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U.S.-Brazil Trade Agreement Talks
In recent years, the United States and Brazil have been intentionally deepening their partnership towards building a bilateral economic relationship.
In June of 2019, Brazil waived entry visa requirements for U.S. citizens. The main goal was to increase the number of tourists from North America to boost the Brazilian economy. Currently, Americans are the nationality with the second-highest volume of travelers to Brazil for tourism.
In March of 2020, this partnership moved from the political realm to the trade sphere. Presidents Donald Trump and Jair Bolsonaro met to discuss a trade agreement. According to the White House, “The two leaders focused on increasing economic prosperity, strengthening democracy, and promoting peace and security.”
The agreement between the countries is intended to facilitate trade regulatory practices and transparency. Both countries have agreed on taking steps to lower trade barriers for certain agricultural products, including wheat, pork, and beef.
The COVID-19 crisis did not stop the two countries from moving forward with the agreement. On April 17th, the United States Trade Representative announced that its representative and Brazil’s Foreign Minister held a conference call on which they reaffirmed the goal of finalizing the “ambitious economic and trade agenda” in 2020.
For the first time since 2011, these two nations are meeting to strengthen their trade relations. Although the agreement has not yet been established, the US-Brazil Commission on Economic and Trade Relations (ATEC) will continue to meet to finalize the agreement this year.
Even though Brazil still has a very protectionist market, under the government of Jair Bolsonaro, Brazil has been gradually walking towards a free trade market, and this potential Free Trade Agreement comes as a measure to adopt a more liberal stance for Brazil and its economic development.
To better understand how your company can benefit from this and other Free Trade Agreements, please contact consulting@allynintl.com to speak with a trade compliance expert.
Contributor: Mattheus Silva
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