Brazil’s GDP was predicted to be $1.8 trillion in 2019 (at current market exchange rates), with a real GDP increase of 1.1 percent and a population of 210 million. This can partly be attributed to the country’s strategic trading relationship with some countries. Some of the partnerships are highlighted in this article
Brazil – US
A variety of measures have been launched by the US to engage Brazil on trade and investment issues.
The United States and Brazil signed the Agreement on Trade and Economic Cooperation in 2011 to improve trade and investment cooperation between the two largest economies in the Western Hemisphere. The agreement strengthens our direct trade and investment partnership by establishing a framework for deeper cooperation on many subjects of common interest, such as innovation, trade facilitation, and technical trade obstacles.
In 2019, the United States goods and services trade with Brazil was anticipated to be worth $105.1 billion. Exports totaled $67.4 billion, while imports came in at $37.6 billion. In 2019, the United States goods and services trade surplus with Brazil was $29.8 billion.
Brazil is the US’s 14th largest goods trading partner, with total (two-way) goods trade of $73.7 billion in 2019. Exports of goods totaled $42.9 billion, while imports of goods reached $30.8 billion. In 2019, the United States goods trade surplus with Brazil was $12.0 billion.
In 2019, service trade with Brazil (exports and imports) was predicted to be worth $31.4 billion. Exports of services totaled $24.6 billion, while imports totaled $6.8 billion. In 2019, the United States’ services trade surplus with Brazil was $17.8 billion.
Chile – Brazil FTA
On January 25, the Free Trade Agreement between Brazil and Chile went into effect. The Economic Complementation Agreement No. 35, which Chile signed in November 2018, is an addendum to Chile’s Free Trade Agreement with Mercosur (ACE No 35), which was the first between Mercosur and a non-member country. Although the deal primarily pertains to commerce between Brazil and Chile, it has to be approved by all Mercosur members.
In 2021, the trade flow between Brazil and Chile surpassed the previous high of US$11.4 billion. Brazil has a positive balance of 2.5 billion dollars in this equation. Chilean exports contributed 2.49 percent of all Brazilian exports, while Chilean imports accounted for about 2.02 percent of total Brazilian imports. Crude oil and beef are the two most important export goods, accounting for 28% (U$1.94 billion) and 8% (U$563 million), respectively, of total exports.
Cargo transport vehicles (4.5 percent) and automobiles (4%), in particular, account for a significant portion of this trade. Copper, on the other hand, is Chile’s most important commodity, accounting for 44 percent of Brazilian imports ($1.9 billion).
Since 2014, zero tariffs have been applied to bilateral commerce between Brazil and Chile, meaning that the protocol has increased the benefits of this trade relationship. The treaty, which is divided into 24 chapters, covers a wide range of topics to facilitate and expand trade between the two countries.
Israel – Brazil
Israel and Mercosur inked a Free Trade Zone Agreement in December 2007, with Brazil being Israel’s major Latin American partner. Israel was the first extra-regional partner to reach an agreement with the economic union in this manner. The agreement intends to open the goods trade market, as well as rules of origin, safekeeping, technical and sanitary standards cooperation, technological and technical collaboration, and customs cooperation.
In terms of tourism, in 2012, 60,000 Brazilians visited Israel. 2013’s figure is 20% greater than last year’s. The Israeli Ministry of Tourism expects 140,000 Brazilians to visit Israel in 2014 as a result of this surge. The expansion of the Ministry of Tourism’s Representative Office in Brazil, as well as the facilitation of a route between Brazil and Israel, are the main initiatives, with Israeli airline El Al beginning operations in Brazil.
The leaders noted that exchanges between Brazil and Israel in the fields of science, technology, and innovation demonstrate synergies that exist in many areas that can and should be further explored to stimulate reciprocal investments that are below the level and complexity of the two countries’ economies.
