Friday, May 31st 2013 - 07:34 UTC

Vice-president Biden praises and challenges Brazil; meets Rousseff on Friday

U.S. Vice President Joe Biden encouraged Brazil to open its economy further to keep up with free trade trends worldwide during a visit aimed at boosting business between the two largest economies in the Americas.

Full state visit to Washington in October for Rousseff, the first by a Brazilian leader in two decades

Much of the future relationship with the United States will depend on whether Brazil, whose economy still remains relatively protected by high tariffs and other barriers, can make trade easier, Biden said in a speech to local authorities and business leaders at a wharf by Rio's port.

Citing U.S. efforts to deepen trade and investment ties with China, Europe, and other, faster-growing countries on Latin America's Pacific coast, he pressed Brazil to keep up.

“It's up to Brazil to decide whether to pursue this path and seize the opportunities,” Biden said.

The three-day visit, part of a week-long swing by Biden through South America and the Caribbean, comes as Washington gears up for a state visit by President Dilma Rousseff later this year.

Brazil's economy, world's seventh-biggest, is slowly rebounding from a two-year lull following a decade of growth. Brasilia is seeking more clout with the United States and other major economies it increasingly sees as its peers.

After divergences over trade, Middle East policy and other differences during the administrations of their predecessors, Rousseff and U.S. President Barack Obama have gradually forged closer diplomatic ties in hopes that their nations can become larger markets for one another.

Rousseff, however, has remained a vocal critic of loose U.S. monetary policy, which she believes hurts Brazil's economy by strengthening its currency making Brazilian products more expensive abroad.

Nevertheless, the two countries have made incremental progress in commercial areas ranging from agriculture to energy to aviation and space technology.

Biden hailed the economic growth and social programs that over the past decade lifted 40 million Brazilians out of poverty. That success, he said, is a model for developing countries still struggling with the “false choice” between business-friendly policies and progressive social practices.

“You have demonstrated there is no need to choose between a market-based economy and smart social policies,” Biden said.

Biden urged Brazil, which has historically refrained from criticizing authoritarian regimes from Cuba to the Middle East, to be more vocal in the defense of democracy. While praising Brazil's successful emergence, Bided said “what goes with that is the worldwide responsibility to speak.”

In recent weeks, leaders of major U.S. and Brazilian companies have been lobbying both governments to work on more of the small agreements that over time could add up to wholesale progress for bilateral business.

Rousseff is expected to make a state visit to Washington in October, the first by a Brazilian leader in two decades. While she has already been on official business to the United States as president, the full state visit will last longer and involve more and closer diplomacy.

Biden toured a research facility operated by state-run energy company Petrobras. On Thursday he visited a hillside Rio slum before flying to Brasilia, the capital, for meetings Friday with Rousseff and Brazilian Vice President Michel Temer.

Among many pending business issues between the United States and Brazil are a longstanding effort to ease visa restrictions for travel between the two countries, lingering disagreements over trade barriers and a push by U.S. companies for protection of intellectual property rights in a Brazilian marketplace rife with pirated software and technology.

Meanwhile, Washington is still urging Brazil to back Boeing Co., the U.S. aerospace manufacturer, on a planned purchase to upgrade its fighter jet fleet. Brazil, for its part, is eager to get U.S. backing for long-coveted permanent seat on the United Nations Security Council.

After a visit by Obama to Brazil in March 2011, the White House said it recognized Brazil's ambitions at the United Nations, but stopped short of backing its call for a place on the council.
 

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1 Stevie (#) May 31st, 2013 - 07:55 am Report abuse
“Much of the future relationship with the United States will depend on whether Brazil, whose economy still remains relatively protected by high tariffs and other barriers, can make trade easier”

“You have demonstrated there is no need to choose between a market-based economy and smart social policies”

A protected market-based policy...

