São Paulo 2012: U.S.-Brazil Trade

In the second panel of AS/COA's 2012 São Paulo conference, panelists discussed the trade relationship between Brazil and the United States. Bloomberg journalist Laura Zelenko moderated the discussion.

Brazil’s Secretary of Foreign Trade Tatiana Prazeres highlighted record import and export growth in 2011, and cited the United States as an important trade partner. Exports to the United States grew 16 percent this year, she said.  “The challenge,”she explained, is to “consolidate our position and to keep diversifying our exports to [the United States].” Oil, machinery, and other manufactured goods encompass some of Brazil's key U.S. exports. Prazeres pointed out that many of Brazil’s imports contribute to its competitiveness, since they include resources that are essential to production. Henrique Meirelles, Chairman of J&F Participações Consulting Committee and former president of Brazil’s Central Bank, said Brazil has “the economic fundamentals to grow at a sustainable rate” in coming years. The country has $370 billion in reserves, and its nominal deficit is below recommended international levels.

Jaime Ardila, president of GM South America, discussed the role of the auto industry. GM employs 23,000 people in Brazil, and the United States exported $300 million worth of vehicles to Brazil last year. The bilateral auto trade reached $4.5 billion in 2011, including trading of parts. However, a lack of experienced personnel is a challenge. While China produces 600,000 engineers a year, Brazil only produces 30,000. Training the workforce is a potential area for new public-private partnerships, making programs like Science without Borders—which sends Brazilian students abroad to study science, math, and engineering—important to Brazil’s economy.

Brian Brisson, minister counselor for commercial affairs at the International Trade Administration at the U.S. Embassy in Brasilia, provided an encouraging perspective on bilateral trade. U.S. companies are interested in working on Brazil’s new infrastructure projects, and companies located in Brazil will benefit from improved transport systems. The U.S. Secretary of Trade will travel to Brazil soon, bringing university presidents to discuss potential partnerships.

Watch a video of the panel: