Good morning! Donald Trump says he wants a Brazil-U.S. trade deal, and that could be beneficial for Brazilian producers. Jair Bolsonaro wants to loosen up slave labor laws. The markets’ “Super Wednesday.” Enjoy your read!
A Brazil-U.S. trade deal? Trump says so
Donald Trump said on Tuesday that he will seek to establish a trade deal with Brazil, suggesting that his close relationship to Jair Bolsonaro could help lower tariffs. U.S. Secretary of Commerce Wilbur Ross is in Brasília today, and is scheduled to meet several business owners, as well as President Bolsonaro and Economy Minister Paulo Guedes. Marcos Troyjo, Brazil’s Deputy Economy Minister for Foreign Trade, said Brazil has “ambitious” goals to enhance its trade with the U.S.—especially with regard to infrastructure.
Why it matters. The U.S. is Brazil’s number two trading partner, behind China. But, unlike the Asian giant, the Americans don’t only buy commodities from Brazil—they are also big buyers of Brazilian manufactured goods, such as airplane parts and engines, gasoline, and heavy machinery. As a matter of fact, exports to the U.S. generate more wealth in Brazil than those to China.
“We’ve got to expand trade with the Americans—with whom we don’t have a free trade...