Trade Agreement Between Us And Brazil

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. Today`s agreement will help all traders who are looking for simpler customs procedures, more opportunities to participate in rule-making and more confidence in market rules. Looking to the future, the protocol is proof that Brazil and the United States are succeeding in deepening their trade relations in a way that benefits both countries. With regard to trade facilitation, the Protocol contains important provisions on preliminary rulings, sanctions, a single window of opportunity, an approved economic operator and automation that go well beyond the basis of the WTO trade facilitation agreement. With respect to good regulatory practices, this is the first subsequent agreement to use the CCA framework as defined in the USMCA. With regard to the fight against corruption, the protocol further expands the framework for both countries to include provisions on money laundering, confiscation of proceeds of corruption, denial of a safe haven for foreign officials who practice corruption and additional protection for whistleblowers. The new protocol also creates the necessary conditions for future discussions on deepening and extending work within the framework of ATEC. The two countries will also seek to identify priority sectors in order to continue to reduce trade barriers from a broader perspective on bilateral economic and trade relations. However, the revised protocol is not a comprehensive trade agreement.

The agreement does not include tariff reductions, measures to promote cooperation in strategic sectors such as energy or infrastructure or disciplines in the field of express shipments. In addition, the protocol does not address agriculture or digital trade issues, such as Brazil`s plan to impose an e-commerce tax, which has proven to be a focal point between the United States and a number of its trading partners. But a comprehensive free trade agreement between nations is unlikely in the near future, Lighthizer said at a virtual event organized this week by the U.S. Chamber of Commerce. “The reality is that there is currently no support for a free trade agreement within the Democratic Party in the United States,” he noted.