I'm inclined to agree.
2 manchesterlad (#) May 31st, 2013 - 12:13 pm Report abuse
Brazil´s economy grew over the last 10 years only due to it´s high tariffs & protectionist policies (similar to Argentina at the moment), if they remove these tariffs & enter free trade agreements with the US, Europe, China & the Far East, they will quickly lose their competitiveness & go back to selling their natural resources

This is the beginning of the end for the ´famous´ BRICS with S.Africa & India already showing slowdowns & will essentially leave only China as an economic power........however it´s only a matter of time before China too collapses under it´s own weight due to infrastructure problems & massive corruption!!!
3 Baxter (#) May 31st, 2013 - 01:03 pm Report abuse
2 Hope you are not right ! India, China and Brazil are good markets for the UK . We already have enough problems with the EU meltdown without a collapse in the other markets . My own idea is that China will be OK .Such a huge population and pragmatic leaders . India wobbles but then adjusts course . Not sure about Brazil . A good start would be to change the ever , or over , optimistic Finance Minister .
4 Conqueror (#) May 31st, 2013 - 01:11 pm Report abuse
Nope. It's either “protected” or “market-based”. The difference between “no guts” and “guts”. So, being LatAm, it'll be “no guts”. Because the “lats” have never understood “guts”. The ability to fight on when all hope has gone. And win! Look at all “contests” between “lats” and Brits. Who won? The Brits. Even the much-vaunted “victories” over Brits in 1806/7. Were they won by “lats”? Of course not. It was the French. Who are quite close to being Brits. Think about it. Britanny! All that's necessary is to look at history. Who beat the French, the Italians, the Spanish? And the Austrians, the Bulgarians, the Hungarians and the Romanians as well? And the Germans? And the Japanese? WE did. The Brits. In every area of endeavour, WE win. Because WE have guts. And “lats” don't.
5 Condorito (#) May 31st, 2013 - 01:21 pm Report abuse
1Stevie,
“A protected market-based policy...” ?
What they are headed for is a less protected market based policy.

2 manchesterlad
Brazil has grown because of the commodities boom (that looks to be winding down now) not because of protectionist policies. Protectionism has allowed their industry to survive and remain uncompetitive. If they remain as they are it is the “beginning of the end”. If they open up in a sensible manner they have a way forward.
6 Fido Dido (#) May 31st, 2013 - 02:59 pm Report abuse
“Much of the future relationship with the United States will depend on whether Brazil, whose economy still remains relatively protected by high tariffs and other barriers...”

Loud mouth and hypocrite Joe Biden does it again.

Brazil has the right to protect itself. Will the US ever play by their own rules they lecture to other nations? No, never, because it never did. The US should get rid of all its subsidies and all it's non on the books subsidies (bailouts through QE's) before it's “leaders” open their mouth. Brazil is neither interested to import finished products from the US, that are MADE IN China/Bangladesh/Vietnam (slavelandia). Brazilian cities and states aren't interested to become the new Detroit/Michigan and any other failed/bankrupted states in the US that continue to lose jobs (real manufacturing jobs) to “slavelandia”. Joe biden was there to open the borders so the US can use it to export itself out of this mess they are in. Dilma says: I'm already reforming my tax code, but some tarrifs stays, some will go up or down, and hell no for you trying to export yourself out of the mess you created yourself.

Brazil's growth story is a domestic story, and has a long way to go. Brazil's total exports (commodities, include agriculture, heavy machineries, software and value added products like weapons and airplanes, etc. source Government Central Bank Brazil) is less than 10% of total GDP, far less than nations like Canada, Peru, Chile and many more that are highly dependent on commodities. In other words, Brazil is one of the least globalized nation on this planet. It is a protectionist, just like South Korea and Europe (yes, include them in the Protectionist list) but open within the country. Their policy is simple, like to sell in Brazil? Produce it here completely or states and municipalities (their rights) might give you tax cuts for imports of components you need to finish the product inside their state. The Free trade that the US lectures, is bogus.
7 reality check (#) May 31st, 2013 - 03:01 pm Report abuse
Brazil will do what is good for Brazil and trade with the USA is good for them!
Not difficult it is it?
8 Captain Poppy (#) May 31st, 2013 - 03:38 pm Report abuse
Ficking dildo sounds upset Dilma is happy to deal with the USA.......lol
9 manchesterlad (#) May 31st, 2013 - 03:55 pm Report abuse
@5
The commodities boom over the last decade helped them establish their industry sector especially auto & aircraft manufacturing but these industries quickly became subject to protectionism to keep them viable

