U.s. Brazil Trade Agreement

ATEC engages in a wide range of trade and investment issues. As the United States and Brazil implement today`s protocol, they will continue to look for ways to increase trade in goods and services and promote new investment. The new pact aims to remove trade barriers, strengthen regulation and fight corruption. The United States recorded a service surplus of $18 billion with Brazil in 2019, down 11.6% from 2018. 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. While bilateral discussions on a comprehensive trade agreement appear highly unlikely in the short to medium term due to strong opposition from Congress, the protocol could have a positive impact on bilateral trade flows over time – if implemented faithfully. The problems faced by businesses in the three areas covered by the protocol can create barriers to trade which, in many cases, are greater than tariffs in terms of market access. This is why stakeholders should use opportunities for formal and informal engagement during the implementation process (for example). (b) some provisions provide for transition periods) to develop new laws and policies and contribute to compliance with commitments, which will reduce the frequency of trade barriers and other bilateral irritations in the long term. Following the presentation of the new protocol by the USTR, The Chairman of the Trade Subcommittee of the House Ways and Means Committee, Earl Blumenauer, D-Ore.

issued a statement in which he highlighted concerns about the Brazilian government: “President Jair Bolsonaro`s abysmal record on human rights, the environment and corruption is the reason why the Ways and Means Committee Democrats have long opposed a trade agreement or an extensive economic partnership with Brazil.” 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.” Trump is looking for trade gains to convince voters that he can promote economic growth – in the face of the virus, U.S. GDP will fall by 4.3 percent this year, according to the International Monetary Fund (IMF).