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Who Does Brazil Have Trade Agreements with

The new leaders in Argentina and Brazil, as well as the suspension of Venezuela, have given Mercosur the opportunity to revive its initial goals, analysts say. The bloc resumed trade talks with the European Commission in 2017 and officials reached a historic draft agreement in June 2019, twenty years to the day after negotiations began. The agreement, which eliminates tariffs on about 90% of Mercosur exports to the EU over a ten-year period and opens up public procurement to suppliers from both blocs, now needs to be ratified by all EU and Mercosur member states. Analysts warn that populist politicians and political interest groups on both sides of the Atlantic could once again delay progress. In South America, most of the trade mistrust comes from manufacturers, especially car manufacturers, which in the past were protected from European competition by high tariffs. In Europe, the agricultural sector is concerned about cheap imports from Mercosur countries. This is especially true in Belgium, France, Ireland and Poland, all of which have politically influential beef producers. Meanwhile, Brazil`s deputy economy minister announced that Mercosur was also negotiating free trade agreements with Canada and South Korea. The United States is working with Brazil on trade and investment issues through a number of initiatives. Brazil has taken a number of strategic measures related to the Foreign Trade Program to ensure better alignment with international standards, such as the introduction of electronic documents related to foreign trade and the simplification and modernization of the Brazilian customs system. Shannon K. O`Neil, Senior Fellow of the CFR, discusses trade relations between Argentina and Brazil in foreign policy. The EU is currently negotiating a free trade agreement with Brazil as part of the EU`s Association Agreement NEGOTIATIONS with the Mercosur countries (which also include Argentina, Uruguay and Paraguay).

Venezuela joined the four founding countries of Mercosur as a full member in 2012, but was suspended at the end of 2016. Today, the four have a combined gross domestic product (GDP) of about $3.4 trillion, making it one of the largest economic blocs in the world [PDF]. In contrast, Latin America`s second-largest trading group, the Pacific Alliance, which includes Chile, Colombia, Mexico and Peru, has a combined GDP of about $2 trillion. Mercosur was founded in 1991 when Argentina, Brazil, Paraguay and Uruguay signed the Treaty of Asuncion [PDF], an agreement calling for the “free movement of goods, services and factors of production between countries.” The four countries agreed to abolish tariffs, introduce a common external tariff of 35% on certain imports from outside the bloc and pursue a common commercial policy towards third countries and blocs. The founding members hoped to create a common market similar to that of the European Union and were even considering introducing a common currency. According to the World Bank, Brazil was the 12th in 2020 with a gross domestic product of $1.445 million. 2 The country has also been a member of the World Trade Organization (WTO) since 1995 and adopts all its multilateral agreements, including those relating to trade measures. In 2020, the country`s trade balance posted a surplus of US$50.9 billion, an increase of US$2.9 billion compared to 2019.3 Despite the common interest of the bloc countries in concluding the trade agreements between Mercosur and the European Union and the EFTA countries, the Brazilian government lobbied for the adoption of measures, which allow Mercosur member states to negotiate trade agreements individually. Brazil has also participated in the negotiation and adoption of other types of international agreements, in particular with regard to investment facilitation. Unlike a traditional bilateral investment agreement, Brazil has concluded investment cooperation and facilitation agreements with Angola, Chile, Colombia, Ethiopia, Guyana, India, Malawi, Mercosur (Argentina, Paraguay and Uruguay), Mexico, Mozambique, Peru and Suriname. As soon as the SDCOM decides to open an investigation, a public announcement will be published in the Brazilian Official Gazette with a summary of all relevant information of the proceeding, including a list of known interested parties.

All known interested parties (including foreign governments, foreign exporters and producers, importers and domestic producers) will receive an official letter informing them of the initiation of an investigation. This Atlantic Council conference call examines what a mercosur-EU trade agreement could mean for the international trade order. Mercosur signed economic cooperation agreements with Bolivia, Chile, Israel and Peru in its first decade, while trade within the bloc grew from $4 billion in 1990 to more than $40 billion in 2000. The Group also began trade negotiations with the European Union in 1999. These talks stalled for many years before regaining momentum in recent years. The U.S. goods trade surplus with Brazil was $12.0 billion in 2019, an increase of 46.6 percent ($3.8 billion) from 2018. Brazil is a member of the Mercosur trade bloc, which has its own regional standardization organization that issues and harmonizes standards. Technical committees develop and recommend standards in certain areas. Each country must ratify the standard before it is adopted in that country. A number of standards have already been adopted as Mercosul standards.

