Brazil is the second largest economy in the hemisphere behind the United States, and the ninth largest economy in the world.
Larger than the continental United States, Brazil ranked as the United States' tenth largest export market for goods in 2017, importing US$ 37.1b in goods, a 23% increase from the previous year. Brazil is also a significant market for U.S. services, accounting for US$ 26.4b in exports. With a total of US$ 63.5b in trade in 2017, the United States is Brazil’s second largest trading partner behind China.
In 2016, the United States was the second largest goods exporter to Brazil, accounting for 16 percent of Brazil’s total imported goods.
Brazil’s population of 207 million is the fifth largest in the world, representing nearly 3 percent of global consumers.
Brazil is still recovering from the worst economic recession in its history, which presents a challenge to U.S. exporters. While initial forecasts estimated a 3% GDP growth for 2018, that figure has been reduced to 1.6% according to the Central Bank of Brazil, following a nation-wide truckers’ strike over fuel prices, unemployment rates around 13%, and declining investment in advance of an unpredictable election. Another notable challenge for potential exporters is the high-level of bureaucracy and taxation (known as “Custo Brasil”).
Despite the uncertainty, Brazil represents an excellent partner for experienced U.S. exporters across various sectors. In addition to the domestic appetite for U.S. products and high opinion regarding their quality and value, there have been several significant national successes in the past year:
Open Skies: In May 2018, the U.S. and Brazil finalized the Open Skies agreement which expands opportunities for future air travel and commerce between the U.S. and Brazil.
ATA Carnet: Brazil became the third country in Latin America to adopt the ATA Carnet which allows the free temporary entry of U.S. goods.
eVisa: The U.S. became one of only four countries allowed to participate in a pilot e-visa program which reduces the cost of a visa by 75% with a delivery timeframe of 3-5 business days.
PPH: The U.S.-Brazil Patent Prosecution Highway (PPH) agreement which accelerates the examination process for corresponding patent applications filed in participating offices has been extended to April 2020.
MISCELLANEOUS INVESTMENT FACTS
Brazil is also a traditional leader among emerging markets. A BRICS member, many multi-national companies consider it as an essential market for truly global businesses.
Brazil has a natural affinity for the United States and a high regard for U.S. made products, brands and technology.
The Brazilian Government is actively cultivating relationships with international and U.S. businesses and prioritizing macroeconomic stability.
Treaties and Cooperations
In 2011, the United States and Brazil signed the Agreement on Trade and Economic Cooperation to enhance cooperation on trade and investment between the Western Hemisphere's two largest economies. The agreement expands our direct trade and investment relationship by providing a framework to deepen cooperation on a number of issues of mutual concern, including innovation, trade facilitation and technical barriers to trade.
In January 2016, the United States Patent and Trademark Office and Brazil’s patent and trademark agency, INPI, launched the “Patent Prosecution Highway” (PPH) program, a fast-track examination agreement that allows the patent offices to leverage each other’s work product, and is a tool that will help improve patent quality and reduce Brazil’s backlog.
Brazil and the United States belong to a number of the same international organizations, including the United Nations, Organization of American States, Inter-American Development Bank, G-20, International Monetary Fund, World Bank, and World Trade Organization. Brazil traditionally has been a leader in the inter-American community, and is a member of the sub-regional MERCOSUR and UNASUR groups.
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