Trade between Brazil and the USA is significant, with both countries being important trading partners. Brazil is the largest economy in Latin America, while the USA is the world’s largest economy, making their trade relationship significant for both nations.
In 2020, the total bilateral trade between Brazil and the USA was $57.3 billion, with Brazil exporting $27.6 billion worth of goods to the USA, and importing $29.7 billion worth of goods from the USA. The primary products exported from Brazil to the USA include agricultural products such as soybeans, coffee, and sugar, as well as iron and steel products, while the primary products imported from the USA to Brazil include machinery, electronic equipment, and vehicles.
Both countries have also signed several trade agreements and initiatives aimed at promoting trade and investment between them. For instance, the USA and Brazil have a bilateral tax treaty and a bilateral investment treaty aimed at reducing trade barriers and promoting investment. Additionally, Brazil is a member of the Mercosur trade bloc, which includes Argentina, Paraguay, and Uruguay, while the USA is part of the North American Free Trade Agreement (NAFTA), which includes Canada and Mexico. These agreements and initiatives provide a framework for expanding trade and investment between Brazil and the USA.
Understanding Trade with Brazil
Exporting from Brazil is regulated by various government agencies that enforce laws and regulations designed to promote fair trade and ensure that exported goods comply with international standards. Some of the regulations for exporting from Brazil include:
Export registration: Brazilian exporters must register with the Brazilian Foreign Trade Secretariat (SECEX) to obtain a registry number, which is required to export goods from Brazil.
Customs clearance: All exported goods must go through customs clearance, and exporters must provide the necessary documentation, including a commercial invoice, packing list, and bill of lading, to clear customs.
Compliance with international standards: Exported goods must comply with international standards, including quality, safety, and environmental standards. Depending on the product, exporters may need to obtain certifications or permits from relevant government agencies.
Export taxes: Some products may be subject to export taxes in Brazil, and exporters must pay these taxes to the government.
Export controls: Some products may be subject to export controls, and exporters must obtain the necessary licenses and comply with regulations related to these products.
Export financing: Brazilian exporters may qualify for government-backed financing through programs such as the Brazilian Development Bank (BNDES) to support their export activities.
It is essential for exporters to familiarize themselves with the regulations and requirements related to their products to ensure that their exports comply with Brazilian and international regulations. Additionally, working with a customs broker or trade consultant can help ensure compliance and navigate the exporting process.