BrazilWorks
Information and Analysis about United States-Brazil Relations
Information and Analysis about United States-Brazil Relations
Trade and Development
| China Overtakes U.S. as Brazil’s Top Trade Partner |
In a "historic change" -- as the U.S. has been Brazil's biggest trading
partner since the 1930s -- China has become Brazil’s top trading partner.
The sum of Brazil's exports and imports with China reached $3.2 billion
in April, over the $2.8 billion in its trade with the U.S. in a trend that the
Brazilian trade minister is predicting will continue throughout 2009.
Read more from the Latin American Herald Tribune.
Read more about Brazil-China trade here.
partner since the 1930s -- China has become Brazil’s top trading partner.
The sum of Brazil's exports and imports with China reached $3.2 billion
in April, over the $2.8 billion in its trade with the U.S. in a trend that the
Brazilian trade minister is predicting will continue throughout 2009.
Read more from the Latin American Herald Tribune.
Read more about Brazil-China trade here.
 | |  | |  | |  | |  | |  |
United States-Brazil Trade in 2008*
billion. This change was driven by rising U.S. exports of nuclear reactor equipment, electronics, and plastics as well as falling Brazilian imports of tin, plastics, vegetable oils and fibers, cereals and grains, ceramics, textiles, furniture, among other commodities and low value added manufactured goods. Read more.
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United States
Government
Resources on
Brazilian
Economic
Development
and Trade
2008 U.S. Foreign
Agricultural
Service (FAS)
Agricultural
Economy and
Policy Report,
February 2009
2007 United States
Trade
Representative
(USTR) Report on
Brazil
Government
Resources on
Brazilian
Economic
Development
and Trade
2008 U.S. Foreign
Agricultural
Service (FAS)
Agricultural
Economy and
Policy Report,
February 2009
2007 United States
Trade
Representative
(USTR) Report on
Brazil
| BrazilWorks P.O. Box 65630 Washington, D.C. 20035 Tel. 202-744-0072 www.brazilworks.org |
| Recommended Reading Globalization from a World-System Perspective: A New Phase in the Core– A New Destiny for Brazil and the Semiperiphery? by Kathleen Schwartzman, Ph.D. University of Arizona Brazil: FTA or FTAA or WTO? by Albert Fishlow, Ph.D. Columbia University Trade Policy in Brazil. What is the Agenda? by Mauricio Mesquita Moreira Inter-American Development Bank Economic Relations between Brazil and China: A Difficult Partnership by Alexandre Freitas Barbosa e Ricardo Camargo Mendes, Prospectiva Consultoria Brasileira |
U.S.-Brazil Trade Facts
U.S. goods and services trade with Brazil totaled $64
billion in 2007 (latest data available). Exports totaled $34
billion; Imports totaled $30 billion. The U.S. goods and
services trade surplus with Brazil was $5 billion in 2007.
Brazil is currently our 11th largest goods trading partner
with $63 billion in total (two ways) goods trade during
2008. Goods exports totaled $32 billion; Goods imports
totaled $30 billion. The U.S. surplus with Brazil was $1.8
billion in 2008.
Trade in services with Brazil (exports and imports)
totaled $13.8 billion in 2007 (latest data available).
Services exports were $9.8 billion; Services imports were
$4.0 billion. The U.S. services trade surplus with Brazil
was $5.8 billion in 2007.
Exports
Brazil was the United States' 9th largest goods export
market in 2008.
U.S. goods exports to Brazil in 2008 were $32.3 billion,
up 31.2% ($7.6 billion) from 2007, up 299% from 1994 (the
year prior to Uruguay Round). U.S. exports to Brazil
accounted 2.5% of overall U.S. exports in 2008, up from
1.6% in 1994.
The top export categories (2-digit HS) in 2008 were:
Machinery ($6.7 billion), Aircraft ($5.6 billion), Electrical
Machinery ($3.5 billion), Mineral Fuel ($2.2 billion), and
Organic Chemicals ($2.1 billion).
