U.S. is said to see trade agreement with Brazil as unlikely – newspaper
RIO DE JANEIRO, BRAZIL – The desire of Jair Bolsonaro’s government to make a comprehensive free trade agreement with the US is unlikely in the current scenario.
The warning was given by a representative of President Biden’s administration, mentioning Bolsonaro’s record of actions in the environmental and social areas, as reported by “Inside US Trade“, a trade newsletter from Washington, considered trustworthy.
According to the report, during a virtual session organized by the Wilson Center in Washington last week, the Secretary for Bilateral and Regional Negotiations in the Americas, Ambassador Pedro Miguel Costa e Silva, stated that Brazil was in favor of a “broad and ambitious” trade agreement with the US. He added that if this were not feasible in the short term, a multi-track approach would be a good alternative.
However, Inside US Trade reported, the assistant US Trade Representative (USTR) for the Western Hemisphere, Daniel Watson, “threw cold water” on the possibility of an imminent trade deal. He noted that the Biden administration is prioritizing “domestic investment” before seeking any new trade agreement.
Moreover, the U.S. representative added that any negotiations with Brazil would be complicated because of concerns from members of the U.S. Congress about the actions of the Brazilian government under President Jair Bolsonaro.
“Complementarity” is another potential complication “whenever there is a suggestion of a free trade agreement with Brazil,” even more so since the two countries compete in some areas, “especially in agriculture.”
But the USTR representative expressed optimism in the development of ties between the two countries with the recent 2011 agreement update, which he said “essentially” replicated entire chapters of the US-Mexico-Canada Agreement at a “very high level” and demonstrated “our shared commitment to very high standards in these areas,” as well as “Brazil’s willingness to make changes to implement those high standards.”
Market Trade (US$ Mil) Partner share(%)
China 63,358 28.11
United States 29,860 13.25
Netherlands 10,126 4.49
Argentina 9,791 4.34
(Source: WITS Chart, 2019)
According to Inside US Trade’s reporting, Watson reiterated that “environmental, climate and labor issues will continue to be a very fundamental part of our discussion [with Brazil], even as we are looking for additional ways to seek progress on the regulatory agenda.”
While the U.S. keeps a low profile and considers itself in a position of strength, China is inexorably expanding its dominance as the most important trading partner of Latin America’s largest economy.
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This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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