Opinion Editorial

Secretary of Commerce Carlos M. Gutierrez
Opinion Editorial, Gazeta Mercantil Nacional, São Paulo, Brazil
“The United States and Brazil: Partners for a Stronger Western Hemisphere”

Portuguese

This week, I am in Brazil for my last trip as U.S. Secretary of Commerce. While the U.S. Government is on the eve of new leadership, there is one thing that will not change after the November election: the importance of the U.S.-Brazil partnership.

Brazil has become a powerful symbol of globalization and growth. Since 2005, Brazil’s real gross domestic product (GDP) has increased by 15 percent; real GDP per capita has grown by 10 percent; and bilateral trade with the United States has increased by nearly 60 percent. Now, during challenging economic times, Brazil must make tough choices, much like the next U.S. Administration. Will it continue on its path to growth and prosperity that has been paved by more openness and global engagement? Or will it retreat?

I hope Brazil—and the United States—remain open, leading and engaged.

During the Bush Administration, the U.S.-Brazil relationship has strengthened and matured. Presidents Bush and Lula have met nine times, as evidence of the importance both leaders place on bilateral relations.

Last year merchandise trade between the United States and Brazil totaled more than $50 billion, an increase of 10.2 percent from 2006, and up 14.5 percent from the previous year. And through July of this year, U.S. exports to Brazil are up almost 35 percent. The United States is Brazil’s single largest trading partner, and our two economies are more integrated than ever before.

Brazil is a key player in the world economy and a leader in the Western Hemisphere; it has one of the most advanced industrial sectors in Latin America and a diverse and sophisticated services industry. Brazil’s growth potential is strong, as is the potential to expand our two countries’ economic ties.

With a combined population of nearly half a billion people, our two economies have enormous potential for growth and mutually beneficial partnerships. To better explore those opportunities, we have created bilateral mechanisms to address a wide range of trade issues, from intellectual property protection, to energy and trade promotion.

One of those mechanisms is the U.S.-Brazil CEO Forum, meeting this week in Sao Paulo. The Forum is a public-private partnership that brings together executives from both countries to advise our governments on best practices to enhance trade and commerce, and make recommendations for breaking down existing barriers to investment, job creation and growth.

The Forum has produced tangible results. For example, the new aviation agreement will increase the number of passenger flights by nearly 50 percent over the next four years. Reduced wait times for visas is another area of progress. And, discussions on a Bilateral Tax Treaty, which has languished for decades, have been revived with renewed vigor.

This Forum and other mechanisms, such as the Commercial Dialogue also meeting this week, help build lasting relationships that allow for candor in our discussions. While President Lula has been blunt in his criticism of the turmoil on Wall Street recently, his larger point that global economies are more interlinked than ever, is one that should further encourage dialogue and partnership.

Exports have been a bright spot in the U.S. economy, accounting for more than 50 percent of economic growth in the second quarter and 12 percent of our overall gross domestic product last year. We know that trade is an essential to our economic future. That is why we must remain open and engaged with one another, further reducing barriers and encouraging more opportunities for investment, commerce and trade.

Brazil is one of the great economies of the world. By continuing to work together on multilateral efforts, such as the Doha round of World Trade talks, and bilateral efforts, such as the CEO Forum, I believe we can expand economic opportunities for our citizens, and create lasting prosperity in our two countries.