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Brazil and USA conclude investment facilitation agreements

Posted by Rafael Moro
President Jair Bolsonaro said today (19) 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 practices and anti-corruption. "This triple package will be able to reduce bureaucracies and bring even more growth to our bilateral trade, with beneficial effects also for the flow of investments," he said.

Bolsonaro participated in the opening of the US-Brazil Connect Summit business conference on Monday, in a virtual way, and invited investors to examine the investment portfolio of the Investment Partnership Program (PPI), of concessions and privatizations of the federal government. 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”.

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For the president, “there is enormous potential” on 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 spoke about the signing of an agreement in the area of ​​Defense, with the opening of new opportunities for cooperation between the Armed Forces and the industries of both countries. "This is the first agreement of the modality that the United States has signed with a South American country, which also demonstrates the willingness of the American side to deepen the bilateral relationship," he said.

In the same sense, Bolsonaro said that Brazil's entry into the Organization for Economic Cooperation and Development (OECD) is “a firm purpose of the Brazilian State, for which we have been very committed, both at the technical and the political level”, with the support from the US government. "Brazil's entry into the OECD will generate positive effects for attracting national and international investments and will be further evidence of our willingness to assume commitments and responsibilities compatible with the importance of our country in the international system."

According to Bolsonaro, his approach to the President of the United States, 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 a future free trade between the two countries and to avoid double taxation. In the entity's assessment, although they do not deal with access to markets, the agreements address cutting-edge issues and enable cost savings and increased 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 the commercial operations carried out between the two countries," he 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 in costs and stimulating growth and job creation".

In 2019, the exchange of goods and services between Brazil and the United States was over US $ 100 billion in 2019.