The Future of US-Brazil Regulatory Cooperation

 

Brazil and the United States are responsible for the production of approximately 25% of the world's sustenance

Collectively, they contribute to the assurance of global food security and have established a reputation for sustainability innovation, which is a foundational element of our future. The vast territories and high domestic demand of both countries provide a sufficient scope to encourage investment in order to produce for export in the top agribusiness segments. Although there are certain areas in which they compete, they also complement each other in numerous ways. In recent years, these two agricultural powerhouses have been endeavoring to decarbonize transport and increase the sustainability of agriculture. These collaborative and independent endeavors involve research and development to mitigate greenhouse gas emissions from agriculture and adapt to climate change. Embrapa, a state corporation that prioritizes innovation, and private companies have a long history of collaborating to create biological fertilizers in Brazil. Brazil and the United States are currently in the process of establishing technological partnerships in order to decrease the consumption of chemical fertilizers.

For instance, the "Research and Efficiency for Fertilizer Production" initiative was initiated by the US Department of Agriculture, the University of Florida, and Embrapa last year. Bio-inputs, precision agriculture, big data, and AI are employed in this initiative to optimize soil management and nutrient distribution. Both nations are dedicated to luring investments from companies that utilize biological (non-synthetic) raw materials and inputs. Atlas Agro, for instance, is establishing green fertilizer facilities in Washington and Minas Gerais states to generate ammonium nitrate through water electrolysis, utilizing solar and wind energy. These new facilities will decrease emissions and decrease reliance on imported fertilizer. Supply disruptions during the pandemic and the conflict in Ukraine have underscored Brazil's vulnerability, as it imports 85% of its fertilizer supply and accounts for 8% of global fertilizer use. Brazil's national security and global food prices are contingent upon the expansion of domestic fertilizer production.The two nations are exploring methods to extend the efficacy of biofuels to other modes of transportation, including maritime and aviation, in addition to reducing the environmental impact of automobiles.

Last year, India, Brazil, and the United States announced the Global Biofuel Alliance

which aims to increase the production and consumption of biofuels, including the development of sustainable aviation fuel. Until recently, commercial aviation lacked technological alternatives to mitigate its carbon footprint, despite being accountable for 15% of greenhouse gas emissions in the transportation sector. However, the sector has perceived the potential to decrease its dependence on fossil fuels with the introduction of sustainable aviation fuel. LanzaJet inaugurated the world's first sustainable aviation fuel facility in Georgia in January. It will primarily rely on Brazilian sugarcane ethanol for the production of biofuel, leveraging the innovations at Brazilian sugarcane ethanol plants that have considerably reduced emissions. This is achieved in part by transporting cargo in vehicles that are powered by biodiesel or biomethane. These and other partnerships have illustrated the shared interests and complementary human and natural resources that will enable Brazil and the United States to continue to dictate the future of global food security and sustainable mobility.

Bilateral Economic Relations Between the United States and Brazil Brazil is the world's twelfth-largest economy, and the United States is its second-largest trading partner. In 2022, the United States had an aggregate trade surplus of $30 billion for goods and services, and two-way trade in goods and services totaled $120.9 billion. Brazil's primary imports from the United States are industrial and energy-related products, including refined fuel, natural gas, fertilizers, aircraft, and medical instruments. Brazil's second-largest export market is the United States. Crude oil, aircraft, iron and steel, coffee, and wood fiber are Brazil's primary exports to the United States. In 2021, Brazil received the highest amount of U.S. foreign direct investment in the world, totaling $191.6 billion.

The United States and Brazil engage in consistent government-to-government exchanges regarding a variety of subjects, such as environmental and labor standards, regulatory best practices, and trade facilitation. The 2011 Agreement on Trade and Economic Cooperation was updated in February 2022 by a new protocol that incorporated state-of-the-art provisions on Anticorruption, Good Regulatory Practices, and Customs Administration and Trade Facilitation. The U.S.-Brazil Energy Forum, Critical Minerals Working Group, Commercial Dialogue, and CEO Forum are bilateral mechanisms that convene cabinet officials and private sector executives to coordinate policy measures that can improve economic relations. In February 2022, U.S. Customs and Border Protection announced the establishment of a comprehensive Global Entry agreement with the Government of Brazil. This agreement is designed to facilitate the travel of Brazilian citizens to the United States for business or tourism.

Human Rights Relations between the United States and Brazil


Brazil and the United States have collaborated extensively on human rights. Since 2015, the U.S. and Brazil have maintained consistent communication regarding critical multilateral and bilateral issues through the U.S.-Brazil Global Human Rights Working Group dialogue.The United States and Brazil engaged in a discussion regarding their respective positions and potential for improved alignment within the United Nations, including the Security Council, General Assembly, and Human Rights Council. They also addressed bilateral concerns, including police violence and racial bias, gender equity, the protection of the rights of Indigenous peoples and environmental defenders, business and human rights, and the protection and promotion of religious freedom. This discussion took place the most recently in February 2022.

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