Brazil & Foreign Trade Barriers

2707 Words Oct 9th, 2010 11 Pages
“The United States and Brazil: Unfriendly Giants?”

Jeremy Bjorn Swanson
July 23,2006
ECO 4955 Executive Summary: This composition will examine the relationship between the United States and Brazil. Interactions and exchange relations between the two nations have been stressed. Trade barriers are the main cause for these tensions; specific exchange obstructions shall be discussed, potential effects of removing these barriers, and the implications it may have on the companies involved with the 2006 FAU Field Experience. The following notions have been deducted through researching materials listed in works cited and personal opinion.

Over the past half century the world has gone through a great deal of change.
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In order for American investment dollars to achieve their true potential, this tension must be eased.
Bilateral Trade Conflict Each year, every country issues various reports outlining key barriers of their trade agenda. Essentially these are complaint lists. The World Trade Organization attempts to help resolve these issues but is never completely successful. The United States published eight pages of grievances against Brazil in the National Trade Estimate Report on Foreign Trade Barriers. It effectively criticizes Brazil’s policies regarding: • Tariffs • Import Licensing • Standards, Testing, and Labeling • Government Procurement • Export Subsidies • Intellectual Property Rights (IPR) Protection • Services Barriers The next section will address the issues related to each item outlined above.

Tariffs With the exception of tobacco, beverages, and a few manufactured items, U.S. tariffs on Brazilian imports is almost non existent. Especially when compared with the 10.73 average tariff rate applied by Brazil in 2005. In addition to import taxes and charges, Brazil’s common external tariff (CET) radically encumbers the expanded imports of U.S. computer and telecommunication
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