President Jair Bolsonaro said this Monday (19.191.2020) that representatives of Brazil and the United States concluded, just a few days ago, negotiations on three agreements demanded by businessmen from both countries, on trade facilitation, good regulatory and anti-corruption practices, according to the Brazilian government news agency.
"This triple package will reduce bureaucracy and bring even more growth to our bilateral trade, with beneficial effects also on the flow of investments," he said.
Bolsonaro participated today in the virtual inauguration of the US-Brazil Connect Summit business conference and invited investors to examine the investment portfolio of the Federal Government's Investment Partnership Program (PPI), concessions and privatizations. He highlighted the new business opportunities in the country, with the opening of the Brazilian natural gas market and the strengthening in the area of biofuels., “essential in this process of reforming our energy matrix.”
For the president, “there is enormous potential” in the cooperation agenda between the two countries and several areas of common interest. “For the future, we envision a bold tax agreement, a comprehensive trade agreement and a bold partnership between our countries to redesign global production chains,” he said.
During his speech, the president also He spoke about the signing of an agreement in the area of Defense, opening up new opportunities for cooperation between the Armed Forces and industries of both countries. "This is the first agreement of this type that the United States has signed with a South American country, which also demonstrates the willingness of the US side to deepen bilateral relations," he said.
In the same sense, Bolsonaro said that the entry of Brazil's membership in the Organization for Economic Cooperation and Development (OECD) is "a firm purpose of the Brazilian State", to which we have been very committed, both at the technical and political level,” with the support of the United States government. “Brazil’s entry into the OECD will generate positive effects for the attraction of national and international investments and will be further proof of our willingness to assume commitments and responsibilities compatible with the importance of our country in the international system.”
According to Bolsonaro, his rapprochement with US President Donald Trump inaugurated "a new stage in the relationship between the two largest economies and democracies in the hemisphere."
“The priority that Brazil gives to this relationship is clear and sincere. Since the beginning of my government, I have visited the United States on four occasions, and I have been with President Trump on all of them,” he said.
Private sector
For the National Confederation of Industry (CNI), The agreements are a cornerstone for future free trade between the two countries. and to avoid double taxation. In the entity's assessment, although they do not address market access, the agreements address cutting-edge issues and allow for cost savings and greater competitiveness in the relationship between the two countries.
“The reduction of bureaucracy, transaction costs and unnecessary delays related to the commercial flow of goods, based on trade facilitation measures, will provide greater competitiveness and efficiency to commercial operations carried out between the two countries,” it said in a note. On the other hand, the establishment of recognized good regulatory practices will contribute to promoting greater transparency, coherence and legal certainty for economic activity, with the consequent reduction of costs and stimulating growth and job creation.”
In 2019, the exchange of goods and services between Brazil and the United States exceeded US$100 billion in 2019.
Source: Brazil Agency
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