The relationship between the United States and Brazil is just days away from gaining new chapters. The meeting between Jair Bolsonaro and Donald Trump is scheduled to take place on the 19th, on North American soil. The expectation is that the interrelationship will receive concrete measures to bring the countries closer together and will mainly reflect the economic and commercial area.
The trip to the US will be the Brazilian president’s first bilateral visit. As confirmed by the Minister of Foreign Affairs, Ernesto Araújo, the commitment is part of the international agenda for March, which includes visits by the president to Chile and Israel. “Choosing the United States as the first destination can be considered an emblematic step that deserves attention. It reinforces the Brazilian government’s interest in strengthening relations with the country”, points out economist and political analyst Carlo Barbieri, who works in the US and has 30 years of experience in the American market.
For the economist, the success of the economic policy adopted by Donald Trump must be presented to the Brazilian President and his team. The US is Brazil’s second largest export market, losing only to China. Last year, the North American economy received 12.3% of the total exported by Brazil. In the case of China, the percentage was 21.8%.
The main items exported to the United States are crude petroleum oil, aircraft and manufactured iron and steel products. According to the Ministry of Industry, Foreign Trade and Services, last year, Brazil’s surplus with the United States was US$ 2.06 billion. The country exported US$ 26.872 billion to the United States and imported a total of US$ 24.846 billion from there.
“The economic model adopted by President Donald Trump reduced corporate taxation and brought numerous companies back to the United States, increasing job creation and heating up the country’s economy. The reduction of income tax for companies in the US from 35% to 21%, added to the safe investment scenario and with the lowest percentage of risk, even generates a wave of Brazilian companies that are internationalizing to the United States.” says Barbieri.
Last year, after congratulating Bolsonaro on its victory at the polls, the US president announced that the US intends to advance its trade relations with Brazil. “For the first time in decades, we have two presidential administrations with insight into the potential of free trade between countries. The ideological and political proximity between the two leaders can also be considered a lever for the measures to come. With this visit, the intention of the Bolsonaro team is to seek trade opening with a view to long-term economic relations with the United States”, says Barbieri.
INTERNATIONALIZATION
Economist Carlo Barbieri, who directs the Oxford Group Consulting and helps Brazilian businessmen to internationalize their businesses to the United States, believes that the meeting between the two presidents should be guided by an economic debate that helps Brazil to promote significant economic changes. One of the points, according to him, is the taxation of IR for companies, which in Brazil remains at 34% – the highest among the G-20 and BRICS countries. The global average is 22.96%, according to EY consultancy.
“With an economic policy more favorable to businessmen and industry, many American companies may also begin to see Brazil as a possible country in which to internationalize their business. It’s an exact math, more advantages, greater competitive potential and better chances for Brazil to attract business and generate jobs”, evaluates Barbieri.
According to the specialist, his Oxford consultancy has been sought after, after the election of President Jair Bolsonaro, for consultation on the current Brazilian economic scenario. Before assuming the post of president, Bolsonaro celebrated on social networks that large companies have already announced their intention to invest in the country. “After the elections, large companies have already announced millions of investments in Brazil in the coming years. It’s just the beginning! Trade with the whole world without ideological bias + Tax reduction + De-bureaucratization = More trust, more investments and more jobs”, wrote the president-elect.