ASSESSMENTS

U.S. and Brazil: How Two Regional Giants Are Split on Trade and Politics

Feb 26, 2018 | 12:56 GMT

Brazilian President Michel Temer and U.S. President Donald Trump, shown together in a photo illustration.

Brazilian President Michel Temer and U.S. President Donald Trump, shown together in a photo illustration. Trade disputes and the crisis in Venezuela will continue to drive a wedge between Brazil and the United States over the next year.

(MAURO PIMENTEL/WIN MCNAMEE/AFP/Getty Images/iStock)

Highlights

  • Relations between Brazil and the United States will remain difficult over the next year, particularly as a result of trade disputes.
  • Trade disagreements between the two countries will center on a potential U.S. tariff on Brazilian steel, as well as possible retaliation on U.S. coal exports to Brazil.
  • Washington and Brasilia will continue to clash over the best way to tackle the crisis in Venezuela, as Brazil does not support the imposition of new sanctions.

The United States and Brazil might have switched their ideas about trade, but that hasn't brought them any closer to finding agreement. For the longest time, Washington pushed for free trade in the Americas, only to meet Brazilian intransigence. Now, the roles are reversed. Brazil has begun pushing liberalized trade, only to encounter a United States intent on pursuing protectionism. But regardless of their altered positions, the disconnect between the two countries has remained a constant. A Brazilian delegation will meet with U.S. Commerce Secretary Wilbur Ross this week in Washington to learn more about a potential increase in U.S. tariffs on Brazilian steel, an action that could prompt a tit-for-tat response by the South American powerhouse. Steel, however, is just one bone of contention in the relationship as political disagreements have also split Washington and Brasilia, ensuring that there is little chance the pair will find accord anytime soon....

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