U.S.-Brazil Talks Emphasize Business, Trade - Global Trade Magazine
  July 7th, 2015 | Written by

U.S.-Brazil Talks Emphasize Business, Trade

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  • The U.S. and Brazil will be cooperating in the development of single window systems for international trade.
  • Brazil will be taking action to expand access of U.S. beef to the Brazilian market in the near future.
  • U.S.-Brazil Social Security agreement eliminates dual contributions when employee from one country works in the other.

Wide-ranging talks between U.S. President Barack Obama and Brazilian President Dilma Rousseff at the White House last week had business and trade relations between the two countries as a major focus.

The United States and Brazil agreed to exchange lessons learned and best practices as each country develops and deploys their single window systems for international trade. (Single window systems refer to single point of interaction–in the case of the U.S., the Automated Commercial Environment (ACE)–between businesses and authorities for the collection of electronic trade data.) The U.S.-Brazil engagement will be initiated before the end of this year and will support each country’s efforts to use automated and modernized trade processes to facilitate trade.

The talks also touched on progress being made on expanding bilateral beef trade since both countries undertook science-based risk rulemaking in 2013. The United States of Department of Agriculture is amending its regulations to allow the importation of fresh beef from Brazil under conditions that mitigate the risk of foot-and-mouth disease. The U.S. and Brazil are working to ensure that Brazilian meat imported into the United States for human consumption complies with U.S. public health and food safety regulations. Brazil will be taking action to expand U.S. beef access in the near future.

The presidents signed a Social Security Totalization agreement, which eliminates dual Social Security contributions when an employee from one country works in the other. It also closes the gaps in benefit protections for workers who divide their careers between the United States and Brazil. The White House estimated that this agreement will save U.S. and Brazilian companies more than $900 million in the first six years.

The U.S. and Brazil signed a Memorandum of Understanding on promoting entrepreneurship and the growth of micro- and small-sized enterprises. Among other things, the two countries undertook to promote entrepreneurship among women and expand opportunities for women-owned businesses.

The presidents also discussed the implementation of the Sabre passenger service system by LATAM Airlines Group. The deal is supported by a U.S. Trade and Development Agency training grant to Brazil-based TAM Airlines. The LATAM Airlines Group was formed in 2012 by TAM and the Chilean airline LAN, a long-time Sabre customer. TAM’s migration to Sabre represents the largest-ever implementation of a passenger service system by an airline in Latin America.

The talks also touched on cooperation between the two countries on global climate change, human rights, food security, internet governance, national defense, law enforcement, education, energy, and health.