Brazil and USA sign next week trade facilitation package – Money Times

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It is obvious that a path to a larger agreement is being paved (Image: REUTERS / Tom Brenner)

Governments of the Brazil and the United States sign, next Monday, a package of trade facilitation measures that includes measures to reduce bureaucracy, good regulatory practices and an anti-corruption protocol, in a set of measures that the Brazilian government is treating as a first step towards reaching a broader trade agreement.

According to a document that Reuters had access to, the main agreement in the area of ​​trade facilitation includes, for example, the commitment to mutual recognition of the Authorized Economic Operator (OAS) programs, a certificate given by IRS to import and export companies that allow the almost automatic clearance of goods at borders.

In addition, there is the provision of Advance Solutions by the customs authorities and the use of electronic means in commerce.

In the area of ​​good regulatory practices, a protocol will be signed to review existing regulations and the provision to create a coordination mechanism to oversee the adoption of good regulatory practices by the federal government.

The third agreement deals with measures against corruption. It includes, for example, the creation of standards to prevent employees from soliciting or accepting bribes, that companies or other governments propose undue payments, as well as a protection mechanism for those who report such crimes.

Still far from the trade agreement with the Americans that the Minister of Economy, Paulo Guedes, announces since the beginning of the government, the agreements are being treated as an important first step.

“It is obvious that a path to a larger agreement is being paved. They are chapters of an agreement that may come and are not unimportant, ”a source familiar with the matter told Reuters.

Initially discussed at the meeting between Bolsonaro and Trump in Mar-a-Lago (Florida), Trump’s summer residence, in March this year, the agreements were all negotiated virtually during the pandemic of coronavirus, which hits the USA and Brazil hard.

Just 18 days before the U.S. presidential election, the biggest interest in signing the deals at this point comes from the risk that Donald Trump, who is behind Democrat Joe Biden in the latest election polls, will not remain in government for the next four years.

Although the Brazilian government guarantees that the relationship with the Americans will be maintained by mutual interests, Bolsonaro’s constant criticism of the Democrats may sour interest in agreements with Brazil.

Next week, in addition to signing the agreements, the Brazil – United States Chamber of Commerce organizes two days of a virtual conference between businessmen from both countries with the participation of President Jair Bolsonaro, US Secretary of State Mike Pompeo, and of the country’s Trade Representative, Robert Lighthizer.

The country is also visited, according to the US embassy, ​​by US National Security Adviser Robert O’Brien, by US Eximbank President Kimberly Reed, by USTR Deputy Representative Michael Nemelka, and Development Finance Corporation’s executive director, Sabrina Teichman.

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