Brazil Opening Up Its Economy to Global Trade
At the recent meeting of the Chamber of Foreign Trade (CAMEX), held on September 28, 2016, Brazilian president, Mr. Michel Temer, highlighted his intention to open up Brazil to international trade by fostering free trade negotiations with key trade partners, such as the European Union. Mr. Temer acknowledged that the trade agreements that had been negotiated by Brazil until now had been insufficient, both in number as well as in their effective impact on Brazil’s trade. He also argued that the removal of trade barriers would foster Brazil’s exports and boost the country’s competitiveness.
Brazilian president particularly stressed the importance of speeding up the negotiations on the Association Agreement between Mercosur and the European Union. The EU is Brazil’s main trade and investment partner, representing 19,5 % of its total trade, while Brazil ranks tenth among the EU trade partners, accounting for 2 % of total EU trade, and the Mercosur integration process could surely contribute to a strong and long-standing relationship the EU and Brazil already have.
The recent changes related to CAMEX demonstrate that Mr. Temer’s administration perceives Brazil’s commercial policy as one of the fundamental strategies of his government. The president himself has stated, on various occasions, that he firmly believes that Brazil’s economic growth depends on the strengthening of exports, which would generate integration into the international market.
As the world’s fifth-largest country and Latin America’s largest economy, Brazil undoubtedly represents an important global trading partner for many countries. With the Brazilian government taking up this new position on international trade, it is expected that the country will engage in more free trade negotiations.