on imports from China for their own security. “To the extent that we can find ways to increase trade between our two countries, we can… Reduce the dependence of our two nations on critical objects,” he said, according to Reuters. Brazilian President Jair Bolsonaro said Monday at an event organized by the U.S. Chamber of Commerce that the agreement will “open a new chapter” in relations between the two countries. He said Brazilian and U.S.

officials concluded the negotiations “in record time” on a package that would “reduce bureaucracy and increase our bilateral trade.” The United States recorded a service surplus of $18 billion with Brazil in 2019, down 11.6% from 2018. Brazilian President Jair Bolsonaro comments on the agreement: “This triple package will be able to reduce bureaucracy and strengthen our bilateral trade, which will extend positively to investment flows.” According to Sergio Segovia, president of Apex-Brasil, Brazil`s investment promotion agency, the two countries are trying to develop their business partnerships, particularly in the services, agriculture and digital trade sectors. “From their first meeting, President Trump and President Bolsonaro shared a vision of a partnership for prosperity between the United States and Brazil and a desire for new trade initiatives. Today`s protocol uses the existing ATEC to establish common standards for both countries for effective customs procedures, transparent regulatory development and a robust anti-corruption policy that will provide a solid basis for closer economic relations between our two countries,” said Ambassador Robert Lighthizer.

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