The US and Brazil – the two largest countries in the Americas – they are having a disagreement over a range of issues. The Stratfor intelligence network has an article about it for a very long time. Washington has urged free trade in the Americas, but has always faced opposition from Brazil.
Now the role has been swapped. Brazil began to promote free trade, and had to deal with an America that intends to pursue protectionism. Steel is only one of many disagreements between the two countries in the context of political conflicts that also divide Washington and Brasilia. This gives the two countries almost no chance to find an agreement soon.
For decades, the United States has encouraged Brazil to join the free trade area in the Americas. But Brasilia rejected Washington’s request. Instead, they seek to strengthen their regional leadership through the South American Common Market.
In addition, Brazilian industries – which benefit from protection measures. It has put pressure on the government to reject every free trade agreement with the US. Despite the lack of a free trade pact, Brazil and the United States share relatively close economic ties.
For Brazil, Washington’s desire to promote free trade in the Americas poses a threat to its ambition to establish a South American regional bloc with more autonomy. For example, Mercosur.
The United States is Brazil’s third largest trading partner after China and the European Union. However, contrary to trade relations with China and the EU. Brazil generally has a trade deficit with the US, although last year it had a trade surplus of US $ 2 billion with the US.
Mercosur has begun to reduce its opposition to trade liberalization since 2016. When leftist governments collapsed in Brazil and Argentina, paving the way for pro-free governments. As a result, over the past 18 months, Mercosur is pursuing trade negotiations with the EU, Canada and several other countries.