Brazil and the United States are the largest democracies in the Americas. Both nations have dynamic and diversified economies and share common values and interests. Their populations are ethnically and culturally diverse. The bilateral relationship is comprehensive and institutionalized, based on a solid history of partnership. In 2024 the two countries will celebrate the 200th anniversary of diplomatic relations between them.
The United States is the main destination for Brazilian exports of manufactured goods and the top source of foreign direct investment to Brazil. Several US companies have been present in the Brazilian market for more than a hundred years. At the same time, Brazilian corporations are also expanding their investments in the United States, in an effort to augment their scale of production, to acquire new technologies and to expand their activities worldwide. People-to-people ties have also gained importance through the increase in the number of business trips, student exchanges and cultural activities. The United States hosts the largest contingent of Brazilian expatriates, estimated at 1.9 million people.
Brazil and the United States engage on topics such as the defense of democracy, the fight against climate change, the promotion of human rights, the integration of value chains, trade facilitation, science, technology and innovation, and the strengthening of cooperation in the fields of energy transition, space, education, and culture.
At the invitation of President Biden, President Lula visited Washington, DC, on February 10, 2023. On the occasion, both leaders stressed that the strengthening of democracy, the promotion of respect to human rights and the fight against climate change are at the center of the bilateral agenda. They also decided to resume activities Brazil-U.S. High Level Working Group on Climate Change and revitalize the Joint Action Plan to Eliminate Racial and Ethnic Discrimination.
The constructive dialogue between Brazil and the United States benefits from the existence of various cooperation mechanisms. Among the main bilateral coordination forums, the following can be highlighted:
• U.S.-Brazil Climate Change Working Group;);
• Joint Action to Eliminate Racial and Ethnic Discrimination (JAPER);
• U.S.-Brazil Energy Forum (USBEF);
• U.S.-Brazil Clean Energy Industry Dialogue;
• U.S.- Brazil Commercial Dialogue;
• U.S.-Brazil Commission on Economic and Trade Relations;
• Consultative Committee on Agriculture;
• U.S.-Brazil CEO Forum.
In terms of trade, the United States is the second-largest trading partner of Brazil, and the main destination for Brazilian manufactured and semi-manufactured products. In 2022, bilateral trade flows reached an all-time record of $ 88.7 billion, representing a 25.8% increase relative to 2021. It is the first time bilateral trade surpassed the threshold of $ 80 billion. Out of the total, $37.4 billion corresponded to Brazilian exports (a 20.2% increase relative to 2021) and $51.3 billion to U.S. exports (a 30.3% increase in the same comparison).
According to data from the Brazilian Central Bank, the stock of U.S. direct investment in Brazil in 2019 totaled $191 billion, an increase of $68 billion or 55.3% relative to the previous year The amount represent 21.3% of total foreign direct investment in Brazil, placing the United States as the top source of foreign investments in the country, with a stock amoct four times greater than the next main source. According to data from SelectUSA, the agency charged to promote and facilitate business investment into the United States, Brazil’s investment stock in the U.S. reached $ 45.4 billion in 2021.The frequent and intense exchange of high-level visits between Brazilian and American leaders, as well as the wide-ranging formal mechanisms for dialogue established between representatives of the public and private sectors of the two countries, highlight the broad, dynamic and productive nature of the Brazil-US partnership.
A Brief History
§ The United States played a significant role in recognizing Brazil’s independence and establishing diplomatic relations, highlighting the historical ties between the two countries.
§ Brazilian foreign policy aimed to strengthen ties with the United States, making it our main trading partner.
§ The collaboration between Brazil and the US during World War II, including support for infrastructure modernization and military reequipment, showcases the significance of strategic alliances in times of war.
§ President Roosevelt advocated for Brazil’s inclusion as a permanent member of the UN Security Council, highlighting the early alliance between Brazil and the United States.
§ Brazil signed a military assistance agreement with the United States, supplying strategic minerals in exchange for training and equipping its Armed Forces.
§ The Pan-American Operation proposed by the JK government aimed to prevent the spread of communism in Latin America and required official investment from the United States for the development of Brazil and the region.
§ The extension of the Brazilian territorial sea to 200 nautical miles in 1970 led to protests from the Nixon government.
§ The United States is Brazil’s second largest trading partner and the main source of foreign investment in the country.
Source: GOV.BR