Trade Agreements Brazil

Agreements are powerful tools for entering the best international non-Brazilian companies’ markets, via trade and via investments. These were necessary actions for 2015 as Brazilian exports, fell 15.1% in relation to 2014, during the fourth consecutive fall in exports.

Brazil has already started to make agreements with countries in South America such as Peru, Chile, and Colombia. Even with the negotiations being limited, it is a first step to expanding the market for domestic enterprises. Brazilian companies have much to gain from agreements within the continent. This is an opportunity to export not only agricultural products but also industrialized ones.

Currently, Brazilian products only have easy access, free of charges, taking up less than 8% of the international market. Increasing international trade is fundamental in Brazil, which will help increase the country’s industrial production and investments in the sector. Since 2005, the importance of Brazilian exports to Mexico have been decreasing gradually. One way to regain market is to expand the current trade agreement between the two countries. Research indicates that the agreement could increase up to 50% of Brazilian exports to that country in 10 years. This means that if the agreement is implemented, Brazil’s sales to Mexico will go from the current $ 4.4 billion a year to US $ 6.6 billion.

In addition to the agreement with Mexico, Brazil and its partners in the Mercosur trade with the European Union, which is the second largest destination of Brazilian total exports to the world, behind only China.

by Djamilly