Today, we cover the continuing bumps in Brazil-U.S. relations. Reactions to São Paulo’s tax reform. And more uncertainty surrounding coronavirus vaccines.
Brazil, U.S. set for complicated relations ahead
2020 ended with the U.S. Congress focused on passing a USD 900-billion pandemic relief plan that would send money to households and businesses grappling with the economic toll of the coronavirus crisis. For Brazil, this effort meant there was not enough time for U.S. lawmakers to prevent the expiration of the Generalized System of Preferences (GSP) — which provides thousands of products from developing countries duty-free access to the U.S. market — at the end of last year.
Why it matters. According to the Economy Ministry, 7 percent of Brazil’s USD 19 billion worth of exports to the U.S. were benefited by the GSP system — especially chemicals, rubber, plastics, and machinery.
- Brazilian exporters hope that the program will be renewed as early as February, with retroactive effects, as was the case in 10 of the 14 past renewals.
What next? Brazilian trade with the U.S. faces other possible hurdles, especially regarding relations between the Jair Bolsonaro administration and the incoming Joe Biden White House. After being the last G20 leader to...