Myron Brilliant, executive vice president and head of international affairs at the U.S. Chamber of Commerce, said there is more to be done with respect to important priorities, including digital commerce and express shipping. “We call on both governments to return to the negotiating table as soon as possible.” 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.” 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. Trump recently told reporters that his administration was working on a “free trade agreement” with Brazil. Two weeks before the U.S. election, the U.S. and Brazil agreed on a bilateral “mini” trade agreement to facilitate trade, strengthen regulatory practices and fight corruption, but the finest details of the agreement have yet to be disclosed. 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 United States engages with Brazil on trade and investment issues through a series of initiatives. Unlike a free trade agreement (FTA), there is no need for congressional approval, which can be a long-term process that provides no certainty about its approval. By describing the agreement as a contract between the parties, the government avoids congressional participation. The accords have given the Trump administration a series of quick victories and quick gains for American farmers, farmers, lobstermen and other areas that Mr. Trump has tried to support. But they have also drawn criticism from the industry for the omission of many sectors of the economy, especially in those where trade negotiations are the most difficult. Business leaders called on the government to continue negotiations on broader trade agreements. The new pact aims to remove trade barriers, strengthen regulation and fight corruption. U.S. trade in goods and services with Brazil totaled $105.1 billion in 2019. Exports totaled $67.4 billion; Imports totaled $37.6 billion. The U.S.
trade surplus with Brazil was $29.8 billion in 2019. But there are also some barriers. The United States opposes Brazil`s interest in involving Huawei Technologies, a Chinese giant, in the creation of 5G networks. In addition, Mr. Trump removed Brazil from the list of nations considered ready to develop, a name that grants certain trade privileges to the South American country. 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 announcement follows a series of other small trade deals announced by the Trump administration, including with Japan, China and the European Union. Unlike a comprehensive free trade agreement, these small agreements do not require congressional approval, which can put a deal on hold or collapse for many months.
The Trump administration has also sought a limited trade deal with India, but has yet to reach an agreement.