May 16, 2021

Brazil's exporters consider priority agreements with the US, Mexico and China

Brazil's exporters consider priority agreements with the US, Mexico and China

Brazilian exporters consider that the priority of the foreign trade policy of the country is the signing of free trade agreements with the United States, Mexico, China and Colombia, in that order, according to a survey among entrepreneurs released today by the industrial employers. .

For 22.4% of Brazilian exporters consulted by the National Confederation of Industry (CNI), the priority market for the negotiation of a free trade agreement is the United States.

By country, Mexico (8.4%), China (6%) and Colombia (3%) were immediately located.

By blocks, 15.9% of Brazilian exporters consider that the priority is the signing of the free trade agreement with the European Union (EU), rather than with the countries of North America (5%) or those of South America (4 ,3 %).

As a member of the Common Market of the South (Mercosur) together with Argentina, Paraguay and Uruguay, Brazil can only negotiate free trade agreements with its trading partners, as it currently does with the EU, with which it negotiates several years ago with the expectation of reaching an agreement in the coming months.

The members of the Mercosur also try to get closer with those of the Pacific Alliance (Colombia, Chile, Mexico and Peru) and have tariff preference agreements with countries such as Colombia, Chile and Mexico and have concluded free trade agreements with countries of little importance for the block like Israel, Palestine and Egypt.

The United States is also the country with which the Brazilian exporting companies most intend to strengthen relations, with 21.6% of preferences, followed by Argentina (10.9%), Colombia (6.8%), Chile (6, 8%), Paraguay (6.3%) and Peru (5.2%).

The study "Challenges to Competitiveness of Brazilian Exports in 2018" was prepared by the CNI in association with the private center of economic studies Fundación Getúlio Vargas and heard 589 companies that dedicate part of their production to export.

According to the CNI, the start of a new government in Brazil on January 1, with the investiture of the far right Jair Bolsonaro, represents "an opportunity for the signing of free trade agreements and for the strengthening of relations with the United States. "

Since the campaign Bolsonaro has defended a greater approach to the United States, despite the fact that Brazil's current major trading partner is China and the strategic relationship with the Mercosur partners, mainly Argentina.

"There are a number of pending agreements with the United States that can be concluded in the short term, in areas such as space, defense, intellectual property, trade facilitation and business trips," said the director of Industrial Development of the Confederation, Carlos Eduardo Abijaodi. , quoted in the statement.

"But we also need to look for an ambitious agenda by launching negotiations for a free trade agreement between the two countries," added the leader of the industrial employers' association.

According to the survey, the United States is also the main country to which the companies consulted still do not export and would like to do so, with 12%. Then Argentina was located (8.3%).


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