What Trade Agreements Does Brazil Have
Brazil is one of the world`s largest economies, with a robust export sector. As an emerging market, Brazil has been an attractive destination for foreign investors and partners, which has resulted in various trade agreements. In this article, we will discuss the trade agreements that Brazil has and how they impact the country`s economy.
Mercosur: The Southern Common Market, or Mercosur, is a trade agreement between Brazil, Argentina, Uruguay, and Paraguay. Mercosur`s primary objective is to promote free trade and cooperation between the member countries, with the ultimate goal of achieving economic and social development in the region. The agreement has been in place since 1991 and has evolved over time.
Mercosur has been instrumental in boosting Brazil`s trade, as it gives the country access to a broader market with lower tariffs and trade barriers. In 2019, Mercosur accounted for 15% of Brazil`s total trade, with exports to the region amounting to over $19 billion.
BRICS: Brazil is a member of BRICS, which is an acronym for Brazil, Russia, India, China, and South Africa. The group represents some of the world`s fastest-growing economies, and its main objective is to promote economic cooperation between the member countries. The BRICS countries represent over 40% of the world`s population and about 23% of global GDP.
As a member of BRICS, Brazil has access to a vast market with significant growth potential. The group has been working on creating a BRICS Free Trade Area to increase trade between the member countries.
FTA with Mexico: In 2020, Brazil signed a free trade agreement (FTA) with Mexico. The FTA eliminates tariffs on 800 products and services traded between the two countries. The FTA is expected to create new opportunities for trade and investment between Brazil and Mexico, which could help boost economic growth in both countries.
Other trade agreements: Apart from the agreements mentioned above, Brazil has numerous other trade agreements with countries across the globe. Some of the countries with which Brazil has trade agreements include Japan, Israel, South Korea, Egypt, and Turkey. These agreements help Brazil expand its export markets and increase its competitiveness globally.
In conclusion, Brazil has a robust trade network that has helped the country expand its export markets and increase its competitiveness globally. Mercosur and BRICS are the most significant trade agreements, but Brazil has numerous other agreements that provide access to new markets. The signing of the FTA with Mexico is a promising development and opens up new opportunities for trade and investment between the two countries. As Brazil continues to grow and evolve, its trade agreements will undoubtedly play an essential role in shaping the country`s future economic landscape.