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Montevideo, October 7th 2022 - 01:52 UTC

 

 

Key trade deal between Brazil, US signed

Tuesday, September 20th 2022 - 09:36 UTC
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Bilateral trade between the US and Brazil amounted to over US$ 70.53 billion in 2021 Bilateral trade between the US and Brazil amounted to over US$ 70.53 billion in 2021

The governments of Brazil and the United States have signed a customs recognition agreement whereby companies from the South American country certified as authorized economic operators (AEO) will be able to export faster and with less red tape involved.

After seven years of negotiations, Brazil's Federal Revenue Service signed a mutual recognition agreement (MRA) with the US Customs. Through the deal, the two countries have formalized a partnership between their authorized economic operator programs.

Under these initiatives, the countries' customs recognize companies that operate the international supply chain with assurance of cargo safety and tax and customs standards. Adhesion to the program is voluntary.

Discussions between the technical teams of the Internal Revenue Service and the Customs and Border Protection Service of the United States Government began in 2015, with the signing of the joint work plan.

The Brazilian AEO program is compatible with the Customs-Trade Partnership Against Terrorism (C-TPAT), one of the largest supply chain security certification programs in the world.

Brazilian companies certified as AEO-Security will be recognized as safer and the number of thorough inspections of Brazilian exports to the United States will be lowered, it was explained. And whenever shipments from these companies are chosen for verification, they will be awarded priority status.

The United States is Brazil's second-largest trading partner, with 14% of the country's exports going there. In 2021, bilateral trade amounted to over US$ 70.53 billion, with exports worth US$ 31.15 billion and imports reaching US$ 39.38 billion.

According to Brazil's Economy Ministry, in the last three years, companies in the AEO program accounted for 17% of exports to the United States. The ministry added that the signing of the agreement should generate an increase in demand for AEO-Security certification among Brazilian companies.

(Source: Agencia Brasil)

 

 

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