trade deficit with the USA will be discussed with Barack Obama

15/03/2011 0 By Rodrigo Cintra

Sao Paulo – This week, the Brazilian government is preparing to welcome the US President, Barack Obama, on his first trip to the country this year and the first meeting with President Dilma Rousseff on Brazilian soil. Mesmo com disputas comerciais pendentes e com resultados deficitários do saldo da balança comercial – when imports more than exports – US-Brazil, trade issues can be treated, yet more in the diplomatic context.

latest data from the Ministry of Development, Industry and Foreign Trade (Mdic) They show that in January this year, the negative balance of trade has almost doubled compared to the same month of 2010, to spend US $ 316,560 million to US $ 630,992 millions. Since 2009, several months have deficits in the trade balance between Brazil and USA. Accumulated in the balance 2009 in relation to 2010, the negative result also nearly doubled, to spend US $ 4,430 billion to US $ 7,732 billion.
On the other hand, a corrente comercial entre os países cresceu 29,4% comparing the first month of 2010 to January 2011, to spend US $ 3,040 billion to US $ 3,934 billion. With regard to the Cumulative 2009 for 2010, there was also high 30,07% (US $ 35,633 billion to US $ 46,347 billion).
Roberto Segatto, president of the Brazilian Foreign Trade Association (Abracex), He believes that the Brazilian government has a “Excellent” opportunity to discuss the trade balance with President Obama. “President Dilma is straightforward and the fund will use the meeting to discuss this issue.”
For him, when dealing with the trade balance, the Brazilian government could also negotiate the expansion of exports of manufactured goods, cujo valor agregado é maior.
But the head of the International Relations Department of ESPM, Rodrigo Cintra, It does not provide that the deficits of the trade balance between Brazil and the United States should be discussed during the visit of President Obama. “It is too early to discuss about it. These deficits are, now, more related to foreign exchange than the political issues. the schedule, Obama seems to come to Brazil to treat more than diplomatic issues than trade”, analysis.

trade disputes
Also according to Segatto, there are many other issues to be discussed, as in the case of trade disputes involving decisions of the World Trade Organization (OMC). Two recent cases are related to the cotton trade and orange juice.

“Such disputes must be handled under more diplomatic. US is still a good business partner. however, Brazil needs to show it has strength and, in cotton, for example, subsidies could be removed. or, if not removed, establish a commodity exchange”, points Segatto.
Brazil won the dispute against the Americans in the WTO, which considered illegal subsidies paid by the United States to cotton producers. As the US refused to end subsidies, the WTO authorized Brazil to impose a retaliatory US $ 829 millions. Thus, the North American country preferred to establish an agreement which provides that the US executive transfer US $ 147 million per year to the Brazilian Cotton Institute.
In late February, Brazil had another victory in the WTO litigation, installed in September 2009, in which questions the application by the United States anti-dumping rate against Brazilian orange juice.
“Despite these outstanding issues, the Brazilian government should prioritize, the meeting, discussions about the coming of US companies to Brazil through attractions such as tax exemption and, like this, improve the technological standard of the country”, acrescenta Segatto.

Trade balance
Yesterday, the Mdic reported that the cumulative trade balance of the year until the second week of March is already 211% higher than recorded in the same period last year. The trade surplus has reached US $ 2,463 billion. We 48 business days 2011, the trade reached US $ 74,385 billion, with increased 24,4%.

With regard to the first two weeks of March, the trade balance is positive at US $ 841 millions, feed 310,6% ao registrado em março de 2010. In the same period, bilateral trade was US $ 12,113 billion, high of 29,3%.
Source: DCI newspaper – 15/03/2011