Brazil-US trade falls in 2020, and recovery depends on vaccination effect – 01/19/2021 – Pantal SA

Brazil-US trade falls in 2020, and recovery depends on vaccination effect - 01/19/2021 - Pantal SA

One of Brazil’s trade relations affected by the epidemic was with the United States. According to data from the Ministry of Economy compiled by Pillar, flows with the country fell 23.7% in 2020 compared to 2019, higher than in the European Union (13.7%) and Mercosur (17.7%). For analysts, though the arrival of Democrat Joe Biden, who took office on Wednesday (20), predicts more, the resumption of trade with the United States depends on the impact of vaccination on economies.

For AEB (Foreign Trade Association) President Jose Agusto de Castro, the delay in vaccination threatens trade. This is because the visit of the Brazilian authorities will continue with obstacles if vaccination is delayed. In addition, customers will be afraid to purchase items from here if there is a risk of further distance measures.

Castro says relations with the United States are expected to be more predictable under Biden. According to him, Brazil would benefit from abandoning the policy of automatic alignment to initiate negotiations with greater professionalism.

In the assessment of Sandra Rios, director of the Cindies (Center for Integration and Development Studies), vaccination will take time before the business is impacted. For that, a fiscal aid package in the US can recover our exports. On the other hand, imports depend on the future of emergency aid.

According to former Secretary of Foreign Trade Welbar Baral, the decline in trade with the United States was concentrated in the trade of oil and oil products. If an economic recovery is confirmed, product sales recover, they say.

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Philippe Oliveira (Interim), with Mariana Grazini I Arthur Cagliari

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Sarah Gracie

About the author: Sarah Gracie

Sarahis a reporter covering Amazon. She previously covered tech and transportation, and she broke stories on Uber's finances, self-driving car program, and cultural crisis. Before that, she covered cybersecurity in finance. Sarah's work has appeared in The Wall Street Journal, Bloomberg, Politico, and the Houston Chronicle.

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