In 2011, the United States and Brazil signed the Trade and Economic Cooperation Agreement to improve trade and investment cooperation between the two largest economies in the Western Hemisphere. The agreement expands our direct trade and investment relations by providing a framework for deepening cooperation on a number of issues of mutual interest, including innovation, trade facilitation and technical barriers to trade. The government has not yet released details of the agreement with Brazil, but it appears even smaller than the agreements signed with China and Japan. It focuses on facilitating trade or harmonizing the methods used by the two governments to process goods crossing their borders, with the aim of facilitating trade between countries for businesses. It will also reduce regulatory barriers and strengthen rules to root out corruption. The pact, presented on October 19 at the U.S.-Brazil Connect Summit hosted by the U.S. Chamber of Commerce, aims to boost trade between the two nations. The announcement follows a series of other smaller trade agreements by the Trump administration, including with Japan and China. In February, Trump traveled to India to reach a similar deal, but he failed and the two have yet to reach a trade deal. 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. In 2018, Brazil was the 13th largest U.S.
trading partner in terms of products. This year, U.S. trade in goods and services with Brazil totaled $105 billion, U.S. exports, including fuel and aircraft, amounting to $67.8 billion and imports from Brazil, such as fuel and iron and steel, amounted to $37.2 billion. The U.S. trade surplus with Brazil was $12.0 billion in 2019, an increase of 46.6% ($3.8 billion) over 2018. 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. 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.” “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. The United States engages with Brazil on trade and investment issues through a series of initiatives. 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. On October 19, 2020, Brazil and the United States announced the signing of a protocol on trade rules and transparency (protocol). The Protocol updates the 2011 Agreement on Trade and Economic Cooperation (ATEC) between the two countries with new