Brazil, U.S. Council push for Brazil Free Trade Agreement
According to American Shipper,
“With the Obama administration trying to round up votes in Congress to ratify the 12-nation Trans-Pacific Partnership Agreement and engaging in talks with the European Union to reduce barriers to transatlantic trade and investment, the Brazil-U.S. Business Council said a Brazil free trade agreement should be next on the agenda.
A fully implemented free trade agreement with Brazil would have a positive impact on the U.S. economy, wages and employment by nearly doubling exports there, according to a study the Chamber’s Brazil-U.S. Business Council commissioned from Trade Partnership Worldwide LLC.
Two-way trade between the United States and Brazil reached $108.3 billion in 2014, with U.S. export values ($70 billion) almost double those of imports. Exports to Brazil have grown 15 percent on an annual basis over the past decade. Key goods exports to Brazil include chemicals, petroleum, transportation equipment and machinery.
The study assumes an agreement will be able to fully eliminate tariffs in each nation and about half of the impact of non-tariff measures. Barriers are highest in the agricultural sector. A deal would benefit U.S. manufacturing the most, with agriculture under pressure from competition from Brazilian producers.”
“The private sector welcomes the reduction of barriers that would help boost trade and investment,” Tim Glenn, president of DuPont Crop Protection and chairman of the Council’s Trade Task Force, said. “It is time for the Brazilian and U.S. governments to begin a dialogue on a trade agreement that eliminates tariffs and reduces non-tariff barriers, which would have a net positive impact on the U.S. economy, consumer spending, bilateral as well as total exports and imports, employment and wages.”