The U.S. trade surplus with Brazil was $12.0 billion in 2019, an increase of 46.6% ($3.8 billion) over 2018. Brazil negotiates a free trade agreement with the EU under the Mercosur Group. Brazil is Latin America`s largest economy and its trade with the EU accounts for 30.8% of the EU`s total trade with Latin America in 2016. The EU is negotiating a free trade agreement with Brazil as part of the EU negotiations on the association agreement with Mercosur countries (including Argentina, Uruguay and Paraguay). The United States recorded a service surplus of $18 billion with Brazil in 2019, down 11.6% from 2018. In 2017, services revenues in Brazil by most U.S. subsidiaries were $40.2 billion (latest data available), while in the United States, revenue from Brazilian-majority business services was $2.7 billion. The United States engages with Brazil on trade and investment issues through a series of initiatives. In many cases, these trade agreements are being pursued as part of the administration`s policy to expand agrofuel (ethanol) markets.
The project will then focus on a study on fair and fair trade in Brazil and will hold a second forum in December 2018. In 2011, the United States and Brazil signed the Trade and Economic Cooperation Agreement to improve trade and investment cooperation between the two largest economies in the Western Hemisphere. The agreement expands our direct trade and investment relations by providing a framework for deepening cooperation on a number of issues of mutual interest, including innovation, trade facilitation and technical barriers to trade. The EU encourages Brazil to remove tariff and non-tariff barriers and promote a stable and more open regulatory environment for European investors and traders. A future association agreement between the EU and Mercosur should promote the integration of trade between Mercosur countries and create new trade and investment opportunities with the EU, eliminating direct investment and non-tariff and non-tariff direct investment. Brazil is one of the countries that, according to the latest European Commission report, has resorted to a large number of potentially restrictive measures. While Brazil was one of the main Latin American architects of the defeat of the free trade agreement, its economic policy has, in many cases, been in favour of signing free trade agreements.