Brazil and US to draft thorough study on bilateral trade over 200 years of diplomatic relations

In celebration of 200 years of diplomatic relations between Brazil and the United States, the Foreign Trade Secretariat of the Ministry of Development, Industry, Commerce, and Services (Secex-MDIC) and the American Chamber of Commerce (Amcham) signed a memorandum on Tuesday (May 21) in São Paulo. This agreement aims to conduct an unprecedented mapping of bilateral trade and investments between the two countries.

The study resulting from this partnership will provide detailed analyses of trade in goods and services, tariff structures, non-tariff barriers, and the socio-economic impact of Brazilian exports to the USA. The report will include data on remuneration, gender composition, and the significance of trade for various cities and states.

Brazil and the United States will observe 200 years of diplomatic relations on Sunday, May 26. It was on this date in 1824 that the USA recognized Brazil’s independence, marking the beginning of extensive political, economic, and cultural ties.

“The United States stands out as our primary economic partner when we consider our trade in goods, services, and investments,” said Tatiana Prazeres, Foreign Trade Secretary at MDIC. “They are the primary destination for Brazilian exports of manufactured products and a crucial source of inputs for our industry. Moreover, many small companies and regions in Brazil are involved in exports to the United States.”

Tatiana added that the studies conducted in partnership with Amcham aim to identify opportunities to further strengthen this relationship.

“This memorandum represents a significant milestone in our 200-year partnership with the United States. It underscores our commitment to promoting high-value-added trade and exploring new areas of cooperation,” said Abrão Neto, CEO of Amcham-Brasil.

Bilateral Trade

In 2023, trade in goods between Brazil and the USA totaled $75 billion. The United States is the second-largest destination for Brazilian exports, trailing China, and the third-largest supplier of foreign products to Brazil, with a 15.8% share of total Brazilian imports. The economic ties in the services and investment sectors are also significant.

According to the Central Bank, Brazil received $10 billion in direct investments from the USA in 2023. Over the past 10 years, this figure reached $91.9 billion. The stock of US investment in Brazil was $229 billion as of 2022.

While the study sponsored by Amcham and the Brazilian government isn’t available to the public, a reliable alternative is to check Datamar data on the maritime flow of containers between the US and Brazil to get an idea of this bustling economic relationship. The following chart shows container exports and imports between the two countries from January 2021 to March 2024.

Brazil-US Trade: Container Exp & Imp | Jan 2021 – Mar 2024 | TEUs

Source: DataLiner (click here to request a demo)

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