Brazil is one of the largest economies in South America and a major player in the global trade market. The country has established a number of trade agreements with several nations across the world, which has increased its access to new markets and diversified its economy.
In this article, we`ll take a closer look at some of the countries Brazil has trade agreements with, how they benefit the Brazilian economy and what future opportunities lie ahead.
Mercosur
Brazil is one of the founding members of Mercosur, which stands for the Southern Common Market. This regional economic bloc includes Brazil, Argentina, Paraguay, and Uruguay. Mercosur aims to promote free trade and the movement of goods, services, and people between its member countries.
This integration has resulted in a significant increase in trade and investment between the member countries, and has helped Brazil establish a strong foothold in the South American market.
China
China is Brazil`s largest trading partner, and the two countries have a long-standing trade relationship. In 2019, Brazil and China signed a new trade agreement, which offers greater access to the Chinese market for Brazilian exports, particularly in the areas of agriculture and manufacturing.
This agreement has helped to boost the Brazilian economy, with China being the largest importer of Brazilian products, such as soybeans, iron ore, and oil. As a result, the trade relationship has become increasingly important for Brazil`s economic growth.
United States
Brazil and the United States have a long-standing trade relationship that dates back to the 19th century. The two countries have a number of agreements in place, including the Agreement on Trade and Economic Cooperation, which was signed in 2011.
The US is one of the top markets for Brazilian exports, including coffee, sugar, and ethanol. Brazil, on the other hand, is a significant importer of US products, such as machinery and aircraft.
European Union
The European Union (EU) is Brazil`s second-largest trading partner, and the two entities have a preferential trade agreement in place. This agreement allows for the duty-free import of Brazilian goods into the EU, and has helped to boost exports of Brazilian products such as beef, poultry, and fruit.
In addition to this, Brazil is looking to establish a new free trade agreement with the EU, which would remove some of the remaining trade barriers and open up new opportunities for Brazilian businesses.
Conclusion
Brazil has established a number of trade agreements with several countries across the world, which has helped it to diversify its economy and increase its access to new markets. These agreements have been crucial to the country`s growth and development, and have enabled Brazilian businesses to compete on a global level.
As the global economy evolves, Brazil`s trade relationships with these countries will continue to be of strategic importance, as the country looks to expand its presence in key global markets.