Knowing How the Relationship Prospered
Brazil is the largest country in South America and the fifth largest in the world. It is the world's leading exporter of coffee, sugar and soybeans. Despite rich agricultural and mineral resources and a highly modernized industry, its growth is hampered by a large foreign debt. The country has now begun a drive to develop its vast resources and to industrialize. Nevertheless, Brazil is still a primary agricultural country with severe economic problems. Brazilian agriculture is largely inefficient and backward. Aside from coffee, sugar and soybeans which are not really of high quality, it also has other commercial crops like bananas, cacao, tobacco, maize, sugarcane and oranges. Brazil is now a more important livestock producer than Argentina, and is also Latin America's largest exporter of lumber. Iron and manganese ores are the mainstays of Brazilian mining. In fact, Brazil is estimated to have about 15% of the world's iron reserves. High-grade hematite has long been mined at Itabira, Minas Geria and in the Carajas Highlands. Brazil's leading industries manufacture processed foods, chemicals, textiles, metal products and machinery, transportation equipment and petroleum products. The country drastically reduced its dependence on imported petroleum in the 1980s through the use of Gasohol and hydroelectric power. Brazil has the longest road network in Latin America, as well as the most automobiles, trucks and buses. This paved the way to easier imports and exports of prime commodities. However, the once fundamentally strong economy was inflicted with a huge amount of debt aggravated by floods, drought and high inflation. Since agricultural commodities are highly valuable Brazilian exports, climatic conditions such as drought together with fluctuating world prices significantly altered the world trade picture. Right in the verge of these economic episodes, the United States provided support to Brazil's foreign trade capabilities. Both were seen to lead the Free Trade Areas of the Americas (FTAA). They have both benefited from each other in terms of international trade aspects as well as in political areas. They successfully crossed the bridge together and constantly shared the same boat. They have prospered in terms of their trade relations and as early as the 1990's, Brazil came back to its good position in global business. Major Exports and Imports for US and Brazil Brazil has considered the US to be its best foreign investor both on exports and imports. The United States have helped Brazil conquer its trade deficits which led to a good scheme of paying its debts from the World Bank. The facts and figures have the following data to show for the year 2006:
The United States have deemed it necessary to push foreign trade agreements in the South Hemisphere. This being the case, free trade agreements were set forth between the US and Brazil to strengthen the relationship that was not known to falter at all. In order to benefit from both ends, these countries attempted to make a resolved economic climate on the basis of the following:
Despite the persistence of both governments to fight the battle together, there are still issues which need to be resolved. The Doha Round, Free Trade Area of the Americas (FTAA) and the Mercosur all had their own things to say for both nations. They have created a fuss which affected some points of global trade:
There may be pressing problems brought about by regionalism that is why it is necessary that the partnership between Brazil and the United States be protected at all grounds. They have both taken advantage of the existence of one another, thus it is deemed necessary to counteract all hindrances to their trade. Their economies have bore abundant fruits and the only way to fulfill their dreams together is to stay intact no matter where the forces of nature would bring them. As of now, both countries are exerting a lot of logical attempts to stay together. In order to combat their war against terrorism, they have continually stood side-by-side to the warfare against money laundering and arms trafficking. They also regulated rules against drug incidence. These efforts will surely bind them together. Their unsettled disputes will remarkably be surpassed in the future. The World Trade Organization will surely help them break the walls that could be a known block to their camaraderie. Their hopes will never be gone as long as they believe that they could withstand all the challenges that the present holds and the future will bring. References |
Note: Trade statistics, industry links, economic projections and global business resources on this page have been compiled from hundreds of trade related websites, government guides and resources on the Internet. We provide this valuable information for industrial suppliers, manufacturers, exporters and importers seeking to enter or expland business opportunities in Brazil.
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