As two of the largest economies in the Western Hemisphere, the United States and Brazil have a long history of trade relations. Over the years, the two nations have signed a number of agreements designed to promote trade and investment between them. In this article, we`ll take a closer look at the trade agreements between the US and Brazil, their impact on the two economies, and what the future may hold.
The US and Brazil have been trading partners for over a century. In recent years, however, the two countries have sought to deepen their economic ties through a series of trade agreements. One of the most significant of these agreements is the US-Brazil Commercial Dialogue, which was launched in 2006. The goal of this agreement is to promote bilateral trade and investment by addressing trade barriers and promoting regulatory cooperation between the two countries.
Another important agreement between the US and Brazil is the US-Brazil Open Skies Agreement, which was signed in 2011. This agreement allows airlines from both countries to operate in each other`s territories without restrictions, which has led to increased competition and lower prices for consumers.
The US and Brazil have also signed a number of agreements related to agriculture. In 2010, the two countries signed an agreement on food safety, which established guidelines for the exchange of information on food safety issues. They also signed a Memorandum of Understanding on Cooperation in Agriculture in 2011, which aimed to strengthen cooperation in areas such as research and development, trade promotion, and capacity building.
So what impact have these agreements had on the two economies? According to the Office of the United States Trade Representative, US exports to Brazil increased by 15% between 2015 and 2016, while Brazilian exports to the US increased by 20%. This suggests that the trade agreements are having a positive impact on both economies.
Looking to the future, there are several areas in which the US and Brazil could deepen their economic ties. One of the most promising areas is energy. Brazil is a major producer of ethanol and has vast oil reserves, while the US is a major consumer of energy. By promoting cooperation in the energy sector, the two countries could benefit from each other`s strengths and reduce their dependence on oil from other countries.
Another area of potential cooperation is technology. Both the US and Brazil have thriving tech sectors, and by promoting cross-border investment and collaboration, they could drive innovation and create new opportunities for growth.
In conclusion, the trade agreements between the US and Brazil have been a positive step for both economies. By promoting trade and investment, the agreements have helped to create jobs, increase competitiveness, and strengthen ties between the two nations. As the two countries look to the future, there are many areas in which they could deepen their economic ties and create new opportunities for growth.