Brazil and the United States established their first contact in 1815. This relationship of over 200 years has made the United States one of Brazil’s largest trading partners. Today on the Modal blog, we will explore the history and trade relationship between these two nations.

In This Post, You Will See:

• History
• Trade Relationship

History

The relationship between Brazil and the United States is marked by diplomatic, economic, historical, and cultural ties. As one of the oldest nations in the Americas, the United States was the first to recognize Brazil’s independence. Currently, the United States is Brazil’s second-largest trading partner.

Both countries are members of various international organizations, such as the United Nations, the World Trade Organization, the Organization of American States, the G8+5, and the G20. Brazil is considered one of the most pro-American countries in the world. According to a global survey, 62% of Brazilians viewed the US favorably in 2010, a number that increased to 73% in 2013. However, these surveys were conducted before the NSA espionage revelations became public in Brazil.

A survey conducted at the end of 2013 showed that 61% of Americans viewed Brazil favorably.

Trade Relationship

The United States, as the world’s largest economy, is also the largest exporter of goods. Its main exports include oil, food, beverages, consumer goods like cars, and capital goods like machinery and equipment.

In Brazil, the main exports to the US are fuel oil, industrial products, coal, and more. The trade relationship between Brazil and the United States is mutually beneficial, contributing to both countries’ trade balances.

Brazil imports fuel oil from the US and, in return, exports large quantities of crude oil. Other significant exports from Brazil include semi-manufactured steel products, aircraft, gasoline, and other manufactured goods.

Trade Balance

The trade balance between Brazil and the United States has varied over the years due to strong trade relations. For example, in 2019, up until August, the US had earned $352 million from Brazil, but the balance turned negative over time.

In 2018, Brazil imported more from the United States, resulting in a trade surplus of $839 million for the US, while Brazil had a deficit. In 2017, Brazil had a positive balance, as well as in 2016 and 2015.

Prohibited Products for Export to the United States

Despite the good trade relations between Brazil and the United States, there are many products that cannot be imported, not only to the US but to any other country. Some of these products include derivatives from marine mammals, shrimp, tuna, narcotics, products that infringe intellectual property rights, and goods related to terrorist groups and slave labor.