U.S and Brazil sign new protocol on trade rules and transparency

Brazil/United States
Published:  28 October, 2020

Signed on October 19, the protocol updates the 2011 Agreement on Trade and Economic Cooperation (ATEC) with three new annexes comprising state-of-the-art provisions on Customs Administration and Trade Facilitation, Good Regulatory Practices, and Anticorruption.

According to the U.S. Administration, the ATEC allows engagement on a wide range of issues related to trade and investment and both nations will also continue to explore ways to increase trade in goods and services and encourage further investment. “From their first meetings, President Trump and President Bolsonaro have shared a vision for a prosperity partnership between the United States and Brazil and a desire for new trade initiatives”, said Trade Representative Robert Lighthizer, adding that the protocol “uses the existing ATEC to establish common standards for the two countries on efficient customs procedures, transparent regulatory development, and robust anti-corruption policies that will create a strong foundation for closer economic ties between our two countries.”

U.S. goods and services trade with Brazil totalled an estimated US$105.1 billion in 2019, with exports amounting to US$67.4 billion and imports US$37.6 billion. The U.S. goods and services trade surplus with Brazil was US$29.8 billion in the same year. Brazil is currently the 14th largest goods trading partner of the U.S., with US$73.7 billion in total (two way) goods trade during 2019. Goods exports totaled US$42.9 billion and goods imports totaled US$30.8 billion. In 2019, the U.S. goods trade surplus with Brazil was U$12.0 billion.