The problem now is with the slowdown in manufacturing they will have to rely more on their agribusiness with more & more competition coming from Argentina, Uruguay & even Paraguay!!!
10 reality check (#) May 31st, 2013 - 05:19 pm Report abuse
To be fair the are doing very welling he aerospace industry, they build reliable and fair priced aircraft. Not surprising they are doing well.
11 Baxter (#) May 31st, 2013 - 11:06 pm Report abuse
9 Yes , Paraguay too is having a commodity boom ! Brazil does have a very large problem with it's infrastructure - roads , railways and sea ports . The country has expanded economically very well but has not updated , or built , vital basic infrastructure . At the moment , like other countries in the ares , it is having a soybean boom . Problem , they can not ship it out quickly , because of outdated ports . Part of the problem is the unions but more could have been done .

Another problem is high prices of Brazilian products . Here in Paraguay GM Brazilian cars were the biggest sellers . Now Kia leads the way , due to price . Incredibly cars from the UK , made by Nissan and Toyota , are sold here at a reasonable price !
12 John III (Pope) (#) Jun 01st, 2013 - 06:43 am Report abuse
@2
High tariffs and protectionist policies. Sorta sounds like America doesn't it.

You need to worry about your own country before you worry about the PRC. We are going to bankrupt you as pay back.
13 Stevie (#) Jun 01st, 2013 - 07:15 am Report abuse
Globalized free market destroys local production. It outsources employment to the most profittable areas. If you control trade between blocs and apply a more free approach within them, you ensure the gains of free trade without having to pay the worst consequences.
Sure, economic progress and development, as some call it, may take longer, but why run into a wall when you can approach it more wisely?
Do we want the multinationals to empty the oceans for fish?
Do we want having to move to other continents in search for jobs or live in austerity?
Do we want to feed a market that is based on constant and never ending growth?
14 yankeeboy (#) Jun 01st, 2013 - 10:04 am Report abuse
stevie, You have no idea what you are talking about, what you are describing is EXACTLY why the Soviet Union collapsed. You can now show one time in history where what you are advocating has worked.

Your stupidity is flabbergasting
15 ChrisR (#) Jun 01st, 2013 - 05:44 pm Report abuse
13 Stevie

You HAVE moved to another continent!
16 Captain Poppy (#) Jun 01st, 2013 - 07:11 pm Report abuse
Do we want the multinationals to empty the oceans for fish?

I find that the majority of fishermen at Cape Ann, Gloucester(Massachusetts) and New Bedford are independent fishermen, not multinationals. We've done ok here in the Northeast, with exception of those draggers. Problem with international quotas is that they seldom take regions into account. We have so many damned dogfish one can walk from Block to the Vineyard. Talk to the Japanese about BFT, they alone are decimating them.

Do we want having to move to other continents in search for jobs or live in austerity?

You moved from your continent in search of a better life, Argentina is anti-bussiness.....lol

Do we want to feed a market that is based on constant and never ending growth?

You can always have a wonder economy like Argentina, a nice agrarian economy that is about to go head to head with Brazil.....I wonder who who will win?
17 Stevie (#) Jun 01st, 2013 - 07:12 pm Report abuse
No Chris, that was you.
Don't get old on me now...
18 Captain Poppy (#) Jun 06th, 2013 - 04:31 pm Report abuse
Seems after Brazil, the rest of Latam wants some USA......even Venezuela, everyone except...Argentina and Bolivia. love the USA, hate the USA and everything in between. Whatever your flavor, you need trade with the USA, China will not do as it has proven.

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