The Impact of Regulatory Changes on US-Brazil Trade Relations

 

Relationships between the United States and Brazil

Political and economic relations between the United States and Brazil are profound and extensive. The United States was among the first countries to acknowledge Brazil in 1824, following Brazil's independence in 1822. The United States and Brazil are the largest democracies in the Western Hemisphere, and their partnership is founded on a shared commitment to sustainable economic growth and prosperity, the promotion of international peace, security, and respect for human rights, the protection of the environment and biodiversity, and strong defense, health, and security cooperation. 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. 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.

Preparedness and Response to the Pandemic

Brazilian partners, the government, and the private sector have collaborated extensively with the United States in the context of COVID-19 response efforts. In 2020 and 2021, the U.S. government allocated over $30 million in direct financing, while the U.S. private sector contributed over $75 million to combat COVID-19 in Brazil. In 2021, the United States government also donated three million doses of Janssen and 2.1 million doses of AstraZeneca vaccines. The U.S. Agency for International Development (USAID) donated 1,000 ventilators to Brazil in 2020 and provided over $9.5 million to support Brazil's COVID-19 response. This initiative leveraged private sector investments of over $3.5 million. Additional assistance of more than $18 million was provided by USAID in 2021 to assist Brazil in its COVID-19 response. Activities encompassed the provision of social safety net support, including food and hygiene packages to remote communities in the Amazon region, infection prevention and control, water and sanitation, microcredit, and risk communication and community engagement.

The U.S. Southern Command (SOUTHCOM) of the Department of Defense (DOD) provided personal protection equipment and sustenance to medical personnel in Manaus and the Amazon region in 2020. In the same year, the Department of Defense (DoD) provided funding for the research and development of a low-cost, patent-free emergency pulmonary ventilator that was developed by a team at the University of Sao Paulo's Polytechnic School. Field hospitals that can accommodate 40 patients, generators, and four ventilators for emergency response were donated by SOUTHCOM to the states of Maranhão and Minas Gerais in 2021. In early 2021, the U.S. Centers for Disease Control and Prevention (CDC) dispatched a team of technical experts to the Amazon region to aid in the investigation and identification of a new variant in response to a rapid increase in COVID-19 cases. Furthermore, the Centers for Disease Control and Prevention (CDC) has collaborated with Brazilian institutions to improve the capacity for genomic sequencing in Brazil, investigate the efficacy of vaccines, address infection prevention and control, and improve public health emergency response and management systems.

Climate Engagement Between the United States and Brazil Brazil's power generation matrix is among the most environmentally friendly in the world, with a significant emphasis on hydroelectric power and the expansion of solar and wind capacity. Brazil's borders encompass over 60% of the Amazon rainforest, a globally critical carbon reservoir. The Lula administration, despite the fact that deforestation rates have increased in the past decade, has pledged to achieve net zero emissions and end deforestation by 2050. The rate of deforestation has decreased by one-third in the first six months of 2023. Currently, the United States offers technical and financial assistance through a variety of channels, such as USAID programming. Additionally, the United States and Brazil are currently involved in ongoing technical discussions to identify bilateral and multistakeholder opportunities to improve the ambition of climate action, particularly by reducing deforestation.

Education and Cultural Cooperation between the United States and Brazil

Through investment and exchanges in education, culture, energy, health, agriculture, science and technology, English language training, and innovation, the United States and Brazil have a long history of people-to-people relationships. Exchanges between the United States and Brazil were attended by over 40,000 individuals, including students, scholars, instructors, and professionals. Since its inception in 1957, the Fulbright Commission, a binational organization, has facilitated student and research exchanges with more than 7,000 alumni. Through a diverse array of initiatives with public and private educational institutions nationwide, the development of English teaching and learning capacity persists. Brazilian university students are provided with information and opportunities to pursue their studies in the United States through forty-two EducationUSA centers. EducationThe Opportunity Funds program in the United States provides Brazilian students from diverse, underprivileged backgrounds who have achieved high academic excellence with the necessary support to apply to U.S. colleges and universities. A platform for public diplomacy programming on key foreign policy priorities, such as promoting entrepreneurship, STEM education, the rule of law, and economic connections, is provided by Brazil's network of 35 American Spaces.