In a retaliatory response to the U.S. government’s unwillingness to eliminate domestic cotton subsidies, Brazil has announced higher tariffs on over 100 American goods ranging from cars to ketchup. Trade issues are central to the bilateral relationship between Brazil and the United States. Brazil is an attractive export destination for U.S. manufacturing, parts and capital equipment sectors. The United States has been the largest source of Brazil’s imports in these sectors, with the U.S. producers responsible for about a 15 percent share. The already thriving Brazilian market for U.S. exports has great …
On the fourth leg of her Latin American trip, Secretary of State Hillary Clinton meets with Brazil’s President Lula da Silva He presides over a Brazil that is rising in confidence, economic power, and global influence but myopic in its treatment of Iran. The Secretary will have to make a strong pitch to convince President Lula da Silva to be wary of the budding Iran-Brazil connection which might produce sanctions-evading financial ties and cooperation to develop Iran’s nuclear potential. The Secretary’s message is: “with influence comes responsibility.” Thus far the …
When “good” President of Brazil, Luiz Inacio Lula da Silva, and the “bad” President of Venezuela Hugo Chavez came to New York, both wooed the media. Newsweek declared Lula to be “the most popular politician on earth.” Chavez didn’t call Obama “the devil” and went mano a mano with Larry King. Lula’s Brazil is a continent of a country on the rise with a multi-party democracy; Chavez’s Venezuela sits on ocean of oil that fuels his one-party democracy. Both leaders aim for more clout on the global stage In the …
Brazilian President Luiz Inacio Lula da Silva, March 27, 2009: This is a crisis that was caused by white people with blue eyes. And before the crisis, they looked as if they knew everything about economics. Associate Press, April 2, 2009: During a lunch at the Group of 20 summit in London, Obama shook hands with President Luiz Inacio Lula da Silva and said: “This is my man, right here. I love this guy.”
Even as the Detroit automakers are asking Congress for a taxpayer bailout, the Detroit News reports that Ford Motor Co. is operating highly automated, highly integrated, and highly profitable auto plants — in Brazil. They employ state of the art technology and techniques to produce high-quality vehicles: This state-of-the-art manufacturing complex in the northeastern Brazilian state of Bahia is not only the centerpiece of Ford’s Brazilian turnaround plan, it is also one of the most advanced automobile plants in the world. It is more automated than many of Ford’s U.S. …
After twenty-two years of political struggle, Brazil is pushing forward with its nuclear power program and plans continue work on a third reactor. Brazil’s two reactors provide approximately three percent of Brazil’s electricity while hydroelectric provides 92%. The Brazilian government hopes to have the third reactor operational when they host the World Cup in 2014. As the 10th largest energy consumer in the world, Brazil has put all forms of energy on the table as a way to meet increasing demand. Leonam Guimaraes, an Electronuclear spokesman, had this to say: …
The Brazilian is preparing to bring the fight over ethanol tariffs to the World Trade Organization’s doorstep. Currently there is a 54 cent tariff on the importation of ethanol into the United States, and Roberto Azevedo, Brazil’s WTO ambassador, said there was a “strong possibility” that the country would formally file a complaint to the WTO in September. Advocates of the tariff suggest that it will protect American farmers and considers ethanol outside the WTO’s jurisdiction. The ethanol tariff is a blatant violation of free trade principles and does nothing …
U.S. agriculture subsidies are again threatening American leadership on free trade. The Financial Times reports: Brazil is preparing to take action against the US over what it says are illegal subsidies and other trade barriers following the collapse of the Doha round of talks at the World Trade Organisation in Geneva last week. … In June the WTO upheld a complaint by Brazil that Washington had not done enough to remove illegal subsidies to its cotton farmers, opening the way for Brazil to request WTO authorization for more than $1 …
In many ways the Bush Administration has fought hard for free trade … but they are far from perfect. As the Wall Street Journal reports, the White House finally lost its four-year effort to defend cotton subsidies from a complaint by Brazil in the World Trade Organization. If the US fails to turn away from the current drift towards protectionism the costs will be high: If the U.S. refuses to act, Brazil now has the right to retaliate against U.S. products to the tune of $4 billion. That price will …