U.S. exports of agricultural products to Brazil totaled
$677 million in 2008. Leading categories include: wheat
($295 million), cotton ($27 million), dairy products ($24
million) feeds and fodders (excluding pet foods) ($24
million).
U.S. exports of private commercial services* (i.e.,
excluding military and government) to Brazil were $9.8
billion in 2007, 30.7% ($2.3 billion) more than 2006 and
164% ($6.1 billion) greater than 1994 levels. Other private
services (business, professional, and technical services)
and travel categories accounted for most of the U.S.
exports in 2007.
Imports
Brazil was the United States' 16th largest supplier of
goods imports in 2008.
U.S. goods imports from Brazil totaled $30.5 billion in
2008, a 18.8% increase ($4.8 billion) from 2007, and but up
250% over the last 14 years. U.S. imports from Brazil
accounted for 1.5% of overall U.S. imports in 2008, up
from 1.3% in 1994.
The five largest import categories in 2008 were: Mineral
Fuel and Oil (crude) ($8.8 billion), Iron and Steel ($3.2
billion), Machinery ($2.7 billion), Aircraft ($2.3 billion),
and Woodpulp ($858 million).
U.S. imports of agricultural products from Brazil totaled
$2.6 billion in 2008, the 6th largest supplier of Ag imports.
Leading categories include: coffee (unroasted) ($725
million), tobacco ($304 million), red meats
prepared/preserved ($303 million), and fruit and vegetable
juices ($302 million).
U.S. imports of private commercial services* (i.e.,
excluding military and government) were $4.0 billion in
2007 (latest data available), 21.5% ($711 million) more
than 2006 and up 339% ($3.1 billion) from 1994 level. The
other services category (business, professional, and
technical services, and telecom services) led U.S. services
imports from Brazil.
Trade Balance
The U.S. surplus with Brazil was $1.8 billion in 2008. It
was a deficit of $1.0 billion in 2007.
The United States has a services trade surplus of $5.8
billion with Brazil in 2007 (latest data available).
Investment
U.S. foreign direct investment (FDI) in Brazil (stock) was
$41.6 billion in 2007 (latest data available), up 25.6% from
2006.
U.S. direct investment in Brazil is primarily concentrated
in the manufacturing sector.
Brazil FDI in the United States (stock) was $1.4 billion in
2007 (latest data available), up 33.7% from 2006.
Brazil direct investment in the U.S. is reported mostly in
the banking sector.
Sales of services in Brazil by majority U.S.-owned affiliates
were $17.7 billion in 2006 (latest data available), while
sales of services in the United States by majority
Brazil-owned firms were $995 million.
-------------------------------------------------------------------------
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*NOTE: Refers to private services trade not including U.S.
Military sales, direct defense expenditures, and other
miscellaneous U.S. Government services.
U.S. goods and services trade with Brazil totaled $64
billion in 2007 (latest data available). Exports totaled $34
billion; Imports totaled $30 billion. The U.S. goods and
services trade surplus with Brazil was $5 billion in 2007.
Brazil is currently our 11th largest goods trading partner
with $63 billion in total (two ways) goods trade during
2008. Goods exports totaled $32 billion; Goods imports
totaled $30 billion. The U.S. surplus with Brazil was $1.8
billion in 2008.
Trade in services with Brazil (exports and imports)
totaled $13.8 billion in 2007 (latest data available).
Services exports were $9.8 billion; Services imports were
$4.0 billion. The U.S. services trade surplus with Brazil
was $5.8 billion in 2007.
Exports
Brazil was the United States' 9th largest goods export
market in 2008.
U.S. goods exports to Brazil in 2008 were $32.3 billion,
up 31.2% ($7.6 billion) from 2007, up 299% from 1994 (the
year prior to Uruguay Round). U.S. exports to Brazil
accounted 2.5% of overall U.S. exports in 2008, up from
1.6% in 1994.
The top export categories (2-digit HS) in 2008 were:
Machinery ($6.7 billion), Aircraft ($5.6 billion), Electrical
Machinery ($3.5 billion), Mineral Fuel ($2.2 billion), and
Organic Chemicals ($2.1 billion).
