Agribusiness in Brazil and United States trade relations

Abstract

The United States and Brazil were, in 2018, respectively, among the largest importers and exporters in the world market for agribusiness products. However, when assessing the trade flow between these countries, it is noticed that Brazil corresponded to only 3% of North American demand, a participation that has been decreasing since 2012, in contrast to the positive evolution of the Brazilian world insertion in the same period. This study sought a greater nderstanding of this situation, performing a descriptive analysis of data, with a mapping of trade flows and trade barriers that Brazilian agribusiness products face in the North American market. The results showed that Brazil has not been able to transpose levels of tariff protection in the North American market effectively and this fact may be associated with the low opening and high level of protection of the Brazilian domestic market, which make it difficult to negotiate preferential agreements. In addition, it is identified that Brazil could seek greater diversification of the export basket for this country, encouraging products of increasing demand. In general, the information collected indicates that Brazil has great potential to improve its performance in this market, but needs a more strategic view in order to promote greater trade integration.