Brazilian Official Says US Trade Agreement Could Be Signed in October

A Brazilian government official said that a U.S.-Brazil agreement that covers trade facilitation, best regulatory practices and anti-corruption chapters is in legal scrub, and that should be done by mid-October. “We hope to have them signed this month,” said Yana Dumaresq, assistant deputy minister for foreign trade and international affairs. Joseph Semsar, the lead negotiator from the Commerce Department on this agreement, said that the two administrations are aligned, and “this is a unique opportunity to get things done that seemed unattainable.”

Semsar said that the trade facilitation chapter will cover mutual recognition of trusted traders, and technical work implementing the World Trade Organization agreement on trade facilitation. The two were speaking Oct. 5 at an online program of the Atlantic Council on U.S.-Brazilian economic ties.

Dumaresq said she hopes that the agreement will lead to lower costs for businesses, and said that it's “paving the way for a robust and comprehensive agreement.” She said data is not there yet to support the claim that companies are regionalizing supply chains, but if that does become a trend, an agreement between the two biggest economies in the Western Hemisphere would help that.

Former Rep. Joe Crowley, now a senior policy adviser at Squire Patton Boggs, said his experience in the House Democratic leadership suggests to him that while the Democrats view the U.S.-Brazil relationship as important, the problem of deforestation in the Amazon will be a barrier for deepening ties as long as the House is Democratic controlled, and he said that would be even more true in a Biden administration. He also noted that the free trade agreement Brazil is a party to with its South American neighbors raises the question of whether any comprehensive agreement that affects tariffs can be possible between the U.S. and Brazil.