Understanding Brazilian Export Requirements for US Markets

 

The Western Hemisphere will witness a significant change in 2020

as uncertainty dominated headlines in 2019. This region witnessed the emergence of new governments, the intensification of trade tensions, and the mobilization of citizens to express their apprehensions regarding the status quo in 2019. The potential benefits of a more robust bilateral relationship between the United States and Brazil have been overlooked for an extended period. There is substantial potential to generate substantial advantages for both societies. It is imperative to optimize that potential. Despite the fact that the US and Brazilian governments and businesses have begun to capitalize on the synergies that the two countries share, there are still obstacles that impede a fully successful commercial reality. In both the short and long term, the United States and Brazil would benefit from a more robust and intimate trade and foreign-direct-investment relationship that would enhance growth and prosperity. Additionally, the expansion of the economic partnership would generate additional benefits, including increased prospects for strategic bilateral collaboration. This paper acknowledges that the present moment is ripe and that 2020 is a critical year for the substantive advancement of bilateral economic relations.

This paper, which builds upon the successes and progress achieved over the years, integrates the input and expertise of the US and Brazilian private sectors and policymakers to provide a renewed vision and new momentum for the enhancement of US-Brazil trade and foreign direct investment (FDI). It also supports concrete steps toward the deepening of the commercial relationship and establishes the groundwork for a potential free trade agreement (FTA) between the United States and Brazil. The two countries have a plethora of strategic and economic reasons to strengthen their commercial relations, as the global balance of power shifts, the world confronts new obstacles that could impede growth, and Latin America must navigate increased uncertainty in the face of new external shocks. Ultimately, this critical period will be further reassured by the establishment of stronger connections.

One cannot help but observe the trends that are profoundly reshaping the world order when they scan the global horizon today

Countries are reevaluating their strategies for collaboration and cooperation in response to the emergence of new global actors. The fourth industrial revolution has been initiated by the unprecedented pace of technological advancements, which have raised new inquiries regarding the most effective methods for addressing global challenges that are not limited by national borders. The marketplace and the universe are being impacted by these transformative trends. But change also presents a vast array of opportunities. The United States and Brazil are in an exceptional position to accelerate the development of a more robust bilateral economic relationship in this context. The Adrienne Arsht Latin America Center of the Atlantic Council, in collaboration with intellectual partners in Brazil and the United States, outlines the potential advantages of a more intimate economic partnership as the two nations contemplate achieving this objective. The objective is to establish new concepts and maintain momentum for the development of the bilateral relationship during a period of significant synergy between the leaders of the two countries.

The potential for the United States and Brazil to enhance their trade and FDI relations is illustrated in this paper, which was written by two US and two Brazilian experts. It specifically emphasizes the institutional obstacles and opportunities for reducing trade barriers and improving convergence in the immediate future. It also outlines the advantages of a comprehensive free trade agreement in the long term and the actions that the two countries can take to forge even stronger investment ties. This document, from a bilateral and non-partisan perspective, suggests short-term and long-term strategies for capitalizing on opportunities for increased engagement in order to emphasize the potential advantages of a more robust US-Brazil partnership and increased investment in various sectors of the economy. It also emphasizes the authors' perspectives on key themes and opportunities for specific industries through call-out boxes. The United States and Brazil have the opportunity to concentrate on significant, practical, short-term victories throughout 2020, which could serve as a foundation for the subsequent stages toward a comprehensive, long-term free trade agreement.

Among other areas, a multi-chapter trade enhancement agreement that could incorporate bilateral rules on customs administration and trade facilitation, good regulatory practices, technical barriers to trade, and digital trade is among the recommendations in the trade sector. The United States and Brazil should continue to collaborate with the private sectors of both countries to identify specific bottlenecks and work to finalize a mutual recognition agreement between national trusted traders or Authorized Economic Operator (AEO) programs. This will reduce trade uncertainty. The key to short-term success will be the expansion of digital documentation in bilateral commerce and the sharing of good regulatory practices, which includes the implementation of a whole-of-government approach, the conduct of impact analyses, and public consultations. The two nations should collaborate to progress beyond the pilot program and establish a fully-fledged Global Entry Program for pre-approved Brazilian travelers entering the United States. Additionally, negotiations should be initiated to prevent double taxation, and the implementation of a high-level mechanism at the vice presidential level to oversee the bilateral relationship (in coordination with existing dialogues and groups) should be considered.

In the areas of investment and trade policy coherence

the United States and Brazil have the potential to enhance their policy cooperation in third countries and international fora. Brazil's accession to the Organisation for Economic Co-operation and Development (OECD) should be further supported by the United States, as this would consolidate and energize significant economic domestic reforms in Brazil. The United States and Brazil should strive to initiate and conclude negotiations for a comprehensive free trade agreement (FTA) and bilateral investment treaty (BIT) beyond 2020, leveraging the momentum of short-term progress. The United States and Brazil require a bilateral trading system that is international rules-based, inclusive, transparent, and open in order to achieve sustainable growth and prosperity. This paper offers a novel viewpoint on the advantages of more robust trade and investment relationships between the two nations by elucidating the spillover effects of stronger connections from a bilateral perspective. The present is the ideal time to elevate the combined relationship to the next level.