Rio de Janeiro – Relations between Brazil and the United States tend to progress, with increased investment in the Brazilian market, despite the moment of global crisis. The evaluation is by the new president of the American Chamber of Commerce in Rio de Janeiro, Robson Barreto, who assumed the position last Friday (17th). According to Barreto, the fact that Brazil currently has a diversified economy, "quite distinct from what we had in the last decade," is a contributing factor.
The president of the American Chamber of Commerce also believes that good relations between presidents Luiz Inácio Lula da Silva and Barack Obama should pave the way for the discussion and solution of issues such as the treaty against double taxation. Barreto believes that the maintenance of the tariff preference system provides competitive advantages to Brazil and to exporting companies from the United States that are present in the country.
The tariff preference system was established by the United States in 1976. It allows for certain developing countries to be favoured by a commercial preference system. By means of these preferences, the benefited countries export products to the United States market with tariff incentives, resulting in more competitive prices.
To Barreto, however, a challenge that presents itself at the moment consists of overcoming protectionist measures currently being implemented in the United States, a country that “has always defended free trade, and now, due to the problems facing the United States economy, is starting to establish protectionist, ‘Buy American’-type measures, which preoccupy those doing business.”
The president of the American Chamber of Commerce asserted that there are reasons for Brazil to be concerned about its main trade partner, but he underscored the fact that the Brazilian export basket to the United States market is quite diversified. “We do have cause for concern, but at the same time we have reasons to celebrate, because our economy is in a unique position of being able to overcome these challenges that the next few years hold,” he said.
To him, the economic stability that Brazil is displaying at this moment of global crisis provides a sort of safe haven to many multinational companies, including North American ones, and proves that demand and consumption remain vigorous, despite the crisis. “Thus, more than ever before, Brazil is regarded as a safe haven for investment and returns, and for winning the market at a moment in which everyone around the world is losing,” he stated.
*Translated by Gabriel Pomerancblum
