MercoPress. South Atlantic News Agency

Brazil and US agree to boost trade and investments to celebrate 200 years of diplomatic relations

The Brazilian ministry of foreign trade, industry and commerce signed the agreement with the American Chamber of Commerce in Sao Paulo

Brazil and the United States will mark 200 years of diplomatic relations on Sunday, May 26. On this date in 1824 United States recognized Brazil’s independence, signaling the beginning of extensive political, economic, and cultural ties.

 

In celebration of such an event, Brazil's Foreign Trade Secretariat of the Ministry of Development, Industry, Commerce, and Services (Secex-MDIC) and the American Chamber of Commerce (Amcham) signed a memorandum in São Paulo with the purpose of conducting an unprecedented mapping of bilateral trade and investments between the two countries.

 

The study resulting from the partnership will provide detailed analyses of trade in goods and services, tariff structures, non-tariff barriers, and the socio-economic impact of Brazilian exports to the US. The report will include data on remuneration, gender composition, and the significance of trade for various cities and states.

“The United States stands out as our primary economic partner when we consider our trade in goods, services, and investments,” said Tatiana Prazeres, Foreign Trade Secretary at MDIC. “They are the primary destination for Brazilian exports of manufactured products and a crucial source of inputs for our industry. Likewise many small companies and regions in Brazil are involved in exports to the United States.”

Tatiana added that studies conducted in partnership with Amcham aim to identify opportunities to further strengthen this relationship. “This memorandum represents a significant milestone in our 200-year partnership with the United States. It underscores our commitment to promoting high-value-added trade and exploring new areas of cooperation,” said Abrão Neto, CEO of Amcham-Brasil.

In 2023, trade in goods between Brazil and the US totaled US$75 billion. US remains the second-largest destination for Brazilian exports, trailing China, and the third-largest supplier of foreign products to Brazil, with a 15.8% share of total Brazilian imports. The economic ties in the services and investment sectors are also significant.

According to the Central Bank, Brazil received US$10 billion in direct investments from the US in 2023. Over the past 10 years, this figure has reached US$ 91.9 billion. US investment in Brazil reached US$ 229 billion on 2022.