Trade Regulations

Brazil and the USA strengthen bilateral relations

May, 12, 2023 Posted by Lucas Lorimer

Week 202322

Representatives from the Brazilian government and the Brazil-US Business Chamber met on Thursday (05/11) to discuss topics of mutual interest in the area of trade and investment.

Both parties discussed renewing the Generalized System of Preferences (GSP). About 3.5 thousand products originating from developing countries can benefit from the North American GSP. For example, in 2021, the United States imported US$ 31.7 billion from Brazil, and 8% of these (US$ 2.5 billion) benefited from duty-free treatment via the GSP.

At the beginning of the meeting, Marcio Elias Rosa, the executive secretary of the Ministry of Development, Industry, Commerce, and Services (MDIC), highlighted the government’s actions to expand the insertion of Brazilian companies in bilateral trade with the US and the world. According to him, the new Brazilian government seeks to reconcile economic growth with social inclusion and sustainability.

“We are redesigning the Brazilian industrial policy, seeking a neo-industrialization based on digitalization and environmental sustainability that is able to generate technological development and innovation. We are focused on strengthening predictability and transparency, reducing barriers, simplifying procedures, and attracting new investments. Brazil must be the great protagonist of this moment of combating climate change and advancing in the use of renewable energies”, he stated.

Trade Exchange

In 2022, Brazilian exports to the United States grew 20% in relation to 2021, increasing from US$ 31 billion to US$ 37.4 billion. Thus, the participation of the USA in Brazilian exports rose to 11.2%, positioning itself as the 2nd destination for Brazilian foreign sales in the period. On the other hand, Brazil’s imports from the United States grew 30.3% in 2022, increasing from US$ 39.38 billion to USD 51.30 billion, making the USA the 2nd most significant supplier of goods to Brazil last year. With these results, the trade balance with the United States resulted in a deficit of US$ 13.87 billion in 2022. In 2021, there was a deficit of US$ 8.24 billion.

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