In the last decade, Brazil has been one of the fastest growing emerging markets. It is currently the largest economy in Latin America, and seventh largest in the world. This week’s trade spotlight highlights the importance of U.S.-Brazil trade relations and how the relationship benefits American farmers, ranchers, entrepreneurs, and workers.
As one of the fastest growing emerging markets, and a country that the International Monetary Fund projects is poised for continued growth, Brazil is an important trading partner for the United States. In 2010, U.S. goods and services trade with Brazil was $81 billion, with exports accounting for $52 billion and imports accounting for $29 billion. This resulted in a goods and services trade surplus of nearly $23 billion for 2010, a 61 percent increase from 2009.
Brazil is the 10th largest goods trading partner with the U.S., with goods trade surplus of more than $11 billion in 2010. Trade in services between the U.S. and Brazil totaled more than $21 billion in 2010. Additionally, the services surplus for the United States was more than $11 billion.
In 2010, Brazil was the United States’ 8th largest goods export market. U.S. goods exports to Brazil were more than $35 billion, a near 36 percent increase from 2009. Overall, U.S. exports to Brazil accounted for nearly 3 percent of total U.S. exports in 2010. The top U.S. exports to Brazil were machinery, aircraft, and electric machinery. Additionally, the U.S. exported $578 million worth of agricultural products to Brazil in 2010. The leading categories of agricultural exports were wheat, cotton, dairy products and sugars and sweeteners.
Because of this important trade relationship, American workers across the country are benefiting. For example in March 2011, WindStream Technologies, a New Albany, Indiana based alternative energy company, agreed to a $10 million deal with a Brazilian clean tech company to produce 30,000 wind turbines. These turbines will be distributed and used in Brazil. This agreement will help to create more than 100 new jobs in Indiana.
Additionally, Rhino Assembly Corporation, a small business in Charlotte, North Carolina, has developed a relationship with ASA Brazil, a tool and equipment distributor. This relationship has resulted in robust sales and the hiring of new employees in North Carolina.
The continued growth of the Brazilian economy provides an opportunity for increased consumption of American-made goods and services by Brazilian consumers. As a result, USTR is working to improve and grow the United States’ relationship with Brazil in an effort to help create new investment and export opportunities for American businesses and more jobs for workers here at home.