Trump win could cool off Brazil-US bilateral agreements

Executives of the American Chamber of Commerce for Brazil (Amcham) and the São Paulo State Federation of Industries (FIESP) expect that Donald Trump's victory in the US presidential election might cool off negotiations of bilateral agreements involving the US. For Amcham CEO Deborah Vieitas, the United States should increase protectionism if Trump sticks to his campaign speech. Nonetheless, the country will continue to be an important trade partner for Brazil.

“Mega trade agreements pending approval, including the Trans-Pacific Partnership and the deal being negotiated with the European Union, may cool off a bit as US domestic issues dominate the new president's agenda,” she said. In her view, “the prospect of us reaching a bilateral trade agreement with the United States is now even more distant. But that doesn't mean the United States is no longer an important trading partner for Brazil.”

She believes the two countries should continue to make progress on the issue of regulatory convergence, and US investors should continue to have an “increasing appetite” for Brazil as President Temer's agenda is put into practice “along with his main proposed reforms.”

Thomaz Zanoto, Head of International Relations and Foreign Trade of the São Paulo State Federation of Industries (FIESP), agrees that the impacts of Trump's win on Brazil should be limited, because trade between the two countries takes place mainly through US multinationals with operations in Brazil, in the form known as “intra-company trade”. He does not expect a free trade deal to be closed. “If we were negotiating a free trade agreement with the United States by now and had reached an advanced stage, I'm afraid the agreement might not be completed. But that's not the case. What we are focusing more on working with the United States is something more technical, the so-called regulatory convergence,” he said.

Translated by Mayra Borges