February 10, 2023
The United States and Brazil enjoy one of the strongest and most robust economic relationships in the hemisphere. The United States is the main destination for Brazilian exports of value-added manufactured goods, which creates jobs for both Brazilians and Americans. Recent agreements to facilitate trade, once finalized, will help to advance our trade partnership, reduce barriers to trade, and facilitate investment.
Economic Growth
- In 2022, bilateral trade in goods between the U.S. and Brazil, as measured by MDIC, reached a new record of US$ 88.7 billion, exceeding the previous record from 2021 by 26%.
- 55% of Brazilian exports to the United States are in value-added goods and services, an important driver of job creation for Brazilians and Americans. Among the principal Brazilian exported products to the United States include aircraft and parts, semi-finished steel products, and partially manufactured wood products.
- According to the most recent report by the Central Bank of Brazil, the United States was the largest source of foreign direct investment stocks by final beneficiary with nearly R$ 1 trillion (nearly US$ 192 billion) in 2021, almost four times the amount of the next largest country source of investments.
- U.S. investments in greenfield initiatives are disproportionately higher than investments in this area from other foreign countries, which can help develop longer-term sustainable investment.
- All of Brazil’s unicorns, or startups valued at more than R$ 5 billion, have received investments from the United States.
- 80% of the top products (imports and exports) in major bilateral trade sectors saw an increase last year, a sign of mature growth and impressive potential in our commercial relationship.
- Brazilian companies continue to expand their presence in the U.S. market, either through purchasing U.S. companies or establishing their own businesses across a range of sectors including agriculture, food processing, and finance.
- American energy companies are deploying cutting edge technology alongside Brazilian partners to promote Brazil’s continued growth as one of the largest oil producers and exporters in the world.
- The U.S.-Brazil Energy Forum coordinates bilateral cooperation on energy security and technical exchanges and promotes private sector bilateral investment, such as in in renewable and nuclear energy that are providing clean sources of electricity to meet Brazil’s growing power needs.
- In August 2022, the Clean Energy Industry Dialogue (CEID) was launched as part of the Energy Forum to bring closer coordination among our two countries’ renewable energy private sectors.
- In 2022 Brazil was inducted into the Global Entry program, which facilitates business and personal travel to the United States.
- In 2022 the United States and Brazil signed an Authorized Economic Operator (AEO) Recognition Agreement, allowing for greater agility and predictability in cargo movement between the two countries. Over the past three years, Brazilian AEO Program-certified companies carried 17% of Brazilian exports to the United States.
- Brazil’s small business support service SEBRAE and the Organization of American States (OAS), in a project funded by the U.S. government, are implementing the U.S. Small Business Development Center (SBDC) methodology in Brazil, benefitting hundreds of Brazilian SMEs.
- The U.S.-Brazil Research, Development, Test and Evaluation Agreement, ratified in 2022 by Brazil’s congress, will enable collaborative efforts in basic, exploratory, and advanced technologies to a level enjoyed only by NATO allies and the closest strategic security partners of the United States.
- In 2020, the United States and Brazil signed a new protocol updating the 2011 Agreement on Trade and Economic Cooperation (ATEC), including three annexes focusing on trade facilitation and customs administration, good regulatory practices, and anti-corruption. The protocol was ratified by the Brazilian Congress and entered into force as a matter of international law in February 2022.
- The Brazil-U.S. CEO Forum is one of only a handful of CEO Forums we have with major economies around the world to provide private sector recommendations to both of our governments to improve the bilateral trade and investment environment.
- In 2021, Brazil became the first Latin American country to join the US-sponsored Artemis Accords, committing to the peaceful use of space and advancing bilateral and multilateral space cooperation.
- As two of the largest agricultural producers and exporters in the world, together the United States and Brazil feed nearly one quarter of the world’s population.
- The U.S. government was instrumental in establishing the Brazilian Agricultural Research Corporation (Embrapa), and both countries benefit from this collaboration. For example, USDA and Embrapa are collaborating on research to improve fertilizer efficiency, a major concern for both countries and which will lessen dependence on fertilizer globally, advance food security, and reduce greenhouse gas emissions.
COVID-19
- Through January 2022, the United States provided over $58 million in health and humanitarian assistance to mitigate the impacts of COVID-19 in Brazil. This assistance includes over 5 million vaccine doses, the provision of ventilators, two mobile disaster response hospitals, power generators, technical cooperation on vaccine readiness, prevention, and control of infections in health facilities, risk communication and community engagement for COVID-19 prevention and mitigation, and many other types of partnership.
Minerals
- The U.S.-Brazil bilateral Critical Minerals Working Group (CMWG), which convened most recently in January 2022, supports bilateral cooperation and supply chain diversification in critical minerals essential to the energy transition.
- The Department of State’s Energy Mineral and Governance Program (EMGP) offers technical capacity building to Brazil to increase mining sector governance and capacity on mineral economics and competitiveness, mine closure planning, tailings reuse, and mineral inventory structures.
Environment
- In January 2020, the U.S. Environmental Protection Agency (EPA) and Brazilian Environment Ministry signed a memorandum of understanding to strengthen and coordinate efforts to effectively protect our nations’ environments.
- Through the Partnership Platform for the Amazon (PPA), USAID is working with more than 30 Brazilian and international companies to jointly invest in and develop innovative solutions focused on sustainable development and conserving biodiversity and protecting forests and other natural resources.
- In 2022 USAID released a call for proposals to offer additional funding for environment-focused programs proposed by Brazilian entities.
- In 2022 USAID also launched a new loan facility for Brazilian SMEs, at least one third of which will be directed towards SMEs in the Amazon region. This initiative will support prosperity goals for communities that depend on the forest without necessitating its destruction.
- The Sustainable Value Chain and Territorial and Environmental Management in Protected Areas of the Brazilian Amazon benefits 400 traditional communities in the Legal Amazon by supporting sustainable development of value chains (including Brazil-nut, pirarucu fish, açaí fruit, and community-based managed timber) on Indigenous lands and other protected areas.