U.S. exports of agricultural products to Brazil totaled
$677 million in 2008. Leading categories include: wheat
($295 million), cotton ($27 million), dairy products ($24
million) feeds and fodders (excluding pet foods) ($24
million).
U.S. exports of private commercial services* (i.e.,
excluding military and government) to Brazil were $9.8
billion in 2007, 30.7% ($2.3 billion) more than 2006 and
164% ($6.1 billion) greater than 1994 levels. Other private
services (business, professional, and technical services)
and travel categories accounted for most of the U.S.
exports in 2007.
Imports
Brazil was the United States' 16th largest supplier of
goods imports in 2008.
U.S. goods imports from Brazil totaled $30.5 billion in
2008, a 18.8% increase ($4.8 billion) from 2007, and but up
250% over the last 14 years. U.S. imports from Brazil
accounted for 1.5% of overall U.S. imports in 2008, up
from 1.3% in 1994.
The five largest import categories in 2008 were: Mineral
Fuel and Oil (crude) ($8.8 billion), Iron and Steel ($3.2
billion), Machinery ($2.7 billion), Aircraft ($2.3 billion),
and Woodpulp ($858 million).
U.S. imports of agricultural products from Brazil totaled
$2.6 billion in 2008, the 6th largest supplier of Ag imports.
Leading categories include: coffee (unroasted) ($725
million), tobacco ($304 million), red meats
prepared/preserved ($303 million), and fruit and vegetable
juices ($302 million).
U.S. imports of private commercial services* (i.e.,
excluding military and government) were $4.0 billion in
2007 (latest data available), 21.5% ($711 million) more
than 2006 and up 339% ($3.1 billion) from 1994 level. The
other services category (business, professional, and
technical services, and telecom services) led U.S. services
imports from Brazil.
Trade Balance
The U.S. surplus with Brazil was $1.8 billion in 2008. It
was a deficit of $1.0 billion in 2007.
The United States has a services trade surplus of $5.8
billion with Brazil in 2007 (latest data available).
Investment
U.S. foreign direct investment (FDI) in Brazil (stock) was
$41.6 billion in 2007 (latest data available), up 25.6% from
2006.
U.S. direct investment in Brazil is primarily concentrated
in the manufacturing sector.
Brazil FDI in the United States (stock) was $1.4 billion in
2007 (latest data available), up 33.7% from 2006.
Brazil direct investment in the U.S. is reported mostly in
the banking sector.
Sales of services in Brazil by majority U.S.-owned affiliates
were $17.7 billion in 2006 (latest data available), while
sales of services in the United States by majority
Brazil-owned firms were $995 million.
-------------------------------------------------------------------------
-------
*NOTE: Refers to private services trade not including U.S.
Military sales, direct defense expenditures, and other
miscellaneous U.S. Government services.
| Brazil: Foreign Trade Barriers Publication of the U.S. Trade Representative Brazil’s import tariffs range from 0 percent to 35 percent, with an average applied tariff rate of 11.5 percent in 2008. Brazil’s average bound tariff in the WTO is significantly higher at 31.4 percent. Given the fact that there are large disparities between bound and applied rates, U.S. exporters face greater uncertainty because Brazil has the ability to raise its applied rates to bound levels in an effort to manage prices and supply. Brazil is a member of the MERCOSUR common market, formed in 1991 and comprised of Argentina, Brazil, Paraguay, and Uruguay. MERCOSUR’s Common External Tariff (CET) averages 11.7 percent and ranges from 0 percent to 35 percent ad valorem, with a limited number of country-specific exceptions. Currently, Brazil maintains 100 exceptions to MERCOSUR’s common external tariff (CET). Tariffs may be imposed by each MERCOSUR member on products imported from outside the region which transit at least one MERCOSUR member before reaching their final destination. Full CET product coverage, which would result in duty-free movement within MERCOSUR, was originally scheduled for implementation in 2006, but has been deferred until December 31, 2009. High ad valorem tariffs affect U.S. exports across diverse sectors including automobiles, auto parts, electronics, chemicals, plastics, textiles, and apparel. |