The standards adopted and proposed by Mercosur are listed on the Mercosur website. The Executive Secretariat of the Mercosur Organization for Standardization is located in São Paulo, Brazil. “Mercosur had big ambitions,” says Shannon K. O`Neil of CFR. “It should be a customs union with a political side.” The Mercosur stamp is engraved on the passports of member countries and the license plates bear the Mercosur symbol. The inhabitants of the block have the right to live and work anywhere in it. In 1994, the group signed the Protocol of Ouro Preto, which formalized its status as a customs union. Brazil is also facing a period of wait-and-see within Mercosur. Since Mercosur came under the jurisdiction of LAIA, Brazil has been involved in several trade agreements with LAIA members. Mercosur has concluded free trade agreements with Bolivia (ECA No. 36/1997), Chile (Economic Complement Agreement (ECA No.

35/1996), Colombia, Ecuador and Venezuela (ECA Nos. 59/2005, 69/2014 and 72/2017), Cuba (ECA No. 62/2007), Egypt (Free Trade Agreement, 2017), India (Preferential Trade Agreement (ACP, 2009), Israel (Free Trade Agreement, 2010), Mexico (ECA Nos. 54/2002 and 55/2002), Peru (ACE No. 58/2005) and South Africa, Namibia, Botswana, Lesotho and Swaziland (ACP, In March 2021, the Chamber of Commerce (Camex) approved negotiating mandates for possible Mercosur Free Trade Agreements (FTAs) with Indonesia and Vietnam covering tariffs and other trade-related issues. Brazil will hold talks with other Mercosur member states on how to proceed in the next steps of the trade negotiations. Bolivia, Chile, Colombia, Ecuador, Guyana, Peru and Suriname are associate members. They benefit from tariff reductions when negotiating with full members, but do not enjoy full voting rights or free access to their markets. Bolivia was invited to join as a full member in 2012, but its membership is subject to approval by the Brazilian Congress and is not expected to be completed in the near future. Brazil negotiates several free trade agreements through Mercosur, including with the EU. In late 2020, Brazil and the United States signed a new protocol on trade rules and transparency, updating the 2011 Trade and Economic Cooperation Agreement with new annexes in three areas: trade facilitation and customs administration; good regulatory practices; and anti-corruption efforts.

The Brazilian government expects this protocol to pave the way for a future trade and tax agreement with the United States. However, it remains to be seen whether such improvements in bilateral trade relations will continue in the face of the new Biden administration, which since January 2021 has conditioned Brazil on improving its environmental policies. Since its admission to Mercosur, Venezuela has not complied with many of the group`s trade regulations. Mercosur suspended Venezuela in late 2016, citing violations of the bloc`s human rights and trade rules by the government of President Nicolas Maduro. In August 2017, the group suspended Venezuela indefinitely. And in 2019, Argentina, Brazil and Paraguay called on Maduro to cede power to the Venezuelan opposition. With respect to anti-dumping investigations, the time limit for parties to submit new information and evidence (evidentiary proceedings) to the record is 120 days from the date of publication of the provisional findings by SDCOM. Subsequently, the parties are only given the opportunity to present their arguments on the basis of the information already available in the file. Brazilian rules stipulate that SDCOM must complete the investigation within 10 months of its initiation, although it allows this period to be extended to 18 months in accordance with WTO rules.

However, the final decision on the imposition of trade remedies rests with GECEX after receiving the recommendation from SDCOM. The annual report also includes information on proceedings against Brazilian exporters, which show that SDCOM monitored and intervened in 82 trade defence proceedings and measures in 2020, including 11 initial proceedings (all of which were completed without applying any measures to Brazilian exports).5 Brazilian trade remedy legislation includes the following laws and statutes: Brazil is a member of the Latin American Association for Integration (LAIA) and the Southern Common Society for Integration. Market (Mercosur, consisting of Brazil, Argentina, Paraguay and Uruguay), which are contracts signed respectively by the countries of Latin America and South America to promote economic and social development, harmony and balance in all regions. .

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