Discusses key economic indicators and trade statistics, which countries are dominant in the market, the U.S. market share, the political situation if relevant, the top reasons why U.S. companies should consider exporting to this country, and other issues that affect trade, e.g., terrorism, currency devaluations, trade agreements.
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Brazil represents an excellent market for experienced U.S. exporters across various sectors. In addition to the domestic appetite for U.S. products and high opinion regarding their quality and value, there have been several significant national successes in the past two years:
- Open Skies: In May 2018, the U.S. and Brazil finalized the Open Skies agreement which expands opportunities for future air travel and commerce between the U.S. and Brazil.
- ATA Carnet: Brazil became the third country in Latin America to adopt the ATA Carnet which allows the free temporary entry of U.S. goods.
- Visa Requirement Waiver: Beginning June 17, 2019 U.S. citizens, with a valid passport, may travel to Brazil without a visa for tourism purposes. This also covers travelers’ transiting through Brazil. Visitors will be granted up to 90 days to stay, which can be extended once for the same period as long as it does not exceed 180 days within a 12-month period counted from the date of first entry.
- PPH: The U.S.-Brazil Patent Prosecution Highway (PPH) agreement which accelerates the examination process for corresponding patent applications filed in participating offices has been extended to April 2020.
Brazil is the largest country in South America. Following the United States, it is the second largest economy in the Western Hemisphere, and the eighth fastest-growing source of Foreign Direct Investment (FDI) in the United States in 2017, according to SelectUSA, the USG's investment promotion program. U.S. FDI in Brazil (stock) was $68.3 billion in 2017, a 2.8 percent increase from 2016. U.S. direct investment in Brazil is led by manufacturing, finance and insurance, and mining. According to the United Nations Council on Trade and Development World Investment Report 2018, global FDI destined to South America increased by 10 percent as recessions in the two leading South American economies, Argentina and Brazil, ended. Specifically, FDI in Brazil increased by 8 percent to $63 billion supported by a significant influx in the energy sector.
In 2018, Brazil was the United States’ ninth largest export market, and our second-largest trading partner. Last year, the United States exported $66.2 billion in goods and services to Brazil – up 4.2 percent from 2017, and imported $36.1 billion in goods and services from Brazil – up 3.1 percent from 2017. The primary products traded include crude oil, aircraft, iron and steel, and machinery.
Brazil was our 13th largest goods trading partner with $70.7 billion in total (two-way) trade in goods during 2018. As a result, the U.S. trade surplus with Brazil increased over 7 percent to $30.1 billion. In 2018, U.S. exports to Brazil accounted for 2.6 percent of our global exports, and imports from Brazil accounted for 1.2 percent of global imports. Industrial supplies and materials dominated, accounting for 29.3 percent of U.S. exports to Brazil, and imports were led by industrial supplies and materials, which accounted for 45.4 percent of U.S. imports from Brazil. In 2017, The direct investment position from Brazil in the United States was - $2.0 billion. (Source: U.S. Department of Commerce Bureau of Economic Analysis).
On January 1, 2019 Brazil inaugurated a new President Jair Bolsonaro who declared that Brazil wanted the U.S. to be Brazil’s number one trading partner – opening the potential for a stronger trade relationship with Brazil.